Presentation on theme: "1 Power Development Strategy INDIA R.V. SHAHI SECRETARY MINISTRY OF POWER GOVERNMENT OF INDIA Presentation in World Bank, Washington DC June 23, 2003."— Presentation transcript:
1 Power Development Strategy INDIA R.V. SHAHI SECRETARY MINISTRY OF POWER GOVERNMENT OF INDIA Presentation in World Bank, Washington DC June 23, 2003
2 Indian Power Sector Power in Concurrent list : Both Central and State Governments have jurisdiction Power Sector in States Vertically integrated State Electricity Boards (being restructured) Central Public Sector Undertakings Own 30% of the capacity
3 Growth of the Indian Power Sector Generating capacity has grown manifold from 1712 MW in 1950 to more than 108,000 MW today. The growth in the transmission lines has been from 2708 ckm in 1950 to more than 200,000 ckm today. About 84% of 587,000 villages have been electrified, balance to be electrified by 2007. 55% households have access to Electricity, balance to be covered by 2012.
4 Present scenario - the challenge Financial health of SEBs Business as usual continues Results targeted Losses (Rs. Cr.) Years Contd...
5 Present scenario - the challenge Contd. ….. Power : removing shortages and improving Reliability & Quality Results targeted Peaking Shortage % Installed Capacity 108,000 MW146,000 MW212,000 MW
6 OBJECTIVESSTRATEGYACTION POWER SECTOR DEVELOPMENT Reliable power Quality power Inexpensive power Commercial viability Power to All Sufficient power for 8% growth Transmission Distribution Regulation Financing Conservation Generation Communication Legislative initiatives
7 # STRATEGY Low cost generation Optimum utilization of capacity Control Input cost Better fuel mix Hydro improvement Technology upgradation Non conventional energy sources Power Generation
8 # ACTION Strengthened monitoring effort Advance Action plan for projects identified / under approval stage Expansion of existing stations Pit head stations Coastal stations Generation delicensing Captive capacity utilization Select IPPs to be assisted R&M of old plants (AG&SP)
9 # STRATEGY National Grid Interstate connections Technology upgradation Optimization of Transmission cost Transmission
10 # ACTION Development of National Grid : 8000 MW today to 30,000 MW of inter regional transfer capability by year 2012 Technology upgradation RLDCs modernization Close monitoring on reliability Private participation Independent Power Transmission Co. Joint Venture with Powergrid
11 # STRATEGY Distribution Reforms aimed at System upgradation Loss reduction (Aggregate Technical & Commercial losses) Theft control Consumer orientation Commercialization Decentralized distributed generation and supply for rural areas Introducing competition I.T. to replace human interfaces Distribution
12 # ACTION Energy accounting Metering Organization restructuring Franchisees Technology input Anti theft laws Accelerated Power Development & Reform Programme (APDRP) Incentive linked development package Five years Business plan Reliability index Rating of utilities Rural Elect. Supply Technology Mission (REST) Accelerated Rural Electrification Programme (AREP)
13 # STRATEGY Commercial viability Consumer services & satisfaction # ACTION Tariff policy Multi year tariff approach To bring about commercial viability : Planning & monitoring by Regulatory Commissions Grid discipline Development of competitive energy market Consumer services Quality, reliability & safety Growth of power industries Collaborative efforts of Government and Regulatory Commissions Regulation
14 Performing Central Undertakings on their own One time settlement of outstanding dues of CPSUs Central Govt. Plan allocation for X th Plan up by 270%. NTPC, Powergrid, PFC, REC, the major Central Undertakings to access equity market. All Central undertakings to access debt market up to debt leveraging scope External assistance from JBIC, ADB, World Bank etc. Other Investors/ Lenders to finance based on progress on reforms. Discussions on with major Business groups to invest in the Sector. Financing
15 # STRATEGY Demand Side management Load management Technology upgradation to provide energy efficient equipment / gadgets. Conservation
16 # ACTION Bureau of Energy Efficiency. Notified industries. Interface with IEEMA & other Industry Bodies. Awareness. Demand Side Management Specifications / Labelling / Norms Certification agency. Energy audit. 25,000 MW saving potential to be achieved by 2012.
17 Political consensus. Public Awareness Media support Communication
18 Electricity Act, 2003 - notified on 10 th June ‘03 : l Creates liberal framework for power development l Facilitates private investment l Delicenses generation : Captive further liberalised l Multiple licencess in Distribution l Creates competitive environment l Stringent provisions for controlling theft of electricity l Empowers States to restructure Electricity Boards l Mandates creation of Regulatory Commissions l Open access on Transmission & Distribution l Power marketing / trading Legislative
19 The way forward Reforms leading to commercialization of Distribution sector Sector viability in medium / long term to support investments Decentralized distribution / generation for electrification of rural areas Streamlined / exemption in clearance procedures along with delegation to States Amicable project specific R&R packages Public sector investments have been stepped up during transition period Funding for Generation (Hydro & Thermal), Transmission and Rural Electrification The Sectoral development should now get the boost with confidence and cooperation of Promotors, Investors and Financial Institutions
20 Thank You Ministry of Power Website http://powermin.nic.in