The consumption of electricity is on the rise due to the constant push from the Government of India towards infrastructure development and increased focus on accelerating the pace of industrial growth. The committment of the government towards providing the last mile connectivity through ‘Saubhagya’ programme is also one of the reason for the rise in the electricity demand and consumption across the country. According to the year end review 2018 report released by the Ministry of Power, 9 States have achieved 100 per cent household electrification under Saubhagya scheme; total 16 states have 100% household electrification now. More than 2 crore electricity connections released under Saubhagya and 100 per cent village electrification achieved under DDUGJY. The energy deficit has gone down to almost zero and India has emerged as a net exporter of electricity to neighbouring countries like Nepal, Bangladesh and Myanmar. The electricity demand in the country is likely to rise manifold due to growing household income, rapid urbanisation, and large scale manufacturing activities.
Sandeep Sharma takes a look at the Power sector in India.The power sector in India is one of the most diversified in the world.
Traditionally, the main sources of power generation included a mix of conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power, but now non-conventional sources such as wind, solar, and agricultural and domestic waste are receiving increased attention and investment. India is fast moving towards its target of installing 175 GW of renewable energy by 2022. The electricity generation target of conventional sources for the year 2019-20 has been fixed as 1330 Billion Unit (BU). i.e. growth of around 6.46% over actual conventional generation of 1249.337 BU for the previous year (2018-19). The conventional generation during 2018-19 was 1249.337 BU as compared to 1206.306 BU generated during 2017- 18, representing a growth of about 3.57%. Coal-based power generation capacity in India, stands at 195.81 GW in July 2019 out of 360.45 .
GW amounting to 54.3 % of the total installed capacity through all sources. It is expected to reach 330 - 441 GW by 2040. The coal is likely to remain a dominant source of generating electricity for many more years to come. The coal based generation is often plagued with supply shortage issues. Recently, due to shortage of coal stock, the State-owned power major, NTPC Ltd has recently announced the closure of its three 460 MW units of the 3,000 MW Talcher Super Thermal Power Station (TSTPS) at Kaniha located in Angul district of the Odisha state. As per the report prepared by Institute for Energy Economics and Financial Analysis (IEEFA) and Applied Economics Clinic (AEC), the coal-based energy generation sector is facing increasing pressure due to over-capacity, falling utilisation rates, water shortages and the rise of low-cost renewables. The installed capacity of the coal based power plants in India is now 20 per cent higher than the peak demand level.
FACTS AND FIGURES
As per the Year End Review 2018 report published by the Ministry of Power in December, 2018. ✔ Around 1,07,000 MW Generation Capacity has been added till October 2018 since April 2014. ✔ All India Generation Installed Capacity has increased by 39.2% from 2,48,554 MW as on 31.3.2014 to 3,46,048 MW as on 31.10.2018. ✔ India emerges as a net exporter of electricity. 7203 MU supplied to Nepal, Bangladesh and Myanmar in FY 2017-18 and 4628 MU in current year 2018-19 (Upto October 2018). ✔ Energy deficit reduced from 4.2% in FY 2013-14 to 0.6% in Current FY 2018-19 (Upto October 2018). Peak Deficit also reduced from 4.5% in FY 2013-14 to 0.8% in Current FY 2018-19 (Upto October 2018). ✔ Peak demand met has increased by 35.2% to 1,75,528 MW during the current year (April- October 2018) from 1,29,815 MW during same period in 2013-14. ✔ Energy availability has also increased by 35.2% to 764.627 BU during the current year (April- October 2018) from 565.698 BU during same period in 2013-14. ✔ Expansion of transmission grid by 1,11,433 ckm from 2014-15 to 2018-19 (11,799 ckm added in FY 2018-19) ✔ Transformation capacity addition of 3,38,202 MVA from 2014-15 to 2018-19 (41,790 MVA added in FY 2018-19) ✔ 26 projects worth `48,426 crore awarded through Tariff Based Competitive Bidding from 2014-15 to 2018-19. ✔ Inter-regional transfer capacity addition more than tripled from 16,000 MW in FY 2010-14 to 54,700 MW during FY 2014-15 to 2018-19 (4,200 MW added in FY 2018-19). ✔ Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGKY) with a scheme outlay of Rs. 75,893 crore achieved the following: 100 per cent village electrification, setting up 2,58,870 km HT and LT lines, and 4.10.146 distribution transformers. ✔ Integrated Power Development Scheme (IPDS) with an outlay of `65,424 crore achieved the following: 1378 towns IT enabled, 1900 additional towns under progress, Installation of 43,449 Km HT and LT lines completed out of the total 1,30,348 Km of awarded quantity, and Installation of 28,193 distribution transformers completed out of the total 58,145 no. of awarded quantity. ✔ Under the Ujwal Discoms Assurance Yojana (UDAY) scheme, more than `34,000 Crore interest cost was saved by DISCOMs within two years. The scheme led to reduction in AT&C losses in 22 States within two years of operation. AT&C losses have come down to 18.76% in FY18 as compared to 20.77% in FY16. Revenue gaps bridged by 72 per cent within two years operation of UDAY. The national level ACS-ARR gaps are at 17 paise/unit in FY18 as compared to 60 paise/unit in FY16. India’s rank improved to 24 in 2018 from 137 in 2014 on World Bank’s Ease of doing business - “Getting Electricity” Ranking. ✔ Saubhagya scheme was launched for universal electrification in September, 2017. During January to November 2018, more than crore households were electrified under this scheme. ✔ The Government of India has sanctioned new projects worth `1,797.43 crore under Integrated Power Development Scheme (IPDS) for the North- Eastern region.
BUXAR THERMAL POWER PROJECT
The Cabinet Committee on Economic Affairs, had given its approval in March, 2019 for 2x660 MW Buxar Thermal Power Project in District Buxar of Bihar. The project is being implemented by SJVN Thermal Pvt Ltd at an estimated cost of Rs.10,439.09 crore.
KHURJA SUPER THERMAL POWER PROJECT
The Cabinet Committee on Economic Affairs, had given its approval in March, 2019 for 2x660MW Khurja Super Thermal Power Plant (STPP) in District Bulandshahar of Uttar Pradesh. The project is estimated to cost `11,089.42 crore. The project will be based on Supercritical Technology, equipped with latest emission control technology to protect the environment and has high efficiency and uses less fuel to generate power. The project will be implemented by THDC India Ltd.
DIKSHI HYDRO ELECTRIC PROJECT
The 24MW Dikshi Hydro Electric Project in West Kameng district of Arunachal Pradesh was recently commissioned. Devi Energies Private Ltd has completed the project in a record time.
SOLAR POWER PLANT AT KADAPA
Bharathi Cement has recently commissioned a 10 MW ground-mounted solar power plant in its manufacturing facility located at Kadapa in Andhra Pradesh. Hyderabad based company, Fourth Partner Energy has successfully executed the project.
TRANSMISSION LINE FROM ROING TO CHAPAKHOWA
North Eastern Regional Power Committee (NERPC) in its 20th meeting has recently approved the setting up of 132 KV double circuit transmission line from Roing in Lower Dibang Valley district of Arunachal Pradesh to Chapakhowa in Tinsukia district of Assam state.
The power major has earlier in the month of September, 2019 has commissioned the first 660 MW unit of 1980-MW Nabinagar Super Thermal Power project in Bihar. NTPC Ltd. currently operates 53 power stations (22 Coal, 7 combined cycle gas/liquid fuel, 2 Hydro, 1 Wind and 11 solar projects). Further, it has 9 coal and 1 gas station, owned by Joint ventures or subsidiaries taking the capacity to 55,786 MW.
NTPC COMMISSIONS 660 MW AT KHARGONE
NTPC is currently meeting 23% of country’s demand through coal, gas, hydro, solar and wind plants. NTPC, the country’s leading power producer, has recently commissioned India’s first ultra-super critical unit having capacity of 660 MW at Khargone in Madhya Pradesh. This plant operates at efficiency of 41.5% which is 3.3% higher than the conventional super-critical ones, with steam parameters of 6000 Ctemperatures and 270 kg/cm2 pressure. The Khargone plant will have a total capacity of 1320 MW, 2 Units of 660 MW each. The required facilities for sustainable running of the plant like fuel handling and transportation systems are ready. The power major has earlier in the month of September, 2019 has commissioned the first 660 MW unit of 1980-MW Nabinagar Super Thermal Power project in Bihar. NTPC Ltd. currently operates 53 power stations (22 Coal, 7 combined cycle gas/liquid fuel, 2 Hydro, 1 Wind and 11 solar projects). Further, it has 9 coal and 1 gas station, owned by Joint ventures or subsidiaries taking the capacity to 55,786 MW.
As per IBEF, the power sector has attracted US$ 14.32 billion in Foreign Direct Investment (FDI) between April 2000 and March 2019, accounting for 3.41 per cent of total FDI inflows in India.
According to a Washington based Brookings Institution report titled, ‘Understanding India’s Power Capacity: Surplus or not, and for how long?’, with a growth of nearly 10 GW in peak demand anticipated every year, the current capacity surplus as well as the planned installation of non-coal firm capacity might not be enough to meet the peak demand as early as 2021 or 2022.
India Ratings & Research has maintained stable-to-negative outlook on the power sector for the remaining part of the current fiscal. The rating and research agency expects plant capacity utilisation to improve as power demand is expected to hover between 6-7% during the remaining part of the fiscal despite general slowdown of demand. The power sector is moving towards renewables and conventional coal based power generation are not finding many takers, and involves higher risks of default amid mounting losses triggered by shortage of coal and now water. As per media reports, Coal India foresees shortage of 53-MT in FY26 for electricity generation, at 100 per cent supply level. The cost competitiveness of the renewable sources of energy is likely to drive the sector in a big way sooner or later.
The Investments in the country’s renewable energy sector has doubled over the last five years to around US$20 billion in 2018. The renewable energy sector is likely to attract big ticket investments towards setting up of Mega renewable energy power parks in various states such as Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, and Jammu and Kashmir (U.T). Each of these green park is likely cost US$ 2 billion. The state-run companies are likely to be roped in to set up mega energy parks across the country.
The government is trying to attract investment in the hydropower sector by notifying large projects as renewable power but still a lot needs to be done in this segment. The issues plagued in the power distribution segment still needs attention and reforms. The demand is likely to receive a booster from Electric Vehicles charging infrastructure, which is coming up as the country is moving fast towards adopting EVs in place of petrol or diesel based vehicles. The need of the hour is to usher in another round of power sector reforms and pave the way towards clean and adequate energy for a growing India.