Indian Infrastructure Power Sector

Indian Infrastructure Power Sector

Zalak Dave Sagar Desai Saurabh Gupta Kavan Raval

Major Challenges Facing the Power Sector Industry •

Growing Demand

•

Modernization of infrastructure

•

Rising Costs and Prices

•

Climate Change

•

Customer Expectations

What is required to respond to these challenges? •

Investments in the “Smart Grid”

•

Focus on energy efficiency

•

Cleaner generation technology

•

New business and regulatory models

Investment in “Smart Grid” electricity infrastructure will be needed…. Efficient Building Systems

Utility Communications Internet Consumer Portal and Building EMS

Dynamic Systems Control

Distribution Operations

Advanced Metering

10 % Renewables

17 %

65 % PV

Control Interface

Plug-In Hybrids Data Management

Distributed Generation and Storage

Smart End-Use Devices

…. and the infrastructure needed to support deployment of energy efficiency.

Electricity Demand and Supply in India 

India is facing energy shortages of 11% of demand and even higher peak shortages of 14%



Demand-supply gap is more acute in Western region (where 70% of the Project’s power will be supplied) with energy deficit at 16% and peak deficit at 21%





Capacity additions of 160,000 MW required in the next 10 years to satisfy India’s power needs New capacity will need to come from a combination of coal, hydro, gas, nuclear and wind projects

India’s Installed Capacity (132,329 MW)

3%

6% 55%

Coal & Lignite Gas

26%

Hydro Nuclear

10%

Other Renewables

Power Sector 

Installed generation capacity



Total generation



CAGR



Per capita consumption



T&D network



Energy power deficit



Peak power deficit 12%

112 GW

531 billion units

5.8% 355 kWh

5.7 million circuit kms 9%

Growth Potential 

Investment of US$ 90 billion in T&D infrastructure



Addition of 100,000 MW by 2012

Generation Capacity Composition Total Generation Capacity Nuclear Power 3% Hydro power & wind power 28% Installed capacity targeted to double by 2012

Thermal 69%

Domestic Players Public Sector DVC NEEPCO National Hydro Power (NHPC) Nuclear Power (NPC) National Thermal Power(NTPC) BBMB Power Grid (PGCIL) Private Sector Reliance Energy RPG Group Tata Power Torrent

Generation      

Transmission 

Distribution

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   

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   

Foreign Investments Foreign Major

CLP

Investment

Capacity (MW)

Gujarat PEC

655

PSEG & Marubeni Corporation Marubeni Corporation

PNP Power Generation Company BPL Power Projects

330

CMS Energy

GVK Industries

Doosan Heavy Industries and Construction

NTPC

Ltd 520

235

660

Generation Opportunities By 2012 demand for electricity to double Investment requirement of US$ 200 billion by 2012 100,000MW Additional generation capacity required

21% private sector capacity addition

Private Power Policy 

36 projects commissioned in

7000 MW

private sector 3000 MW 

Another 6 projects underway



55 projects under various

stages of development

27,800 MW

Transmission & Distribution Opportunities Transmission

US$ 16 bn investment required by 2012* US$ 5 bn private investments through ITPCs and JVs Imminent private sector participation in AP & Karnataka

Distribution

Opportunities in power distribution companies

Indian achievement Sixth in world electricity generation and third in Asia - Pacific (2002)

Share in world electricity generation increased from 2.4% (1994) to 3.6% (2002)

Current technology will not get us to where we need to be…

Where today’s technology will take us

Where more advanced versions of current technologies will take us Path we need to be on to stabilize atmospheric CO2 at 450 to 550 ppm

Renewable Energy   

Hydel Wind Power Bio­Mass Projects

Public Private Interface

Public Sector

Tata Mundra Project, India

Development Impact 

Access to electricity is essential for reduction in poverty and improved health, education and economic development



Project will increase India’s generation capacity by 3%; likely to impact about 16 million domestic consumers in the country and, hence, in line with our “inclusive” growth strategy for infrastructure



Creation of 5,000 construction jobs and 700 jobs during operations



Project will sell competitively-priced power at US 5.65 cents per kWh and provide affordable energy to consumers



First private sector project in India using supercritical technology; most energy-efficient plant in India (40.5%) compared to existing assets (about 27%) & therefore lower GHG emissions



Project’s tax transfers of about US$790 million

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Growth in port and power transmission capacity will further create infrastructure and employment for the country

Conclusion   

 

There is a general consensus among all political parties for reform Bulk of the infrastructure is still controlled by Governments Private sector has done reasonably well in areas where they are operating viz., Telecom, Healthcare, Education, Tourism, Transport and Airlines Ultimately consumer benefits - Government gets its revenue due to increase in volumes PPP(public private partnership) model is one of the solutions where one can create a win-win situation