Presentation on theme: "1 Presentation on Investment Opportunities in Indian Power Sector and Cooperation with IEA By R.V. SHAHI Secretary, Ministry of Power Government of India."— Presentation transcript:
1 Presentation on Investment Opportunities in Indian Power Sector and Cooperation with IEA By R.V. SHAHI Secretary, Ministry of Power Government of India December13, 2006
2 India has been able to achieve an economic growth rate of 8% per annum during last few years. Industrial growth rate over 9%. Domestic savings rates have been rising and reached over 29%. Inflation level moderate, despite of sharp rise in international oil prices. Current Account Deficit only 1.3% of GDP. Foreign exchange reserves about USD 170 billion. Strengths of Indian Economy
3 During 2007-12, average Economic growth rate projected at 9% pa. Power sector to also grow by 9% to sustain the economic growth. Installed capacity to reach 800 GW by 2031-32 from the present level of 128 GW. Present captive generation 41,000 MW. Enabling environment created by enacting Electricity Act and various policies framed thereunder. Strengths of Indian Power Sector
4 New Electricity Act 2003 - Liberal and competitive framework. Entry Barriers Removed in generation. Reduced in transmission, distribution and supply. Open access in transmission already in place in interconnected all India grid. Open access to consumers above 1 MW by Jan, 2009. New Liberal Competitive Framework Contd..
5 100% FDI permitted in all segments. Duty free import of equipment permitted for Mega Power Projects. Most project execution through International Competitive Bidding. New Liberal Competitive Framework
6 Total Village Electrification in 5 years. By year 2012 : Per capita availability 1000 units. Installed capacity over 200,000 MW. Spinning reserves 5%. Minimum lifeline consumption of one unit per household per day. Inter-regional transmission capacity 37,000 MW. Quality and reliable power supply. National Electricity Policy
7 Tariff Policy Tariff of all Generation and Transmission Projects in Private Sector through Competitive route- Public sector to complete transition in five years. Reduction of cross subsidy to (+)(-) 20% in next five years. Emphasis on facilitating Open Access in Distribution; clear formulation on cross subsidy surcharge. Transmission Tariff framework sensitive to distance and direction. Strict Implementation of Performance Standards. Agriculture Tariff to leverage sustainable use of Ground Water Resources. Time bound introduction of MYT.
8 Competitive Tariff Bidding for Project Development Tariff based International Competitive Bidding for selection of project developer. 7 Large coal based Ultra Mega projects of 4000 MW each being developed. Mix of Coastal projects with imported coal and pit head integrated coal mining- cum- power projects. Use of more efficient super critical technology – lower CO 2 emissions. Final tariff bids already received for 2 projects- selection of successful bidder by December, 2006. Contd..
9 Competitive Tariff Bidding contd.. Two more projects to be awarded in April/ June’ 2007. Bids of other projects in pipeline. States initiating bids for smaller capacity thermal projects. Bids for transmission projects in pipeline.
10 The Energy Strategy Full development of hydro potential. Hydro power irrespective of size, renewable source of energy. Domestic coal to remain primary source. Emphasis on Super Critical Plants and Clean Coal Technologies. Import of coal on moderate scale for coastal locations. Use of gas dependent on availability and price. Import of gas – LNG terminals. Gas pipelines from Western and Central Asia. Contd..
11 Alternate Sources of Energy Emphasis on Biomass. Wind power potential – success story for rapid development. More than 3800 MW added in the last four years. At over 5500 MW, Wind capacity 4 th largest in the world. Development of mini and micro hydroelectric projects. Solar power needs intensive R&D for cost reduction. Extensive development of solar dependent on CDM benefits to offset present high cost. Contd..
12 The Energy Strategy Nuclear power presently 3,900 MW- Share of Nuclear power to be enhanced. No CO 2 emissions. Mastery in fuel cycle and technology. Fuel Constraint. Rapid increase in share of nuclear power dependent on International Cooperation.
13 Energy Efficiency – High Priority Bureau of Energy Efficiency (BEE). Standards and Labeling of appliances. Building Codes being developed. Energy conservation norms for industry and performance standards for equipment being developed. Public awareness campaign launched.
14 Low Energy Intensity and Low Carbon Path of Development Energy Intensity TPES/GDP (KgOE/2000PPP$) Per Capita CO2 Emissions (Tonnes/capita) India0.181.02 China0.233.66 USA0.2219.73 OECD0.1911.09
15 Investment Requirements During XI Plan (2007-2012) in Power Sector USD 50 Billion for Generation. Another USD 50 Billion for Transmission, Distribution and Rural Electrification. Total USD 100 Billion. At present 43,000 MW generation capacity is already under execution. Investment of USD 50 Billion committed. Public sector investments have been stepped up ; will need to be supplemented through private investments.
16 Merchant Power Plants Development of Merchant power plants with highly competitive tariff- a new electricity market development initiative. To fill the demand supply gap. Facilitated by Open access in transmission and distribution. Full market risk to be absorbed by the developer. Coal linkage to be provided for plants up to 1000 MW size. Captive coal blocks for plants in the range of 500- 1000 MW.
17 Present India - IEA Cooperation MoU signed with IEA during April 1998 for cooperation in power sector. Training programmes organised by IEA on Energy statistics, forecasting etc. Jointly organised International workshop on Standards and Labeling. India participating in IEA Greenhouse Gas R&D programme. India participating in IEA DSM implementation agreement.
18 Proposed Future India - IEA Cooperation Energy Efficiency and Demand Side Management. Data Management, Demand supply mismatch projections, Energy Balance : method of assessment. Establishing World over that Hydro power irrespective of size is renewable, and accepting these projects under CDM. Collaboration in Clean Coal Technologies. 20 year projections for gas availability and prices. Capital cost benchmarks for Nuclear power projects. 20 year projections for nuclear fuel availability and prices.