Submitted by 10810027 L Nikhil Reddy 10810028 Laxmi Narasimha Boddu 10810031 Mayank Jain 10810063 Swagat Patra 10810071

0071 Vema Jagadish

Why study Power Industry?

Electricity supply is a fundamental priority of the central government policy. Major objective pertaining to power sector in 11th 5-year plan is Power for all by 2012. Total requirement of funds estimated in11th 5-year plan is 10,31,600 crore rupees. Indian power industry accounts for 3.4% of global energy consumption making it 6th largest consumer in the world. No other industrys output is as important as that of Power Industry, because most of the goods or services produced directly or indirectly require power from production to consumption.

Power is utilized to in three key sectors of any countrys economy,

Indian Power Sector History

The Indian Power Sector has history over 100 year history 1880s First electrification small hydro project in Darjeeling 1889 Commercial production & Distribution starts in Calcutta

Indian Electricity Act, 1910

1947 Power generating capacity only 1,362 MW

The Electricity (Supply) Act, 1948 SEB formation

Creation of central generation companies

Indian Power Sector History

(continued)

Central Electricity Authority (CEA) was established as a statutory authority 1956 Industrial Policy Resolution reserves production of power for public sector 1960s and 70s Impetus for expansion of rural electrification 1975 NTPC and NHPC set up 1989 NPTC set up. Renamed POWER GRID in 1992 1991 Liberalization; amendments in Electricity (Supply) Act 1992 Ministry of Power was constituted

Indian Power Sector History

(continued)

1995 Policy for Mega power projects introduced 1998 CERC and SERCs set up 2001 Energy Conservation Act

2003 New Electricity Act

2008 Re-structuring APDRP (Accelerated Power Development and Reforms Programme)

2009 Amendments in Mega Power Policy

2011 Installed power capacity of approximately 170,230 MW

History Fast facts

The US was the first country that generated electricity. CESC (Calcutta Electric Supply Company ) Limited, pioneer in India commenced power generation and distribution in Kolkata, in 1899. CESC acquired the license to provide electricity to Calcutta city on January 7, 1897. The electrification of Kolkata city took place in 1899 India also started hydro electric generation by the end of 19th century. The power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The 4.5 megawatt hydroelectric power station near Sivasamudram falls of the Cauvery in Karnataka was the first major power station in India The Indian power sector has been regulated for almost a century. The Electricity Act 1910 was the first act that was introduced to govern the Indian power sector. The Electricity (Supply) Act 1948 was introduced after

Post-independence pre-reform phase (up to 1991)

The development of the electricity sector to respective states through the creation of State Electricity Boards (SEBs). SEBs expected to develop networks of transmission lines add generation capacity. The low tariffs for agricultural sector were sought to be covered through higher tariffs on industrial and commercial consumers The distortions of such cross subsidization, resulted in increasing theft and leakages, loss of accountability of revenue, misreporting. SEBs fared miserably and by the 70s, many of the SEBs started incurring losses because of many factors including direct political interference in SEBs operation by their respective governments, mismanagement, poor industrial relations, etc

Post-independence pre-reform phase (up to 1991) (continued)

Losses of the SEBs mounted this made SEBs increasingly dependent on budgetary allocations from their respective governments reducing their ability to add generating capacity, and most importantly to carry out the periodic maintenance and upkeep of their distribution assets.

C.E.A. (Central Electricity Authority) was established with the object of providing Techno economic assistance to the said State Electricity Boards, N.T.P.C., N.H.P.C. in the matter of setting up new power stations. In 1969 Rural Electric Corporation and in 1975 N.T.P.C. (National Thermal Power Station and N.H.P.C. (National Hydel Power Corporation) were formed to accelerate the generation of electricity in our country

Post-reform phase (after 1991)

The need to control fiscal deficit led to initiation of reforms in the Electricity Sector in early 1990s
Investment

by the private sector (including foreign capital) were allowed in electricity generation of the sector for private Independent Power Producers (IPPs)
enactment of the Electricity Act in the year

Opening

The

Post-reform phase (after 1991) (continued)

The Central Government came out with National Electricity Policy on 6th February 2005 To encourage greater private participation govt has undertaken some measures like National Tariff Policy, National Electricity Plan, Competitive Bidding Guidelines, and Ultra Mega Power Projects. Now 100 percent Foreign Direct Investment (FDI) is allowed in generation, transmission and distribution segments. Incentives are given to the sector through waiver of duties on capital equipments under the Mega Power Policy

Power policy in India is predominantly controlled by

Ministry of Power Ministry of Coal Ministry of New and Renewable Energy And administered by
PSUs Government

Departments Commissions

Indian Power sector

As per our Constitution, power industry is a combined responsibility of the State and Central Governments.

According to the Electricity Supply Act (ESA)

Power
State

sector comprises of three entities

Electricity Boards (SEBs) Power Generating Companies Licensees

Power sector at a glance All India

(Source: Website of Ministry of power)

Installed capacities across sectors

Private Sector 21%

Central Sector 31%

State Sector 48%

Total installed power capacity in India approximately by 2011: 170,230 MW

Power sector at a glance All India

(continued) (Source: Website of Ministry of power)

Power generation capacities of Public and private sectors by energy sources

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Proportion

Central Private State

Thermal 39122.23 19755.52 52156.73

Nuclear 4560 0 0

Hydro 8685.4 1425 27257

RES 0 13964.66 2822.32

Current scenario of Indian Power Industry

Power produced by various energy sources
Fuel Coal Gas Oil Hydro Nuclear RES Total Capacity (in MW) 92418.38 17706.35 1199.75 37367.40 4780.00 16786.98 170,228.86 Oil Nuclear 1% 3% RES 10% Hydro 22% Coal 54% Gas 10%

Source: 2010-11 Annual report of Ministry of Power

RES: Renewable Energy Resources

Source: 2010-11 Annual report of Ministry of Power

Power consumption Breakup

Sector wise Power consumption
Industrial 46% Traction 2%

Commercial 8% Miscellaneous 5%

Domestic 21%

Agriculture 18%

Growth of Power sector

The power capacity of India has increased approximately124 times from 1362MW in the year 1947 to 170228.86MW in 2011. The global energy consumption has grown at a CAGR of 2.5% since 1999, reaching 11 billion tons of oil equivalent in 2008. Between 1980 and 2009, energy consumption increased by almost seven times from 85,334 GWh to 596,943 GWh, which corresponds to an average annual growth rate of approximately 7.1%. The strongest increase was in the consumption by private households, which increased by almost 14 times since 1980 at an average annual growth rate of 10%.

Growth of Power sector Power generation trend

(1 Unit = 1 kWh)

Power Requirement v/s Availability

Power sector Growth potential

The Eleventh Five Year Plan envisaged an additional capacity of 78,700 MW of which 19.9 per cent was hydro, 75.8 per cent thermal and the rest was nuclear. As of December 31, 2009, 43,282 MW was under construction. Public sector power major National Thermal Power Corporation (NTPC) is planning to scale up its capacity from the present 30,000 MW to 75,000 MW by 2017. India has launched its ambitious solar energy mission which aims to generate 20,000 MW of solar power by 2022.

Major Players of the Industry

Power Plant Name National Thermal Power Corporation (NTPC) National Hydro Power Corporation (NHPC) Tata Power Reliance power Adani Power Limited Capacity Presence In MW 33,000 Coal & Gas Future plans Plans to increase capacity to 75,000 MW by 2017 Planning to Double capacity in next 5 years Building numerous power plants and transmission projects in JV Plans of 35GW projects. Implementing 3300MW in Maharashtra 1320MW in Rajasthan 16500MW in rest of the country

5,000 3,000 3x4,000 1980

Hydro Gas, Hydro, Solar & Wind Hydro, Gas & Coal Coal (Mainly imports coal)

Damodar Valley Corporation

2889

Hydro 144MW Thermal

Additional 11000MW by 2012

Major Players of the Industry

(continued)
Power Plant Name Lanco Infratech SJVN(A Joint Venture of
GoI and Himachal Pradesh)

Capacity In MW 2,000 1500 4500

Presence Coal Hydro Nuclear

Future plans 18GW under development Trying to expand but facing problems like NHPC India is planning to add 2000MW in next decade Plans to develop a 1320MW Thermal plant, Which is due for commissioning in Dec 2011 It is also in to Lignite mining, No plans for expansion of power production

Nuclear Power Corporation of India Limited (NPCIL) CPL Power Private Ltd. (Largest foreign investor in wind power) Neyveli Lignite Corporation (PSU)

450

Wind

2490

Coal

Torrent Power

1647.5

Expanding only in Ahmedabad and Uttar Pradesh

Market Share
Others, 58.62% NTPC, 19.38%

NHPC, 2.94% Tata Power, 1.76%

Torrent Power, 0.97% Neyveli Lignite Corporation , 1.46% CPL Power Pvt. NPCIL, 2.64% Ltd., 0.26%

SJVN, 0.88% Lanco Infra, 1.17%

Reliance power, 7.05% Adani Power, 1.16% DVC, 1.70%

Other major players

Other Private Groups that are setting up big power capacities

State owned and run Power Generation Companies

Tata BP Solar Punjab State Power, Suzlon Energy, Haryana Power JSW Energy, Generation, Sterlite Energy, Gujarat State Energy GVK Energy, THDC Moser Baer, APGenco Welspun Energy, Orient Green Power, Essar Energy, Greenko. GVK Power. Article by Abhishek Shah : Analyst (VP) at The Green Machine Fund

Suppliers Another sect of Power industry

BHEL BEL NEPC India Ltd Suzlon Energy Tata BP Solar

Kotak Urja Pvt. Ltd Moser Baer Pvt. Ltd Titan Energy Systems Ltd. Photon Energy Systems IndoSolar WEBEL SL Energy Systems etc.

Key organizations their functions

Competition

In 1990 nearly all energy sector operations were state controlled. The industry was inefficient and highly unreliable. But that is rapidly changing. For example, stateowned oil companies of India had over 80 percent of Indias exploration acreage before 1990. Thanks to reforms in the 1990s, that number is down to about 50 percent in 2008 even as the area under exploration has increased roughly ten-fold. Competition and private capital has reinvigorated the entire energy industry in India. The new identity of Indias energy policy is marked by a free-market oriented approach.

Thermal Power Projects Centre

(Source:Wikipedia)
Project Name Badarpur Thermal power plant Singrauli Super Thermal Power Station Barsingsar Lignite Power Plant Rihand Thermal Power Station NTPC Dadri Feroj Gandhi Unchahar Thermal Power Plant Tanda Thermal Power Plant Vindhyachal Super Thermal Power Station Korba Super Thermal Power Plant Sipat Thermal Power Plant Bhilai Expansion Power Plant NTPC Ramagundam Simhadri Super Thermal Power Plant Neyveli Thermal Power Station - I Neyveli Thermal Power Station - II Kahalgaon Super Thermal Power Station Bokaro Thermal Power Station B Chandrapura Thermal Power Station Farakka Super Thermal Power Station Durgapur Thermal Power Station Operator NTPC NTPC NLC NTPC NTPC NTPC NTPC NTPC NTPC NTPC NTPC-SAIL(JV) NTPC NTPC NLC NLC NTPC DVC DVC NTPC DVC State NCT Delhi Uttar Pradesh Rajasthan Uttar Pradesh Uttar Pradesh Uttar Pradesh Uttar Pradesh Madhya Pradesh Chattisgarh Chattisgarh Chattisgarh Andhra Pradesh Andhra Pradesh Tamilnadu Tamilnadu Bihar Jharkhand Jharkhand West Bengal West Bengal Capacity(M W) 705 2000 125 2000 1820 1050 440 3260 2100 1000 500 2600 1000 1020 1470 2340 630 1250 1600 350

Thermal Power Projects State

(Source:Wikipedia)
Project Name Panipat Thermal Power Station I Panipat Thermal Power Station II Faridabad Thermal Power Station Rajiv Gandhi Thermal Power Station Guru Nanak dev TP Guru Hargobind TP Guru Gobind Singh Super Thermal Power Plant Suratgarh Super Thermal Power Plant Kota Super Thermal Power Plant Giral Lignite Power Plant Chhabra Thermal Power Plant Orba Thermal Power Station Anpara Thermal Power Station Panki Thermal Power Station Parichha Thermal Power Station Harduaganj Thermal Power Station Ukai Thermal Power Station Gandhinagar Thermal Power Station Wanakbori Thermal Power Station Sikka Thermal Power Station Dhuvaran Thermal Power Station Kutch Thermal Power Station Surat Thermal Power Station Akrimota Thermal Power Station Satpura Thermal Power Station Operator HPGCL HPGCL HPGCL HPGCL PSPCL PSPCL PSPCL RVUNL RVUNL RVUNL RVUNL UPRVUNL UPRVUNL UPRVUNL UPRVUNL UPRVUNL GSECL GSECL GSECL GSECL GSECL GSECL GIPCL GMDC MPPGCL State Haryana Haryana Haryana Haryana Punjab Punjab Punjab Rajasthan Rajasthan Rajasthan Rajasthan Uttar Pradesh Uttar Pradesh Uttar Pradesh Uttar Pradesh Uttar Pradesh Gujarat Gujarat Gujarat Gujarat Gujarat Gujarat Gujarat Gujarat Madhya Pradesh Capacity(MW) 440 920 55 600 440 920 1260 1500 1240 250 500 1322 1630 210 640 220 850 870 1470 240 220 290 500 250 1017.5

Thermal Power Projects State

(continued) (Source:Wikipedia)
Project Name Sanjay Gandhi Thermal Power Station Amarkantak Thermal Power Station Korba East Thermal Power Plant Dr Shyama Prasad Mukharjee Thermal Power Plant Korba West Hasdeo Thermal Power Plant Koradi Thermal Power Station Nashik Thermal Power Station Bhusawal Thermal Power Station Paras Thermal Power Station Parli Thermal Power Station Kaparkheda Thermal Power Station Chandrapur Super Thermal Power Station Ramagundam B Thermal Power Station Kothagudem Thermal Power Station Kothagudem Thermal Power Station V Stage Dr Narla Tatarao TPS Rayalaseema Thermal Power Station Kakatiya Thermal Power Station Raichur Thermal Power Station Kolaghat Thermal Power Station Bakreshwar Thermal Power Station IB Thermal Power Plant Mettur Thermal Power Station Tuticorin Thermal Power Station Operator MPPGCL MPPGCL CSPGCL CSPGCL CSPGCL MAHAGENCO MAHAGENCO MAHAGENCO MAHAGENCO MAHAGENCO MAHAGENCO MAHAGENCO APGENCO APGENCO APGENCO APGENCO APGENCO APGENCO KPCL WBPDCL WBPDCL OPGCL TNEB TNEB State Madhya Pradesh Madhya Pradesh Chattisgarh Chattisgarh Chattisgarh Maharastra Maharastra Maharastra Maharastra Maharastra Maharastra Maharastra Andhra Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh Andhra Pradesh Karnataka West Bengal West Bengal Orissa Tamilnadu Tamilnadu Capacity(MW) 1340 450 440 500 840 620 630 420 500 1130 840 2340 62.5 720 500 1760 840 500 1720 1260 1050 960 840 1050

Thermal Power Projects Private

(Source:Wikipedia)
Project Name Producer State Rajasthan Uttar Pradesh Gujarat Gujarat Chattisgarh Chattisgarh Maharastra Maharastra Maharastra Karnataka Karnataka Karnataka Tamilnadu West Bengal West Bengal Capacity(M W) 125 600 400 1980 1000 600 1400 500 135 260 600 600 250 750 240 VS Lignite Power Plant KSK Rosa Thermal Power Plant Stage I Reliance Sabarmati Thermal Power Station Torrent Power Mundra Thermal Power Station Adani power Jindal Megha Power Plant Jindal Lanco Amarkantak Power Plant Lanco Trombay Thermal Power Station Tata Dahanu Thermal Power Station Reliance Energy Limited Wardha Warora Power Station KSK JSW EL-SBU-I Power Plant JSW JSW EL-SBU-II Power Plant JSW Udupi Thermal Power Plant Lanco Neyveli Zero Unit STPS Budge Budge Thermal Power Plant CESC Titagarh Thermal Power Station CESC CESC Southern Generating

Hydro Power Projects (Source: Wikipedia)

Project Name Operator Location Capacity (MW)

Tehri Dam Srisailam Dam Nagarjunasagar Sardar Sarovar Baspa-II Nathpa Jhakri Bhakra Dam Dehar Baira Suil Chamera-I Chamera-II Pong Uri Hydroelectric Dam Dulhasti Salal Sardar Sarovar Sharavathi

THDC India Ltd APGenco APGenco SSNNL JHPL SJVNL BBMB BBMB NHPC NHPC NHPC BBMB NHPC NHPC NHPC
KPCL

Uttarakhand Andhra Pradesh Andhra Pradesh Gujarat Himachal Pradesh Himachal Pradesh Punjab Himachal Pradesh Himachal Pradesh Himachal Pradesh Himachal Pradesh Himachal Pradesh Jammu & Kashmir Jammu & Kashmir Jammu & Kashmir
Karnataka

2400 1,670 965 1,450 300 1,500 1,325 990 180 540 300 396 480 390 690 400 1,469

Hydro Power Projects

(continued)(Source:Wikipedia)
Project Name Operator Location Capacity (MW)

Linganamakki Dam Idukki Bansagar Dam Bargi Dam Madikheda Dam Omkareshwar Indira Sagar Loktak Khuga Dam Koyna Mulshi Dam Jayakwadi Dam Kolkewadi Dam Rangeet Teesta-V Tanakpur

KSEB

NHPC NHPC NHPC

MahaGenco

NHPC NHPC NHPC

Karnataka Kerala Madhya Pradesh Madhya Pradesh Madhya Pradesh Madhya Pradesh Madhya Pradesh Manipur Manipur Maharashtra Maharashtra Maharashtra Maharashtra Sikkim Sikkim Uttarakhand

55 780 425 105 60 520 1,000 105 1,920 150 12 60 510 120

Wind Power Projects (Source: Wikipedia)

Project Name Vankusawade Wind Park Cape Comorin Kayathar Subhash Ramakkalmedu Muppandal Wind Gudimangalam Puthlur RCI Lamda Danida Chennai Mohan Jamgudrani MP Jogmatti BSES Perungudi Newam Kethanur Wind Farm Producer Suzlon Energy Ltd. Aban Loyd Chiles Offshore Ltd. Subhash Ltd. Subhash Ltd. Muppandal Wind Farm Gudimangalam Wind Farm Wescare (India) Ltd. Danida India Ltd. Mohan Breweries & Distilleries Ltd. MP Windfarms Ltd. BSES Ltd. Newam Power Company Ltd. Kethanur Wind Farm Andhra Pradesh State Road Transport Corp. Madras Cements Ltd. State Maharashtra Tamil Nadu Tamil Nadu Kerala Tamil Nadu Tamil Nadu Andhra Pradesh Gujarat Tamil Nadu Madhya Pradesh Karnataka Tamil Nadu Tamil Nadu Capacity(M W) 259 33 30 25 22 21 20 15 15 14 14 12 11

Hyderabad APSRTC Muppandal Madras

Andhra Pradesh Tamil Nadu

10 10

Solar Power Projects (Source: Wikipedia)

Project Name Peak Power (MW)
5 3 3 2 2 1 1 1

Sivaganga Photovoltaic Plant Kolar Photovoltaic Plant Itnal Photovoltaic Plant, Belgaum Azure Power - Photovoltaic Plant Jamuria Photovoltaic Plant NDPC Photovoltaic Plant Thyagaraj stadium PlantDelhi Gandhinagar Solar Plant

Nuclear Power Projects (Source:

Wikipedia)
Project
Narora Atomic Power Station Rajasthan Atomic Power Station Tarapur Atomic Power Station

Operator
NPCIL NPCIL NPCIL

State
Uttar Pradesh Rajasthan Maharashtra Gujarat Tamilnadu Tamilnadu Karnataka Tamil Nadu

Capacity (MW)
440 1180 1400 440 2000 500 880 440

Kakrapar Atomic Power Station NPCIL Kudankulam Nuclear Power Plant NPCIL Madras Atomic Power Station Kaiga Nuclear Power Plant Madras Atomic Power Station BHAVINI NPCIL NPCIL

Mega Power Policy

Introduced in 1995 for providing impetus to development of large size power projects in the country and derive benefits form economies of scale.

Modified in 1998,2002, 2006 and 2009 to rationalize the procedure for grant of mega certificates and facilitate quicker addiction of capacity.
17 power projects totaling of capacity about 27GW have been granted mega power status form April 2010 to Jan 2011

Ultra Mega Power Projects

Projects above 4000MW capacity Each UMPPs estimated investment is $4billion Operated on Build, Own and Operate (BOO) model
Name of UMPP Mundra, Gujarat Developer Tata Power Ltd.

Sasan, Madhya Pradhesh Krishnapatnam

Tilaiya

Reliance Power Ltd. Reliance Power Ltd.

Reliance Power Ltd.

Coal

India is the third largest producer of coal in the world, with fourth largest reserves of coal in the world

Despite this India imports coal to serve its domestic needs.

Annual coal requirement of India is 700 million tons. FY 2010-11 Imports increased 70% than expected 84 million tons i.e. 142million tons.

Coal Hurdles to extraction

Environmental clearances Rehabilitation Naxal movements

Coal A look at history

The first coal mining operation commenced in 1774 in the Raniganj coalfield on the banks of River Damodar.

The introduction of steam locomotives and WW-I stimulated demand for coal, and production peaked at 18 million tons (mts) during the 1920s

Coal - Producing companies

Coal India Limited. (A Maharatna Company with 8 subsidiaries)

Bharat Coking Coal Limited (BCCL) Central Coalfields Limited (CCL) Eastern Coalfields Limited (ECL) Western Coalfields Limited (WCL) South Eastern Coalfields Limited (SECL) Northern Coalfields Limited (NCL) Mahanadi Coalfields Limited (MCL) Central Mine Planning and Design Institute Limited (CMPDIL)

Singareni Collieries Company Limited (SCCL) (A joint venture of Government of Andhra Pradesh and Government of India sharing SCCL's equity capital in the ratio of 51:49. ) Minerals and Metals Trading Corp: It is responsible for the conversion of imported coal into coke for metallurgical and industrial purposes.

1. 2. 3. 4.

ECL
BCCL CCL NCL0

5.
6. 7. 8. 9. 10.

WCL
SECL MCL NEC SCCL NLC

Coal Main source of Power

generation

India Currently able to fulfill only 90% of its Energy requirements. 54% of energy requirements are fulfilled by Coal. (Figures
in 2011)

Coal produced in India is completely utilized for domestic purposes.

70% of coal produced is used for production of electricity

Remaining 30% by Steel, Cement and other heavy industries

Coal and Lignite (FDI)

Private Indian companies setting up or operating power projects as well as coal or lignite mines for captive consumption are allowed FDI up to 100%. 100% FDI is allowed for setting up coal processing plants, subject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to coal processing plants for washing or sizing. FDI up to 74% is allowed for exploration or mining of coal or lignite for captive consumption. In all the above cases, FDI is allowed up to 50% under the automatic route subject to the condition that such investment shall not exceed 49% of the equity of a PSU.

Nuclear Power

India has a flourishing and largely indigenous nuclear power program and expects to have 20,000 MWe nuclear capacity on line by 2020 and 63,000 MWe by 2032. It aims to supply 25% of electricity from nuclear power by 2050. Because India is outside the Nuclear Non-Proliferation Treaty due to its weapons program, it was for 34 years largely excluded from trade in nuclear plant or materials, which has hampered its development of civil nuclear energy until 2009. Now, foreign technology and fuel are expected to boost India's nuclear power plans considerably. All plants will have high indigenous engineering content.

Nuclear Power Current status

Nuclear power supplied 15.8 billion kWh (2.5%) of India's electricity in 2007 from 3.7 GWe (of 110 GWe total) capacity. In the year to March 2010, 22 billion kWh was forecast, and for the 2010-11 year 24 billion kWh is expected. For 2011-12, 32 billion kWh is now forecast. India's fuel situation, with shortage of fossil fuels, is driving the nuclear investment for electricity, and 25% nuclear contribution is foreseen by 2050, when 1094 GWe of base-load capacity is expected to be required. Almost as much investment in the grid system as in power plants is necessary.

Nuclear Power - Growth trends

Rose impressively from 60% in 1995 to 85% in the period 2001-02 Then in 2008-10 the load factors dropped due to shortage of uranium fuel. Power reactors in mid 1990s had some of the worlds lowest capacity factors. The growth rate was plagued by lack of fuel and technical assistance from other countries due to Indias nuclear isolation .

Nuclear Power Growth trends

(continued)

Nuclear Power Regulation

Main Policy Body AEC-Indian Atomic Energy Commission Regulator AERB-Atomic Energy Regulator Board Research Centre BARC- Bhabha Atomic Research Centre Commissioning Body NPCIL-Nuclear Power Corporation Of India Ltd

Nuclear Power Major players

The 1962 Atomic Energy Act prohibits private control of nuclear power generation. BHAVINI Bharatiya Nabhikiya Vidyut Nigam Ltd focuses on fast breeder reactors. NTPC- National Thermal Power Corporation GE - Two Tarapur 150 MWe Boiling Water Reactors on a turnkey contract.

ATOMSTROYEXPORT Russian firm is building the country's first large nuclear power plant, comprising two VVER-1000 (V-392) reactors.
ROSATOM - Russian firm which is expected to built 18 larger 1200 MWe AES-2006 versions reactors

Nuclear Energy Structure

Planned Nuclear Plants In India

Nuclear Power Policies

The NPCIL and the Bharatiya Nabhikiya Vidyut Nigam Ltd (Bhavini) are the only companies authorized to build nuclear reactors in the country. Nuclear power plants to be set up at locations away from coalmine Public sector investments to create nuclear generation capacity to be stepped up.

Wind & Solar

Since 2000, the global renewable energy capacity has increased by approximately five times to reach 146,073 MW in 2008. This growth has primarily been driven by the wind and solar power segment. During the period 200008, wind power and solar photovoltaic (PV) capacity grew at a CAGR of 27% and 44%, respectively. The US now has the largest wind power capacity (25.2 GW, 20.7% of the total world capacity), followed by Germany (23.9 GW, 19.6% share).

Wind & Solar (continued)

Solar power, another key RE focus area globally, recorded a 69% y-o-y growth in generating capacity in 2008. Spain (2.7 GW) and Germany (1.5 GW), which together accounted for more than 75% of the growth. India fifth largest producer of wind energy in the world, with a current installed wind capacity of 10,243 MW. The solar PV manufacturing capacity has made India as the seventh largest producer of solar PV cell worldwide, with an installed manufacturing capacity of 110MW in 2008.

Wind & Solar - Development

Factors for development

1.

Massive gap between demand and supply.

Relatively lower cost due to technology. Rapid development of domestic manufacturers. Highly supportive government policies like JNNSM Substantial subsidies and incentives for setting up any RES power plant.

2.

3.

4.

5.

Attention needed

As India moves forward with energy-policy reforms three issues need particular attention

1. Recent energy policies threaten the organizational stability of state-owned companies. 2. India urgently needs to ramp up energy related R&D, which at present is inadequate. 3. India must strive to really understand the functioning of the energy systems of other major economies.

Imports & Exports

Coal

Despite being the fourth largest reservoir of coal, India imports coal to serve its domestic needs. Coal imports could jump nearly 70% in next fiscal year to 142 million tons from 2010-11 forecast purchases

Nuclear

Major proportion of uranium is imported from other countries Technology transfer takes place with major foreign players Nuclear fuel is imported from

Russia Rosatom France Areva Kazakhstan Brazil South Africa

Imports & Exports (continued)

Solar

India has always been a net exporter of solar PV technology, with about 66% of cumulative domestic PV production till 2009 catering to overseas markets. Germany is the most preferred source for solar PV imports, followed by Taiwan. During 2008-09, about 80% of the total solar PV imports were from Germany and Taiwan. The other countries for solar PV imports are Spain, China and Japan. Year-wise export-import details of solar PV below:

Imports & Exports

Wind Energy

An impressive average annual increase of 40.9% during the 2004-2008 period. Total trade in wind energy - US$ 4.0 bn in 2008,

Exports -US$ 1.8 bn Imports - US$ 2.2 bn, thereby resulting in a negative trade balance.

USA was Indias main export destination of wind energy products in 2008 with exports amounting to US$ 355 mn (19.6% share). Other major export markets included Brazil (US$ 156 mn;8.6% share), Australia (US$139mn;7.7%), Spain (US$ 107 mn; 5.9%) and Portugal (US$ 87 mn; 4.8%).

Imports & Exports

In terms of imports, China and Germany were by far, the two biggest sources with imports amounting to US$ 639 mn and US$ 600 mn, respectively.
China and Germany accounted for 55.7% of Indias total imports of wind energy and related components in 2008. China overtook Germany in 2008 to become the largest source of import for India. The other major sources of imports in 2008 included Italy (US$ 129 mn; 5.8% share), USA (US$ 121 mn; 5.4%), and Japan (US$ 106 mn; 4.8%).

Effect on Foreign Investment

Electricity Act, 2003, made provision for 100% FDI in power sector. Despite this only two to three foreign investors turned up. The power sector has attracted foreign direct investment (FDI) worth USD 1.34 billion during April to February 2009-10. The cumulative FDI received by the power sector between April 2000 and February 2010 was USD 4.53 billion.

Taxation in Power sector

Current Scenario:
As

per the existing provisions of the Income Tax Act, 1961, an Undertaking set up in any part of India for the Generation or Generation and Distribution of power or Reconstruction or revival of a power generating unit if it begins to generate power at any time during the period beginning on 1st April, 1993 to 31st March, 2011 is eligible for Profit based deduction subject to fulfillment of other conditions stipulated under the provisions of the Income Tax Act, 1961.

Taxation in Power sector (continued)

Direct Tax Code (DTC) Proposals

DTC 2010 would replace the Income Tax Act, 1961 and, hence, it is provided that the businesses eligible for profit-linked incentives under the Income Tax Act, 1961 regime as of 31 March 2012, whose tax holiday period has not expired, shall continue to be eligible for profitlinked tax incentives for the unexpired period, subject to the following conditions

The method of computation of profits shall be as per DTC 2010, except that capital expenditure and pre-commencement business expenses will not be allowed as a deduction.
The period of deduction shall not include a period for which deduction was not allowable under the Income Tax Act, 1961. However, question may arise as to whether the restriction will apply only during the period of tax holiday or on a perpetual basis. Question may also arise if the limitation on grant of capital allowances, including depreciation, will also extend to assets acquired prior to March 2012 and which have already become part of the block of assets. The taxpayer continues to satisfy the conditions as specified under

Taxation in Power sector (continued)

Effect on Undertaking set up on or after 1st April, 2012:

An Undertaking set up in any part of India for the Generation or Transmission or Distribution of power and if it begins to generate power at any time on or after 1st April, 2012 will be eligible for investment-based incentives wherein capital expenditure and expenditure prior to commencement of Business shall be allowed as Business Expenditure except expenditure incurred on acquisition of any Land including Long Term Lease, Goodwill or Financial Instrument. Moreover, the Direct Tax Code has also allowed Power Companies to offset Losses against the Profits of other infrastructure projects or corporate income in the current year as well as future years which is a welcome measure. The Direct Tax Code, 2010 has curtailed the some of the provisions of Income Tax Act, 1961 even though it is positive step for the Power Sector and beneficial to Existing as well as New Power Undertakings.

Policy and Regulations

To promote renewable energy technologies in the country, the government has put in place some subsidies & fiscal incentives.
Income tax breaks Accelerated depreciation Custom duty/duty free import concessions Capital/Interest subsidy Incentives for preparation of Detailed Project Reports (DPR) and feasibility reports

Policy and Regulations (continued)

100 percent income tax exemption for any continuous block of power for 10 years in the first 15 years of operations . Providers of finance to such projects are exempt from tax on any income by way of dividends, interest or long-term capital Accelerated 100-percent depreciation on specified renewable energy-based devices or projects. Accelerated depreciation of 80 percent in the first year of operations

Interest rate subsidies to promote commercialization of new technology

Lower customs and excise duties for specified equipment Exemption or reduced rates of central and state taxes.

Policy and Regulations (continued)

Ministry for Non-Conventional Energy Sources mix of fiscal and financial benefits: 2/3rd of the project cost subject to a maximum of Rs. 2.00 crore per 100 KW for procurement of modules, structures, power conditioning units, cabling etc. to the implementing agency. The balance cost on land, extension of grid lines, transformers, civil works, foundation and erection and commissioning, etc. is met by the implementing agency.

Up to Rs.1.0 lakh for the preparation of Detailed Project Report (DPR) for the grid interactive SPV power projects.

2.5 percent of its share of project cost, subject to a maximum of Rs.5 lakhs for performance evaluation, monitoring, report writing, etc. to the State Nodal Agency.
Interest subsidy of up to 4 percent to Financial Institutions including IREDA, Nationalized Banks etc. for captive power projects of maximum capacity 200 KW by industry.

Policy and Regulations (continued)

Energy Conservation Act 2001

Focus

on energy efficiency Standards and labeling Designated consumers requirements Energy conservation building codes Energy conservation fund Bureau of Energy Efficiency

Policy and Regulations (continued)

Electricity Act 2003

Combined

several existing pieces of legislation Intended to accelerate growth of power sector

Targets additional 10 percent from renewable by 2012 (1000 MW/year capacity) Competitive market-based

Policy and Regulations (continued)

Electricity Act 2003

Features
National

include

Electricity Policy De-licensing of generation and captive generation Public ownership of transmission companies Open access in transmission Freedom for distribution of licenses Establishment of State Electricity Regulatory Commissions License-free generation and distribution in rural areas

Policy and Regulations (continued)

Provisions and activities impacting the power sector:

Elimination of ceiling on foreign equity participation Streamlining the procedure for clearance of power projects

Establishment of the Central Electricity Regulatory Commission Formulating an action plan to set up the National

Policy and Regulations (continued)

State reforms impacting the power sector:

Unbundling the State Electricity Boards (SEB) into separate generation, transmission and distribution companies Privatizing the generation, transmission and distribution companies Setting up independent state electricity regulatory commissions Making subsidy payments for subsidized categories of customers by state governments Making tariff reforms by state governments enabling legislation and operational support extended to the SEB/utility improving operations of SEBs, particularly with regard to better management practices, reduction of transmission

Road ahead

Given the time remaining for exhaustion of conventional sources, power would majorly be produced from Renewable sources of energy Wind, Water, Sun, Biomass etc. With huge support from the government, overall production capacity of the RES power plants is likely to expand exponentially in the next decade.

Thank You