Indian Power Sector

byY P Abbi

04 Aug 2014

Orientation Program for ETEs,Energo Engineering Projects Limited,New Delhi - 110020

Installed Power Generation Capacity (MW) in India(as on 30 June 2014)

• Coal 148,478• NG 22,608• Diesel 1,200• Nuclear 4,780• Hydro 40,730• R.E.S.* 31,392• Total 249,488• Captive 36511 *Small Hydro = 3804; Wind = 21,136; Biomass/Cogen = 4014; Waste to Energy

= 107; Solar = 2632

Electricity Generation (Apr 2013- Feb 2014)

BU %

Thermal 719.3997 81.58

Hydro 125.654 14.25

Nuclear 31.163 3.53

Bhutan Import 5.569 0.64

Total 881.786 100.0

Key Indicators – Power Sector

• Demand & availability (Feb 2014) = - 3.80 %• Peak load (Feb 2014) = - 3.3 %• Per capita consumption = 917.18 kWh/year• XII Five Year (2012 – 2017) Plan target addition of

88,537 MW; achieved till Feb 2014 is (37.46%) • CO2 emission from power plants is 0.83 t/MWh in 2012-13 0.78 t/MWh in 2011-12

POWER PLANT CAPACITY ADDITION (MW) DURING XI PLAN

SECTOR HYDRO COAL LIGNITE NG NUCLEAR

TOTAL

Central 9,685 22,060 1,000 750 3,160 36,655

State 2,637 19,365 375 612 - 22,989

Private 3,263 5,210 - 752 - 9,225

All India 15,585 46,635 1,375 2,114 3,160 68,869

Actual achievement 54,964

POWER CAPACITY ADDITION REQUIREDDURING XII PLAN(2012-17)

(For 9% GDP growth)

• Electricity generation required 1,470 Billion kWh• Peak demand 2,24,600 MW• Installed capacity 2,91,700 MW• Capacity addition required 82,200 MW

Hydro 30,000 MWNuclear 13,000 MWThermal 40,000 MW

POWER CAPACITY ADDITION PROJECTED DURING XII PLAN in MW(2012-17)

• Hydro 9,204• Thermal 67,686

Coal 66,600Lignite 0NG 1.086

• Nuclear 2800*• Total 79,690

Wind 11,000Solar 4,000Biomass/Small Hydro 3,500

• Total RES 18,500 *18,000 MW in XIII Plan**CPP = 14,000 MW

Import of Coal (Million tonne)

Year Target Actual2004-05 10.0 4.52006-07 20.0 9.72008-09 20.0 16.11010-11 35.0 30.52011-12 55.0 33.7

(up to Dec. 11)

2016-17 238.0 ??

Oil & NG Production vs Targets in XI Plan

Target ProductionShortfallOIL (MT)206.73 177.0 14 %NG (bcm)255.76 216.65 16 %

Source: Economic Times, 18 July 2012

Natural Gas supply for Power Plants

Year Capacity Gas Reqd. Gas Supplied(MW) (MMSCMD) (MMSCMD)

2000-01 9,029 44.54 24.402003-04 10,155 49.25 25.622006-07 12,144 49.25 25.622009-10 15,769 78.09 55.4520011-12 16,676 81.44 57.67(up to OCT. 2011)

Issues for NG based Power Projects

• 5156 MW commissioned during XI Plan period is stranded/operating at low PLF due to non-supply of gas

• 2538 MW addition expected during XII Plan period

• 2000 MW is desired for meeting the Peaking Power requirement

• Issue – From where to get NG for the above projects at reasonable price

Reasons for short supply of NG to Power Plants

• Gas supply planned based on anticipated production of 90 MMSCMD from KG-B6

• Production2010-11 60 MMSCMD2011-12 40 MMSCMD2012-13 35 MMSCMD

• Gas supply from old fields is also reducing day by day due to depletion of these fields

• New explorations in progress

Nuclear Power in India• Required for energy security of the country• Limited presently due to availability of natural

Uranium• Present capacity (4780 MW) to 20,000 MW by 2020• 500 MW FBTR, Thorium based, under consideration;

4 x 500 MW FBRs planned• International cooperation started with signing of

‘123 Agreement’ with USA• XII Plan – 2,800 MW; XIII Plan – 18,000 MW

NEW INITIATIVES IN THERMAL POWER SECTOR

• Super-critical technology for 660 MW & 800 MW• Ultra-mega Power Projects (UMP) having 800 MW units;

based on captive mines or imported coalSasan UMP, MPMundra UMP, GujaratAkaltara UMP, ChattisgarhTadri UMP, KarnatakaGirya UMP, MaharashtraKrishnapattam UMP, APOrissa UMP, Orissa

CAPTIVE POWER GENERATION & COGENERATION

• Electricity Act, 2003 has allowed ‘Open Access’ to Captive Power, Cogeneration, and Renewable Energy Power for purpose of carrying electricity from these plants to Destination of Use or Supply to DISCOM.

• Captive power plants: 2006-07 11,000 MW 2011-12 23,000 MW 2012-13 36,511 MW XII Plan 14,000 MW

RENEWABLE ENERY ESTIMATED POTENTIAL, MW (By 2022)

• Wind power 48,500 MW• Biomass power 23,000 MW• Cogen (Bagasse) 5,000 MW• Small Hydro 15,000 MW• Waste to Energy 7,000 MW• Solar PV 20,000 MW Total 118,500 MW

CERC GUIDELINES FOR CAPTIVE/ RENEWABLE POWER

• Mandates the distribution utilities in the states to purchase renewable energy to reach at least a target of 5 % total energy consumption in the area of each DISCOM/Licensee by year 2012

• Cogeneration power to be given “Must Run” status, and should be treated at par with renewable energy sources (wind/solar/biomass)

Promotional Policies for Biomass Power Projects

• Fiscal Incentives Accelerated Depreciation – 80% in first year Income Tax Holiday -- 10 years Custom Duty -- Concessional Excise Duty -- Exemption Sales Tax -- Exemption in some States• Tariff Preferential Tariff & Renewable Purchase Standards (RPS) For example: In AP, Tariff BM = Rs. 4.28 /kWh Cogen= Rs. 3.48/kWh RPS = 3.75 %

Promotional Policies for Biomass Power Projects

• Central Financial Assistance (CFA) as capital subsidy Biomass projects = Rs. 20 lakhs x (C, MW)0.646

Baggase cogen projects = Rs. 15 lakhs x (C, MW)0.646

* Higher CFA for NE region, Sikkim, J&K, HP, & Uttaranchal

BIOMASS POWER & COGENERATION• Biomass materials: Bagasse, rice husk, straw, cotton stalks,

coconut shells, soya husk, de-oiled cakes, coffee waste, jute waste, groundnut shells, saw dust, forest residues, waste wood chips, etc

• Biomass is carbon neutral • 32% of total primary energy use in India is derived from biomass,

and 70% of the population depends upon it for its energy needs• Most efficient utilization – biomass for power generation, and

bagasse based cogeneration• MNRE studies Biomass availability = 500 million t/y Surplus biomass = 120 – 150 million t/y Power potential = 18,000 MW

Potential for baggase-based cogeneration(550 sugar mills)

S. No. State Potential (MW)

1. Maharashtra 1250

2. UP 1250

3. TN 450

4. Karnataka 450

5. AP 300

6. Bihar 300

7. Gujarat 350

8. Punjab 300

9. Haryana & other states 350

Total 5000

Energy Efficiency

• Biomass combustion thermal power plants Net generation efficiency = 23 – 25 %• Baggase cogeneration for surplus power generation Net efficiency > 65 % Example Raising steam parameters from 400o C/33 bar to

485o C/66 bar, 80 kWh of additional electricity can be produced/tonne of cane crushed

BIOMASS POWER/CO-GENERATION (MW)(as on 31.03.2011)

AP 363.5Bihar 9.25Chattisgarh 231.9Gujarat 0.5Haryana 35.8Karnataka 365.2MP 1.0Maharashtra 403.0Punjab 74.5Rajasthan 73.3TN 488.2Uttarakhand 10.0UP 592.5WB 16.0Total 2644.63

SMALL HYDRO(up to 25 MW)

• Potential = 15,000 MW• XII Plan Target = 7,00 MW

WIND POWER

• Wind Resources Assessment is being done by Centre for Wind Energy Technology (C-WET) with help of 1150 Wind Mapping Stations

• Six Handbooks on “Wind Energy Resource Survey in India” published

• Master Plans (97 nos., 233 sites), taking into account zone of influence of each mast, are offered to promoters for setting up Wind Farms

• India today ranks 5th in the world for Wind Power Plants, behind Germany, USA, Spain, & Denmark

• Unit ratings: 225 kW to 2.1 MW

WIND POWER POTENTIAL

STATE GROSS POTENTIAL (MW) INSTALLED CAPACITY (MW)(31 March 2012)

AP 8968 245.5

Gujarat 10645 2966.3

Karnataka 11531 1933.5

Kerala 1171 35.1

MP 1019 376.4

Maharashtra 4584 2733.3

Rajasthan 4858 2070.7

TN 5530 6987.6

Others 3.2

Total 48561 17351.5

XI Plan Power Capacity Addition

Source Target (MW) Actual (MW) as on 31 March 2012

Wind 9000 10260

Small Hydro 1400 1419

Biomass 500 626

Waste to Energy 80 46.2

Bagasse Cogeneration 1200 1370

Solar 50 940

Total 12230 14661

Major Wind Turbine Manufacturers in India• Enercon (India)• Gameesa Wind Turbine• GE India • Global Wind Power• Inox Wind• Kenersys India• Leitner Shriram Mfg.• Pioneer Wincom• RRB Vestas• Suzlon Energy• Vistas Wind Technologies

Wind Farm Business Development in India• Wind Farms are investment driven, to avail provisions of

Accelerated Depreciation• Manufacturers buy lands on Wind Master Plan sites (full

or spot land), and also set up their own wind masts for data collection

• Based on estimates of yearly wind power harnessing (from their model turbines), the manufacturers sell wind turbines on turnkey installation and long-term O&M contracts.

• Power Purchase Agreements are in favor of the Investor/Owner who bill the DISCOM for electricity supplied

Thank You