Indian Power sector BTG
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Transcript of Indian Power sector BTG
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8/13/2019 Indian Power sector BTG
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Current Scenario of Indian
Power Sector & Expectationsfrom BTG & BOP Suppliers
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CONTEXT
The Indian economy has experienced unprecedented economic growth
over the last decade.
Today, India is the ninth largest economy in the world, driven by a real
GDP growth of 8.7% in the last 5 years (7.5% over the last 10 years).
Growth in power sector is one of the most important requirements for
sustained growth of a developing economy like India. As per planning
commission power sector growth should be at least 8 % per annum for
sustained economic growth.
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Generating Capacity - INDIA
Thermal,
153847.99
MW, 68%
Hydro,
39623.4
MW, 18%
Nuclear,
4780 MW,2%
RES,
27541.71
MW, 12%
Total Generating capacity
Thermal
Hydro
Nuclear
RES
Total generating Capacity in the country in Jul-2013 was 225793 MW. Out of totalgeneration capacity 68% is contributed by Thermal Power Plants i.e. Coal, gas &
diesel.
Thermal Capacity has a share of 81.7% of the total capacity addition in XII Plan.
225793MW
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1362
28448
63636
85795105046
132329
199877
223344
0
50000
100000
150000
200000
250000
1947 1980 1990 1997
(8th
plan)
2002
(9th
plan)
2007
(10th
plan)
2012
(11th
plan)
2013
Installed capacity (MW)
23
2352
4408
5141
6030
6940
8726 8970
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1947 1980 1990 1997
(8th
plan)
2002
(9th
plan)
2007
(10th
plan)
2012
(11th
plan)
2013
Length of T & D lines
(Ckt 1000 Kms)
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There has been remarkable increase in the capacity addition since
independence. In this span of 65 years india has increase its Generation
capacity to more than 225 GW from mere 1.3 GW.
Transmission network has increase 8970 thousand kms from 23 thousand
kms. and per capita consumption has increased to 917 from 23 kwh.
Growth in Indian Power Sector
since independence
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Energy demand and supply
Despite the increase in availability, India faced an energy deficit of 6 to 8 % and
a peak deficit of around 10 %. It is expected that the energy deficit and peak
deficit will rise to 10% and 13% respectively in the coming years if growth rate
does not fall drastically.
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demand and supply region wise
Peak Demand YTD in July-2013 was 135,561MW and Peak demand deficit was at 6.3%.
Total Demand YTD in July 2013 was 345,989 MUs and the % S-D gap was 5.5% across
the country.
The Monthly Peak demand deficit improved from 5.8% in June-2013 to 4.5% in July-2013
due to improved availability of Hydro Plants
225793MW
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44450
38054
39015
15743
2101
41666
37361
32507
15375
1973
109677
10
0245
944
02
37498
4167
10
2797
99
414
83915
36894
3841
0%
5%
10%
15%
20%
0
20000
40000
60000
80000
100000
120000
NR WR SR ER NER
Percentage
MW
Power Scenario YTD July 2013
Peak Demand (MW) Peak Met (MW) Demand (MUs) Supply (MUs) % Deficit % S-D gap
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Low per-capita consumption
The average per capita consumption of electricity in India is around 900kWh, compared to the world average of 2,800 kWh. The other comparable
countries, like the other BRIC nations, have significantly higher per capita
consumption compared to India.
16
172
229
465
559
672
884 917
0
100
200
300
400
500
600
700
800
900
1000
1947 1980 1990 1997
(8th
plan)
2002
(9th
plan)
2007
(10th
plan)
2012
(11th
plan)
2013
Per capita consumption(kwh)
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13361
6460
29422384
884
2892
0
2000
4000
6000
8000
10000
12000
14000
16000
USA Russia China Brazil India World
Per capita consumption(kwh)
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Encouraging policy measures Till 1990, except in few pockets entire power sector was shielded from private
sector participation. Govt. resource were not adequate to meet the growing
demand supply gap. This has compelled Govt. to open up private sector
participation in power generation area.
The amendment of Supply Act (1948) in 1991, followed by the enactment of
Electricity Act(2003) and notification of Mega Power Policy(1995), National
Tariff Policy (2005), National Electricity Policy and Integrated Energy Policyhave all led to a much liberal power sector, which then saw active investments
from private sector across the value chain.
Most of the participation by private investors has happened in generation
sector only.
The growing demand supported by policy reforms have encouraged private
sectors participation not only in generation & transmission but also in
developing manufacturing capabilities in the country.
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Key challenges for growthSHORTAGE IN COAL SUPPLY
Indias current coal production is far less
compared to its reserves & potential.
Forecast of FY 2013-14 envisaged coal
production of 670 MT against which the
production indicated is 505 MT . The gap
of 165 MT is required to be met throughimported at exorbitant forex out flow and
uncertainties of supplies.
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Country will have a coal shortfall of 238 MT/ annum by 2016-17, if current scenario
continues..., - Working Committee Group on coal.
Coal transportation logistics is also a serious concern for raising coal production. For
example coal blocks in Mand raigarh of SECL can raise their production to 90 MTPA
but are able to mine only 10 MTPA. Similarly coal blocks in Vasundhera in MCL area
has potential for mining up to 100 MTPA against which only 10 MTPA is being
mined.
596.0
3
672.84
669
.69
432.74
450.53
505
163.29
222.31
164.69
71.05
103.17
116.28
0
100
200
300
400
500
600
700800
FY 2011-12 FY 2012-13 FY 2013-14(Forecasted)
Coal Scenario (Values in MT)
Coal required Coal production
Coal Gap Imported
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Key challenges for growthSECURING LAND
Acquisition of land is major issue and time consuming apart from hurdles &other challenges.
Number of projects have been either cancelled or delayed due to non-availability
of land or difficulties in land acquisition.
With the recent policy of land acquisition the consent route for the private
player will continue to be big challenges & also project cost will go up on
account of higher acquisition charges.
Acquisition of land for afforestation also comes in the way of the delays of the
project on account of forest clearance.
The expectation of land losers in terms of approved CSR of respective state
government is also point of concern while acquiring land.
Rehabilitation of community & resistance by land owners is also cause for delay
in land acquisition.
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Key challenges for growthWater
All the land locked power plants requires huge amount of water for
consumptive use, which are predominantly fed from the catchment of dam or
directly through big rivers like ganges. In all the other areas due to non
availability of enough dams power plants are dependent on rain fed small rivers
& tributaries.
Thus, water in the lean season is scarce and affecting the plant operations. It has
been seen that due to water shortage some of the plants has to cut down the
generation.
As water are fed from small rain fed rivers , to store water for the rest of the
season big reservoirs are required which again poses the problem of landacquistion.
At places water is to be transported through long distances, leading to ROW
issues.
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Key challenges for growthWORSENING FINANCIAL HEALTH OF THE DISTRIBUTION SECTOR &
INADEQUECIES IN T & D SEGMENT
Apart from a handful of franchisees the distribution sector is still largely in the
hands of the state owned utilities.
Transmission & Distribution losses in the country is 23.65% (2010), which is a
mere 1.3 % improvement from the levels of 23.97% in 2009. World average for T& D loss is 9.8 %.
The low collections and cash deficit scenario of the distribution sector severely
impacts the financial viability of generation and transmission sectors.
The development of the transmission system is not commensurating to theflexible needs of the generating station & restricted by regulation.
Under lying distribution system which in most cases is with SEB need lot of
improvement.
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Expectations from BTG &
BOP Suppliers
Efficient & Compact Project Schedule: As all ready lot of time gets lost in sorting land & clearance issues in india, once
project is cleared aggressive project schedule is the only way out and it is expected
from BTG & BOP suppliers to match & maintain these schedule.
Manufacturing base in the country:
Manufacturers based in the country are better placed to rise during emergency formeeting the spares & experts requirements. This will be a welcome step and also
carries less risk for sustainable generation.
Less imports
Manufacturer based in country to restrict their import to bare minimum level to
mitigating currency & others associated risk involved.
Most Advance & reliable technology in the world.
Manufactures should encourage & propagate most advance & reliable technology
in the world.
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Expectations from BTG &
BOP Suppliers
Quality Products: Manufactures should ensure products manufacturing, material selection and
erection & commissioning are carried out with highest standard of quality and is
commensurate with latest codes & standards applicable.
Design & Engineering:
Manufactures should ensure plant & products are designed & engineered with mostadvances & proven engineering practices and is commensurate with latest codes &
standards applicable.
Reduction in manufacturing time cycle.
Manufacturers should adopt means & method to reduce manufacturing time cycle.
Project management:
Project management of highest standards to cover up complete facets of the
project. This will help project implementer to avoid time & cost overrun.
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Expectations from BTG &
BOP Suppliers
Environmental friendly products & Services:
Manufacturers should develop product & services which are environmental friendly
and add value to the environment.
Prompt response & services
Efficient & Prompt response & services to the project requirement.
Post operational replacement & services
Spares:
Spares avilabilty at optimum cost
Efficient Layout for land and utilities optimization
Manufacture should encourage compact & optimizes layout without compromise
on operational requirement.
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Conclusion
Thus based on low per capita consumption prevailing in the country and
continuously growing demand supply gap it can be said that there will be
continuous demand for power in the country for many years to come.
The capacity additions envisaged under 12th and 13th five year plan presents with
immense opportunities for manufacturing sector (OEMs) for building up capacitiesto cater to the growing requirements.
The focus would be on production capacity expansion, diversity of product
offerings, developing new clean technologies and improving operational
characteristics of their offerings.
It is expected from BTG/BOP suppliers to rise to the occasion for bridging this gap
by providing product with most advance & reliable technology base and of highest
quality & engineering standards. It is also expected that they will have
manufacturing base in the country to minimize the imports and provide most
Compact Project & manufacturing Schedule.
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Thank You
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