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1 Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power), Government of India November 16, 2006 Power Ministers’ Conference on.

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Presentation on theme: "1 Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power), Government of India November 16, 2006 Power Ministers’ Conference on."— Presentation transcript:

1 1 Presentation on Indian Power Sector : Key Issues By R.V. SHAHI Secretary (Power), Government of India November 16, 2006 Power Ministers’ Conference on Capacity Addition

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

3 3 Capacity Addition as % of Target

4 4 Growth in PLF of Thermal Stations (%)

5 5 Electrification of Villages * 26,000 under execution

6 6 Likely Capacity Addition During X Plan (MW) Sector Mid Term Appraisal Target Units Commissioned Units Expected During Nov’06- Mar’07 Total Capacity Anticipated Central19,81710,8655,31416,179 State12,2404,9486,06011,008 Private4,8991,9311,5243,455 Total36,95617,74412,898*30,642 * Based on latest reviews with CEA/ BHEL

7 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 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 ,07,000 MW Thereafter, doubling of capacity every 10 years. Projected installed capacity by ,00,000 MW.

9 9 Capacity Addition Programme During XI Plan ( ) Fuel- MixCentral Sector State SectorPrivate Sector Total Thermal25,86016,1524,10246,114 Hydro11,2892,6373,26317,189 Nuclear3,16000 Total40,30918,7897,36566,463  In addition, 14,000 MW through Non- Conventional Energy Sources.  Captive capacity not included. (MW)

10 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 11 Completion Schedule of Ongoing Projects (MW) Type Nov’06- Mar’ Total Hydro2,0002,4502,3282,0558,833 Thermal10,6784,4076,73710,33032,152 Nuclear2201,4401,22002,880 Total12,8988,29710,28512,38543,865

12 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,  Projects for over 35,600 MW capacity identified for commissioning during XI Plan. Fuel- MixCentral Sector State SectorPrivate Sector Total Thermal18,66010,3001,50030,460 Hydro3, ,0725,169 Nuclear0000 Total22,22710,8302,57235,629

13 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 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 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, Contd..

16 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 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 16 th EPS to be reassessed, in view of 8-9% economic growth and changes in rural electrification parameters.

18 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 sanctioning commensurate with availability of power.

19 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 20 THANK YOU


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