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PresentationPresentation on on

Indian Power Sector : Indian Power Sector : Key IssuesKey Issues

ByBy

R.V. SHAHIR.V. SHAHISecretary (Power) , Government of IndiaSecretary (Power) , Government of India

November 16, 2006November 16, 2006

Power Ministers’ Conference on Capacity Power Ministers’ Conference on Capacity AdditionAddition

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Growth in Electricity Generation (%)

3.1

5.1 5.2 5.2

6.0

7.1

3.2

0

2

4

6

8

2001-02 '02-03 '03-04 '04-05 '05-06 Target 06-07

06-07(Apr-Oct)

* 2005-06 (Apr- Oct) : 5.1%

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Capacity Addition as % of Target

54.0

75.0

47.0

0

20

40

60

80

VIII IX X

Plan

%

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Growth in PLF of Thermal Stations (%)

69.9

72.1 72.7

74.873.6

70.8

73.774.3

77.178.7

81.7 82.1

79.480.4

60

65

70

75

80

85

2001-02 '02-03 '03-04 '04-05 '05-06 05-06(Apr-Oct)

06-07(Apr-Oct)

All India Central

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Electrification of Villages

11000

55000

29000

14000

0

10,000

20,000

30,000

40,000

50,000

60,000

VIII IX X(Target) X (Achvmnt)*

Plan

* 26,000 under execution

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Likely Capacity Addition During X Plan (MW)

Sector Mid Term

Appraisal

Target

Units

Commissioned

Units Expected

During Nov’06-

Mar’07

Total

Capacity

Anticipated

Central 19,817 10,865 5,314 16,179

State 12,240 4,948 6,060 11,008

Private 4,899 1,931 1,524 3,455

Total 36,956 17,744 12,898* 30,642

* Based on latest reviews with CEA/ BHEL

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Meeting Target – Steps Taken

Commissioning 12,898 MW in 4½ months require

intensified coordination between Central sector and States.

Nodal officers identified from CEA for each project being

posted to respective project sites.

Daily monitoring of progress in Ministry of Power

Equipment for 8291 MW capacity supplied by BHEL.

Supplies from Trichy, Ranipet and Chennai Piping Centre

periodically reviewed with BHEL.

States to take steps to ensure adherence of commissioning

schedule in respect of projects under state/ private sectors.

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Capacity Addition - Perspective Programme

Present installed capacity - 1,28,000 MW.

Installed capacity by March,2007 ~ 1,41,000 MW.

Targeting economic growth rate of 8-10% pa

• Projected installed capacity by 2012 - 2,07,000 MW

• Thereafter, doubling of capacity every 10 years.

• Projected installed capacity by 2030 - 8,00,000 MW.

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Capacity Addition Programme During XI Plan (2007-2012)

Fuel- Mix Central Sector

State Sector Private Sector

Total

Thermal 25,860 16,152 4,102 46,114

Hydro 11,289 2,637 3,263 17,189

Nuclear 3,160 0 0 3,160

Total 40,309 18,789 7,365 66,463

In addition, 14,000 MW through Non- Conventional

Energy Sources.

Captive capacity not included.

(MW)

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XI Plan Capacity Addition – Advance Action

At present about 43,700 MW capacity is under

construction. Investment of about Rs, 2,05,000 crore

committed.

Commissioning in this year, and in next 3 years.

30,967 MW to be added in first three years of XI plan.

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Completion Schedule of Ongoing Projects (MW)

Type Nov’06-

Mar’07

2007-08 2008-09 2009-10 Total

Hydro 2,000 2,450 2,328 2,055 8,833

Thermal 10,678 4,407 6,737 10,330 32,152

Nuclear 220 1,440 1,220 0 2,880

Total 12,898 8,297 10,285 12,385 43,865

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XI Plan Capacity Addition – Pipeline Projects

XI Plan projects list includes only those hydro and super

critical technology based projects in which LOA is expected

by March, 2007.

Projects for over 35,600 MW capacity identified for

commissioning during XI Plan.

Fuel- Mix Central Sector

State Sector Private Sector

Total

Thermal 18,660 10,300 1,500 30,460

Hydro 3,567 530 1,072 5,169

Nuclear 0 0 0 0

Total 22,227 10,830 2,572 35,629

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States – Action Required Only projects with adequate preparation to be included in

the XI plan list.

• All hydro projects for which TEC is not available by

June’06 and LOA is not expected by Mar’07 to be

excluded. Projects included if TEC is expected at a later

date but parallel actions taken on EPC contract

and LOA is expected by Mar’07.

• Greenfield thermal projects for which land acquisition,

fuel linkages and other clearances are expected by

Dec’07 to be included.Contd..

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States – Action Required contd.. Expansion projects to be considered for development

through negotiation with BHEL. Benchmarks for 250/ 500

MW unit ratings - a basis for negotiations . CEA may

facilitate states negotiating better price through bulk

ordering.

• Since the meeting of May 30,2006, generation projects

aggregating 3695 MW ordered to BHEL through

negotiated route by states of Maharashtra, U.P.,

Rajasthan, Karnataka and West Bengal.

• Negotiation for 5250 MW is currently on and is to be

fianlised shortly. Contd..

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States – Action Required contd.. To avoid skewed project commissioning at the tail end of

the programme, expedite orders for thermal power

projects.

Gas not available at appropriate price. States not advised

to make provision for gas based power projects. Position to

be reviewed during mid- XI plan.

Private sector projects to be developed through tariff

based competitive bidding. MoU route not available. States

may use basic documentation for competitive bidding

developed for UMPPs . Projects to be finalised by March,

2007. Contd..

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States – Action Required contd..

To back up the capacity addition programme, financial

plans for the required equity support to be drawn.

Issues related to coal linkages/ coal blocks and

Environment clearance to be immediately sent to Ministry

of Power for taking up in Secretary level coordination

meetings.

Suitable intra state transmission network for power

evacuation and grid strengthening during XI plan to be

drawn and implemented .

Contd..

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States – Action Required contd..

Expression of Interest for procurement of power through

competitive bidding in accordance with guidelines issued

by Ministry of Power, to be invited .

The requirements projected in 16th EPS to be reassessed, in

view of 8-9% economic growth and changes in rural

electrification parameters.

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Demand Management- Action by States

Greater grid discipline. SLDCs to reduce overdrawal by

50% in case frequency falls below 49.5 Hz.

Ensure operation of Under Frequency Relays.

Full utilisation of Gas based stations on liquid fuel.

Surplus captive power to be tapped. Model of Pune city

for making it a load shed free city to be considered.

Bilateral purchase of power to be tied up well in advance.

Load sanctioning commensurate with availability of power.

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Actions by States for Demand Management

Implementation of Intra -State ABT, TOD metering and

differential tariffs.

Energy Conservation saving target to be fixed.

Campaign of Energy Conservation at state level. Utilities/

States to provide budget. A separate EC fund in each state.

State level Energy Conservation award scheme. Special

award scheme for Small and Medium Industries.

Energy Audit in all Government buildings.

Compulsory use of CFLs in Government Buildings.

Automatic switching of street lights.

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THANK YOU