DEVELOPMENT OF POWER SECTOR IN INDIA SINCE 1947

INTRODUCTION 

The power sector in India has undergone significant progress after Independence. When India became independent in 1947, the country had a power generating capacity of 1,362 MW. 

After 1947, all new power generation, transmission and distribution in the rural sector and the urban centers (which was not served by private utilities) came under the purview of State and Central government agencies.

Development of Power Sector is the key to the economic development. The power Sector has been receiving adequate priority ever since the process of planned development began in 1950. The Power Sector has been getting 18-20% of the total Public Sector outlay in initial plan periods.

  Over the years (since 1950) the installed capacity of Power Plants (Utilities) has increased to 89090 MW (31.3.98) from meagre 1713 MW in 1950, registering a 52d fold increase in 48 years. Similarly, the electricity generation increased from about 5.1 billion units to 420 Billion units – 82 fold increases

2003 onwardsGrowth Era

1991–2003Liberalisation

Era

1956–1991Nationalisatio

nStage

Electricity Act (2003)National Tariff Policy (2006) Elimination of licensing for generation projects

Increased competition through international competitive bidding engaged in power generation, transmission and distributionLaunch of UMPP scheme Various schemes and initiatives such as Jawaharlal Nehru NationalSolar Mission to promote renewableenergyCivil nuclear agreement with the USfor nuclear technology and fuel Fuel supply agreement of power companies with Coal India Ltd (CIL)

Private equity investments in the sector have surged since 2010

•

•

•Legislative and policyinitiatives (1991) Private sector participation ingenerationFast-track clearing mechanism of private investment proposals

Electricity Regulatory Commissions Act (1998) for establishing Central and State Electricity Regulatory Commissions and rationalisation of tariffs

•Before 1956Introductory

Stage• •

Industrial PolicyResolution (1956) Generation and distribution of powerunder stateownership Power losses, subsidies,infrastructurebottlenecks andresource constraints

•

• •

•

•• Electricity(Supply) Act1948

• Establishment of semi- autonomous State Electricity Boards (SEBs)

••

•

•

•

Source:; WWW..NPTI.IN

POWER

POWER

India as a power Producer and

Consumer globally

• With a production of 1,102.9 TWh, India is the third largest producer and fifth largest consumer of electricity in the world

• The per capita electricity consumption in 2012-13 is -917.18 kWh.

• As per census, only 55% of rural households have access to electricity.

Large-scale governmentinitiated expansion

plans

• The government targets capacity addition of 89 GW under the 12th Five-Year Plan (2012–17) and around 100 GW under the 13th Five-Year Plan (2017–22)

• Investments of around USD223.9 billion are planned for the power sector during the 12th

Plan Five-Year Plan

Robust growth inRenewable sector

• Renewable energy capacity additions of 30 GW are planned in the next five years to meet the growing energy demand

• Wind energy is estimated to contribute 15 GW, followed by solar power at 10 GW

Source:; WWW..CEA..nic.inC

POWERThe power sector in India is mainly governed by the Ministry of Power. There are three major pillars of power sector these are Generation, Transmission, and Distribution

PRESENT POWER SCENARIO OF INDIA

INSTALLED

CAPACITY(248509.63

MW)

ANNUAL GENERATI

ON(1102.9 TWh)

PER CAPITA

CONSUMPTION

(917.18)

PLF(68.15)

ELECTRIFI

EDVILLAGES

(95.60%)

POWERGENERATION

CAPTIVE TOTAL RES THERMAL NUCLEAR HYDRO0

50000

100000

150000

200000

250000

300000

39375.36

248509.64

31692.14

171376.09

4780

40661.41

Series1

All India Installed Capacity (MW) as on 31-05-2014 Region -wise

68255.9

93290.7

86962.99 CENTRALSTATEPRIVATE

All India Installed Capacity(MW) as on 31-5-2014(Sector-Wise)

68%

Source: Ministry of Coal,

GasIndia’s proven natural gas reserves measure about 1,074 billion cubic metres

Thermal

Coal

India has large reserves of coal. As of April 2012, total coal reserves stood at 293.5 billion tonnes; of this, 118.1 billion tonnes were proven reserves

THERMAL POWER

Thermal power plants convert energy rich fuel into electricity and heat. Possible fuels include coal, natural gas, petroleumproducts, agricultural waste and domestic trash /waste. Thermal power accounts for 69 % in total energy production.Thermal power is produced from coal oil and natural gas. Total installed capacity of thermal power is 171376.09 MW

Thermal fuel maintains a leading position among the fuel used for power generation

RES; 31692.14; 13%

THERMAL; 171376.09;

69%

NU-CLEAR; 4780;

2%

HYDRO; 40661.41; 16%

RESTHERMALNUCLEARHYDRO

coal; 147568.39;

86%

Gas; 22607.95;

13%Diesel; 1199.75; 1%

coalGasDiesel

ISSUES AND CHALLENGES

• Fuel quality & availability

Coal quality & availability constraints

• Coal beneficiation

• Power generation technology

• Clean coal based technologies

• Land accusation Problem

• Logistic route Rail/ Road, pipelines, port etc (for fuel, water, ash etc)

• Power evacuation route (Electricity Grid)

Hydro Power

Hydropower is a renewable, non-polluting and environment friendly source of energy. Oldest energy technique known to mankind for conversion of mechanical energy into electrical energy. Contributes around 22% of the world electricity supply generated .

In India, Jamshed ji Tata built the first hydroelectric power dam in the Western Ghats of Maharashtra in the early 1900s to supply power to Bombay’s Cotton and Textile Mills

Out of the total power generation installed capacity in India of 2,48,509.64MW (June, 2014), hydro power contributes about 16% i.e. 40661.41 MW.

Share of Hydropower in Electricity Generation

57

39.6

16.1 16.1 12.7 8.8 6.5

82.8

98.8

0

20

40

60

80

100

120

Norw ay Brazil Canada Sw eden China Worldaverage

India Japan USA

During April-Feb 2007, share of hydropower gene ration in India was

higher at about 17%

ISSUES AND CHALLENGES

• Geological surprises• Land acquisition• Rehabilitation & Resettlement• Forest clearance• Environment clearance• 75% of hydro project costs are for civil, whereas only 10- 15%% project costs of thermal projects are for civil

• Construction period 4 years for thermal, but 6 to 8 years for hydro. ROE not allowed during construction: Low IRR

• Many projects have to pay upfront charges to States, which carry no return• Project preparation longer and more expensive than in thermal (DPR, Land acquisition, R & R etc)

NUCLEAR POWER

Nuclear power is the fourth-largest source of electricity in India after thermal, hydroelectric and renewable sources of

electricity. As of 2012, India has 20 Nuclear reactors in operation in six nuclear power plants, having an installed capacity

of 4780 MW and producing a total of 29,664.75  GWh of electricity while seven other reactors are under construction and are expected to generate an additional 6,100 MW.

There are two nuclear corporation in India

1.The Nuclear Power Corporation of India Limited (NPCIL) is a government-owned corporation of India based in  Mumbai. NPCIL was created in September 1987.Nuclear Power  and electricity generation and distribution

2. The Bharatiya Nabhikiya Vidyut Nigam Limited(BHAVINI) is a  government-owned corporation of India based in Chennai. Bhavani was established on 2004.Nuclear Power  and electricity generation and distribution

INDIAN NUCLEAR POWER INDUSTRY

ISSUES AND CHALLENGES

•Economics

•Poor management

•Low net yield of energy of the nuclear fuel cycle

•Safety concerns

•Concerns of transporting uranium

•Environmental costs not included in market price

•Risk of catastrophic accidents

Solar power

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. 

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.

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.

SOLAR PROJECTS IN INDIA

Wind energy

 Wind Energy, like solar is a free energy resource. But is much intermittent than solar. Wind speeds may vary within minutes and affect the power generation and in cases of high speeds- may result in overloading of generator. Energy from the wind can be tapped using turbines.

WIN ENERGY

Productive wind speeds will range between 4 m/sec to 35 m/sec. The minimum prescribed speed for optimal performance of large scale wind farms is about 6 m/s. Wind power potential is mostly assessed assuming 1% of land availability for wind farms required @12 ha/MW in sites having wind power density exceeding 200 W/sq.m. at 50 m hub-height.

India has the fifth largest installed wind power capacity in the world. In 2010, wind power accounted for 6% of India's total installed power capacity, and 1.6% of the country's power output.

Current problem of power sector

•The most important cause of the problems being faced in the power sector is the

irrational and unremunerative tariff structure

•Power Supply to agriculture and domestic consumers is heavily subsidized.

•The SEBs, in the process, have been incurring heavy losses.

• If the SEBs were to continue to operate on the same lines, their internal resources

generation during the next ten years will be negative, being of the order of Rs.(-)

77,000 crore.

•This raises serious doubts about the ability of the States to contribute their share to

capacity addition during the Ninth Plan and thereafter

•This highlights the importance of initiating power sector reforms at the earliest and the

need for tariff rationalization.

CONCLUSION

Technology up gradation:

Clean coal technologies Clean coal technologies offer the potential for significant reduction in the environmental emissions when used for power generation. These technologies may be utilized in new as well as existing plants and are therefore, an effective way of reducing emissions in the coal fired generating units. Several of these systems are not only very effective in reducing SOx and NOx emissions but, because of their higher efficiencies they also emit lower amount of CO2 per unit of power produced. CCT’s can be used to reduce dependence on foreign oil and to make use of a wide variety of coal available.

Blending of various grades of raw coal along with beneficiation shall ensure consistency in quality of coal to the utility boilers. This approach assumes greater relevance in case of multiple grades of coals available in different parts of the country and also coals of different qualities being imported by IPPs. Ministry of Environment and Forests vide their notification dated 30th June 1998 had stipulated the use of raw or blended or beneficiated coal with an ash content not more than 34% on an annual average basis w. e. f. 1st June 2001.

•Continuous deterioration in performance of thermal power stations had been

observed during early 80′s. Therefore, Renovation and Modernization

Schemes(R&M Schemes) were drawn and executed for improving the performance

of existing thermal power stations.

•Pollution control measures in these power stations being a capital-intensive activity,

it accounted for major portion-around 40% of Rs. 12 Billion kept for R&M schemes

under phase-I. During phase-I, 163 units of 34 thermal power stations covered.

•As a result of R&M schemes these achieved 10,000 million units of additional

generation per annum against the target of 7000 million units. Encouraged by the

results achieved, R&M phase-II programme is presently under progress.

Refurbishment of existing thermal power stations

Prepared by- BARKAM VAMSHI

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