Major

Players

BHEL is the largest engineering and manufacturing enterprise in India in the energyrelated/infrastructure sector, today. BHEL was established more than 40 years ago, ushering in
the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than
realized with a well-recognized track record of performance. The company has been earning
profits
continuously
since
1971-72
and
paying
dividends
since
1976-77.
BHEL manufactures over 180 products under 30 major product groups and caters to core sectors
of the Indian Economy viz., Power Generation & Transmission, Industry, Transportation,
Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14 manufacturing
divisions, four Power Sector regional centres, over 100 project sites, eight service centres and 18
regional offices, enables the Company to promptly serve its customers and provide them with
suitable products, systems and services -- efficiently and at competitive prices. The high level of
quality & reliability of its products is due to the emphasis on design, engineering and
manufacturing to international standards by acquiring and adapting some of the best
technologies from leading companies in the world, together with technologies developed in its
own
R&D
centres.
BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental
Management Systems (ISO 14001) and Occupational Health & Safety Management Systems
(OHSAS 18001) and is also well on its journey towards Total Quality Management.

BHEL has Installed equipment for over 90,000 MW of power generation -- for Utilities,
Captive and Industrial users.
Supplied over 2,25,000 MVA transformer capacity and other equipment operating in
Transmission & Distribution network up to 400 kV (AC & DC).
Supplied over 25,000 Motors with Drive Control System to Power projects,
Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.
Supplied Traction electrics and AC/DC locos to power over 12,000 kms Railway network.
Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organised around three business sectors, namely Power, Industry including Transmission, Transportation, Telecommunication & Renewable Energy - and Overseas
Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs
and
respond
quickly
to
the
changes
in
the
market.
BHEL's vision is to become a world-class engineering enterprise, committed to enhancing
stakeholder value. The company is striving to give shape to its aspirations and fulfill the
expectations
of
the
country
to
become
a
global
player.
The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every
employee is given an equal opportunity to develop himself and grow in his career. Continuous
training and retraining, career planning, a positive work culture and participative style of
management all these have engendered development of a committed and motivated workforce
setting new benchmarks in terms of productivity, quality and responsiveness.
Andrew
Yule
&
Co.
Ltd.
Andrew Yule & Co. Ltd. is a medium-large (~Rs. 6 Billion / US$ 124 mm) Indian manufacturing
and industrial conglomerate, approximately 97.5% owned by the Indian Government. It is the
main company owned by the Yule Group.It was incorporated as a private company in 1919. After
India gained independence from the British empire, the company was turned into a public
company in 1948.It is currently headquartered in Kolkata (formerly Calcutta), and has offices in
the main Indian cities.The majority of the products and services offered by the company's
subsidiaries
are
related
to
heavy
industry
and
engineering.

Bharat
Bhari
Udyog
Nigam
Limited
Government of India Enterprise, Bharat Bhari Udyog Nigam Limited (BBUNL) is a Holding
Company comprising of five Eastern India based engineering companies under its umbrella as its
wholly owned subsidiary units. BBUNL was established in 1986 as a Public Sector Holding
Company under the administrative control of the Dept. of Heavy Industry & Public Enterprises,
Govt. of India. The individual subsidiary units have more than 150 years of experience.
he Group is engaged in the design, manufacture, supply, erection and commissioning of a wide
range of Capital Goods and Turnkey Projects required by the Core Sector Industries such as
Railways, Ports, Coal Mines, Power, Petroleum and Oil, together with Construction of Highways &
Flyovers.
With an annual turnover of around US Dollar 100 million and having a total fabrication capacity
of 24,000 MT per annum, employing about 3,372 skilled personnel, BBUNL group companies
have been involved in most of the projects of national importance. Stepping up exports, BBUNL
group today has a diverse export profile, spread around forty countries worldwide.
Bharat Yantra Nigam Limited "The one-source, multi-resource engineering group"
The Bharat Yantra Nigam Ltd (BYN) is a holding company having in its fold six technically
competent engineering organisations forming one of the most versatile engineering groups.The
Group caters to the core sector industries with over 50 products, most of which are backed by
foreign collaboration. BYN provides its customers with one-source, multi-resource heavy
engineering solution and packages, including design, engineering, construction, fabrication,
manufacture
and
project
management.
BYN Group comprises of six subsidiary companies spread over five states :-

Bharat Heavy Plate & Vessels Ltd.(BHPV), Visakhapatnam (Andhara Pradesh)

Bharat Pumps & Compressors Ltd.(BPC), Allahabad (Uttar Pradesh)
Bridge & Roof Co. (India) Ltd.(B&R), Kolkata ( West Bengal )
Richardson & Cruddas (1972) Ltd .(R&C), Mumbai ( Maharashtra )
Riveni Structurals Ltd.(TSL), Allahabad (Uttar Pradesh)
Tungabhadra Steel Products Ltd.(TSP), Hospet (Karnataka)

Synergizing the strengths and capabilities of these six giant achievers, BYN has been handling
turnkey projects from concept to commissioning and has emerged as an established winner in
the international market. BYN Units have state-of- the-art technology coupled with latest
manufacturing facilities including full-fledged seafronts for handling oversized consignments for
exports.Each constituent Company is ISO 9001:2000 certified, renowned in its area of
specialization and recognized by leading international inspection agencies like Lloyds, Bureau
Veritas, Crown Agents, Sweco, EIL, PDIL, Humphry & Glassgow, Uhde, NPCIL, RDSO and BIS.
The group has 25 regional offices and 9 manufacturing units spread all over the country with a
turnover
of
more
than
US
$125
million.
With implementation of numerous innovative approach, BYN has been adapting to dynamic
environment by continuous diversification and moving towards the single vision- "BUILDING
TOMORROW'S WORLD TODAY" BYN's mission is to excel in every area of activity with a
synergistic
approach.
BHPV
(
A
BYN's
Group
Company
)
Bharat Heavy Plate & Vessels Ltd (BHPV) an ISO 9001:2000 Certified Company situated at Port
city of Visakhapatnam, AP India is a leading organization for Engineering, Manufacturing Testing,
Installation & Commissioning of various equipment, Cryogenics combustion System, and Turnkey packages required for Process Plant Industries Like Refineries, Petrochemicals, Chemicals,

Oil

and

Gas,

Fertilizers,

power

(including

Nuclear),

Steel

etc

With technical backup acquired from world renowned companies, BHPV's product range include
Pressure Vessels, Columns, Towers, Heat Exchangers, Air Fin coolers, Storage Tanks, Reactors,
Multilayer vessels, Nitrogen and Oxygen Plants, Cryogenic Storage Tanks, Purge Gas Recovery
Units, Evaporation plants, Boilers, Fired heater, Deaerators, Steam Condensers, Fired Heaters,
Skid Mounted packages for offshore operations and system packages like Sulpher Recovery
units, Vacuum Ejector system, Crude Stabilization Unit, LPG Storage and handling System etc
Bharat
Pumps
&
Compressors
Limited
(
A
BYN's
Group
Company
)
BPC was incorporated in 1970 with an objective of indigenous manufacture of process pumps,
gas compressors and high pressure seamless gas cylinders. With international technical
collaborations - Pomps Guinard, France; Nuovo Pignone, Italy; Oil Well, USA; Uraca, Germany;
B.J. Hughes, USA; Coyne, USA and others, the company has established itself as a well-known
manufacturer of a wide range of high-tech products in the fluid- handling system. In fact, BPC is
the exclusive manufacturer in the country of carbamate and ammonia pumps for fertilizer plants,
mud pumps, cement pumping units and high-pressure reciprocating gas compressors for the oil
and gas industry.

Some of the other products manufactured by BPC include centrifugal pumps, reciprocating
plunger and piston pumps, nuclear pumps, cylinder cascades, compressed natural gas
compressors (CNG) and welded and seamless high pressure gas cylinders. All these products are
built to international design codes under the surveillance of reputed inspection agencies like
Lloyds, Bureau Veritas, Snam Progetti, Humphry and Glassgow, EIL, PDIL, NPCIL, BIS and CCE
etc. BPC is an ISO9001 certified company for design manufacture and supply erection and
commissioning
of
rotating
equipment
like
Pumps
and
Compressor
etc.
All of these equipment are used in core sector industries such as oil and gas exploitation,
refineries, chemicals, petrochemicals, fertilizers, air and gas separation plants, thermal and
nuclear
power
plants
and
the
defence
industry.
The Company's major clients, to name a few, are the Oil & Natural Gas Corporation Ltd., Oil
India Ltd., Indian Oil Corporation Ltd., Krishak Bharti Co-operative Ltd., Indian Petrochemical
Corporation Ltd., Indian Farmers Fertilizer Co-operative Ltd., Gas Authority of India Ltd., OIL,
and
Nuclear
Power
Corporation
Ltd.
The equipment supplied by BPC includes :-

Carbamate and ammonia pumps to Krishak Bharati Co-operative Ltd., Rashtriya

Chemicals & Fertilizers Ltd., Chambal Fertilizers Ltd., and Tata Chemicals.
Cementing units to Oil & Natural Gas Corporation Ltd.
Mainline oil pumps for Oil & Natural Gas Corporation Ltd. at Bombay High.
Pipeline pumps to Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and
Hindustan Petroleum Corporation Ltd.
Bone dry Nitrogen Compressors for Indo Gulf Fertilizers Corporation Ltd.
High Pressure Compressed Natural gas (CNG) Compressors to Gas Authority of India Ltd.
Sucker-rod pumping units to Oil & Natural Gas Corporation Ltd.
Hydrogen Make-up Compressors to IOCL's Gujarat Hydrocracker Project at Baroda.
High pressure seamless oxygen and DA cylinders to innumerable gas manufacturers
including a large consignment exported to Algeria.

Bridge & Roof Co. ( India ) Limited ( A BYN's Group Company )

B&R was incorporated in 1920 and is one of India 's premier construction companies. The
company undertakes all categories of Civil and Mechanical construction related to mega projects

like refineries, fertilizers, power, cement, steel and non-ferrous metal plants, chemical
complexes,
storage
tanks
etc.
both
in
India
and
abroad.
Major Civil Construction jobs include heavy foundation in various projects, prilling towers and
parabolic silos in fertilizer plants, high-rise buildings, concrete bridges, sports and stadium
complexes
and
high
concrete
chimneys
etc.
Other diverse civil construction activities include cooling towers, mechanized construction of
roads and high-ways, piling (both bored and driven) and soil densification jobs, marine berth
construction and turnkey construction of raw water and effluent treatment plants. The company
employ the most modern methods of construction in all its civil engineering works, including Slip
form system for tall structures and various mechanized equipment like Tower Cranes, Truck
Mixers, Batching Plants, Dozers, Excavators, Dumpers etc., keeping pace with modern
construction
methodologies.
B&R has been marching towards excellence and expertise in Mechanical Construction. The major
mechanical works include heavy structural steel work of various projects, construction of all
types of heaters, furnaces including blast furnace, pipelines, special pipes, steel bridges and
turnkey
construction
of
floating
roof
storage
tanks
for
oil
refineries,
etc.
These have been augmented by diversifying in cryogenic storage tanks, and turnkey construction
of zero flare group gathering stations, oil terminals, ore beneficiation plants, non-ferrous
extraction
plants
and
sulphuric
acid
plants
etc.
The Company has also executed turnkey contract for 65,000 cu.m. capacity storage tanks,
including civil and mechanical construction and it can claim to be the pioneer in this field.
Besides, B&R has established itself as India 's foremost and most versatile manufacturing and
construction organization in the field of structural work . It has executed contracts for major
steel plants, power stations, industrial and office buildings, highways and railway bridges, sports
stadia
etc
B&R also undertakes the manufacture of Steel Structures and Railway Bridge Girders, Bunk
Houses, LPG Storage Bullets, Pressure Vessels and Heat Exchangers at its workshop at Howrah .
It has also taken up manufacture of Bailey Type Unit Bridges , Forged Flanges, House on Wheels
and
Truck
Mounted
Domestic
Containers
etc.
Some
of
B&R's
high
profile
clients
include:
Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Bongaigaon Refinery and
Petrochemicals Ltd., HPCL, Cement Corporation of India Ltd., Mangalore Refineries and
Petrochemicals Ltd., Damodar Valley Corporation, National Thermal Power Corporation, Oil and
Natural Gas Corporation Ltd., Rajasthan Atomic Power Project, Indian Railways- Eastern & South
Eastern, P.W.D., U.P., Tata Engineering & Locomotive Co. Ltd., Cochin Refineries Ltd., His
Majesty's
Government
of
Nepal-Department
of
Roads.
Richardson&
Cruddas
Limited
(
A
BYN's
Group
Company
)
Richard and Cruddas (1972) Ltd. (R & C) Mumbai was established as a small foundry in 1858 at
Byculla, Mumbai and gradually emerged as a leading structural engineering company in Western
India . The company was nationalized in 1973 and has four manufacturing units today - one each
at Byculla and Mulund in Mumbai, at Ambattur in Chennai and at Hingna in Nagpur. The
company manufactures steel structures, transmission line and microwave towers on turnkey
basis, railway points and crossing, steel turn out sleepers, rubber machinery, tubular structures
for off shore platforms, turnkey sugar projects, pressure vessels, heat exchangers, LPG tankers,
horton spheres, dished ends, India Mark II/III hand pumps, water and sewage treatment plants,
refrigeration compressors, condensing units and refrigeration application products. It also offers
services like Tower Testing up to 400KV D/C, Environmental Impact Assessment Studies and
Laboratory
Testing
of
Industrial
Waste
and
Effluents.
R&C has established its presence abroad through the export of its products to countries like

Afghanisthan , Botswana , Burma , Ethiopia , Guinea , Kampuchea , Kenya , Madagascar , Nepal

, Nigeria , Philippines , Salisbury , Sierraleone , Singapore , Sri Lanka , Sudan , Tanzania ,
Thailand
,
Uganda
,
Upper
Volta
and
Zaire
.
Some of R&C's important clients are the Indian Railways, Department of Atomic Energy,
Department of Space, Bharat Heavy Electrical Ltd., Oil and Natural Gas Corporation Ltd.,
Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., Indian Oil Corporation
Ltd., Rashtriya Chemicals & Fertilizers Ltd., HMT Ltd., Dunlop India Ltd., Modi Rubber Ltd., J.K.
Tyres,
Larsen
&
Toubro
Ltd.
Others : All India Radio, National Thermal Power Corporation of India Ltd., Power Grid
Corporation Ltd., State Electricity Boards, Indian Post and Telegraphs, Damodar Valley
Corporation,
etc.
Prestigious projects handled by R&C include

Cargo & terminal buildings for Kuwait International Airport

2500 TCD sugar plant on turnkey basis at Kaithal, Haryana
1250 TCD sugar plants on a turnkey basis for EPIL and NHEC including Shri Vithal
Sahakari Sakhar Karkhana Ltd., Samarth Sahakari Sakhar Karkhana Ltd., and Vighnahar
Sahakari Sakhar Karkhana Ltd., in Maharashtra
Two 132 KV D/C transmission line tower projects on a turnkey basis for his Majesty's
Government of Nepal
400 KV S/C Karadi-Satpura transmission line towers on turnkey basis for NTPC, New
Delhi
400 KV S/C Jamshedpur-Rourkela and Durgapur-Jamshedpur transmission line towers for
Power Grid Corporation of India, New Delhi
220 KV D/C transmission line towers for Damodar Valley Corporation, Kolkata
Complete support structures for SLV 3 for the Department of Space
Water, sewage and effluent treatment plants and consultancy services for HMT,
Department of Space, Brook Bond India Ltd.; T.I. Cycles of India Ltd., Anglo-French
Textiles Ltd
Refrigeration equipment for dairy development projects in Tamil Nadu, Andhra Pradesh
and Pondicherry
Extra deep well India Mark II/III hand pumps to Sokoto Agricultural Development
Projects, Nigeria, Ground-water Survey Development Agency, Pune, GWS&S Board,
Gujarat
Reconstruction work for large number of school buildings in Nepal for His Majesty's Govt.
of Nepal
Points and crossings and steel turnout sleepers for Indian Railways

Triveni
Structurals
Limited
(
A
BYN's
Group
Company
)
Triveni Structurals Limited (TSL) was founded in 1965 as a joint venture of the Government of
India and Voest-Alpine, a leading industrial house of Austria . It has established itself as one of
the leading construction companies which is involved in design, engineering, fabrication,
installation and commissioning of sophisticated technological structures and fabricated
equipment for a diverse range of core sector applications. TSL is renowned for its proficiency and
excellence in the turnkey construction of technological steel structures, hydro mechanical
equipment viz. gates, hoists, penstocks and process equipment viz. pressure vessels, LPG
bullets, gas holders and separators. Besides, TSL also produces a wide range of miscellaneous
equipment such as furnaces, stacks, silos, bunkers, pit-head frames etc. The company also
undertakes the execution of complex and multi-disciplinary projects such as turnkey execution of
passenger and material ropeways, rocket launching facilities, microwave, radar and VLF
communication systems with self supporting tower/guide masts for television, power
transmission
lines
upto
400
KV.
etc.

TSL's areas of operation include thermal, hydel and nuclear power stations, steel plants,
fertilizers, petrochemicals, chemicals, refineries, railways, defence, space and TV relay
transmission
and
microwave
communication
networks.
TSL's proven design and quality products conforming to international standards have received
wide recognition in national and international markets. These include hydraulic structures and
hoists supplied to Cambodia, Thailand, Iraq, Tanzania and Zambia and transmission lines in
Mauritius
,
Nepal
,
Thailand
and
Malaysia
.
Some of TSL's major clients are the State Electricity Boards, Doordarshan, All India Radio,
Ministry of Defence, Power Grid Corporation of India Ltd., State Irrigation Departments, Steel
Authority of India Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., Atomic
Energy
Commission
and
the
Indian
Space
Research
Organization.
Prestigious projects designed and commissioned by TSL include:

Unique launch pad, mobile service tower and umbilical mast, the first of their kinds in the
country, for the PSLV and GSLV Projects of the Indian Space Research Organization,
Sriharikota
150 metres free-span super-dome roof structure for the indoor stadium, Asiad' 82
Asia 's largest radial gates of size 18.28 X 17.4 M at Srisailam
Longest 4 Km. bi-cable Zig-Back type passenger ropeways at Joshimath (Auli)
VLF communication system for Indian Navy
LD convertor shop structures for TISCO modernization
Asia 's tallest self supporting TV Tower at Mumbai - 300m. high
1 lac cu.m. capacity MAN-oil seal type and WIGGIN - fabric seal type gas holders for
Durgapur and Vizag Steel Plants
Coal Washery for CIL at Nandan
230/132 KV Transmission Line Projects in Thailand and Nepal

Tungabhadra
Steel
Products
Limited
(
A
BYN's
Group
Company
)
Tungabhadra Steel Products Limited (TSP) was set up in 1960 as a specialist in the area of water
management and control, through the manufacture and supply of hydro mechanical equipment
like hydraulic gates and points cranes (EOT and gaudy ) and steel structures necessary for core
sector
projects
like
irrigation
and
power.
Today, TSP has completed over 200 projects in India and is the leader in its field. With a
strength of over 500 qualified and experienced personnel, TSP has over the years developed vast
expertise in carrying out turnkey jobs and has specialized in the design, manufacture and
installation of hydraulic gates and various other steel structures and equipment.

Some of the products manufactured by TSP are building structures, conveyor drums, cranesEOT, gantry and Goliath, hoists - hydraulic, chain, rope drum and screw, hydraulic gates - radial,
fixed wheel and slide, penstock pipes, rubber seals for hydraulic gates, solar energy appliances,
special structures, transmission line towers, sub-station structures and mini hydel plants.

TSP has also developed fluro carbon cladded rubber seals for gates. These are more flexible and
have a low co-efficient of friction leading to substantial reduction in hoist capacity which reduces
project cost substantially.

TSP's prestigious clients include State Irrigation Departments and Electricity Boards, Power
Corporations - Tehri Hydro Development Corporation National Hydro Electric Power Corporation,

National Thermal Power Corporation Ltd., Karnataka Power Corporation, major public sector
undertakings - Bharat Heavy Electricals Ltd., Indian Railways, National Projects Construction
Corporation, National Building Construction Corporation, Hindustan Steel Construction Ltd., Steel
Authority of India Ltd., Kudremukh Iron Ore Company Ltd., and Chukka Hydel Project, Bhutan.
Prestigious projects undertaken and completed by TSP include:

Spillway and sluice gates for Srisailam, Pochampad and Nagarjunasagar in Andhra
Pradesh, Dantiwada, Kadana and Ukai in Gujarat, Tungabhadra, Linganamakki, Kalinadi,
Narayanpur and Supa projects in Karnataka, Kuttiyadi and Iduki hydel projects in Kerala,
Barna, Mahanadi and Sukta projects in Madhya Pradesh, Balimela and Salandi projects in
Orissa, Kota and Mahibajaj Sagar projects in Rajasthan, Lower Jhelum and Salal projects
in Jammu & Kashmir, Beas project in Punjab and Jaldhara in West Bengal.

Penstock pipes for Tungabhadra, Supa and Almatti in Karnataka, Mettur Hydel in Tamil
Nadu and Chukka Hydel project in Bhutan.

Plant and building structurals for Bokaro Steel Plant, Kudremukh Iron Ore Company
Limited, Sponge Iron India Limited, Kothagudem.

Spillway Crest Radial Gates with Rope Drum Hoists and embedded parts and stoplogs for
Sardar Sarovar Narmada Project in Gujarat.

Renewable Energy
Definition: Renewable Energy is a natural energy which does not have a limited
supply. Renewable Energy can be used again and again, and will never run out.
OR
Renewable energy is used to describe energy sources that are replenished by natural
processes on a sufficiently rapid time-scale so that they can be used by humans more
or less indefinitely, provided the quantity taken per unit of time is not too
great. Renewable energy is derived from natural processes that are replenished
constantly. In its various forms, it derives directly from the sun, or from heat generated
deep within the earth.
Included in the definition is electricity and heat generated from:

solar,
wind,
ocean,
hydropower,
biomass,
geothermal resources, and
biofuels and hydrogen derived from renewable resources.

Although biomass is a renewable energy, this should not be mistaken for a clean energy
source. Although biomass is significantly cleaner than most fossil fuels such as coal and
oil, it still produces sulphur dioxide during electricity production.
Renewable energy replaces conventional fuels in four distinct areas:

Power Generation,
Hot Water/ Space Heating,
Transport Fuels, and
Rural (off-grid) Energy Services

Current Situation of Renewable Energy

Global Scenario:

In 2008, about 19% of global final energy consumption came from renewables,
with 13% coming from traditional biomass, which is mainly used for heating, and
3.2% from hydroelectricity.
New renewables (small hydro, modern biomass, wind, solar, geothermal, and
biofuels) accounted for another 2.7% and are growing very rapidly.
The share of renewables in electricity generation is around 18%, with 15% of
global electricity coming from hydroelectricity and 3% from new renewables.
Wind power is growing at the rate of 30% annually, with a worldwide installed
capacity of 158 gigawatts (GW) in 2009, and is widely used in Europe,Asia, and
the United States.
At the end of 2009, cumulative global photovoltaic (PV) installations surpassed
21 GW and PV power stations are popular in Germany and Spain.
Solar thermal power stations operate in the USA and Spain, and the largest of
these is the 354 megawatt (MW) SEGS power plant in the Mojave Desert.
The worlds largest geothermal power installation is The Geysers in California,
with a rated capacity of 750 MW.
Brazil has one of the largest renewable energy programs in the world, involving
production of ethanol fuel from sugar cane, and ethanol now provides 18% of the
countrys automotive fuel. Ethanol fuel is also widely available in the USA.
Globally, an estimated 3 million households get power from small solar PV
systems.
More than 30 million rural households get lighting and cooking from biogas made
in household-scale digesters.
Biomass cookstoves are used by 160 million households.

Indian Scenario:

Current installed base of Renewable Energy Sources(RES) is 18454.52 MW

which is10.63% of total installed base with the southern state of Tamil Nadu
contributing nearly a third of it (5008.26 MW) largely through wind power (as on
31/03/2011 by CEA)

R.E.S. INCLUDES :- SHP 2900 MW , WIND 12000 MW,B.P. & B.G. 2313.33
MW, U&I & SOLAR 114.74 MW
(SHP SMALL HYDRO POWER, B.P. BIOMASS POWER, B.G.- BIOMASS
GASIFIER, U&I URBAN & INDUSTRIAL WASTE)

India is the 4th largest country with regard to installed power generation capacity
in the field of renewable energy source.
The country has an estimated renewable energy potential of around 85,000 MW
from commercially exploitable sources: Wind, 45,000 MW; small hydro, 15,000 MW
and biomass/bioenergy, 25,000 MW. In addition, India has the potential to generate
35MW per square km using solar photovoltaic and solar thermal energy.
In July 2009, India unveiled a $19 billion plan, Jawaharlal Nehru National Solar Mission,
to produce 20,000 MW of solar power by 2020
Tamil Nadu accounts for one third of total RES installed capacity in India followed by
Maharashtra, U.P and Andhra Pradesh
The daily average solar energy incident over India varies from 4 to 7 kWh/m2
India has the fifth largest installed wind power capacity in the world.
The availability of biomass in India is estimated at about 540 million tones per year
covering residues from agriculture, forestry, and plantations. By using these surplus
agriculture residues, more than 16,000 MW of grid quality power can be generated.
India has reasonably good potential for geothermal; the potential geothermal provinces
can produce 10,600 MW of power.

Major Types of Power stations based on Renewable Energy Sources are:

1.
2.
3.
4.
5.

Solar Energy
Wind Energy
Biomass Energy
Geothermal
Tidal Energy

Solar Energy
India is both densely populated and has high solar insolation, providing an ideal combination
for solar power in India. India is already a leader in wind power generation (Wind power in
India) and, Suzlon Energy is one of the India-based pioneering industries in world to generate
non-conventional energy. In solar energy sector, some large projects have been proposed, and a
35,000 km area of the Thar Desert has been set aside for solar power projects, sufficient to
generate 700 to 2,100 gigawatts.
In July 2009, India unveiled a $19 billion plan, to produce 20 GW of solar power by 2020.Under
the plan,.
MORE

Wind Energy
The development of wind power in India began in the 1990s, and has significantly increased in
the last few years. Although a relative newcomer to the wind industry compared with Denmark
or the US, India has the fifth largest installed wind power capacity in the world.
As of 31 October 2009 the installed capacity of wind power in India was 11806.69 MW, mainly
spread across Tamil Nadu (4889.765 MW), Maharashtra (1942.25 MW), Gujarat (1565.61 MW),
Karnataka (1340.23 MW), Rajasthan (738.5 MW), Madhya Pradesh (212.8 MW), Andhra
Pradesh (122.45 MW), Kerala (26.5 MW), Odisha (2MW), West Bengal (1.1 MW) and other
states
MORE
Biomass Energy
Biomass (plant material) is a renewable energy source because the energy it contains comes from
the sun. Through the process of photosynthesis, plants capture the suns energy. When the plants
are burned, they release the suns energy they contain. In this way, biomass functions as a sort of
natural battery for storing solar energy. As long as biomass is produced sustainably, with only as
much used as is grown, the battery will last indefinitely.
In general there are two main approaches to using plants for energy production: growing plants
specifically for energy use, and using the residues from plants that are
MORE
Geothermal
The word geothermal comes from the Greek words geo (earth) and therme (heat). So, geothermal
energy is heat from within the Earth. We can recover this heat as steam or hot water and use it to
heat buildings or generate electricity.It is a natural part of the energy flow within the Earths
depths. Generally speaking, the further down one drills, the hotter the temperatures. Most of the
commercial-grade production geothermal energy is harvested along localized geothermal
systems, where the heat flow is near enough to the surface that hot water or steam is able to rise
either to the surface, or to depths that we can reach by drilling. Many of these regions occur
within the ring of fire, a ring of geothermal sites
MORE
Tidal Power
Tidal power is the only form of energy which derives directly from the relative motions of
the EarthMoon system, and to a lesser extent from the EarthSun system. The tidal forces
produced by the Moon and Sun, in combination with Earths rotation, are responsible for the
generation of the tides. Tidal power is the only form of energy which derives directly from

the relative motions of the EarthMoon system, and to a lesser extent from the EarthSun
system. The tidal forces produced by the Moon and Sun, in combination with Earths
rotation, are responsible for the generation of the tides

Tidal power
Define:
Tidal power is the only form of energy which derives directly from the relative motions of
the EarthMoon system, and to a lesser extent from the EarthSun system. The tidal forces
produced by the Moon and Sun, in combination with Earths rotation, are responsible for the
generation of the tides. Tidal power is the only form of energy which derives directly from
the relative motions of the EarthMoon system, and to a lesser extent from the EarthSun
system. The tidal forces produced by the Moon and Sun, in combination with Earths
rotation, are responsible for the generation of the tides.
Tidal power, also called tidal energy, is a form of hydropower that converts the energy
of tides into electricity or other useful forms of power.
Although not yet widely used, tidal power has potential for future electricity generation. Tides
are more predictable than wind energy and solar power. Among sources of renewable energy,
tidal power has traditionally suffered from relatively high cost and limited availability of sites
with sufficiently high tidal ranges or flow velocities, thus constricting its total availability.
However, many recent technological developments and improvements, both in design
(e.g. dynamic tidal power, tidal lagoons) and turbine technology (e.g. new axial
turbines, crossflow turbines), indicate that the total availability of tidal power may be much
higher than previously assumed, and that economic and environmental costs may be brought
down to competitive levels.
Because the Earths tides are caused by the tidal forces due to gravitational interaction with
the Moon and Sun, and the Earths rotation, tidal power is practically inexhaustible and
classified as a renewable energy source.
Global Scenario:

The first tidal power station was the Rance tidal power plant built over a period of 6 years
from 1960 to 1966 at La Rance, France. It has 240 MW installed capacity.
The first tidal power site in North America is the Annapolis Royal Generating
Station, Annapolis Royal, Nova Scotia, which opened in 1984 on an inlet of the Bay of
Fundy. It has 20 MW installed capacity.
The Jiangxia Tidal Power Station, south of Hangzhou in China has been operational since
1985, with current installed capacity of 3.2 MW. More tidal power is planned near the
mouth of the Yalu River.
The first in-stream tidal current generator in North America (Race Rocks Tidal Power
Demonstration Project) was installed at Race Rocks on southern Vancouver Island in

September 2006. The next phase in the development of this tidal current generator will
be in Nova Scotia.
A small project was built by the Soviet Union at Kislaya Guba on the Barents Sea. It has
0.4 MW installed capacity. In 2006 it was upgraded with a 1.2MW experimental
advanced orthogonal turbine.
Jindo Uldolmok Tidal Power Plant in South Korea is a tidal stream generation scheme
planned to be expanded progressively to 90 MW of capacity by 2013. The first 1 MW
was installed in May 2009.
A 1.2 MW SeaGen system became operational in late 2008 on Strangford
Lough in Northern Ireland.
254 MW Sihwa Lake Tidal Power Plant in South Korea is under construction and
planned to be completed by the end of 2010.
The contract for an 812 MW tidal barrage near Ganghwa Island north-west of Incheon
has been signed by Daewoo. Completion is planned for 2015.

A 1,320 MW barrage built around islands west of Incheon is proposed by the Korean
government, with projected construction start in 2017.

Other South Korean projects include barrages planned for Garorim Bay, Ansanman,
and Swaseongho, and tidal generation associated with the Saemangeum reclamation
project. The barrages are all in the multiple-hundred megawatts range.

Estimates for new tidal barrages in England give the potential generation at 5.6GW mean
power.

Station
Capacity (MW)Country
Comm
Rance Tidal Power Station
240
France
1966
Annapolis Royal Generating Station20
Canada
1984
Jiangxia Tidal Power Station
3.2
China
1980
Kislaya Guba Tidal Power Station 1.7
Russia
1968
Strangford Lough SeaGen
1.2
United Kingdom2008
Uldolmok Tidal Power Station
1.0
South Korea
2009
Indian Scenario:

A British tidal energy company, Atlantis Resources, is expected to set up a tidal power
plant with the capacity to generate over 250 MW in the Gulf of Kutch or Khambhat.
Indias first attempt to harness tidal power for generating electricity would be in the form
of a three MW plant proposed at the Durgaduani creek in Sundarbans delta of West
Bengal.
The Gulf of Kutch and Gulf of Cambay in Gujarat and Ganga delta in the Sunderbans,
the worlds largest mangrove, are the three sites identified as potential areas for tidal
power generation.

How Tide Generates:

Tidal energy is generated by the relative motion of the water which interact via gravity.
Periodic changes of water levels, and associated tidal currents, are due to the gravitational
attraction by the Sun and Moon. The magnitude of the tide at a location is the result of
the changing positions of the Moon and Sun relative to the Earth, the effects of Earth
rotation, and the local shape of the sea floor and coastlines. Because the Earths tides are caused
by the tidal forces due to gravitational interaction with the Moon and Sun, and the Earths
rotation, tidal power is practically inexhaustible and classified as a renewable energy source. A
tidal generator uses this phenomenon to generate electricity. The stronger the tide, either
in water level height or tidal current velocities, the greater the potential for tidal electricity
generation. Tidal movement causes a continual loss of mechanical energy in the Earth
Moon system due to pumping of water through the natural restrictions around coastlines, and
due to viscous dissipation at the seabed and in turbulence. This loss of energy has caused the
rotation of the Earth to slow in the 4.5 billion years since formation. During the last 620
million years the period of rotation has increased from 21.9 hours to the 24 hours we see
now; in this period the Earth has lost 17% of its rotational energy. While tidal power may
take additional energy from the system, increasing the rate of slowdown, the effect would
be noticeable over millions of years only, thus being negligible. Dynamically speaking, the
earth and the Moon are two masses that display centrifugal forces on one another. First, we
must consider a particle of mass m which is located on the earths surface. Given Newtons law
of gravitational state we introduce the equation:
F = G m1m2 R2
Where F is the force created between mass1 and mass2, G is the universal gravitational
constant whose value depends only on the chosen units of mass, length, and force
(typically 6.67 x 10-11 N m2 kg-2). If we then take the difference between the force towards
the moon and the force necessary for earths rotation we generate the tidal producing force.
Tidal Force = 2Gmm1a (1.2) R3
Where m is the mass of the earth, a is the mean radius of the earth and R is the distance between
earth and the lunar surface. The net effect of this equation is to displace particle m1 away
from the center of the earth. Thus, we can conclude that diurnal tides are generated because
the maxima and minima in each daily rotation are unequal in amplitude. (Pugh 64) This is
ultimately, in its simplest form, the process behind the half-day cycle which results in a period
of 12 hours 25 minutes between successive high waters. Figure 1.3 demonstrates Tidal Force
and its tendency to create bulging at the waters surface; thus making for the differential
sloshing effect.
Spring-neap tides are a second significant tidal pattern type. The fortnightly modulation in
semidiurnal tidal amplitudes is due to the various combinations of lunar and solar semidiurnal
tides. The minimum ranges occur at the first quarter and last quarter. This is because at
times of spring tides the lunar and solar forces combine together, but at neap tides the
lunar and solar forces are out of phase and tend to cancel. (Pugh 82) Figure 1.4 illustrates the
difference between Neap and Spring ellipses; notice during the Spring Tide, the ellipse is drawn

outward toward the Sun, allowing for increases tidal activity in terms of range. During the Neap
Tide, one gets a significant decrease in tidal activity due to the gravitational strain at the
poles instead o f at the Equator. Unfortunately, although predictable, this tidal pattern
makes for increased variation in terms of expected power output; if tidal power produced
25% of a large citys power peak load, the city would be forced to find another source of
power during times of Neap Tide. This has always been a significant factor when
considering tidal energy schemes as a significant portion of a populations energy requirement.
How it Works:
In order to create enough electricity to be economically feasible, the size and configuration of the
structure has to be increased tremendously. Tidal Energy consists of generating kinetic energy
from potential energy. If falling water is forced through ducts with rotators attached to them, the
rotors will turn driving electric generators (Mc Gown 182). Generating electricity from tides is
very similar to hydroelectric generation, except the tides flow in two directions rather than one.
For tidal power, the most common generating system is the ebb generating system. In the
scheme, a dam, or barrage is constructed across an estuary. The tidal basin is allowed to fill when
the sluice gates are opened and high tide is in. The gates are then closed when the tide turns
trapping the water behind the gates. Once low tide is reached, the gates are opened the water
flows through the turbines located underneath the water generating electricity. The basic concept
for this type of scheme is extremely similar to that used at the Eling Mill. The schematic below
shows the basic concept used in an ebb generation scheme.
In some cases, double effect turbines are used, which are able to generate electricity when then
basin is filling. In this scheme, sluice gates located on either side of the turbine are opened, when
the tidal basin is low, and the sea is at high tide level. Water will rush into the tidal basin, turning
the turbines and generating electricity. This occurs until the water level on either side of the
barrage is equal. At this point, the sluice gates are closed until the sea is at its low tide height.
When this occurs, the gates are opened and water flows from the basin to the sea, generating
electricity a second time.
Construction
In terms of construction, caissons, which are large units of concrete or steel that, are
manufactured at shore-based construction yards are delivered to water sites by barges and then
positioned by cranes to allow for the structures to correctly settle on the marine floor. Overall,
this is an extremely expensive process. Another method calls for constructing diaphragm walls of
reinforced concrete within a temporary sand island. But the approach offers no significant cost
advantages over caissons and studies for the proposed Mersey Barrage in the United Kingdom
indicate that the use of diaphragm walling could prolong construction time by about two years.
(Johansson 519)
Location
Historically, tidal mills were usually built on inlets branching off tidal estuaries. An estuary is a
wide part of a river where it meets the sea. It creates a unique environment because both

freshwater and saltwater are present. Tidal estuaries are characterized by narrow, shallow
channels with a relatively constant width and depth. Tides are greatly amplified in these areas of
smaller volume, which causes the tide to travel up the river. Tidal ranges vary greatly from once
place to another because of the geography of the land, but the most suitable tidal ranges are
between five and ten meters.
Tidal Barrage
The tidal barrage is similar to a dam, which creates a tidal basin used for electricity generation.
The structure is extremely large, spanning the entire width and height of the estuary. The bottom
of the barrage is located on the sea floor and the top is above the highest level that the water can
get at high tide.
Evolution of Turbine Types
Waterwheel Turbines
Waterwheels were used from the invention of the tidal mill until the
Undershot Wheel

Overshot Wheel

Breast Wheel
The first turbine used was the basic undershot waterwheel. This is probably the oldest type of
waterwheel dating back over two thousand years. It is mounted vertically on a horizontal axle
and it has flat boards located radially around a rim. It is turned by water flowing under the wheel
and striking the boards.
The second type of turbine used was an overshot waterwheel. The overshot wheel is much more
efficient than the undershot wheel. Again, this turbine is mounted vertically on a horizontal axle,
but the overshot wheel has buckets mounted around the rim. Water from above flows into the
buckets causing one side of the wheel to be heavier. Gravity then acts on the heavier side causing
the wheel to turn.
The third type of turbine used was a breast-shot waterwheel. This type of wheel was developed
in the late middle ages and combines the previous two waterwheels. It has buckets on a rim that
face the opposite direction of the buckets on the overshot wheel. Water then fills the buckets at
the middle of the wheel. Again, gravity acting upon the water in the buckets causes the wheel to
turn.
Recent Turbine Developments
Bulb turbines incorporated the generator-motor unit in the flow passage of the water. These
turbines are used at the La Rance power station in France. The main drawback is that water flows
around the turbine, making maintenance difficult.

Rim turbines allow the generator to be mounted in the barrage, at right angles to the turbine
blades. It is difficult to regulate the performance of these turbines and it is unsuitable for use in
pumping.
Once the development of more tidal schemes occurs, additional types of turbines will be tested
and implemented.
HOW IT WORKS
During high tide, water will flow from sea to tidal basin through turbine, thus producing
electricity. During low tide, water will flow from tidal basin to sea through turbine producing
electricity.
Advantages

Once youve built it, tidal power is free.

It produces no greenhouse gases or other waste.
It needs no fuel.
It produces electricity reliably.
Not expensive to maintain.
Tides are totally predictable.
Offshore turbines and vertical-axis turbines are not ruinously expensive to build and do
not have a large environmental impact.

Disadvantages

A barrage across an estuary is very expensive to build, and affects a very wide area the
environment is changed for many miles upstream and downstream. Many birds rely on
the tide uncovering the mud flats so that they can feed. Fish cant migrate, unless fish
ladders are installed.
Only provides power for around 10 hours each day, when the tide is actually moving in
or out.
There are few suitable sites for tidal barrages.

Chemicals

Overview of Oil & Gas

Pharmaceutical
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Preface | Foreword | Executive Summary| Overview | Oil & Gas | Power | Interview | Company Profiles | Partners | Launch Event | Editorial
Team

Overview of Power

Evolution of the Indian Oil & Gas Industry

Structure & Current Status
Oil Pricing in India
Key Regulatory Policies
Key Issues & Future Outlook
Development of Alternate Fuels
Regulatory and Policy Environment
Power Generation
Power Transmission
Power Distribution
Demand Side Determinants
IOC
Reliance Industries Limited
BPCL
HPCL
ONGC
Mangalore Refinery & Petrochemicals Limited (MRPL)
NTPC Ltd
Reliance Infrastructure Limited
The Tata Power Company Limited
Power Grid Corporation of India Ltd
Torrent Power Limited
Neyveli Lignite Corporation Ltd
Bengaluru
Kolkata

Overview
India is among the largest power-generating countries in the world with an installed capacity of 156.8 GW
(as of Jan 2010). Over the last 6 years, the installed capacity of the country grew at a CAGR of 5.60% while
the total power generated grew at a CAGR of 5.33%. The government has set an ambitious capacity
addition target of 78.55 GW to be achieved by 2012.

Generation Capacity based on Ownership

The ownership of generation capacity lies in the hands of the Centre, State, and Private sector players. In
the Centre, generation is mainly owned by NTPC, NHPC, and NPCIL. States have their separate corporations
while in the private sector, Tata Power, Reliance Energy, GMR, and Jai Prakash Hydro are the major players.
While the public sector players generate electricity from all sources (coal, gas, nuclear, hydro, renewable
energy sources or RES), the private players generate power from hydro, thermal, and Renewable Energy
Sources (RES) only. No private player is in the nuclear power generation space, but as Indias nuclear
isolation has come to an end now, this space is likely to witness the entry of private players.

Over the last 2 years, however, private capacity increased from 13.7% (as on Jan 2008) to 18% (as on Jan
2010) and there was a simultaneous fall in the states share in capacity from 52.8% (as on Jan 2008) to
50% (as on Jan 2010). The Centres share, also, decreased (though marginally) from 34% (as on Jan 2008)
to 32.1% (as on Jan 2010).
Generation Capacity based on Location
The total power generation capacity in India can also be studied on a regional basis. The Western region has
the highest share in the all-India power generation capacity at 31.3%. In the Western region, power is
mostly generated from thermal source; in fact around 34% of the countrys thermal capacity is installed in
the Western region. The Northern region has substantial hydro potential and it accounts for 36% of the
countrys hydro capacity, but still most of the hydro potential is untapped. The Southern region has the
largest source of renewable (RES) generation and it accounts for 51.4% of the countrys (RES) generation
capacity. The Eastern region has huge coal reserves and major portion of its capacity comes from coal; due
to the easy availability of coal, most of the pit head coal base power plants are situated in the eastern
region.

Generation Capacity based on Feedstock

The generation capacity in India comprises of a mix of thermal, hydro, nuclear, and renewable energy. Over
the years thermal energy has become a dominant source of power generation. As of Jan 2010, thermal
energy contributed 64% (100,351.5 MW) of the countrys total power generating capacity, while hydro
energy contributed 24% (36,885.40 MW), renewable energy sources around 9.8% (15,427.10 MW), and
nuclear energy contributed 3% (4,120 MW) to the total capacity.
Thermal fuel maintains a leading position among the fuel used for power generation. In spite of efforts to
reduce the countrys dependence on thermal base generation, the cost (relatively higher for other sources of
generation) or the unavailability of other sources of energy have remained a constraint. During the Tenth 5year Plan, the planned capacity addition had a greater focus on the thermal generation space and the same
trend has been continuing during the Eleventh 5-year Plan. Most of the power generation capacity will
continue to be thermal as most upcoming projects are coal-based.
Hydropower is an environment-friendly alternative for thermal power generation and the operating cost for
running a hydro plant is also very low; however, its share in generation has remained constant and has not
attracted much investment. The hydro-thermal mix has maintained a leading position over the years, but
the share of hydropower plants in total generation has fallen over the years. In the mid-eighties, the share
of hydropower in total generation was comparable to that of thermal generation, but, since then,
investments in hydropower generation have risen at a lower rate than investments in thermal generation.
Though the operating cost for hydropower plants is lesser, the capital investment required in the initial stage
is huge. Investors have shied away from the sector because of delays in environment clearances that have
made the sector an unfavourable choice and have restricted capacity addition in the sector. Thermal energy,
on the other hand, has gained a greater share over the 5-year plan periods and its growth rate has also
been much higher, as investments from public as well as private sectors have continued to pour in. In the
Eleventh Plan also capacity addition focuses more on thermal power generation, which suggests that
thermal energy will remain the dominant source in the coming years.
Nuclear energy has had a very small share in the power generation pie, but its share in total power
generation is likely to rise post the Indo-US Nuclear Civilian Agreement. India has only one nuclear power
generation company, NPCIL, with a capacity of 4,120 MW, but due to recent developments many private
and public sector utilities have envisaged plans for setting up nuclear plants. NTPC, Tata Power, GMR,
Reliance Infrastructure, and GVK are some such companies.
The renewable sources of power generation include wind power, small hydro power, biomass power, Urban
& Industrial (U&I) waste to power, solar power etc. Among these sources, wind power has a leading share of
70% in the RES, while small hydro has 7%, cogeneration-bagasse 7%, biomass 5% and solar & waste to
energy constitute less than 1%.
India has an expansive coastline belt from Gujarat to Kerala and from Kerala to West Bengal that provides
ample scope for wind power generation. Indias wind power potential has been assessed at 45,000 MW.
During the last 5 years, wind power generation projects received increased investments from the
government as well as from private players, which resulted in significant capacity additions.
Indias solar power capacity is around 2 MW and the share of solar power in the current fuel mix is not very
high. However, the trend is all set to change as large number of small and large-size solar projects are
coming up in the near future. The Rajasthan government is set to approve solar thermal projects of 250
MW. Many other states like Haryana and West Bengal are implementing solar power projects.
During the last 6 years (FY04-FY09), growth in power generation capacity based on different fuel types was
impressive. Among the sources, renewable energy sources grew at a CAGR of 39.71%, and most of the
growth in this segment came from wind power. The capacity addition in the segment based on thermal
energy grew at a CAGR of 3.7% (FY04-FY09), hydro energy at 4.6%, and nuclear energy at 8.7% during the
same period.
Future additions to power generation capacity are likely to be affected by a number of factors, including
signing of the Indo-US nuclear deal, which could lead to more generation capacity being set up on nuclear

fuels, the Ultra Mega Power Projects (UMPPs) and Merchant Power Plants (MPPs), which would largely be
based on coal, and the policy of basing 5% of generation capacity on RES.

Power plants based on scale

Ultra Mega Power Projects (UMPP)
The UMPPs are large-sized projects with a capacity of around 4,000 MW. Such projects are awarded under a
bid process, where the government identifies specific project, location, fuel linkages, clearances and the
bidders quote the most beneficial price of power for that specified project. This initiative started out with
four ultra mega projects and now there are nine in the pipeline. The Central Electricity Authority (CEA),
through a preliminary scrutiny, has identified a number of potential sites in India; in the first phase, four
projects at pit head site and five projects at coastal locations were identified for development of UMPP. The
projects at pithead locations use domestic coal for fuel and the ones at coastal sites use imported coal as
fuel.
The UMPPs, each having a generation capacity of 4,000 MW, will help the countrys growing demand for
power and will aid overall economic growth. Further, the Electricity Act 2003 has opened doors for
privatisation, which will broaden the prospects of financial credibility of the UMPPs and will also help in
successful implementation of the MPP.
A Special Purpose Vehicle (SPV) is set up for these plants to reduce the difficulties faced by the investors in
early stages of project development. The payment securities of these projects are done through escrow
mechanism. The projects are awarded on the basis of domestic and imported coal, respectively. Three
UMPPs are awarded till date, Sasan in Madhya Pradesh, Mundra in Gujarat, and Krishnapatnam in Andhra
Pradesh.
These projects get the privilege of UMPPs in extension of MPP and are offered the following concessions:

Zero customs duty on imports

Exemption on income tax for 10 years preferred by developer within 15 years after commissioning
of the projects
Exemption from local taxes and duties when a directive is issued for the same by the Government of
India.

Merchant Power Plants

India is on its way to develop an electricity market and the merchant power plant is a new initiative in this
direction. The merchant power plant enables generators to choose a buyer with negotiated price. This
method has discarded the old pattern of long-term agreement with the buyer (as per provision in the
Electricity Act 2003) and has allowed only 49% of the project to be bound under long-term contracts and
the remaining 51% to remain untied. The fuel needs of the project are likely to be facilitated by Ministry of
Power (MOP) in consultation with the Ministry of Coal.
Merchant power plants can either contribute towards regular supply of electricity or support the power
system when the demand is high. Merchant power plants are creating additional generation reserve through
their 51% untied capacity and therefore can relieve Indias power woes; currently (FY09) India is facing a
peak deficit of around 12% and an energy deficit of 11%. The merchant power plants are the ideal input for
a future competitive electricity market. These plants have ample scope for selling their power through
exchanges as trading is now recognised as a separate activity under the Electricity Act 2003. Open access in
transmission will provide a right of way to sell power to buyers at any location. The merchant power plants
have many options to sell power to customers through different channels.
Captive Power Plants
A captive power plant (CPP) is any generating station set up by an organisation to meet its own power
requirement. The CPPs cater to the electricity requirement of industrial units in a large scale. The captive
power generation capacity in India is 19,509.49 MW (Apr 2008).
The Electricity Act 2003 encouraged captive power generation in India and further provisions in the Act took
captive power to competitive market by opening the market for players to invest in captive power
generation. Open access allows captive generators to sell power to any buyer no matter what the location.
CPP capacity grew at a CAGR of 5% during the last 5 years (FY04-FY08) and industrial and commercial
demand were the drivers of growth. Increasing demand from industrial consumers, who are suffering from
inadequate power supply and high tariff rate charged by State Electricity Boards (SEBs), find captive
generation as the best alternative for meeting their demand. Coal-based generation dominates captive
power generation also and constitutes around 42% of the captive capacity. Another reason for higher
capacity of coal-based captive generation is the cost of generating electricity from coal, which is cheaper
than diesel and naphtha. Different industries like manufacturing, commercial, service, hospitality, as well as
educational institutions have captive power capacity based on diesel generators. In recent times,
cogeneration and waste heat recovery are emerging as the best alternatives among all fuel types for CPPs,
as companies get the Clean Development Mechanism (CDM) benefits under this system in addition to
achieving energy efficiency.
The future of captive generation is very bright as industrial demand will keep on increasing and activities like
trading through exchange will provide a platform to captive generators to sell surplus power at a profitable
margin.
Regulations in Power Generation
Specific Policies for Power Generation
The Indian government over the last 15 years has introduced several policies for promoting power
generation. The governments liberalisation policies of 1991 and the consequent amendment in the
Electricity (Supply) Act have given way for a new framework of the industry that involves private efforts and
investments. Further, the government has taken measures to improve investments in the power sector,
especially from private players. Some of the major policy initiatives in generation are:
Private Power Policy 1991 Under this policy any private company can set up thermal projects, hydro
projects and wind or solar projects of any size. Foreign investors are also allowed to invest in projects with
ownership upto 100% with government approval. Due to this policy, many private players entered the
power generation business during this period and set up generation plants.

Liquid Fuel Policy 1995 This policy permitted private players to set up short gestation power projects using
fuels like naphtha and fuel oil. The policy has in a way aided quick capacity addition from these liquid fuelbased power plants and encouraged the use of liquid fuel in power plants; under this policy, capacity
addition of 12,000 MW was planned based on liquid fuel.
Policy for Renovation and Modernisation of Existing Plants 1995 The government decided that Renovation
and Modernisation (R&M) of generating stations was beneficial and efforts were taken to realise these
benefits. Both public and private investments were made and the funds were raised through traditional
funding like loans from financial institution and external agencies. However, the ownership of renovated
plants remained with SEBs. Under a separate option, the R&M was carried out through privatisation or
through transfer of ownership. While taking any of the options, factors like relative economics, financing
other priority areas and the result price of energy was considered. The participation from private investment
in R&M programme, however, was on a lease, rehabilitate, operate and transfer (LROT) sale of plant and
joint venture between SEBs and private companies basis.

Hydropower Policy 1998 Hydropower is economic, non-polluting, and environment-friendly; due to all
these benefits, the government announced a policy on hydropower development for exploiting the vast
hydropower potential available in India. Several initiatives were taken to provide incentives to hydropower
projects, which included the following:

Tariff was rationalised for hydro projects

The procedures of tech-economic clearance and the ceiling limits for techno-economic clearance by
CEA were simplified
Small hydro projects upto 25 MW capacity were transferred to the Ministry of Non-conventional
Energy Sources (MNES)
Hydropower projects on MOU route were enhanced and notified to cover geological risks.

Mega Power Policy 1998 This policy focused on the development of projects with capacity of 1,000 MW and
more, those catering power to more than one state and considered them as a mega power project. Projects
were being awarded through competitive bidding mechanism. CEA, Power Grid and NTPC were to provide
support in identifying sites, arranging transmission network and preparation of feasibility report. This policy
was revised in 1998 and the revised policy offered some fiscal incentives. The incentive given to these
projects were:

Zero customs duty (capital equipment imported for these projects was declared customs free)
Deemed export benefit was conferred as per the EXIM policy
Rapid clearances
Income-tax holiday regime

Exemption from sales tax and local levies etc

This policy created interest among private players to enter into mega projects as different incentives and
benefits were available to them. Private participation not only increased competition but also increased
economies of scale in mega projects to bring tariff at a comparatively lower rate than tariff of other projects.
New Hydro Policy 2008 The new hydro policy addresses different issues pertaining to development of
hydro potential. The provision to award projects to developers through tariff base bidding up to 2011 will
give private players flexibility to tie up with states for setting up projects. In order to enable the project
developer to recover the cost incurred by him in obtaining the project site, the policy permits a special
incentive by way of up to 40% of saleable energy for trade as merchant sales. This policy aims for the
welfare creation and creation of infrastructure and common facilities to achieve 1% additional power above
the existing 12% free power provided exclusively for local area development. Under the policy, the
government is likely to provide soft loans for small hydro plants with capacity up to 25 MW.
Supply Dynamics
Capacity Addition
India has a target to achieve power for all by the end of the Eleventh Plan. According to the CEA estimation
78,577 MW is to be added during the ongoing Eleventh Plan and the contribution is divided among different
sectors and types of sources.

The capacity addition initiatives taken during the Tenth 5-year Plan have a distinct skew towards coal-based
thermal plants and this has been carried forward for the Eleventh 5-year Plan as well. In fact most of the
planned capacity addition depends on thermal energy.

According to a research done by the Working group report for the Eleventh 5-year Plan and monthly update
project status by CEA and primary research of companies, it is estimated that 84,907 MW of capacity is
likely to be added during the 5-year period, of which 77% is likely to be in the public sector and 23% in the
private sector. In the private sector, 80% of the projects are already under construction and the remaining
20% are yet to start. The public sector projects are in the ratio of 53:47 of announced and under
construction.
RES and Nuclear Power
The RES sector merits a report on its own because of the plethora of opportunities it has to offer. The
working group on the Eleventh Plan states that the RES sector programmes of the Ministry for the Eleventh
Plan have been drawn up in the light of the recommendations made by CASE, the Planning Commission, and
IEPR. Accordingly, it is proposed that the development and deployment strategy be rationalised and in case
of development a thrust is to be given through a sector-based approach in place of individual technology
approach adopted during the Tenth Plan. The approach adopted hitherto was somewhat lacking in focus,
suffered from lack of effective coordination, even led to duplication of efforts in some cases, with the result
that desired outcomes and impact might have been somewhat affected at times. These shortcomings are
sought to be overcome through well defined aims, target areas, integration of efforts and proper
coordination among different programmes.
A plan outlay of about Rs 40 bn has been set aside for subsidies for the projects in case of implementation
within the Plan period. A ball park figure of Rs 731 bn of investment is needed. This will be done mainly in
the private sector and hence, there is a good opportunity to explore in terms of financing potential.

The estimated cost per MW for setting up a nuclear power plant is around Rs 65 mn. Most nuclear projects
are under construction and have a plan outlay of about Rs 219.70 bn.
Shortfall in Capacity Addition
The shortfall in capacity addition has been carried over from the Tenth Plan period to the current Eleventh
Plan. The capacity addition targeted for the Tenth Plan fell short by 51%, which indicated the massive
shortfall.

During the last 6 years, less than half of the capacity was achieved by thermal and hydro power. The major
reason behind the shortfall in thermal energy was the fuel and equipment shortage whereas in hydro,
procedural clearance like necessary approval and acquisition of sites hampered the pace of capacity
addition.

Key Input Requirements

Fuel Coal is a major input in power generation, and almost 76% of planned generation capacity during the
Eleventh Plan was from thermal sources, and the contribution of coal was about 90%. The total demand of
coal at the end of Eleventh Plan was projected at 544.5 mn tonnes as compared with 482 mn tonnes,
indicating a shortfall of around 62 mn tonnes.

Indias current coal demand is increasing at a rapid pace as majority of the upcoming projects are thermalbased; however, the situation is very critical on the supply side as many coal-based power plants are
running with less than a weeks stock of coal. This situation started becoming critical from the beginning of
2008 when many companies suffered huge losses. As of Sept 2008, 50 out of 81 thermal power plants in
India had less than a weeks stocks.
Material Many materials are required for commissioning power projects that involves plant equipment and
several construction activities. Steel, cement, copper, aluminium, etc are the main materials used for power
projects. The demand for these materials varies according to the type of plant (hydro, thermal, or nuclear)
and type of project (green field or expansion).

Manpower requirement - This segment has huge requirement of skilled and unskilled manpower for
operation as well as for maintenance of power plants.

The Indian power sector has made significant progress over the years. The installed capacity of the
industry grew manifold from 1,361 MW in 1947 to 156.8 GW in January 2010. The sector has also
undergone substantial structural changes. Regulatory policies have played a predominant role in changing
the landscape of the Indian power sector. Though the sector has come a long way from its humble
beginnings, it is still lagging on several fronts, such as power shortages, T&D losses, among others, and
has a long way to go.
This chapter traces the evolution of the industry and how the policies and measures adopted by the
government at various intervals have changed the industrys structure. This chapter lays emphasis on the
developments that took place in the sector since 1991; this was the watershed year for the Indian power
sector, as a number of measures adopted in this year altered the functioning of the power sector.

The industry has been regulated for almost a century and the Electricity Act 1910 was the first act that was
introduced to govern the Indian power sector. The Electricity (Supply) Act 1948 was introduced after
independence, but it did not achieve the desired results, as the power sectors performance started to
deteriorate and a need was felt to restructure the sector. Several regulatory changes were made since
1991, which transformed the industrys performance.
Based on the governments regulations and policies, the evolution of the Indian power industry can be
divided into two broad phases, pre-reform and post-reform phases. The pre-reform phase (up to 1991) can
be divided into preindependence phase (prior to 1947) and post-independence phase (1947-1990) and
post-reform phase can be broken down into three phases.

PreReform Framework (before 1991)

Pre-Independence Era (upto 1947)
The first instance of commercial generation of electricity in India dates back to 1879 in Kolkata (then
Calcutta). In 1897, the government of Bengal granted an exclusive 21-year license to the Calcutta

Electricity Supply Corporation to supply electricity to Calcutta. Mumbai (then Bombay) was the second city
to get electricity and as time progressed, private companies set up power supply systems in major urban
areas under franchises, which allowed them a reasonable rate of return. The demand for electricity during
this phase was driven by demand from industries, commercial enterprises (including tramways) and also
domestic use. Most of the earlier private companies in the power sector cease to exist today as they were
amalgamated into state-owned enterprises; however, a few of them continue to exist as private players.
The Electricity Act 1910 was the first act (one of the earliest regulation) in the power industry, which was
introduced before independence in 1910. The Act provided the basic framework for supply of electricity in
India. The sector was at a nascent stage during this time and there was a huge investment requirement for
laying down basic infrastructure. The Act encouraged the growth of the industry by issuing licenses to
private companies. Thus, during this phase, electricity generation was mainly in the private sector and
power generation was largely based on coal and hydropower. Tata Power (formerly known as Tata Electric),
which is the countrys largest private sector utility, commissioned its first hydro electric station with a
capacity of 72 MW at Khopoli.
The power industry suffered from huge costs and wide variation in power voltage during this period. As the
technical knowledge in the domestic industry was not well-developed, most of the projects were based on
imported technology and thus entailed huge costs. Also, there was a wide variation in electricity voltage
that was supplied during this period, as both AC and DC forms were used.

Post-Independence Era (1947-1990)

At the time of independence, electricity generation and supply was concentrated in the hands of private
electricity suppliers, and largely in urban areas. Electricity supply was a must across the country to
promote overall growth and development; hence, the Electricity (Supply) Act 1948, which was based on
the UK Electricity Supply Act 1926, was introduced. Under this Act the Central Electricity Authority (CEA)
was established at the central level and the State Electricity Boards (SEBs) at the state level. The objective
of the CEA was to develop a sound, adequate, and uniform national power policy to coordinate
development of the power sector in India.
SEBs became integrated utilities with presence in generation, transmission, and distribution in their
respective states. During this period, the development and planning was done by the SEBs at the state
level, while the CEA was responsible for planning at the national level and it provided the SEBs with broad
guidance, planning, and development. The Act also elaborated the financing norms and institutional
framework for the electricity industry in India.

The SEBs took over the private companies in their respective states and the newly-created state electricity
boards were interconnected to enhance system reliability and to ensure wider geographical coverage. The
electricity sector moved into the public sector domain from the private hands, and over the years, the
public sector gained prominence in the power sector.
In the initial period, the SEBs performance was satisfactory and they played a vital role in the development
of the sector. According to the Electricity (Supply) Act 1948, the SEBs were required to generate a

minimum return of 3% on their net fixed assets in service after meeting the financial charges and
depreciation. The SEBs were able to generate the minimum returns for many years, but, later on their
performance faltered and they had to seek financial aid from the state in the form of grants, subsidies, soft
loans, etc. The early seventies were marked by incidents of power blackouts and grid collapses.
Hydropower generation suffered especially, as availability of water resources was heavily dependent on the
monsoon season. Moreover, there were delays in civil works, delays in the supply of power plant
equipment, and the infrastructure additions in terms of transmission and distribution were also not
adequate. In its attempt to assist the states, the Central government established a few private companies
that could cater to more than one state.
The Central government amended the Electricity (Supply) Act 1948 and established the National
Hydropower Corporation (NHPC) in 1975 to build hydropower plants and the National Thermal Power
Corporation (NTPC) to set up coal-based power plants to supplement the generation capacities of the SEBs
and private companies.
NTPC built its own transmission network to transmit electricity to different SEBs. In 1981, the government
decided to integrate operations of the central and state transmission systems to form a national power grid
to facilitate transmission of power generated by non-SEB generators; these efforts led to the incorporation
of the National Power Transmission Corporation in 1981. Initially the company was engaged in managing
the transmission assets of the central generating companies, NTPC, NHPC and North-Eastern Electric Power
Corporation; but in 1992, this entity was renamed as Power Grid Corporation of India Ltd and all the
transmission assets of the three above mentioned generating companies were transferred to it under an
ordinance. Furthermore the government set up the Power Finance Corporation (PFC) in 1986 as a financial
institution dedicated to power sector financing to supplement planned expenditure on power plants,
specifically new power plants.
During this phase, lot of emphasis was laid on setting up hydropower plants, as the government planned to
develop the irrigation and power sectors simultaneously. The installed capacity in the hydropower sector
did witness significant growth up to 1970; however, the lesser-than-expected growth rate and longer
gestation period decreased its share in total power generation capacity. In the meanwhile coal-based power
plants continued to grow and the share of thermal power capacity increased in the total capacity.
While the SEBs aided the growth in the Indian electricity sector, by the end of the phase under review, they
suffered huge financial and technical losses (poor revenue collection and billing, poor metering and energy
accounting, electricity theft, cross subsidies and SEB staffs inefficiencies were the main reasons for their
losses); as a result of these losses, they provided poor electricity service to end consumers because the
state-owned corporation power plants were running at low plant load factor (PLF) and the SEBs did not
have enough funds for renovation and modernisation of their plants. The demand-supply gap was
increasing and many states were facing electricity crisis. These circumstances forced the government to
restructure the sector in a phased manner, and this paved way for meting out electricity reforms in 1991.
PostReform Phase (after 1991)
The deteriorating health of the SEBs made it impossible for them to infuse fresh investments into the
sector. Moreover, the country was facing a macroeconomic financial crisis that made it difficult for the
governments, both the Central and state governments, to fund power projects through budgetary support.
Due to these events, the government decided to restructure the power sector in a phased manner in 1991;
consequently, it opened up the power sector (liberalise) and invited foreign private companies to get funds
and technology into the Indian power sector.
The post-reform phase can be divided into three phases:

First Phase (Started in 1991)

Independent Power Producers (IPP)
Investments were a must in the power sector to enable it to produce electricity in line with the expected
economic growth. The government liberalised the sector and opened it for foreign and private investments
to increase the availability of funds for the power sector. For allowing independent power producers to
operate in the sector, the government made an amendment to the Electricity Act 1910 and the Electricity
(Supply) Act 1948 through the Electricity Laws (Amendment) Act of 1991. The amendment allowed private
participation in thermal, hydro, wind, and solar power projects, and also allowed them to operate as IPPs.
Foreign ownership up to 100% was allowed. IPPs were to operate on a costs-plus model wherein the tariff
was determined by the Central government and the IPPs were guaranteed a 16% post-tax return on
equity, full repatriation of profits, among others. The operators and the SEBs entered into power purchase
agreements (PPAs) as the SEBs were responsible for transmission and distribution of power generated by
private players.
Around 189 projects, with an expected capacity of 75 GW, were proposed; however, only a few of these
projects cleared the approval process, and had Memoranda of Understanding (MoUs) and Letters of Intent.
The rest were either stalled in the approval process or did not reach financial closure. The government also
put on fast track 8 projects with offers of counter guarantees.
Introduction of Mega Power Policy 1995
In 1995, the government introduced the Mega Power Policy to increase private investments in over 1,000MW generation projects that would supply electricity to more than one state; hence, the name mega power
projects. The projects were to be awarded on the basis of competitive bidding and the CEA, Power Grid,
and NTPC were to provide support to these projects. CEA was to provide assistance in identifying potential
sites for setting up the plants, while Power Grid and NTPC were to provide assistance for transmission of
power and preparation of feasibility report, respectively.
The experiences of the first phase were not great and the Enron debacle is a reflection of this statement. In
the Enron Dabhol Power Project priority was given to FDI rather than the cost of generating electricity.

The main objective of reforms was to ensure reliable and quality power supply at an economic cost. It was
essential to ensure that the sector was financially viable and attractive enough for private investors to put
in their money. The SEBs were integrated utilities with presence in generation, transmission, and
distribution in their respective states. The SEBs were under huge losses and it was perceived that
unbundling the SEBs and segregating generation, transmission and distribution into different corporations
could make it possible to monitor efficiency levels in each of the areas. Many states initiated the
restructuring process. Orissa was the first state to undertake restructuring of the power sector in 1996; the
results were, however, not significant as the losses (theft, technological and financial) did not come down.

The first phase of the reform failed as the objective of attracting private players did not achieve the desired
results. Private players did not enter the sector, as the SEBs, who were to transmit and distribute the
power generated by the private players, were still running in losses. Private players were uncertain about
their returns due to poor financial health of the SEBs. The annual commercial losses of the SEBs increased
consistently from Rs 45.60 bn in 1992-93 to Rs 106.84 bn in 1997-98. The power plants continued to work
at low PLF.
Second Phase (started in1996)
The 1995 Mega Power Policy did not propose any fiscal concession, hence in 1998, the revised Mega Power
Policy 1998 included these concessions. The Power Trading Corporation (PTC) was also set up after this
revision to purchase power from identified projects and to sell to identified-SEBs. Establishing regulatory
commissions and privatising electricity distribution in cities (with population of more than 1 mn) were the
pre-conditions included in the revised policy.
In December 1996 the Common Minimum National Action Programme (CMNAP) was structured in
consultation with the state governments, and guidelines were established to hasten the sectors progress.
In addition to envisaging setting up of regulatory commissions, the CMNAP reiterated the need for
rationalisation of tariff and that no sector was to pay less than 50% of the average cost of supply. Tariff for
agriculture sector was to be not less than 50 paise per unit and the tariff was brought to 50% of the
average cost of supply within 3 years.

During this phase the sectors performance improved as compared with the first phase as the PLF reached
around 70%; however, commercial losses continued to pose a major hurdle in the sectors development.
During this period private sector investments were already being made for capacity addition in generation
but the need was felt for private participation in transmission as well; consequently, the Electricity Laws
(Amendment) Act was passed in 1998 to enable private participation in the power transmission sector. The
central transmission utility (CTU) and the state transmission utility (STU) were set up under this Act. The
maintenance and construction activity of transmission network was supervised by CTU at the inter-state
level and by the state transmission utility (STU) at the intra-state level. These utilities also recommended
regulatory commissions on allotment of licences to different players.
The CERC issued the first Indian Electricity Grid Code (IEGC) in January 2000 to ensure grid discipline and
to set operation and governance parameters for players in the transmission and distribution (T&D) sectors.
Third Phase (2003 onwards)
The Electricity Act 2003, which came into effect from June 10, 2003, replaced the earlier laws, acts
governing the Indian power sector, namely, the Indian Electricity Act 1910, the Electricity (Supply) Act
1948 and the Electricity Regulatory Commissions Act 1998. The bill sought to provide a legal framework for
enabling reforms and restructuring the power sector.
The Electricity Bill was passed by the Parliament in 2003; this Bill sought to provide a legal framework for
enabling reforms and restructuring of the power sector. The Bill became an Act with effect from June 10,
2003 and replaced the earlier laws governing the power sector, namely, the Indian Electricity Act 1910, the
Electricity (Supply) Act 1948, and the Electricity Regulatory Commission Act 1998.
Electricity Act 2003
The Act sought to create a liberal framework for development of the power industry, promoting
competition, protecting interests of consumers and supply of electricity to all areas, rationalisation of
electricity tariff and ensuring transparent policies and promotion of efficiency, among others. The Act came
out with the National Electricity Policy, mandatory creation of SERCs, emphasis on rural electrification, open
access in transmission and distribution and some other provisions. It mandated the regulatory commissions
to regulate the tariff and issues of license. This Act focused on laws relating to generation, transmission,
distribution, trading, and uses of electricity. The Act was amended on May 28, 2007 and the Electricity Act
2003 was enacted with stronger power and clarity and with greater emphasis on assessment, fines, and
legal framework to check the commercial losses due to theft and unauthorised use of electricity.
Generation
The generation segment was opened for private players in 1991. However, even over the years, the
generation capacity from private players did not reach the desired level. In 2002 only 11% of generation
capacity was from private players and the public sector generators capacity was not enough (as running at
low PLF) to meet the growing demand of electricity. The government introduced certain policy measures in
generation in the Electricity Act 2003 to ensure more private participation and to reduce the demandsupply gap. Generation of power was de-licensed and the requirement of techno-economic clearance for
thermal power generating plants by CEA was dispensed with, which paved way for entry of more players in
thermal generation.
The Act also removed restrictions on captive power generation and simplified the procedures. Open access
was allowed immediately in transmission, which gave the right to private power producers or any other
generating utility to sell its power to any entity using transmission network (without any discrimination).
Due to these changes, industries could set up captive power generation units and the right to open access
allowed them to sell electricity to any consumer using the transmission network. Captive units could thus
sell their surplus power to the customers of their choice.

Transmission
The Electricity Act 2003 introduced a non-discriminatory open access in the transmission segment, which
enabled the generators to sell power to any customer and gave the buyer the option to choose the
generator using the transmission network. The transmission utility was not allowed to refuse use of its
transmission network except in instances of capacity limitation. At the national level, Power Grid, which
was the central transmission utility, could provide open access, and at the state level, the state
transmission utilities could provide open access. The open access customers are categorised as short-term
customers (up to one year) and long-term customers (for 5 years). The opening up of the transmission
network is likely to induce competition among generators as well as buyers.
Distribution
The distribution segment was not given more consideration in the earlier regulations, which lay more
emphasis on the power generation segment instead. It was considered that by increasing power
generation, the demand for power could be met to some extent, but the industry suffered huge losses (T&D
and financial) on the distribution side. SEBs, the main bodies involved in power distribution segment, were
in bad financial shape, which made it difficult for them to pay the generator for the electricity supply. The
risk of defaults from the SEBs worried generators and hindered new players from entering the industry. The
Electricity Act 2003 came up with measures that could improve the performance of the distribution sector
on almost all fronts.
The measures meted out included more than one distribution licenses permitted in the same area, which
increased competition among the distribution licensees, and ensured better services for the end consumer.
The best case of multiple licenses was noticed in Delhi after privatisation in 2002, which resulted in
improved operational performance, reduction in AT&C losses, and reduction in incidences of load shedding.
NDPL, BSES, and BRPL, the three distribution companies, came into existence and took charge of power
distribution in different areas of Delhi.
The concept of distribution franchisees was introduced under the Electricity Act 2003, under which a
distribution licensee could distribute electricity through another player within the distribution area. The
Bhiwandi circle (near Mumbai) reported the first instance of distribution franchise that was granted to
Torrent Power by Mahavitaran (distribution license in Maharashtra).
The anti-theft provisions under the Act lowered the commercial losses of utilities as electricity losses arising
from theft decreased continuously and investors started to show renewed interest.
In the distribution segment, open access was introduced, which opened up a new era of choice for
consumers to choose their supplier. Many SERCs like Jharkhand, Madhya Pradesh, and Punjab have issued
guidelines for open access and allowed it up to 1 MW capacity and above.

Changing Market Structure after Electricity Act 2003

With the enactment of the Electricity Act 2003 and implementation of open access, the market structure in
the power sector changed from the old single buyer structure to a multi-buyer model. The generator could
sell power to any buyer using the open access provision in transmission and users had the choice to choose
their supplier. Ever since the Electricity Act 2003 was introduced, there was increased competition among
generators and suppliers, which improved the sectors performance. Currently many states, which have
unbundled the SEBs, have reported improvements in their operational efficiency and are able to ensure
reliable power supply to consumers.
Even though SEBs are handling the regulatory operations, the Act has mandated the creation of regulatory
commissions in each state; these commissions have played a significant role in passing different
regulations and monitoring performances of the state utilities. Few of the state regulatory bodies have set
targets for their utilities, and achievement of these targets before the scheduled time which fetches them
incentives and any delay gets them penalised. Thus, the structure is more regulated.
The market structure, which has taken shape after the Electricity Act 2003, looks promising as it gives the
right of choice to the supplier as well as buyer while attempting to ensure quality and regular supply of
power.
Under the Indian Constitution, power is a concurrent subject and hence its development is the joint
responsibility of the central and provincial state governments. The Parliament and state legislature are both
empowered to make laws.
Ministry of Power (MOP): The MOP is responsible for development of the electrical energy sector in India. It
started functioning as an independent entity from July 1992. Earlier, the power sector was governed by the
Ministry of Energy, which had departments for power, coal and non-conventional energy resources. The
main functions of the MOP is planning, formulating policies, administration and enactment of legislation for
thermal and hydropower generation, transmission and distribution. The Ministry also looks after processing
of projects for investment decision as also monitoring the implementation of power projects. It also takes
care of training and manpower development of the power sector and is responsible for administration of the
Electricity Act 2003 and the Energy Conservation Act 2001 and to make amendments to these Acts, to
maintain accordance with the governments policy objectives.
Central Electricity Authority (CEA): The CEA was constituted under the Electricity (Supply) Act 1948, the
Act amended by the Electricity Act 2003. The functions of CEA are described under Sec 73 of the Electricity
Act 2003

Regulatory Bodies: The CERC and the SERC are the two main regulatory bodies that govern the power
sector. These regulatory bodies were formed in 1998 when the Electricity Regulatory Commission Act 1998
came into force; so far these bodies have an established arrangement for protection and promotion of
consumer interest, fair competition, transparency, and for providing a level-playing-field for all players in
the sector.
Contribution of Regulatory Bodies
The regulatory system was not effective in the power sector in India before 1997. The SEBs performance
was not satisfactory; they were suffering from huge financial and commercial losses; there was no
regulatory body to regulate the functioning of SEBs and regulations were not addressing core issues like
consumer interest, supply of reasonable power, and quality of power. The sector was facing an urgent need
of regulatory bodies, which would regulate the sector efficiently. Therefore, in order to make competitive,
transparent, and consumer-friendly environment, an independent CERC at the Centre and independent
SERC at the state level were considered as the need of the hour for regulating the power sector.
The respective commissions took over the role of a regulatory body for the sector. The regulatory bodies
set up transparent procedures for tariff fixation keeping in view the interest of both the supplier and the
beneficiary and carried out the tariff plans in a successful manner. Regulatory commissions passed
numerous regulations and provided a legal framework for players to conduct their business in the industry.

System Operators: There are five different regional load dispatch centres (RLDC); NRLDC (Northern
RLDC) situated at Delhi, WRLDC (Western RLDC) situated at Mumbai, SRLDC (Southern RLDC) situated at
Bangalore, ERLDC (Eastern RLDC) situated at Kolkata, NERLDC (North-Eastern RLDC) situated at Shillong
(Meghalaya). The main function of these load dispatch centres is to look after the operation of power
system in their respective regions and report to the National Load Dispatch Centre (NLDC). Power Grid is
the central transmission utility, which acts as the NLDC. NLDC monitors the different load dispatch centres.
Status of Reforms
Reforms have played a crucial role in each segment of the power sector. In the generation segment, delicensing of thermal and captive power generation and generation in rural areas has allowed private players
to invest in power generation. The government made distribution a separate segment to improve the
segments performance. Further, reforms were initiated in the power sector in Orissa, on the basis of other
countries experiences in restructuring.
Orissa was the first state to unbundle its SEB into five corporatised entities: generation, transmission and
the three distribution zones in the state. An independent regulatory commission, Orissa Electricity
Regulatory Commission, was also set up in the state. Later on Orissa privatised into different entities.
Haryana, Andhra Pradesh, Karnataka, and many other states also followed the process of unbundling and
regulatory reforms. The Regulatory Commission Act 1998 made a provision for setting up regulatory
commissions. Around 25 states have state regulatory commissions; some small states of the North-Eastern
region have joint regulatory commissions; 14 states have unbundled their SEBs, and Orissa and Delhi have
privatised their respective distribution segments.
After the establishment of regulatory commissions, several regulations have been passed; the most
important ones being AvailabilityBased Tariff Order (2002), Terms and Conditions of Tariff (2004), MultiYear Tariff (MYT) Norms (2004), Electricity Grid Code (2006), and Open Access in Inter-State Transmission
(2008). Under the ABT regime, the generator and the beneficiary (buyer) set up PPAs on the basis of which
generators feed power to the grid and the beneficiary draws the power. If beneficiary overdraws power it
has to pay unscheduled interchange (UI) charges and if generator overfeeds to the grid it will have to pay
the UI charges. The mechanism helps in maintaining grid discipline and aids the grid operate at optimal
efficiency. Many states like Gujarat, Karnataka, Delhi, Maharashtra, etc have implemented intra-state ABT
and have optimised their power purchase cost.
The terms and conditions of tariff were introduced in 2004, as per which many norms were laid down to
determine the tariff for generation, transmission, and distribution. The MYT was set to reduce the
regulatory risk and incentivise efficient performance of utility. It was set up for a fix number of years called
the control period (Delhis MYT period is 3 years) during which, fixed charges remain unchanged while
energy charges change. The MYT framework was designed in such a way that if the utility achieved the
target set-up under MYT framework it would get an incentive. In Delhi the AT&C losses reduction target for
BRPL and NDPL is 17% whereas for BYPL it is 22%. In 2006 the Electricity Grid Codes laid down technical
rules covering all the utilities connected through grid or using inter-state transmission system. These codes
ensured the efficient functioning of power system and penalised the user for avoiding the rules. CERC is the
regulatory body that monitors these codes at the central level while SERC monitors it at the state level.
The reforms in the sector have progressed well so far; however, the concern that is still prevailing in the
sector is government dominance over the regulatory commission. The government has regulated the sector
for more than 50 years and many a times, it has been unwilling to transfer the power to regulatory
commissions. Tariff setting still has a component of subsidies that is given by the government; hence, in
spite of clear norms and regulations, commercial viability of tariff remains a question mark. Accordingly,
reforms have to be more intensive and come out with more measures in removing odds of the sector.
Government of India Policy
The Electricity Act 2003 states that, the Central government shall, from time to time, prepare the national
electricity policy and tariff policy, in consultation with the state governments and the authority of
development of power system based on optional utilisation of resources such as coal, natural gas, nuclear
substances or materials, hydro and renewable sources of energy.

National Electricity Policy (NEP)

This policy, which was introduced in February 2005, aims at laying guidelines for accelerated development
of the power sector, providing electricity to all areas and protecting interests of consumers keeping in view
the availability of energy resources, technology available to exploit these resources, economics of
generation using different resources, and energy security issues.
The policy was prepared in consultation with the state governments, CEA and other stakeholders.

In accordance with the National Electricity Policy, the CEA formulates the NEP once in 5 years. The plan
carries out the programme in short term and prospective periods. This plan works out as the standard
reference document for different players in the sector. It includes: short-term and long-term demand
forecast for different regions; suggested areas/locations for capacity additions in generation and
transmission keeping in view the economics of generation and transmission; losses in the system; load
centre requirements; grid stability; security of supply; quality of power including voltage profile etc and
environmental considerations including rehabilitation and resettlement; integration of such possible
locations with transmission system and development of national grid including type of transmission systems
and requirement of redundancies; and different technologies available for efficient generation, transmission
and distribution; fuel choices based on economy, energy security, and environmental considerations.
The policy covers all the segments of the power sector and plans have been laid down for achieving the
objectives of the policy. Generation plans have set a target of 1,000 units per capita of consumption, for
which purpose 100,000 MW would be added by the end of the plan (2012). Many programmes and
initiatives have been taken for meeting the capacity addition challenge; for instance, in thermal generation,
super critical technology for rapid capacity addition, mega power projects and merchant power plants are
some initiatives while in the hydropower, 50,000-MW hydro initiative launched in 2003 and preparation of a
project feasibility report for 48,000-MW project were some of the initiatives.
National Tariff Policy (NTP)
The policy lays down the guidelines for attracting adequate investments to the sector and ensuring
reasonable charges for the consumers. These guidelines stress on competitive procurement of power. The
Central government formulated this policy in consultation with regulatory commissions and CEA. Regulatory
bodies are guided by tariff policy in framing the tariff regulation.

Features of NTP

Tariff by bidding process: Under this process, new projects are allowed to disburse power to SEBs
on the basis of competitive bidding but expansion projects are an exception as they already have tie
ups for their supply. This method gives right to buyers and sellers to set tariff of their price range.
Returns to attract new investment: This policy ensures attractive returns so that investment in
power sector is higher than other sectors.
Peak and off-peak hours tariff: Tariff of peak hours and off-peak hours is the function of ABT, which
is implemented in all regions. The rates are different for peak and off-peak hours and are decided
by the CERC. This tariff is beneficial for both generator and the buyer as generator gets higher rates
of peak hours while the buyer tries to shift towards off-peak hours to pay less.

The reforms in the sector have restructured the vertically-integrated market structure to a competitive
structure. Market efficiency has been improved over time as many laws and regulations have achieved the
desired result. Mobility has increased in the power market and so have the number of players; the
regulation has created a competitive market place, which in future will bring open market in power sector.

Overview
Under the Power for All mission, India has set a target of 200,000 MW of installed capacity by the end of
2012. The transmission segment has a major role in achieving this mission as an efficient transmission
capacity and network will prove essential to transfer power from generating stations to distribution
networks.
In the past, transmission planning was done with respect to generation and was focused on setting up
transmission systems that could evacuate power safely; however, with the changing scenario, the
transmission sector started to move towards integrated system planning because generation capacities are
distributed unevenly in different regions. While thermal capacity is in the eastern region, hydro capacity is
concentrated in the Northern and North-Eastern regions. The capacity is used to evacuate power according
to the demand in other regions like the Western region; thus, the integrated system planning has turned
out to be a good option.
In the central sector, the central transmission utility (CTU), known as the Power Grid Corporation of India
Ltd (PGCIL), is responsible for national and regional transmission planning while the state sectors have
separate State Transmission Utilities (STU). Private sector participation is negligible in transmission and
there is only one public-private partnership project, the Tala Transmission Project. Four private companies
have been granted licences for developing transmission projects. While three companies have entered joint
ventures with PGCIL, one company is a private company that has been awarded independently.
Transmission network includes transmission lines and transmission substations through which electricity is
evacuated from a generator to a distributor. India has over 126,999 circuit per km (ckt km) of 220 KV of
transmission lines upto Jan 2010 and its substations are of 188,155 Mega Volt Ampere (MVA) capacity for
220 KV upto Jan 2010.

Growth in Transmission Network over the Plan Period

The development in the transmission system was carried out in coordination with the growth in generation
capacity. New and advanced technologies were introduced in the transmission system for bulk power
transmission. 220 KV of transmission power was introduced in 1960, and another 400 KV was introduced in
1977. HVDC and HVDC bi-pole transmission was set up back-to-back in 1989 and in 1990 respectively.

The transmission line expanded from 52,034 ckm during the sixth plan to 221,549 ckm during the eleventh
plan (upto Jan 2010) while the transmission substation size increased from 46,621 MVA to 303,637 MVA
from the Sixth 5-year Plan to as on the period under review (Jan 2010).

Inter-Regional Transmission
During the fifties, electricity was supplied by generating stations to load centres; however, with the
increase in capacity, a state grid was built for ensuring reliability in power supply. Even though demand
from different regions was rising, the resources were confined to some regions like the eastern and north
eastern regions. One way to cater to the demand was to set up plants near the load centre but that was an
expensive option. Another option, which was taken during the seventies, was to form regional grids. A
regional grid interconnects regions and transfers energy, which further keeps pace with formation of public
sector utilities like NHPC and NTPC.
The existing inter-regional power transfer capacity is around 18,700 MW, and is targeted to be raised to
37,150 MW by the end of the Eleventh Plan period. Power Grid Corporation has plans to enhance its
capacity to 37,000 MW. Around 20,700 MW of new inter-regional links have been planned for the Eleventh
5-year Plan. India is now looking at linking the transmission system with its neighbouring countries Bhutan,
Nepal and Sri Lanka. There are also plans to develop an undersea HVDC transmission link between Sri
Lanka and India. Moreover, investments of Rs 550 bn have been planned at the interstate and intrastate
levels to increase the inter-regional transmission capacity for the Eleventh 5-year Plan period.

The inter-regional transmission capacity was developed over the plan periods to promote the inter-regional
power exchange business among players in different regions. The surplus and deficit regions are the main
drivers of growth in inter-regional energy transfer. During FY08, 43,000 MUs of inter-regional energy
transfer was facilitated, which was 13% higher than the previous year (about 38,000 MU).
The eastern and Northern region systems have a major share in the inter-regional transmission capacity.
While the eastern region is abundant in coal, the Northern region is endowed with hydro resources; as a
result these regions generate the most power and also meet maximum demand. Evidently, these regions
have a major share in inter-regional transmission capacity also.
Formation of the National Grid
Due to Indias uneven distribution of resources regional grids were created in the early sixties for power
planning and for operation of the electric power system. During the seventies, regional grids were in place
and inter-connected operations were obtained. The development of regional grids was further accelerated
by the central generating companies (NHPC, NTPC) that introduced regional power stations and constructed
EHV (Extra High Voltage) transmission lines.
In the current 5-year plan, a transmission plan has been evolved for strengthening the regional grids to
establish and to operate both the regional and the national power grid to facilitate transfer of power across
different regions and to support the generation capacity addition programme of around 80 GW.
Power Grid is now working on the planned set up of a national power grid to facilitate transfer of power
within the different regions in India by the end of the Eleventh 5-year Plan. This grid will support the interregional energy transfer and will exploit the countrys unevenly distributed energy resources. The national
grid will also help the power-deficit regions to fulfill their demand from the regions that have excess power.
The Power Grid has achieved several milestones towards the development of National Grid such as the
implementation of Asias longest Talcher-Kolar High Voltage Double Circuit (HVDC) bipole link including its
upgradation and the commissioning of Muzaffarpur-Gorakhpur high capacity 400 KV D/C that interconnects
all four regional grids (Northern, Western, Eastern and North-Eastern) and is operating as a synchronous
grid.
The difficulty encountered during the construction of the transmission lines was the Right of Way (ROW),
especially in the hilly terrains of the Northern and North-Eastern regions, which are endowed with hydro
resources. Transmission Super Highways are the solution for the ROWs so that they do not cause
bottlenecks in harnessing generating resources. Interconnection of these highways from different parts of
the country will ultimately lead to formation of a high-capacity national power grid.
The objectives underlying the formation of National Grid are:

To transfer power from surplus regions to deficit regions

Utilise maximum resources from diversified regions
Ensure reliable, economical and quality power

Many inter-regional schemes have been planned for the phased development of the National Grid. The brief
status of inter-regional links under operation is provided in the table below.

Structure
Distribution is the last segment in the electricity supply chain; it is however, a key segment as it forms the
vital link between the end consumers and the power companies. Until some time back, the State Electricity
Boards (SEBs) handled the distribution segment completely. Power distribution in a few regions/areas has
been privatised, however the SEBs are still handling a large part of power distribution.
Power distribution caters to both rural and urban areas, both of which have different characteristics. The
consumer mix in the rural areas is largely residential and agricultural, while in the urban areas, the
consumer mix is residential, commercial, and industrial to a certain extent. Both the consumer segments
have their distinct characteristics and their own set of problems. In the rural areas the distribution network
needs to be widely dispersed in relatively larger areas with long lines, implying higher cost of supply. This
region has a large number of subsidised consumers, flat rate/tariff to farmers, low load and low rate of load
growth and non-metering due to high cost and practical difficulties. Distribution in the urban areas is
characterised by higher consumer density and higher rate of load growth.
A big challenge facing the power distribution sector is T&D losses, which are estimated to be as high as
26.9% in FY08. Though it has come down over the years from 32.5% in FY04, it continues to be much
higher than T&D losses reported in other countries of the world. A number of technical and non-technical
factors are contributing to the high transmission and distribution losses (T&D). These include political

interference in terms of free power supply or subsidised power supply to agricultural users, lack of
consumer education, theft, and inefficient use of electricity. A major share of these losses occurs in the
distribution sector. Inadequate investments in the sector over the years for system improvement have
resulted in unplanned extension of the distribution lines, overloading the distribution system elements.
T&D losses were computed taking into account electricity bills issued to consumers as accrued income and
not on actual collection. The concept of Aggregate Technical & Commercial (AT&C) losses was introduced in
2001-2002 to capture the difference between the billing and collection, which was not captured by the T&D
loss figures. AT&C loss is the difference between units input into the system and the units for which the
payment is collected.
The commercial losses in the sector can be eliminated by improving metering efficiency, proper energy
accounting & auditing and improved billing and collection efficiency. Greater accountability across the
different segments would also help reduce the AT&C losses considerably.
The government initiated the Accelerated Power Development & Reform Programme in 2001 for
strengthening the T&D network and reducing the AT&C losses.
Accelerated Power Development and Reform Program (APDRP)
The APDRP programme was launched in 2002 to promote and incentivize distribution sector through the
policy initiatives and controlling fund flow. The main objectives of the programe is to reduce the Aggregate
Technical & Commercial (AT&C) losses to 15%, decrease the power outages and interruptions, ensure
commercial viability, creating better management information system and increase consumer satisfaction.
The APDRP programe was formulated to improve the financial viability of SEBs (State Electricity
Boards)/Discoms. The SEBs average cost of supply was too high and average revenue was very low, as a
result the SEBs were under financial crunches and they were not able to make payment to the Central
Public Sector Undertakings (CPSUs). The APDRP has been tasked with restoring the commercial viability of
the Distribution Sector. MOP set up the guidelines to be followed by states to be eligible for the APDRP
funding.

The APDRP scheme gives its support through two components investment by states and incentives from
the centre. The allocation of funds by both the parties was in the ratio of 50:50. During the 10th plan
period (2002-2007), the scheme had an allocation of Rs 400 bn with Rs 200 bn each for investment and
incentives.

Investment component The Government of India (GOI) provides assistance for strengthening and upgrading of the sub-transmission and distribution network for which additional assistance covers 50% of the
project cost in the form of 25% grant and 25% loan and remaining 50% have to arrange from PFC (Power
Finance Corporation), REC (Rural Electrification Corporation) or any other financial institution. Special
category states (like J&K, Himachal Pradesh, Uttaranchal and Sikkim) get 90% of the grant and remaining
10% loan. Around 571 projects of the cost of Rs 170.33 bn get investment benefits under the APDRP. The
Union government assistance is Rs 87.2 bn with Rs 64.45 bn in grants and Rs 22.74 bn as loans. The fund
released was Rs 72.1 bn while fund utilised was Rs 119 bn (as of 31/03/2008) which is 70% of the sanction
amount.

Incentive component - Incentive component is to reward the SEBs/utilities for cash loss reduction by
providing 50% of reduction as a grant. Under the incentive component, the government released an
incentive reward of Rs 28.79 bn (as on 31/03/08) for nine states.

Performance under APDRP APDRP has upgraded the entire distribution network by strengthening it.
The metering status has shown appreciable results as 11 KV feeder metering was raised from 81% (FY02)
to 98% (FY08) while the consumer metering reached 89% (FY08). States like Delhi, Himachal Pradesh, and

Kerala have achieved 100% consumer metering. As per the Ministry of Power (MOP) AT&C losses of APDRP
towns dropped below 20%. The Average Revenue Realisation (ARR) by many states like Maharashtra,
Gujarat, Punjab, Madhya Pradesh, Chhattisgarh, Himachal Pradesh, Orissa, Delhi, Manipur, West Bengal
and Nagaland increased.
Rajiv Gandhi Grameen Vidhyutikaran Yojana
The ministry of power launched the Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY) programe in Apr
2005, which aims at providing electricity to all villages and habitations in four years and to also provide
access to electricity to all rural households. The scheme envisaged a necessary infrastructural distribution
system to villages by setting up a 33/11 KV sub-station and a distribution transformer of appropriate
capacity in each village or hamlet.
The programme provides capital assistance of upto 90% and the assistance to Below Poverty Line (BPL)
households of upto 100%. The funds were released from the Rural Electrification Corporation (REC) which
is the nodal agency for the programme. To widen the scope of electrification, habitations of electrification
are now defined as having a population of 100 and above (earlier it was 300). Certain guidelines were
decided by the MOP for the RGGVY to disperse the electrification in rural areas.

Electrification Achieved
Rural electrification achieved during the 6th and the 7th plan periods was over 100,000. However, rural
electrification achieved during 8th and 9th plan periods was not significant as a result RGGVY was launched
in 2005 to remedy that. As of FY09 493,163 villages were electrified while 100,492 villages were left
unelectrified as on Jun 09.
Status of RGGVY
As per the 2001 census, the programe has a target of electrifying 582 districts, 6,337 block, 570 villages,
153,7943 habitations, 119,570 villages and 78,019,262 households. But the number of districts, blocks,
villages, habitations and households has increased over the years. Therefore in order to achieve the target,
electrification planning should be done keeping in mind the increased figures. As many as 588 projects
were sanctioned under RGGVY with coverage of 530 districts, 116,010 unelectrified villages, 349,853
electrified villages and 40,487,557 electrified households including BPL with a total project cost of Rs 256.8
bn.

Advantages amongst other schemes: The schemes which were launched prior to RGGVY like Minimum Need
Programme and Grameen Rozgar Yojana were given capital assistance through the state sector with
additional assistance from the central government. Hence it took a long time before the funds are released
while in the case of RGGVY funding is released directly from the central government. The programme has
to achieve its target on a priority basis and time frame which was given for rural electrification was the five
year plan period. The scheme was being supported by t CPSUs in execution and implementation of
projects.
One aspect of the RGGVY scheme is the franchisee model. The model is being developed by the MOP
(Ministry of Power) for better management of electricity distribution in rural areas. The guide lines were
formulated by the REC and were issued to all states and CPSUs. The model is adopted by as many as 14
states and covers 87,666 villages. The approach adopted by different states were revenue collection-based
franchisee and input base franchisee.
Steps taken to Improve the Distribution Sector
In order to achieve commercial viability of SEBs, efficient performance by the distribution sector is
mandatory. For boosting up the performance of distribution sector GOI and MOP have taken several steps
which include:

Power is one of the core inputs for any industry. Over the last 36 years, electricity consumption grew at a
CAGR of 6.7% in the country but there was a shift in sectoral power consumption patterns. Moreover, the
mismatch between the increasing demand for power and the inadequate supply caused huge power
shortages across the country.

Characteristics of Demand

Demand for Electricity Traces Trend in GDP Growth

Overall economic growth determines the extent of electricity demanded because of the all-pervasive use of
electricity. Generally, the demand for electricity traces the GDP growth trend; for instance, economic
growth and the associated increase in economic activities, particularly in industries like cement, steel,
mining, food processing and many other manufacturing industries, increases the demand for electricity.

Variation in Demand
Power requirement varies among consumers in terms of voltage and phases; for instance, in industries,
electricity is required in three different types: three-phase small-scale 400V; three-phase large-scale 11
KV, and three-phase very large-scale 33 KV. Domestic consumers, on the other hand, require 230 V singlephase or 400 V three-phase to use it forlighting, air-conditioning, water heating, cooking, etc. Agricultural
consumers use 230 V single-phase and 400 V threephase for running tube wells and pump sets.
Commercial consumers use 230 V single-phase and 400 V three-phase for using equipment and appliances.
The Railways get supply through 11 KV and 33 KV whereas public services, which include public lighting
and public water, get supply at different voltages, including 230 V.
Seasonality in Demand
Demand for electricity also varies according to seasons. Demand from the domestic sector generally peaks
during summer and subsides during monsoon. Indias seasonality in demand can be captured in powerdeficit numbers as it is a powerdeficit country. Generally, the power deficit in India ranges between 6-8%
during monsoon (July to September), and climbs up to around 10-14% during winter and summer. During
monsoon, the demand for power from the agriculture and domestic/residential sector is lower, while during
the summer and winter, demand from the domestic/residential sector is higher as power demand is higher
for cooling and heating purposes.

Consumption Pattern/Consumer Profile

Electricity is consumed by almost every sector in its day-to-day functioning but on the basis of end-use,
consumers of electricity can be categorised into the following seven categories:

Industrial
Domestic
Agricultural
Commercial
Public services
Railways
Others

Industrial consumers are the largest consumers of electricity in India. In FY07, industrial consumers
accounted for 38% of the total electricity sold by utilities; however, their share in actual consumption was
much higher as many industries met their power requirement through captive generation. Domestic and
agriculture sectors are the other major consumers who have respective shares of 24% and 22% in total
power consumption. While the public services account for 4% of sales, the Railways and other consumers
account for a share of 2% each in overall sales.

Over the years there has been a significant shift in the sector-wise consumption patterns, as there has
been a decrease in the share of agriculture and industrial sectors and an increase in the share of the
domestic and commercial sectors. In FY90, the industrial consumers accounted for 46.0% of total sales by
utilities, while the domestic and agriculture sectors accounted for 16.9% and 25.1%, respectively. The
industrial segments share in overall consumption has come down due to improved consumption norms
after adoption of energy-efficient technologies, and also due to the industrial sectors use of captive power.
The domestic segment has overtaken the agriculture sector and has emerged as the second-largest
consumer segment of power largely due to increased urbanisation, rise in disposable incomes, and the
consequent increase in use of domestic electrical appliances. Consumption of power by commercial
establishments has increased with the rise in the service sector in India.
Industrial Consumers
Industrial consumers, the largest consumer segment of electricity, are bulk consumers and electricity is
supplied to these consumers through three-phase small-scale 400 V, three-phase large-scale 11 KV and
three phase very large scale 33 KV.
Depending on the type of power consumed, industrial consumers can be further sub-divided into:

High-tension industries
Low and medium-tension industries

High-tension industries account for almost 79% of the total power consumed by industries, while the low
and medium tension industries account for the balance.
Cross subsidies, higher tariff, power outages, and inconsistent quality of power supplied by utilities had
adversely affected power availability of industries. The power shortages and the favourable policies for
captive power made many hightension industrial consumers opt for captive power generation. Likewise,
many energy-intensive industries like iron and steel, aluminium, cement, sugar, fertilisers, paper, and
chemicals set up their own captive power plants.

Domestic Consumers
The domestic consumers constitute the second-largest user segment of power. Electricity is primarily used
in this sector for lighting and in domestic appliances like refrigerators, air-conditioners, water-heaters,
kitchen appliances, and consumer durables like television, music system, etc. Higher degree of urbanisation
and rural electrification has increased the domestic sectors access to electricity and therefore, its
consumption of electricity. Higher disposable income and better access to finance for purchasing consumer
durables have increased the usage of kitchen appliances and home electronics. Increase in the purchasing
power of consumers has also fostered lifestyle changes in the Indian household, and has in turn, increased
its electricity consumption.

The domestic power consumption grew at a CAGR of 9.76% from 3.9 bn kWh in FY71 to 111 bn kWh in
FY07. Going forward, the rise in household income is likely to continue to drive the demand for power
across consumer classes in India. The electricity demand of household sectors in the urban areas will
increase in the future with increasing urbanisation and changing lifestyle due to rise in disposable incomes.
Similarly, better access to electricity in rural areas mainly due to the rural electrification programme will
increase the domestic sectors electricity consumption in these rural areas.

Scheduled power cuts and load shedding has curtailed the domestic consumption of electricity and has
forced large residential complexes to opt for diesel-generated energy to meet their power requirements.
However, in future, such consumers will also be added to the overall consumer pool, when the availability
of power increases, which will increase the domestic power consumption.
Agricultural Consumers
Agriculture sector is the third-largest consumer of power in India; in FY07, it accounted for 22% of the total
power consumption. Its share in total consumption was almost half in the early seventies. The
governments emphasis on rural electrification and subsidised tariff structure for the agriculture sector has
increased power consumption of this sector. Electricity is largely consumed by this sector for irrigation
purposes, and for operation of electrical pump sets.
The agriculture sectors electricity consumption grew at a CAGR of 9% to 99 bn kWh in FY07. Agricultural
subsidies and government initiatives for rural development, which included programmes like free electricity
to farmers, emphasis on irrigation through pump sets, contributed to the higher power consumption.

Commercial Consumers
During FY07, the commercial sector accounted for around 9% of total electricity consumption. During FY71
to FY07, the commercial sectors electricity consumption grew at a CAGR of 7.9% to 40.2 bn kWh. The
power consumption in the sector increased due to the rapid growth in the service sector in recent times,
the development of recreation and entertainment complexes, and the improvement in healthcare facilities.

Demand Drivers for Electricity

The driving forces for demand of power are all those factors that influence the demand profile over the
course of the year and over the course of the day or week. As almost all industries use electricity in their
day-to-day functioning, the overall economic growth is a key determinant of electricity demand. Demand
for electricity generally traces the trend in GDP growth. The growth in GDP helps to track the growth in
economic activity due to increased industrial activity, income from services sector and increased
consumption by the household segment and the agriculture sector.
The major factors that Drive the Demand for Electricity are as follows:

Latent Demand
The power outages/scheduled power cuts and inconsistent quality of power have restrained power
consumption and have left consumers without electricity for several hours in a day. The situation is
worse in the rural areas. Consumers in the domestic sector and to a certain extent, the commercial
sector, also face power shortages. The industrial sector meets a large share of its requirement for
power through captive power generation. Thus, there is huge latent potential demand for power
that lies untapped.
Manufacturing Sector Growth
The demand for electricity will remain higher in the future with the rise in growth of the
manufacturing sector. The sector has been dependent on captive power consumption to a major
extent. In 2008, the cost of captive power consumption went up with the surge in crude oil prices;
however, as oil prices have come down from these peak levels, the cost of captive power
consumption is expected to recede too but the demand for power will continue to rise.
Domestic Sector
The overall economic growth, higher disposable incomes will continue to drive demand for electricity
in the domestic sector both rural and urban. Likewise, the rural electrification programme will
increase demand for power in the rural areas, which will be used for both residential consumption
and for agriculture-related usage.
Prices of Household Appliances
Prices of household appliances are also one of the drivers of electricity demand because the
decrease in the prices of appliances leads to an increase in the usage of appliances, which finally
increases the demand for electricity.

Region-wise Consumption Pattern

The consumption pattern discussed above was for the all-India level. However, the sector-wise
consumption patterns differs at the regional level depending on the overall level of development in the
concerned region. The industrial sector is the largest consumer segment in all regions, barring the NorthEastern region, where the domestic sector is the largest consumer. The industrial sectors share in overall
power consumption is highest at 53% in the eastern region followed by the Western region, where the
industrial sector has a 44% share in total electricity consumption. The industrial sectors power
consumption is higher in the East and West because of the presence of large industries (steel) in the
eastern region and in Gujarat and Maharashtra (Western region).

In the Northern region, the domestic sector and the industrial sectors, each have a 29% share in total
electricity consumption. Within the region, the largely-populated Uttar Pradesh, drives the domestic
consumption whereas states like Delhi drive the commercial demand. Delhis commercial consumption was
the highest in the region at around 4.6 bn kWh.
The share of the agriculture sector is the highest in the Southern regions total consumption, especially in
Andhra Pradesh, and the main drivers of agriculture consumption are the subsidies and free electricity to
farmers.

Demand and Supply Scenario

Power shortage continues to be a major cause for concern. The overall energy deficit was 11.0% in FY09,
while the peak-hour power deficit touched 12.0% during FY09. During FY07 to FY09, the energy
requirement increased from 693.1 BU to 774.3 BU while the energy availability increased from 624.7 BU to

689.0 BU. As a result, energy deficit increased from 68.3 BU kWh to 85.3 BU during the period under
review. The deficit is largely due to T&D losses, poor transmission, and distribution infrastructure,
unaccountability in metering and billing, cross subsidies, etc.
The peak demand for electricity increased from 100.7 GW in FY07 to 109.8 GW in FY09 while the peak
demand met increased from 87.1 GW in FY07 to 96.7 GW in FY09. The peak shortage was mainly due to
unavailability of plants and load shedding during peak hours.
Region-wise Power Demand and Supply Position
Northern Region
The Northern region has an energy deficit of around 24.3 BU and a peak deficit of around 3.5 GW. The
situation varies throughout the year and the worst situation is seen in the summer. Uttar Pradesh is the
largest deficit state in the Northern region, and a large part of this deficit can be attributed to the lack of
political will and the demographic profile of the consumers. Uttar Pradesh has the highest AT&C losses
among all states of the Northern region, which explains the financial sickness of the state electricity boards.
A similar situation exists in Punjab and many other states of the region but the intensity in these states is a
tad lower whereas in J&K the turmoil has made the situation more critical. Delhi, Rajasthan, and Haryana
have largely benefited from the reform process of their respective state governments; as a result, these
states losses have also come down, and the power deficit has decreased over the years. The region has
states like Himachal Pradesh and Uttarakhand, which have enormous hydro potential, and can be tapped to
meet the regions demand for power.

Western region
The Western region faces the worst shortage in both percentage terms as well as in units. The state with
the highest demand in the region is Maharashtra, which houses the financial capital of the country and is
home to a large number of industrial units. The region also witnesses high demand from the agricultural
sector. The demographic mix of consumers in the state makes the financial viability of the power sector
difficult. Different problems plague other states like Gujarat and Madhya Pradesh; Gujarat has a lack of
generating capacity and Madhya Pradesh faces AT&C losses as high as 50%. However, there is a potential
for change, and therefore, investment in Madhya Pradesh state, though availability of fuel remains a
problem. Maharashtra is getting an UMPP at a coastal location so that it has easy access to imported coal.
Rural electrification in Madhya Pradesh and huge capacity expansion and addition plans in Gujarat also
make it an attractive investment opportunity.

Eastern region
In the Eastern region, the growth of installed capacity has been around 1.5% in the past 5 years; however,
industrial development and consumer demand have been gradually increasing in the region. The region
imports power from Bhutan to meet its power requirement. There are many projects proposed in the area,
which are expected to increase the demand for power. The capacity expansion plans by various industries
in the sector as well as regular growth in demand translates into a healthy potential for investment.
However, there are concerns that need to be addressed at first, the least of which are monetary in nature.
Besides, the area has had problems in acquiring environmental clearances for its ambitious capacity
expansion plans as well.

North-Eastern region
The North-Eastern region has huge potential in terms of fuel availability (coal for thermal and water
systems for hydro power), as well as potential demand, as the region has the lowest per capita power
consumption. The major reasons for this are the terrain and climatic conditions that are not suitable for

power projects. The region also has abundant supply of gas that is as good as fuel for thermal power
generation as is coal, and is cleaner too. In terms of potential, the region is very attractive. It has proven
reserves of fuel, it has potential for growth in demand from residential and small users; however, the
demand and potential need to be assessed by keeping the geographical constraints in mind.

Southern region
In the past many reforms have been undertaken in this region, such as the implementation of SERCs
(State Electricity Regulatory Commissions) and the rationalisation of tariff structures, which have made
capacity addition an easier task. The results of these reforms are visible from the peak load deficit (that
has come down) as well as the requirement and availability in the region. However, the demand in the
Southern region has been increasing as both Karnataka and Andhra are adding huge capacities. Tamil Nadu
too has signed MOUs with the Indian government for various projects to increase the transmission and
distribution capacities. The demand from both industrial units as well as residential consumers is driving
the capacity addition potential in this region. Moreover, the real estate expansion plans in the region will
not only require an increase in the generation capacity but also in the capacity to provide continuous supply
of power at a reasonable voltage, which makes the opportunity to invest in the region more attractive.

Outlook
In the domestic sector, the overall slowdown could affect the incremental demand for power from the
urban domestic sector, as consumers are likely to postpone their consumer electronics purchases. Demand
from the rural sector is expected to rise following waiver of farm loans, modest agricultural income in FY09,
and access to electricity for more villages under the governments rural electrification programmes. Growth
in the industrial sector remained subdued in the first half of FY10. As the Indian economy is expected to
revive in the second half of FY10, industrial activity will also see an improvement. The service sector, on
the other hand, is expected to see healthy growth, which will keep the demand for power robust. Railways,
public services are expected to report higher demand for power, while in the commercial sector,
entertainment complexes and the hospitality sector are likely to report marginal decline in demand for
power.

international
REGIONS
The International Energy Studies Group performs studies on energy use and climate change mitigation
strategies through extensive analyses, research, model and tool development and technical assistance across
a variety of sectors in the developed and emerging economies.

India

Analyzing clean energy options for the Indian power sector

Modeling grid integration of renewable energy and optimal grid dispatch
Assessing the technical potential and financial impact of energy efficiency programs

INDIA
india
The IES Group has been working with Indian policymakers and industries for more than two decades. The group has
produced technical and policy analyses in the power sector, appliances, industrial and buildings energy efficiency,
sustainable cities, and transport sector. Our work includes reassessing the renewable energy potential in India, developing
comprehensive models for optimal grid dispatch and capacity expansion, analyzing the financial and emissions impact of
clean energy options for India, and assessing the potential for efficiency enhancement in the residential, industrial and
buildings sector. The International Energy Studies Group has memoranda of understanding (MoU) with several key
government agencies in India with a focus on energy efficiency and demand-side management, renewable energy and grid

planning.

Recent Work

Renewable Energy Potential: We conducted study of wind energy potential in India and found significantly
higher potential (i.e, 20 times). Using meso-scale satellite imagery and GIS data, we are assessing the renewable

energy potential and identifying renewable energy zones for transmission planning.
Clean Energy Options for India: We are analyzing the financial and emissions impact of clean energy options
like grid-connected renewable energy and energy efficiency programs for India.

Grid Dispatch Modeling: In order to assess the true cost of renewable energy grid integration and its impact of
transmission planning, we are developing state-level power flow models for optimal grid dispatch and capacity
expansion using commercially available modeling platforms like PLEXOS and SWITCH.

Energy Efficiency Programs: We contributed to the formulation of DSM regulations in several state electricity
regulatory commissions in India, provided technical assistance, along with the Prayas Energy Group, on the
conceptual design of an upstream DSM incentive program for promoting super-efficient appliances and are
estimating the total potential of efficiency enhancement in India and are analyzing its impact on utility finances
and consumer tariffs.

Using clean energy options, CO2 emissions from the Indian power
sector can be reduced by 40% by 2030 at virtually no incremental cost.

China: China Energy Group

Understanding the dynamics of energy use in China

Developing end use energy demand forecasts for China
Evaluating efficiency policy impacts and potentials in China, particularly in buildings, appliances and industry

CHINA: CHINA ENERGY GROUP

china
The IES Group collaborates with the China Energy Group in order to

Understand the dynamics of energy use in China

Develop end use energy demand forecasts for China
Evaluate efficiency policy impacts and potentials in China, particularly in buildings, appliances and industry

Additional information may be found on the LBNL China Energy Group website.

Related Publications:
2014
Zhao, Yue, Jing Ke, Chun Chun Ni, Michael A. McNeil, Nina Khanna, Nan Zhou, David Fridley, and Qiqiang Li. "A
Comparative Study of Energy Consumption and Efficiency of Japanese and Chinese Manufacturing Industry." Energy
Policy 70 (2014): 45-56.

2013
Zhou, Nan, David Fridley, Nina Zheng Khanna, Jing Ke, Michael A. McNeil, and Mark D. Levine. "China's energy and
emissions outlook to 2050: Perspectives from bottom-up energy end-use model." Energy Policy 53 (2013): 5162. Download: PDF (895.58 KB)
Zhou, Nan, David Fridley, Michael A. McNeil, Nina Zheng Khanna, Wei Feng, and Jing Ke. Quantifying the potential
impact of energy efficiency and low carbon policies for China In the European Council for an Energy-Efficient Economys
2013 Summer Study on Energy Efficiency. Toulon, France: the European Council for an Energy-Efficient Economy,
2013. Download: PDF (831.42 KB)

2011
Zhou, Nan, David Fridley, Michael A. McNeil, Nina Zheng, Virginie E. Letschert, and Jing Ke. Analysis of Potential
Energy Saving and CO2 Emission Reduction of Home Appliances and Commercial Equipments in China., 2011.

Zhou, Nan, Michael A. McNeil, and Mark D. Levine. Assessment of Building Energy-Saving Policies and Programs in
China During the 11th Five Year Plan., 2011. Download: PDF (5.67 MB)
McNeil, Michael A., Nicholas Bojda, Jing Ke, Yining Qin, Stephane de la Rue du Can, David Fridley, Virginie E.
Letschert, and James E. McMahon. Business Case for Energy Efficiency in Support of Climate Change Mitigation,
Economic and Societal Benefits in China., 2011. Download: PDF (12.95 MB)

2010
Zhou, Nan, David Fridley, Michael A. McNeil, Nina Zheng, Virginie E. Letschert, and Jing Ke. "Analysis of Potential
Energy Saving and CO2 Emission Reduction of Home Appliances and Commercial Equipments in China." In The 2010
American Council for an Energy Efficient Economy's Summer Study on Energy Efficiency in Buildings., 2010.
Zhou, Nan, Michael A. McNeil, and Mark D. Levine. "Assessment of Building Energy-Saving Policies and Programs in
China During the 11th Five Year Plan." In The 2010 International Energy Program Evaluation Conference, Counting on
Energy Programs., 2010. Download: PDF (7.73 MB)

2009
McNeil, Michael A., Stephane de la Rue du Can, and James E. McMahon. "Enduse Global Emissions Mitigation
Scenarios (EGEMS): A New Generation of Energy Efficiency Policy Planning Models." In ECEEE Summer Study 2009.,
2009. Download: PDF (488.19 KB)

2004
Price, Lynn K., Jiang Yun, Ernst Worrell, Du Wenwei, and Jonathan E. Sinton. Development of an energy conservation
voluntary agreement pilot project in the steel sector in Shandong In Energy. Vol. 28., 2004. Download: PDF (4.77 MB)

2003
Price, Lynn K., Jiang Yun, Ernst Worrell, Du Wenwei, and Jonathan E. Sinton. Development of an Energy Conservation
Voluntary Agreement, Pilot Project in the Steel Sector in Shandong Province In Policy Modeling for Industrial Energy
Use. Vol. 28., 2003. Download: PDF (2.12 MB)
Price, Lynn K., Ernst Worrell, Jonathan E. Sinton, and Jiang Yun. Voluntary Agreements for Increasing Energy-Efficiency
in Industry: Case Study of a Pilot Project with the Steel Industry in Shandong Province, China In Earth Technologies
Forum and Exhibition. Vol. 28., 2003.
Price, Lynn K., Ernst Worrell, and Jonathan E. Sinton. Voluntary agreements in the industrial sector in China In Energy
Engineering Journal. Vol. 2., 2003.

2001
Price, Lynn K., Ernst Worrell, Jonathan E. Sinton, and Jiang Yun. "Industrial energy efficiency policy in China." In 2001
ACEEE Summer Study on Energy Efficiency in Industry. Vol. 2., 2001. Download: PDF (1.12 MB)

Other Countries

Conducting research support for multi-national initiatives on clean energy and energy efficiency
Providing technical analysis support to national decision-makers on energy policy and energy efficiency
Developing institutional collaborations and capacity building on energy analysis and clean energy policies and
programs

OTHER COUNTRIES
Over the past three decades, the IES Group has worked in a wide variety of countries on many research projects. IES
researchers provide technical support for governments, utilities. and private firms around the world, particularly in
emerging economies with limited capacity.
The IES Group has established a Memoranda of Understanding between LBNL and institutions in India, Brazil, Korea and
Malaysia. IES Group researchers are also contributors in multi-lateral initiatives such as the Intergovernmental Panel on
Climate Change (IPCC) and the Clean Energy Ministerial (CEM). Under the CEM, IES provides technical support to the
following multilateral initiatives.

Superefficient Equipment and Appliance Deployment (SEAD) Initiative

An initiative of the CEM and a task within the IPCC, SEAD seeks to engage governments and the private sector to
transform the global market for energy-efficient equipment and appliances.
Under SEAD, the IES group provides technical support to working groups on energy efficiency market transformation
policies (e.g., standards and labeling, awards, procurement, and financial incentives). We also conduct product-specific
studies to identify remaining opportunities for energy efficiency improvement. For example, our studies on room air
conditioners, ceiling fans, TVs and computer monitors are available here. The IES Group also provides technical support
for appliance energy efficiency programs to SEAD participating governments such as Mexico, South Africa and India.
You can also learn about our SEAD work here.

21st Century Power Partnership (21st CPP)

The 21st CPP is a CEM initiative which aims to enhance large-scale deployment of energy efficiency and renewable
energy through policies and programs that leverage smart grid solutions and clean energy technologies. The IES group
provides technical support to peer to peer dialogue on renewable energy integration under the 21 st CPP.

The Global Lighting and Energy Access Partnership (Global LEAP)

An initiative of the CEM, Global LEAP works to transform the global market for affordable, clean, high-quality off-grid
lighting by addressing fundamental barriers to market development. Launched in 2012, Global LEAP continues the work
of the Clean Energy Ministerial's original energy access initiative (the Solar and LED Energy Access initiative) while
working to achieve greater impact within the United Nations Sustainable Energy for All campaign.
IES group provides technical support to various aspects of Global LEAP including "The Global LEAP Outstanding OffGrid Product Awards" competition and technical and policy issues in mini-grids.
We also discuss our Global LEAP work here.

Countries where IES has conducted research projects or provided technical

assistance include:
Argentina

France

Norway

Australia

Germany

Portugal

Austria

Ghana

South Africa

Brazil
Canada

Honduras
India

South Korea
Spain

Chile

Italy

Sweden

China

Japan

Switzerland

Costa Rica
Denmark

Kenya
Lithuania

Thailand
U.S.

El Salvador

Mexico

Uruguay

England (UK)

Netherlands

Vietnam

Finland

New Zealand

ELECTRICITY SECTOR IN INDIA

From Wikipedia, the free encyclopedia
Jump to: navigation, search

*Electricity Production in India till 2012

Sources of electricity in India by Installed Capacity as of 2013

Ramagundam Thermal Power Station, Telangana

Sabarmati Thermal Power Station, Gujarat

The electricity sector in India had an installed capacity of 254.649 GW as of end October
2014.[1] India became the world's third largest producer of electricity in the year 2013 with 4.8%
global share in electricity generation surpassing Japan and Russia.[2] Captive power plants have
an additional 39.375 GW capacity. Non Renewable Power Plants constitute 87.55% of the
installed capacity, and Renewable Power Plants constitute the remaining 12.45% of total
installed Capacity.[3] India generated around 967 TWh (967,150.32 GWh) of electricity[4]
(excluding electricity generated from renewable and captive power plants) during the 201314
fiscal. The total annual generation of electricity from all types of sources was 1102.9 TeraWatthours (TWh) in 2013.[2]
As of March 2013, the per capita total electricity consumption in India was 917.2 kWh.[5] The per
capita average annual domestic electricity consumption in India in 2009 was 96 kWh in rural

areas and 288 kWh in urban areas for those with access to electricity in contrast to the worldwide
per capita annual average of 2,600 kWh and 6,200 kWh in the European Union.[6] Electric energy
consumption in agriculture is highest[citation needed] (18%) in India. The per capita electricity
consumption is lower compared to many countries despite cheaper electricity tariff in India.[7]

Contents
[hide]

1 History
2 Demand
o 2.1 Rural Electrification
3 Electricity consumption
4 Electricity generation
5 Conventional sources
o 5.1 Thermal power
o 5.2 Hydro power
o 5.3 Nuclear power
6 Non-conventional sources
o 6.1 Solar power
o 6.2 Wind power
o 6.3 Biomass power
o 6.4 Geothermal energy
o 6.5 Tidal wave energy
7 Electricity transmission and distribution
8 Problems with India's power sector
9 Resource potential in electricity sector
10 Electricity trading with neighbour countries
11 Electricity as substitute to imported LPG and kerosene
12 Electricity driven vehicles
13 Human resource development
14 Regulation and administration
o 14.1 Trading
o 14.2 Government-owned power companies
o 14.3 Funding of power infrastructure
o 14.4 Budgetary support
15 See also
16 References
17 External links

History[edit]
The first demonstration of electric light in Calcutta was conducted on 24 July 1879 by P W
Fleury & Co. On 7 January 1897, Kilburn & Co secured the Calcutta electric lighting license as
agents of the Indian Electric Co, which was registered in London on 15 January 1897. A month
later, the company was renamed the Calcutta Electric Supply Corporation. The control of the
company was transferred from London to Calcutta only in 1970. Enthused by the success of
electricity in Calcutta, power was thereafter introduced in Bombay.[8] Mumbai saw electric

lighting demonstration for the first time in 1882 at Crawford Market, and Bombay Electric
Supply & Tramways Company (BEST) set up a generating station in 1905 to provide electricity
for the tramway.[9] The first hydroelectric installation in India was installed near a tea estate at
Sidrapong for the Darjeeling Municipality in 1897.[10] The first electric train ran between
Bombay's Victoria Terminus and Kurla along the Harbour Line, in 1925.[11] In 1931,
electrification of the metre gauge track between Madras Beach and Tambaram was started.[12]
Growth of Installed Capacity in India[5]
Thermal (MW)
Installed
Capacity
as on

Coal

Renewable (MW)

Nuclear
Total
SubOther
Sub-Total
(MW)
(MW)
Gas Diesel Total
Hydel
Renewable Renewable
Thermal

%
Growth
(on yearly
basis)

31-Dec1947

756

98

854

508

508

1,362

31-Dec1950

1,004

149

1,153

560

560

1,713

8.59%

31-Mar1956

1,597

228

1,825

1,061

1,061

2,886

13.04%

31-Mar1961

2,436

300

2,736

1,917

1,917

4,653

12.25%

31-Mar1966

4,417

137

352

4,903

4,124

4,124

9,027

18.80%

31-Mar1974

8,652

165

241

9,058

640 6,966

6,966

16,664

10.58%

31-Mar1979

14,875

168

164

15,207

640 10,833

10,833

26,680

12.02%

31-Mar1985

26,311

542

177

27,030

1,095 14,460

14,460

42,585

9.94%

31-Mar1990

41,236 2,343

165

43,764

1,565 18,307

18,307

63,636

9.89%

31-Mar-

54,154 6,562

294

61,010

2,225 21,658

22,560

85,795

4.94%

902

Growth of Installed Capacity in India[5]

Thermal (MW)
Installed
Capacity
as on

Coal

Renewable (MW)

Nuclear
Total
SubOther
Sub-Total (MW)
(MW)
Gas Diesel Total
Hydel
Renewable Renewable
Thermal

%
Growth
(on yearly
basis)

1997
31-Mar2002

62,131 11,163 1,135

74,429

2,720 26,269

1,628

27,897 105,046

4.49%

31-Mar2007

71,121 13,692 1,202

86,015

3,900 34,654

7,760

42,414 132,329

5.19%

31-Mar2012

112,022 18,381 1,200 131,603

4,780 38,990

24,503

63,493 199,877

9.00%

30-June2014[3]

148,478 22,608 1,200 172,286

4,780 40,730

31,692

72,422 249,488

10.35%

The break up of other RES is small hydro (3804 MW), wind power (21136 MW), biomass
power/co-generation (4014 MW), waste-to-power (107 MW) and solar power (2132 MW).
The planned additional thermal power generation capacity excluding renewable power during the
remaining period of the 12th plan period (up to March, 2017) is 90,925 MW.[13]

Demand[edit]
Demand drivers

Satellite pictures of India show thick haze and black carbon smoke above India and other Asian
countries. This problem is particularly severe along the Ganges Basin in northern India. Major sources of
particulate matter and aerosols are believed to be smoke from biomass burning in rural parts of India,
and air pollution from large cities in northern India.

"Expanding access to energy means including 2.4 billion people: 1.4 billion that still has no
access to electricity (87% of whom live in the rural areas) and 1 billion that only has access to
unreliable electricity networks. We need smart and practical approaches because energy, as a
driver of development, plays a central role in both fighting poverty and addressing climate
change. The implications are enormous: families forego entrepreneurial endeavors, children
cannot study after dark, health clinics do not function properly, and women are burdened with
time consuming chores such as pounding grain or hauling water, leaving them with less time to
engage in income generating activities. Further, it is estimated that kitchen smoke leads to
around 1.5 million premature deaths every year, more than the number of deaths from malaria
each year. After gaining access to energy, households generate more income, are more
productive and are less hungry, further multiplying the Millennium Development Goal's
progress."
Rebeca Grynspan, UNDP Associate Administrator and Under Secretary General, Bloomberg
New Energy Summit, 7 April 2011[14]
Of the 1.4 billion people of the world who have no access to electricity in the world, India
accounts for over 300 million. The International Energy Agency estimates India will add
between 600 GW to 1,200 GW of additional new power generation capacity before 2050.[15] This
added new capacity is equivalent to the 740 GW of total power generation capacity of European
Union (EU-27) in 2005. The technologies and fuel sources India adopts, as it adds this electricity
generation capacity, may make significant impact to global resource usage and environmental
issues.[16]
Some 800 million Indians use traditional fuels fuelwood, agricultural waste and biomass cakes
for cooking and general heating needs. These traditional fuels are burnt in cook stoves, known
as chulah or chulha in some parts of India.[17][18] Traditional fuel is inefficient source of energy, its
burning releases high levels of smoke, PM10 particulate matter, NOX, SOX, PAHs,
polyaromatics, formaldehyde, carbon monoxide and other air pollutants.[19][20][21] Some reports,
including one by the World Health Organisation, claim 300,000 to 400,000 people in India die of
indoor air pollution and carbon monoxide poisoning every year because of biomass burning and
use of chullahs.[22] Traditional fuel burning in conventional cook stoves releases unnecessarily
large amounts of pollutants, between 5 to 15 times higher than industrial combustion of coal,
thereby affecting outdoor air quality, haze and smog, chronic health problems, damage to forests,
ecosystems and global climate. Burning of biomass and firewood will not stop, these reports
claim, unless electricity or clean burning fuel and combustion technologies become reliably
available and widely adopted in rural and urban India. The growth of electricity sector in India
may help find a sustainable alternative to traditional fuel burning.
In addition to air pollution problems, a 2007 study finds that discharge of untreated sewage is
single most important cause for pollution of surface and ground water in India. There is a large

gap between generation and treatment of domestic wastewater in India. The problem is not only
that India lacks sufficient treatment capacity but also that the sewage treatment plants that exist
do not operate and are not maintained. Majority of the government-owned sewage treatment
plants remain closed most of the time in part because of the lack of reliable electricity supply to
operate the plants. The wastewater generated in these areas normally percolates in the soil or
evaporates. The uncollected wastes accumulate in the urban areas cause unhygienic conditions,
release heavy metals and pollutants that leaches to surface and groundwater.[23][24] Almost all
rivers, lakes and water bodies are severely polluted in India. Water pollution also adversely
impacts river, wetland and ocean life. Reliable generation and supply of electricity is essential
for addressing India's water pollution and associated environmental issues.
Other drivers for India's electricity sector are its rapidly growing economy, rising exports,
improving infrastructure and increasing household incomes.
Demand trends

In a May 2014 report, India's Central Electricity Authority anticipated, for 201415 fiscal year, a
base load energy deficit and peaking shortage to be 5.1% and 2% respectively.[25] India also
expects all regions to face energy shortage up to a maximum of 17.4% in North Eastern region.
All India (Anticipated) Power Supply Position in FY2014-15[25]
Energy
Region

Requirement
(MU)

Peak Power

Availability Surplus(+)/Deficit(- Demand

(MU)
)
(MW)

Supply Surplus(+)/Deficit((MW)
)

Northern

328,944

318,837

-3.1%

47,570

46,899

-1.4%

Western

288,062

289,029

+0.3%

45,980

52,652

+14.5%

Southern

298,180

260,366

-12.7%

41,677

32,423

-22.2%

Eastern

118,663

114,677

-3.4%

17,608

17,782

+1.0%

NorthEastern

14,823

12,248

-17.4%

2,543

2,215

-12.9%

1,048,672

995,157

-5.1%

147,815

144,788

-2.0%

All India

Gujarat has the highest power surplus of any Indian state, with about 1.8 GW more power
available than its internal demand. The state was expecting more capacity to become available. It
was expecting to find customers, sell excess capacity to meet power demand in other states of

India, thereby generate revenues for the state. Andhra Pradesh leads in the greatest power deficit
with peak power being less by 3.2 GW against demand.[25][26]
Despite an ambitious rural electrification programme,[27] some 400 million Indians lose electricity
access during blackouts.[28] While 80% of Indian villages have at least an electricity line, just
52.5% of rural households have access to electricity. In urban areas, the access to electricity is
93.1% in 2008. The overall electrification rate in India is 64.5% while 35.5% of the population
still live without access to electricity.[29]
According to a sample of 97,882 households in 2002, electricity was the main source of lighting
for 53% of rural households compared to 36% in 1993.[30]
The 17th electric power survey of India report claims:[31]

Over 201011, India's industrial demand accounted for 35% of electrical power requirement,
domestic household use accounted for 28%, agriculture 21%, commercial 9%, public lighting and
other miscellaneous applications accounted for the rest.
The electrical energy demand for 201617 is expected to be at least 1,392 Tera Watt Hours, with
a peak electric demand of 218 GW.
The electrical energy demand for 202122 is expected to be at least 1,915 Tera Watt Hours, with
a peak electric demand of 298 GW.

If current average transmission and distribution average losses remain same (32%), India needs
to add about 135 GW of power generation capacity, before 2017, to satisfy the projected demand
after losses.
McKinsey claims[32] that India's demand for electricity may cross 300 GW, earlier than most
estimates. To explain their estimates, they point to four reasons:

India's manufacturing sector is likely to grow faster than in the past

Domestic demand will increase more rapidly as the quality of life for more Indians improve
About 125,000 villages are likely to get connected to India's electricity grid
Blackouts and load shedding artificially suppresses demand; this demand will be sought as
revenue potential by power distribution companies

A demand of 300 GW will require about 400 GW of installed capacity, McKinsey notes. The
extra capacity is necessary to account for plant availability, infrastructure maintenance, spinning
reserve and losses.
In 2010, electricity losses in India during transmission and distribution were about 24%, while
losses because of consumer theft or billing deficiencies added another 1015%.[33]
According to two studies published in 2004, theft of electricity in India, amounted to a
nationwide loss of $4.5 billion.[34][35] This led several states of India to enact and implement
regulatory, and institutional framework; develop a new industry and market structure; and
privatise distribution. The state of Andhra Pradesh, for example, enacted an electricity reform
law; unbundled the utility into one generation, one transmission, and four distribution and supply

companies; and established an independent regulatory commission responsible for licensing,

setting tariffs, and promoting efficiency and competition. Some state governments amended the
Indian Electricity Act of 1910 to make electricity theft a cognisable offence and impose stringent
penalties. A separate law, unprecedented in India, provided for mandatory imprisonment and
penalties for offenders, allowed constitution of special courts and tribunals for speedy trial, and
recognised collusion by utility staff as a criminal offence. The state government made advance
preparations and constituted special courts and appellate tribunals as soon as the new law came
into force. High quality metering and enhanced audit information flow was implemented. Such
campaigns have made a big difference in the Indian utilities' bottom line. Monthly billing has
increased substantially, and the collection rate reached more than 98%. Transmission and
distribution losses were reduced by 8%.
Power cuts are common throughout India and the consequent failure to satisfy the demand for
electricity has adversely effected India's economic growth.[36]
Growth of Electricity Consumption in India[5]
Consumption Total (in
as on
GWh)

Per-Capita
Consumption (in
Domestic Commercial Industrial Traction Agriculture Misc
kWh)
% of Total

31-Dec-1947

4,182

10.11%

4.26%

70.78%

6.62%

2.99% 5.24%

16.3

31-Dec-1950

5,610

9.36%

5.51%

72.32%

5.49%

2.89% 4.44%

18.2

31-Mar-1956

10,150

9.20%

5.38%

74.03%

3.99%

3.11% 4.29%

30.9

31-Mar-1961

16,804

8.88%

5.05%

74.67%

2.70%

4.96% 3.75%

45.9

31-Mar-1966

30,455

7.73%

5.42%

74.19%

3.47%

6.21% 2.97%

73.9

31-Mar-1974

55,557

8.36%

5.38%

68.02%

2.76%

11.36% 4.13%

126.2

31-Mar-1979

84,005

9.02%

5.15%

64.81%

2.60%

14.32% 4.10%

171.6

31-Mar-1985

124,569

12.45%

5.57%

59.02%

2.31%

16.83% 3.83%

228.7

31-Mar-1990

195,098

15.16%

4.89%

51.45%

2.09%

22.58% 3.83%

329.2

31-Mar-1997

315,294

17.53%

5.56%

44.17%

2.09%

26.65% 4.01%

464.6

31-Mar-2002

374,670

21.27%

6.44%

42.57%

2.16%

21.80% 5.75%

671.9

31-Mar-2007

525,672

21.12%

7.65%

45.89%

2.05%

18.84% 4.45%

559.2

Growth of Electricity Consumption in India[5]

Consumption Total (in
as on
GWh)

Per-Capita
Consumption (in
Domestic Commercial Industrial Traction Agriculture Misc
kWh)
% of Total

31-March2012

785,194

22.00%

8.00%

45.00%

2.00%

18.00% 5.00%

883.6

31-March2013

852,902

21.79%

8.33%

44.87%

1.81%

17.95% 5.25%

917.2Provisional

Rural Electrification[edit]
See also: Rural Electrification Corporation Limited

In December 2011, over 300 million Indian citizens had no access to frequent electricity. Over
one third of India's rural population lacked electricity, as did 6% of the urban population. Of
those who did have access to electricity in India, the supply was intermittent and unreliable. In
2010, blackouts and power shedding interrupted irrigation and manufacturing across the
country.[37][15] States such as Gujarat,[38] Madhya Pradesh,[39] etc. provide continuous power supply.
Rural
Electrification
rates

N.o of
states and
UTs

Remarks [40]

100%

14

99%

electrification %, un-electrified villages: Gujarat (99.8%, 35),

Maharashtra (99.9%, 36), Himachal Pradesh (99.9%, 15), West Bengal
(99.99%, 4)

+95%

Assam (96.1%), Bihar (97%), Chhattisgarh (97.4%), Rajasthan (97.6%),

Madhya Pradesh (97.7%), Jammu & Kashmir (98.2%), Uttaranchal
(98.9%)

+90%

Tripura (92.9%), Mizoram (93.5%)

+80%

Orissa (81.9%), Meghalaya (86.3%), Manipur (86.3%), Uttar Pradesh

(88.9%), Jharkhand (89.2%)

Under 80%

Andaman & Nicobar (67.7%), Nagaland (70.1%), Arunachal Pradesh

(75.5%)

India's Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana as one of its
flagship programme in March 2005 with the objective of electrifying over one lakh (100,000)
un-electrified villages and to provide free electricity connections to 2.34 crore (23.4 million)
rural households. This free electricity programme promises energy access to India's rural areas,
but is in part creating problems for India's electricity sector.[37]

Electricity consumption[edit]
Per-Capita Electricity consumption (kWh)[41] (in 201112)
State/Union Territory

Region

Per-Capita Consumption
(kWh)

Dadra & Nagar Haveli

Western

13,766.6

Daman & Diu

Western

7,785.2

Goa

Western

2,025.5

Gujarat

Western

1,663.2

Chhattisgarh

Western

1,319.6

Maharashtra

Western

1,204.4

Madhya Pradesh

Western

671.5

Western Region

1,201.2

Puducherry

Southern

2,124.7

Tamil Nadu

Southern

1,276.6

Andhra Pradesh

Southern

1,156.5

Karnataka

Southern

1,081.4

Kerala

Southern

593.8

Lakshadweep

Southern

1,098.0

Southern Region
Punjab

938.88
Northern

1,799.0

Per-Capita Electricity consumption (kWh)[41] (in 201112)

State/Union Territory

Region

Per-Capita Consumption
(kWh)

Haryana

Northern

1,628.3

Delhi

Northern

1,586.7

Himachal Pradesh

Northern

1,289.4

Uttarakhand

Northern

1,232.2

Chandigarh

Northern

1,217.4

Jammu & Kashmir

Northern

1,015.2

Rajasthan

Northern

927.4

Uttar Pradesh

Northern

449.9

Northern Region

833.2

Odisha

Eastern

1,145.8

Sikkim

Eastern

886.4

Jharkhand

Eastern

790.2

West Bengal

Eastern

563.8

Andaman & Nicobar Islands Eastern

501.4

Bihar

133.6

Eastern
Eastern Region

521.2

Arunachal Pradesh

North Eastern

683.1

Meghalaya

North Eastern

657.6

Mizoram

North Eastern

506.7

Nagaland

North Eastern

257.2

Per-Capita Electricity consumption (kWh)[41] (in 201112)

State/Union Territory

Region

Per-Capita Consumption
(kWh)

Tripura

North Eastern

253.8

Assam

North Eastern

249.8

Manipur

North Eastern

235.9

North Eastern Region

257.98

National'

883.6

Electricity generation[edit]

Tehri Hydroelectric Power station's lake in Uttarakhand. Tehri is world's 7th tallest dam.[42] With a
capacity of 2.4 GW, it is India's largest hydroelectric power generation installation.

Power development in India was first started in 1897 in Darjeeling, followed by commissioning
of a hydropower station at Sivasamudram in Karnataka during 1902. Thermal power stations
which generates electricity more than 1,000 MW are referred as Super Thermal Power Stations.
India's electricity generation capacity additions from 1950 to 1985 were very low when
compared to developed nations. Since 1990, India has been one of the fastest growing markets
for new electricity generation capacity. India's electricity generation capacity has increased from
179 TW-h in 1985 to 1053 TW-h in 2012.[2]
India's Power Finance Corporation Limited projects that current and approved electricity
capacity addition projects in India are expected to add about 100 GW of installed capacity
between 2012 and 2017. This growth makes India one of the fastest growing markets for
electricity infrastructure equipment.[43][44] India's installed capacity growth rates are still less than

those achieved by China, and short of capacity needed to ensure universal availability of
electricity throughout India by 2017.
The table below presents the electricity generation capacity, as well as availability to India's end
user and their demand. The difference between installed capacity and availability is the
transmission, distribution and consumer losses. The gap between availability and demand is the
shortage India is suffering. This shortage in supply ignores the effects of waiting list of users in
rural, urban and industrial customers; it also ignores the demand gap from India's unreliable
electricity supply.
Electricity sector capacity and availability in India (excludes effect of blackouts/power-shedding)
Item

Value

Date reported

Reference

Total installed capacity (GW)

209.27

October 2012

[45][46]

Available base load supply (MU)

893371

October 2012

[47]

Available peak load supply (GW)

125.23

October 2012

[47]

Demand base load (MU)

985317

October 2012

[47]

Demand peak load (GW)

140.09

October 2012

[47]

State-owned and privately owned companies are significant players in India's electricity sector,
with the private sector growing at a faster rate. India's central government and state governments
jointly regulate electricity sector in India.
Major economic and social drivers for India's push for electricity generation include India's goal
to provide universal access, the need to replace current highly polluting energy sources in use in
India with cleaner energy sources, a rapidly growing economy, increasing household incomes,
limited domestic reserves of fossil fuels and the adverse impact on the environment of rapid
development in urban and regional areas.[48]
State-wise All India installed capacity[49]
(as of 31-December-2013 including allocated shares in joint and central sector utilities)

State/Unio

Thermal (in MW)

Nuclea

Renewable (in MW)

Total (in

% of

n Territory
Coal

Gas

Maharastr 20,239.2 3,475.9

a
7
3

SubDiesel Total
Thermal

r
(in
MW)

MW)
SubOther
Total
Hydel Renewab
Renewab
le
le

Nation
al
Install
ed
Capaci
ty

23,715.2
3,331.8
32,505.9
690.14
4,768.80 8,100.64
13.90%
0
4
8

Gujarat

15,738.2 4,978.9
20,734.7
26,269.1
17.48
559.32 772.00 4,203.06 4,975.06
11.23%
7
9
4
2

Madhya
Pradesh

8,503.89 257.18

Chhattisga
6,388.49
rh
Dadra &
Nagar
Haveli
Goa

1,622.35 196.91

8,761.07 273.24

6,388.49 47.52 120.00

1,819.26 228.14

374.17 25.80

326.17

48.00

36.71

4.20

Central Unallocate 1,622.35 196.91

d

Daman &
Diu

Western

3,223.6
6

40.91

644.38 3,868.04

308.90

12,902.3
5.52%
5

428.90 6,864.91 2.93%

0.05

2,047.40 0.88%

0.05

400.02 0.17%

7.38

48.29 0.02%

1,819.26 228.14

2,047.40 0.88%

52,899.5 8,988.3
61,905.3 1,840. 7,447.5
17,372.6 81,117.9 34.68
17.48
9,925.19
1
1
0
00
0
9
9
%

Uttar
Pradesh

10,682.9
549.97
5

11,232.9
1,859.4
335.72
2
5

Rajasthan

7,679.72 775.03

8,454.75 573.00

Haryana

6,082.03 560.29

3.92 6,646.24 109.16

846.48 2,705.93

14,274.5
6.10%
7

1,548.3
14,059.1
3,483.05 5,031.37
6.01%
2
2
1,373.2
1

123.20 1,496.41 8,251.81 3.53%

State-wise All India installed capacity[49]

(as of 31-December-2013 including allocated shares in joint and central sector utilities)

% of
Nation
Nuclea
al
Subr
Total (in
SubOther
Install
Total
(in
MW)
Diesel Total
Hydel Renewab
ed
Renewab
MW)
Thermal
le
Capaci
le
ty

Thermal (in MW)

State/Unio
n Territory

Coal

Gas

Renewable (in MW)

3,029.5
3

Punjab

3,790.88 288.92

4,079.80 208.04

Delhi

4,556.37

2,116.0
1

6,672.38 122.08 690.33

Himachal
Pradesh

152.02

61.88

3.92

214.03 34.08

2,950.9
4

625.91 3,576.85 3,824.96 1.64%

Uttarakhan
d

300.50

69.35

369.85 22.28

2,006.0
1

189.87 2,195.88 2,588.01 1.11%

Jammu &
Kashmir

329.32 304.14

8.94

642.40 77.00

1,658.0
3

147.53 1,805.56 2,524.96 1.08%

Chandigar
h
Central Unallocate
d
Northern

32.54

15.32

977.19 290.35

47.86

8.84

297.58 3,327.11 7,614.95 3.26%

16.00

52.88

1,267.54 129.80 524.05

706.33 7,500.79 3.21%

52.88

109.58 0.05%

524.05 1,921.39 0.82%

34,583.5 5,031.2
39,627.7 1,620. 15,692.
21,422.3 62,670.1 26.79
12.99
5,729.62
0
6
5
00
75
7
2
%

Tamil Nadu 8,726.40 1026.30 411.66

Andhra
Pradesh

8,573.48

Karnataka

6,158.39

10,014.3
2,182.2
10,128.3 20,666.6
524.00
7,946.13
8.83%
6
0
3
9

3,370.4
11,980.6
3,734.5
17,285.4
36.80
275.78
1,294.49 5,029.02
7.39%
0
8
3
8
-

234.42 6,392.81 254.86 3,599.8 3,693.19 7,292.99 13,940.6 5.96%

State-wise All India installed capacity[49]

(as of 31-December-2013 including allocated shares in joint and central sector utilities)

% of
Nation
Nuclea
al
Subr
Total (in
SubOther
Install
Total
(in
MW)
Diesel Total
Hydel Renewab
ed
Renewab
MW)
Thermal
le
Capaci
le
ty

Thermal (in MW)

State/Unio
n Territory

Coal

Gas

Renewable (in MW)

0
Kerala

914.56 533.58 256.44 1,704.58 95.60 1881.50

Puducherr
y

230.09

Central Unallocate 1,329.58

d
Southern

32.50

6
193.52 2,075.02 3,875.20 1.66%

262.59 19.28

281.87 0.12%

1,329.58 150.48

1,480.06 0.82%

25,932.5 4,962.7
31,834.6 1,320. 11,398. 13,127.3 24,525.3 57,679.9 24.66
939.32
0
8
0
00
03
3
6
6
%

West
Bengal

7,216.87 100.00 12.20 7,329.07

1,248.3
0

131.45 1,379.75 8,708.82 3.72%

Odisha

5,115.06

DVC

6,555.60

Jharkhand

2,358.88

Bihar

1,954.70

5,115.06

2,166.9
3

99.80 2,266.73 7,381.79 3.16%

6,645.60

193.26

193.26 6838.86 2.92%

2,358.88

200.93

20.05

220.98 2,579.86 1.10%

1,954.70

129.43

114.00

243.43 2,198.13 0.94%

679.21

429.72

31.11

460.83 1,140.04 0.49%

90.00

Assam

60.00 598.52 20.69

Meghalaya

65.61

2.05

67.66

356.58

31.03

387.61

455.27 0.19%

Tripura

349.84

4.85

354.69

62.37

16.01

78.38

433.07 0.19%

State-wise All India installed capacity[49]

(as of 31-December-2013 including allocated shares in joint and central sector utilities)

% of
Nation
Nuclea
al
Subr
Total (in
SubOther
Install
Total
(in
MW)
Diesel Total
Hydel Renewab
ed
Renewab
MW)
Thermal
le
Capaci
le
ty

Thermal (in MW)

State/Unio
n Territory

Coal

Sikkim

82.61

Arunachal
Pradesh

Gas

5.00

87.61

174.27

52.11

226.38

313.99 0.13%

32.05 15.88

47.93

97.57

103.91

201.48

249.41 0.11%

Manipur

46.96 45.41

92.37

80.98

5.45

86.43

178.80 0.08%

Mizoram

27.28 51.86

79.14

34.31

36.47

70.78

149.92 0.06%

Nagaland

32.84

2.00

34.84

53.32

28.67

81.99

116.83 0.05%

55.40

1,509.56

127.15

24,797.8 1,398.5
26,356.3
159.94
8
0
2

Central Unallocate 1,454.16

d
Eastern

Renewable (in MW)

127.15 1,636.71 0.70%

5,355.1
13.84
670.06 6,025.18 32,381.5
2
%

Andaman
& Nicobar

60.05

60.05

10.35

10.35

Lakshadwe
ep

9.97

9.97

9.97 0.00%

Islands

10.35

10.35

80.37 0.03%

Total

70.02

70.02

70.40 0.03%

138,213. 20,380. 1,199. 159,793.

39,893. 29,462.5 69,355.9 233,929. 100.00
4,780
39
85
75
99
40
5
5
94
%

In 2010, the five largest power companies in India, by installed capacity, in decreasing order,
were the center-owned NTPC, center-owned NHPC, followed by three privately owned
companies: Tata Power, Reliance Power and Adani Power.

In India's effort to add electricity generation capacity over 20092011, both central government
and state government owned power companies have repeatedly failed to add the capacity targets
because of issues with procurement of equipment and poor project management. Private
companies have delivered better results.[50]
Sector-wise All India installed capacity[49]
Sector

Thermal (in
MW)

Hydel (in
MW)

Nuclear (in
MW)

Central
Govt.

52,500.54

9,717.4

State Govt.

59,627.93

27,482.00

Private

47,665.52

2,694.00

Total

159,793.99

39,893.40

Conventional sources[edit]
Main article: Energy policy of India
Thermal power[edit]

A super thermal power plant in Rajasthan

4,780.00

4,780

Renewable (in
MW)
-

Total (in
MW)

% of
total

66,997.94

28.64%

3,726.77

90,836.70

38.83%

25,735.78

76,095.30

32.53%

29,462.55

233,929.94

100.00%

A thermal power plant in Maharashtra

Thermal power plants convert energy rich fuels such as coal, natural gas, petroleum products,
agricultural waste, domestic trash/waste, etc. into electricity. Other sources of fuel include
landfill gas and biogases. In some plants, renewal fuels such as biogas are co-fired with coal.
Coal and lignite accounted for about 60% of India's total installed capacity.[3] India's electricity
sector consumes about 72% of the coal produced in the country.[51]
India expects that its projected rapid growth in electricity generation over the next couple of
decades is expected to be largely met by thermal power plants.
Coal supply constraints

A large part of Indian coal reserve is similar to Gondwana coal. It is of low calorific value and
high ash content. The iron content is low in India's coal, and toxic trace element concentrations
are negligible. The natural fuel value of Indian coal is poor. On average, the Indian power plants
using India's coal supply consume about 0.7 kg of coal to generate a kWh, whereas United States
thermal power plants consume about 0.45 kg of coal per kWh. This is because of the difference
in the quality of the coal, as measured by the Gross Calorific Value (GCV). On average, Indian
coal has a GCV of about 4500 Kcal/kg, whereas the quality elsewhere in the world is much
better; for example, in Australia, the GCV is 6500 Kcal/kg approximately.[52] India imported
nearly 95 Mtoe of steam coal and coking coal which is 29% of total consumption to meet the
demand in electricity, cement and steel production.[53] China has banned import of high ash coal,
high sulphur coal and contaminated coal with trace metals which are causing air pollution.[54]

The high ash content in India's coal affects the thermal power plant's potential emissions.
Therefore, India's Ministry of Environment & Forests has mandated the use of beneficiated coals
whose ash content has been reduced to 34% (or lower) in power plants in urban, ecologically
sensitive and other critically polluted areas, and ecologically sensitive areas. Coal benefaction
industry has rapidly grown in India, with current capacity topping 90 MT.
Thermal power plants in India deploy a wide range of technologies. Some of the major
technologies include:

Steam cycle facilities (most commonly used for large utilities);

Gas turbines (commonly used for moderate sized peaking facilities);
Cogeneration and combined cycle facility (the combination of gas turbines or internal
combustion engines with heat recovery systems); and
Internal combustion engines (commonly used for small remote sites or stand-by power
generation).

India has an extensive review process, one that includes environment impact assessment, prior to
a thermal power plant being approved for construction and commissioning. The Ministry of
Environment and Forests has published a technical guidance manual to help project proposers
and to prevent environmental pollution in India from thermal power plants.[55]
Natural gas supply constraints

Gasification of Char/Coal

The installed capacity of natural gas based power plants is 21,727 MW at the end of financial
year 2013-14. These base load power plants are operating at overall PLF of 25% only due to
severe shortage of Natural gas in the country.[56] Imported LNG is too costly for the power
generation. Many of these power stations are shut down throughout the year for lack of natural
gas supply. Natural gas shortage for power sector alone is nearly 100 MMSCMD
Gasification of coal or lignite or biomass, produces syngas or coal gas or wood gas which is a
mixture of hydrogen, carbon monoxide and carbon dioxide gases. Coal gas can be converted in
to synthetic natural gas by using FischerTropsch process at low pressure and high temperature.
Coal gas can also be produced by underground coal gasification where the coal deposits are
located deep in the ground or uneconomical to mine the coal.[57] Synthetic natural gas production
technologies have tremendous scope to meet the SNG requirements of Gas based power stations
fully using the locally available coal (or imported coal in short run). Dankuni coal complex is
producing syngas which is piped to the industrial users in Calcutta.[58] Many coal based fertiliser
plants which are shut down can also be retrofitted economically to produce synthetic natural gas
for bridging natural gas shortages. It is estimated that SNG production cost would be below 6 $
per Mbtu.[59][60] The indigenously produced natural gas by the Exploration & Production (E&P)

contractors sold at prevailing international gas prices do not guarantee the natural gas supply
whereas the SNG produced from coal/ biomass is reliable & dependable fuel supply to the gas
based power stations and other natural gas consumers.
Hydro power[edit]
Main article: Hydroelectric power in India

Indira Sagar Dam partially completed in 2008

Nagarjuna Sagar Dam and hydroelectric power plant on the Krishna River. It is the world's largest
masonry dam, with an installed capacity of 800MW. The dam also irrigates about 1.4 million acres of
previously drought-prone land.

The hydro-electric power plants at Darjeeling and Shimsha (Shivanasamudra) were established
in 1898 and 1902 respectively and were among the first in Asia.
India is endowed with economically exploitable and viable hydro potential assessed to be about
84,000 MW at 60% load factor. In addition, 6740 MW in terms of installed capacity from Small,
Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes
with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely
used form of renewable energy. India is blessed with immense amount of hydro-electric potential
and ranks 5th in terms of exploitable hydro-potential on global scenario.
The present installed capacity as of 31 May 2014 is approximately 40,661.41 MW which is
16.36% of total electricity generation in India.[3] The public sector has a predominant share of
97% in this sector.[61] National Hydroelectric Power Corporation (NHPC), Northeast Electric
Power Company (NEEPCO), Satluj jal vidyut nigam (SJVNL), Tehri Hydro Development
Corporation, NTPC-Hydro are a few public sector companies engaged in development of
hydroelectric power in India.

Pumped storage schemes are perfect centralised peaking power stations for the load management
in the electricity grid. Pumped storage schemes would be in high demand for meeting peak load
demand and storing the surplus electricity as India graduates from electricity deficit to electricity
surplus. They also produce secondary /seasonal power at no additional cost when rivers are
flooding with excess water. Storing electricity by other alternative systems such as batteries,
compressed air storage systems, etc. is more costlier than electricity production by standby
generator. India has already established nearly 6800 MW pumped storage capacity which is part
of its installed hydro power plants.[62]
Nuclear power[edit]
Main article: Nuclear power in India

Kudankulam Nuclear Power Plant under construction in 2009. It was 96% complete as of March 2011,
with first phase expected to be in use in 2012. With initial installed capacity of 2 GW, this plant will be
expanded to 6.8 GW capacity.

As of 2011, India had 4.8 GW of installed electricity generation capacity using nuclear fuels.
India's Nuclear plants generated 32455 million units or 3.75% of total electricity produced in
India.[63]
India's nuclear power plant development began in 1964. India signed an agreement with General
Electric of the United States for the construction and commissioning of two boiling water
reactors at Tarapur. In 1967, this effort was placed under India's Department of Atomic Energy.
In 1971, India set up its first pressurised heavy water reactors with Canadian collaboration in
Rajasthan. In 1987, India created Nuclear Power Corporation of India Limited to commercialise
nuclear power.
Nuclear Power Corporation of India Limited is a public sector enterprise, wholly owned by the
Government of India, under the administrative control of its Department of Atomic Energy. Its
objective is to implement and operate nuclear power stations for India's electricity sector. The
state-owned company has ambitious plans to establish 63 GW generation capacity by 2032, as a
safe, environmentally benign and economically viable source of electrical energy to meet the
increasing electricity needs of India.[64]
India's nuclear power generation effort satisfies many safeguards and oversights, such as getting
ISO-14001 accreditation for environment management system and peer review by World
Association of Nuclear Operators including a pre-start up peer review. Nuclear Power
Corporation of India Limited admits, in its annual report for 2011, that its biggest challenge is to

address the public and policy maker perceptions about the safety of nuclear power, particularly
after the Fukushima incident in Japan.[63]
In 2011, India had 18 pressurised heavy water reactors in operation, with another four projects of
2.8 GW capacity launched. The country plans to implement fast breeder reactors, using
plutonium based fuel. Plutonium is obtained by reprocessing spent fuel of first stage reactors.
India successfully launched its first prototype fast breeder reactor of 500 MW capacity in Tamil
Nadu, and now operates two such reactors.
India has nuclear power plants operating in the following states: Maharashtra, Gujarat,
Rajasthan, Uttar Pradesh, Tamil Nadu and Karnataka. These reactors have an installed electricity
generation capacity between 100 to 540 MW each. New reactors with installed capacity of 1000
MW per reactor are expected to be in use by 2012.
In 2011, The Wall Street Journal reported the discovery of uranium in a new mine in India, the
country's largest ever. The estimated reserves of 64,000 tonnes, could be as large as 150,000
tonnes (making the mine one of the world's largest). The new mine is expected to provide India
with a fuel that it now imports. Nuclear fuel supply constraints had limited India's ability to grow
its nuclear power generation capacity. The newly discovered ore, unlike those in Australia, is of
slightly lower grade. This mine is expected to be in operation in 2012.[65]
India's share of nuclear power plant generation capacity is just 1.2% of worldwide nuclear power
production capacity, making it the 15th largest nuclear power producer. Nuclear power provided
3% of the country's total electricity generation in 2011. India aims to supply 9% of it electricity
needs with nuclear power by 2032.[63] India's largest nuclear power plant project under
implementation is at Jaitapur, Maharashtra in partnership with Areva, France.

Non-conventional sources[edit]
Main article: Renewable energy in India

Renewable energy in India is a sector that is still in its infancy.

India's electricity sector is amongst the world's most active players in renewable energy
utilization, especially wind energy.[66] As of 31 January 2014, India had an installed capacity of
about 31.15 GW of non-conventional renewable technologies-based electricity, about 13.32% of
its total.[67][68] For context, the total installed capacity for electricity in Switzerland was about 18
GW in 2009.
Renewal Energy Installed Capacity in India[67] (as of 31 January 2014)
Type
Grid Connected Power

Technology

Installed capacity
(in MW)

Renewal Energy Installed Capacity in India[67] (as of 31 January 2014)

Type

Technology
Wind

Installed capacity
(in MW)
20,298.83

Small Hydel Power Projects

3,774.15

Bagasse Cogeneration

2,512.88

Solar

2,208.36

Biomass Power & Gasification

1,285.60

Waste to Power
Total - Grid Connected Power

99.08
30,177.90

Off-Grid/Captive Power
Bagasse Cogeneration

517.34

SPV Systems (>1 kW)

159.77

Biomass Gasifiers - Industrial

146.40

Waste to Power

119.63

Biomass Gasifiers - Rural

17.63

Water Mills/Micro Hydel

10.18

Aerogenerator/Hybrid Systems

2.18

Total - Off-Grid/Captive Power

973.13

TOTAL

31,151.03

As of August 2011, India had deployed renewal energy to provide electricity in 8846 remote
villages, installed 4.4 million family biogas plants, 1800 microhydel units and 4.7 million square
metres of solar water heating capacity. India anticipates to add another 3.6 GW of renewal
energy installed capacity by December 2012.[69]

India plans to add about 30 GW of installed electricity generation capacity based on renewal
energy technologies, by 2017.[70]
Renewable energy projects in India are regulated and championed by the central government's
Ministry of New and Renewable Energy.
Solar power[edit]
Main article: Solar power in India

Solar resources in India

India is endowed with a vast solar energy potential. India receives one of the highest global solar
radiation - an energy of about 5,000 trillion kWh per year is incident over India's land mass with
most parts receiving 4-7 kWh per m2 per day.[71] Under Solar Mission, a central government
initiative, India plans to generate 1 GW of power by 2013 and up to 20 GW grid-based solar
power, 2 GW of off-grid solar power and cover 20 million square metres with solar energy
collectors by 2020.[72] India plans utility scale solar power generation plants through solar parks
with dedicated infrastructure by state governments, among others, the governments of Gujarat
and Rajasthan.[73]
The Government of Gujarat taking advantage of the national initiative and high solar irradiation
in the state, launched the Solar Power Policy in 2009 and proposes to establish a number of
large-scale solar parks starting with the Charanka Solar Park in Patan district in the sparsely
populated northern part of the state. The development of solar parks will streamline the project
development timeline by letting government agencies undertake land acquisition and necessary
permits, and provide dedicated common infrastructure for setting up solar power generation
plants largely in the private sector. This approach will facilitate the accelerated installation of
private sector solar power generation capacity reducing costs by addressing issues faced by stand
alone projects. Common infrastructure for the solar park include site preparation and leveling,
power evacuation, availability of water, access roads, security and services. In parallel with the
central government's initiative, the Gujarat Electricity Regulatory Commission has announced

feed-in tariff to mainstream solar power generation which will be applied for solar power
generation plants in the solar park. Gujarat Power Corporation Limited is the responsible agency
for developing the solar park of 500 MW and will lease the lands to the project developers to
generate solar power. Gujarat Energy Transmission Corporation Limited will develop the
transmission evacuation from the identified interconnection points with the solar developer. This
project is being supported, in part, by the Asian Development Bank.[73]
The Indian Solar Loan Programme, supported by the United Nations Environment Programme
has won the prestigious Energy Globe World award for Sustainability for helping to establish a
consumer financing programme for solar home power systems. Over the span of three years
more than 16,000 solar home systems have been financed through 2,000 bank branches,
particularly in rural areas of South India where the electricity grid does not yet extend. Launched
in 2003, the Indian Solar Loan Programme was a four-year partnership between UNEP, the
UNEP Risoe Centre, and two of India's largest banks, the Canara Bank and Syndicate Bank.[74][75]

Canal Solar Power Project in Kadi, Gujarat

Installation of solar power plants require nearly 2.4 hectares (6 acres) land per MW capacity
which is similar to coal fired power plants when life cycle coal mining, consumptive water
storage & ash disposal areas are also accounted and hydro power plants when submergence area
of water reservoir is also accounted. 1.33 million MW capacity solar plants can be installed in
India on its 1% land (32,000 square km). There are vast tracts of land suitable for solar power in
all parts of India exceeding 8% of its total area which are unproductive barren and devoid of
vegetation.[76] Part of waste lands (32,000 square km) when installed with solar power plants can
produce 2000 billion Kwh of electricity (two times the total generation in the year 2013-14) with
land productivity/yield of 1.5 million Rs per acre (6 Rs/kwh price) which is at par with many
industrial areas and many times more than the best productive irrigated agriculture lands.
Moreover these solar power units are not dependent on supply of any raw material and are self
productive. There is unlimited scope for solar electricity to replace all fossil fuel energy
requirements (natural gas, coal, lignite, nuclear fuels and crude oil) if all the marginally
productive lands are occupied by solar power plants in future.[77] The solar power potential of
India can meet perennially to cater per capita energy consumption at par with USA/Japan for the
peak population in its demographic transition.[78]
Land acquisition is a challenge to solar farm projects in India. Some state governments are
exploring means to address land availability through innovation; for example, by exploring
means to deploy solar capacity above their extensive irrigation canal projects, thereby harvesting

solar energy while reducing the loss of irrigation water by solar evaporation.[79] The state of
Gujarat was first to implement the Canal Solar Power Project, to use 19,000 km (12,000 mi) long
network of Narmada canals across the state for setting up solar panels to generate electricity. It
was the first ever such project in India.
Synergy with irrigation water pumping and hydro power stations

Price history of silicon PV cells since 1977

The major disadvantage of solar power (PV type) is that it can not produce electricity during the
night time and cloudy day time also. In India, this disadvantage

ELECTRICITY SCENARIO OF NATIONAL CAPITAL

TERRITORY OF DELHI
August 1, 2013 11:55 pm
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Author:

Shailesh
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Delhi Electricity shortage NCT Peak-demand

Delhi or the National Capital Territory (NCT) of Delhi is a metropolitan region located in
northern region of India housing the national capital city, New Delhi which is Indias second
most populous city after Mumbai. NCT of Delhi comes under administrative division of Union
Territory. However, it has special status and has its own elected legislative assembly.
NCT of Delhi has total installed electricity generation capacity of 7,163 MW (as on 30st April,
2013). This includes installed capacity of power utilities in Delhi including allocated shares in
joint & central sector utilities. The central and state sector constitutes 75% and 23% of the total
installed electricity generation capacity respectively; which is mainly from fossil fuels such as
coal. The private sector has around 2% share in the total installed capacity. Renewable power
forms 10% of the total installed capacity (Including small hydro).
Institutional structure of the power sector in NCT of Delhi
In the year 1905, under the provisions of Indian Electricity Act 1903, the first power plant was
established in Delhi. This power plant was started by an English company- M/s. John Fleming
with both generation and distribution responsibilities. During the same time, this company
transformed into Delhi Electricity Supply and Traction Company and further Delhi Central
Electricity Power Authority (DCEPA). Post independence, the Delhi State Electricity Board
(DSEB) came into existence and it had the responsibility of generation and distribution. Further,
DSEB was transformed into various forms such as Delhi Electric Supply Undertaking (DESU)
and Delhi Vidyut Board (DVB).
In 1997, Government of NCT of Delhi formed Delhi Vidyut Board (DVB) for the purpose of
generation and distribution of power in Delhi and National Capital Territory (NCT) regions. In
May 1999, the Delhi Electricity Board Regulatory Commission (DERC) was constituted to look
after regulatory matters such as tariff order creation, etc.
As part of reforms, DVB was unbundled into six companies in July 2002. These are Delhi Power
Supply Company Limited (DPCL), Delhi Transco Limited (DTL), Indraprastha Power
Generation Company Limited (IPGCL), BSES Rajdhani Power Limited (BRPL), BSES Yamuna
Power Limited (BYPL) and North Delhi Power Limited (NDPL Currently, the Tata PowerDelhi Distribution Limited). DPCL is the holding company and other companies are working in
Transmission, Generation and Distribution (DISCOMS- BRPL, BSES and TATA Power ddl)
domains respectively.
IPGCL operates Rajghat Power House of installed capacity 135 MW and one natural gas based
power plant (Gas Turbine Power Station) of installed capacity 270 MW. The other power
generation company named Pragati Power Corporation Ltd (PPCL) is operating a natural gas
based power plant in Delhi which was commissioned in 2003 2004. It has three units of
capacity 2 X 104 MW and 1 X 122 MW. GAIL is providing natural gas for these power plants.
As per the latest news on The Hindu (English daily), the Delhi Cabinet has decided to merge
Indraprastha Power Generation Company Limited (IPGCL) and Pragati Power Corporation Ltd
(PPCL) into a single unit.

Institutional structure of the power sector in National Capital Territory of Delhi

Power Demand- Supply Position of NCT of Delhi
The NCT of Delhi has been facing peak demand and availability deficits over the last few years.
Peak demand deficit in the state has increased from 2% in FY 2005-06 to 5% in 2012-13.
Between 2005-06 and 2012-13, peak electricity demand grew at a compound annual growth rate
(CAGR) of 7%, while peak demand met at CAGR of 6%. (See graph below)

There were very minute electricity deficits in Delhi as compared to other states. Between 200506 and 2012-13, electricity requirement and availability, both grew at CAGR of 3%. (See graph
below).

Renewable energy scenario

Renewable energy contributes 10% share of the total installed capacity of the NCT of Delhi
(Including state, private sector and central owned power generation capacity) which is around
685 MW. Out of this capacity, 666 MW is from small hydro power and 19 MW is from other

renewable energy sources. Renewable energy sources like solar and other technologies are
coming up with better efficiency and cost effectiveness. NCT of Delhi has opportunities to
harness solar energy due to its better solar resource potential. Rooftop solar can be a better
option to source green energy as it doesnt require additional land. As per news sources, the
Government of Delhi has announced installation of a solar power plant of 5 MW installed
capacity at Delhi. This power plant will provide solar power to meet the energy demands of
Delhi Secretariat.
Read more on Top Five States in India with Highest Renewable Energy Capacity and Top five
states in India with highest installed electricity generation capacity.
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