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THE NEW PHASE OF
GROWTH
Presented by POWER SECTORAfreenAnju
AnkithaDivyaJayasankarShruthi.S
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INTRODUCTION
Power generation has risen already by record numbers thisyear though this is a drop in an ocean of shortages.
It is expected to almost double from the current 177gigawatt to 300 gigawatt by 2015.
By the 13th Plan (2017-22) private sector generation willbe higher than the state sector, says Gurdial Singh,chairman, Central Electricity Authority.
Two giant power projects are racing against tight
deadlines. When they are completed, the two plants combined will
generate over 8,000 MW that is more than half theadditional capacity generated this year.
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POWER TO THE HUBS
Power shortages will
be resolved through
Krishnapatnam -
10,000 MW
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DEVELOPMENT STAGE
Prior to liberalisation growth was at a snailspace even though there was insatiabledemand for anything they produced.
Reluctance to go in for high paced growthdue to bureaucratic hurdles and uncertaintyof profit.
Tata Power has gone into high-voltage
expansion mode now- aims to add a huge5,000 MW in the next two years and touch25,000 MW by 2017. Its Maithon project willstart generating 1,100 MW.
Reliance Power aims to produce 35,000 MW
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Stepping on the throttle
Adani Power
Essar Power
Lanco Infratech
Moser Baer Power Projects
GVK Power
BRIGHT PROSPECTS:Control room at the
Lanco power plant in
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CHANGING POWER EQUATIONS
The Electricity Act, 2003
Licensing of the generation sector
Introduction of changes like Open Access
under which large consumers in one state
can buy power from generating stations in
another.
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SELLING PROPOSITION
Merchant Power
Firm like Essar Power will sell 75 per cent of itspower under rates fixed by long-term contracts
and 25 per cent as merchant power.CESC vice- chairman,Sanjiv Goenka-company will
ensure that its long-term power purchaseagreements bring in enough to cover its debt.
Merchant power will not command todayspremiums. But it will still be higher than PPAtariffs for long.
The biggest problem that private generation
firms have always faced is the parlous financial
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SELLING PROPOSITION
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CONTINUTION
Biggest problem that private generationfirms have always faced is the parlousfinancial condition of state electricityboards (SEBs)
Many power-distributing companies are inthe red, as they offer cheap and at timesfree power.
Hence, they cannot buy power at higherrates. Three SEBs Tamil Nadu, Rajasthanand Uttar Pradesh account for 70 per centof SEB losses
This makes it tough for anyone selling power and eneratin costs are onl oin to
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continution
Fast growth will bring all kinds of other difficulties in itswake.
Already there is a growing shortage of trained people.
One expert reckons that the industry will need about25,000 trained hands if it is to add 50,000 MW.
Also, there is a global shortage of power equipment. The
tried and tested producers (like Bhel, the Americans andthe Germans) have big order books and waiting lists.
Chinese equipment is both more easily available and morecost competitive, but they have much less of a trackrecord. Still, it is reckoned that over 75 per cent of thelatest orders have gone to the Chinese.
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CONTINUTION
It is the coal shortages that are going to be a threat to thegrowth of the power industry in the coming years.
power industry executive told that almost 200 milliontonnes of coal will need to be imported annually to meet
generating demands. Coal prices are rising and imported coal is almost four
times costlier than Indian coal.
If that is not enough, it is doubtful whether Indian ports
can cope with such a volume of imports, And theIndonesians recently decided to place a tax on coalsexports.
It will throw a spanner in the works for several Indian firmswhich have invested in mines there.
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CONTINUTION
Despite all the hurdles, everyone isconvinced there is money to be made.
Around 45 per cent of Indian households
do not have access to power and thebalance do not have access to it on a 24-hour basis.
Per capita consumption of electricity, ataround 610kW per annum, is around aquarter that of China.
From the industrys point of view, it is a
great place to be.
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THANK YOU!!!
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