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Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power) , Government of India November 16,

Power Ministers’ Conference on Capacity Addition. Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power) , Government of India November 16, 2006. Growth in Electricity Generation (%). * 2005-06 (Apr- Oct) : 5.1%. Capacity Addition as % of Target.

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Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power) , Government of India November 16,

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  1. Power Ministers’ Conference on Capacity Addition Presentation on Indian Power Sector : Key IssuesByR.V. SHAHISecretary (Power) , Government of IndiaNovember 16, 2006

  2. Growth in Electricity Generation (%) * 2005-06 (Apr- Oct) : 5.1%

  3. Capacity Addition as % of Target

  4. Growth in PLF of Thermal Stations(%)

  5. Electrification of Villages * 26,000 under execution

  6. Likely Capacity Addition During X Plan (MW) * Based on latest reviews with CEA/ BHEL

  7. 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.

  8. 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.

  9. Capacity Addition Programme During XI Plan (2007-2012) (MW) • In addition, 14,000 MW through Non- Conventional Energy Sources. • Captive capacity not included.

  10. 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.

  11. Completion Schedule of Ongoing Projects (MW)

  12. 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.

  13. 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..

  14. 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..

  15. 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..

  16. 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..

  17. 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.

  18. 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 sanctioningcommensurate with availability of power.

  19. 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.

  20. THANK YOU

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