Indian Power Sector
ONE FREQUENCY
Indian Power Sector - Present Scenario
India became the world’s third largest electricity producer
in 2013 surpassing Japan and Russia.
Installed Capacity as on
Indian India’s GDP grew at 6 to 7 % From
31/05/2024: 4,44,756 MW
2006-23. One of the fastest
Economy growing economics in the world.
Installed 4,44,756 MW as on 29/02/2024
Capacity (Excludes Captive 40,726 MW)
•Peak Power (MW) : 1.4 %
Shortage
•Energy (MU) : 0.3 %
(23-24)
•Peak Power (MW) : 1.4%
Need
•Energy (MU) : 0.3 %
Source : CEA
China : 2,920 GW (ranks first). USA : 1,200 GW (ranks second)
Indian Power Sector - Present Scenario
Indian Electric Power - Source wise…
• Thermal (243 GW) 54.64 %
• Hydro (46.92 GW) 10.55 %
• RES (146.65 GW) 32.97 %
• Nuclear (8.18 GW)
1.84 %
Indian Power Sector - Present Scenario
Installed capacity-sector-wise
Electricity sector in India is under the concurrent list of
the Indian constitution - both central and state
governments are allowed to make legislation.
Till Independence, the electricity sector was majorly
dominated by private players.
Post-independence from 1947 to 1990, the electricity
generation was owned only by government entities
(state & center).
During this time, the growth in the generation sector was
limited. To meet the increasing demand coupled with
constraints in government investment, private
participation in generation was authorized in the year
1991.
Indian Power Sector - Present Scenario
Installed capacity-sector-wise
Only in nuclear and hydro, the private sector has not
made any major investments. Due to safety
regulations and liability issues, private participation in
the nuclear sector is not allowed.
Nearly 96% of renewable energy installations are
owned by the private sector. It is seen as a good
avenue for investment. For India to achieve its
renewable energy target, private participation is
necessary.
Indian Power Sector - Present Scenario
Sector Total (MW) %
Central 1,04,453 29.4%
State 1,07,671 24.3%
Private 2,32,632 46.3%
All India 4,44,756 100
Indian Power Sector - Present Scenario
RE - ~ 96% in
Private sector
Installed capacity-sector-wise
Indian Power Sector
➢ Achievements:
- Installed power generating capacity - from 1,362
MW in 1947 to over 4,44,756 MW.
- 100 percent village électrification.
➢ India is aiming at ;
- 24x7 Power for all (planned in 2024)
- Affordability of Power
- Environment Friendly Power
- Energy Security
India is blessed with availability of coal, Sunshine &
Wind.
Indian Power Sector
Quick Facts
Between 2014 and 2019, India gained a meteoric rise of
79 ranks to assume the 63rd rank in a list of 190
countries, in the World Bank’s Ease of Doing Business
index.
‘Getting Electricity’ is one of the ten parameters, on the
basis of which the World Bank decides an economy’s
rank in the index.
With regard to this parameter, India rose from 99th
place in 2015 to 22nd in 2019, a leap which significantly
improved its overall position. This development is likely
to attract more foreign investment.
Indian Power Sector
Quick Facts
The World Bank’s Ease of Doing Business Project is the key
driver of regulatory reforms. It ranks 190 economies on 10
parameters on a set methodology which indicate how easy it is to
do business in the country.
Ten parameters : Starting a Business, Registering Property,
Dealing with Construction, Permits, Getting Electricity, Getting
Credit, Paying Taxes, Trading Across Borders, Protecting Minority
Investors, Enforcing, Contracts and Resolving Insolvency.
Indian Power Sector - Present Scenario
Per capita electricity consumption
As per the Economic Survey of India 2021-22, India uses
only ~6% of the world’s primary energy; although it
accounts for ~18% of the world’s population. As far as
the average per capita electricity consumption of India is
concerned, it’s only 1,327 kWh. as on Mar. 23.
Per capita electricity consumption
17 kWh per capita in 1947
[Source: Central Electricity Authority]
Indian Power Sector - Present Scenario
Per capita electricity consumption
This figure is relatively low as compared to USA and South
Korea, which are currently at 12,154 kWh and 11,861 kWh
respectively. In quadrupling its per-capita energy consumption,
India will be able to meet the rising aspirations of its citizens as
well as achieve the human development status of an upper-
middle-income country. This implies there is significant
demand to be met.
Iceland - the largest per
12,154 capita consumer of
electricity worldwide,
South Korea 5,885 11,861 averaging 52,980 kWh
per person in 2021.
1,255
1,327 World Average - ~ 3500
Indian Power Sector
Quick Facts
There is a significant transformation in the energy mix
in India. Progressively declining costs, improved
efficiency and reliability have made RE a viable option
for fulfilling India’s energy needs in a sustainable
manner, while also helping it pursue its commitment to
the 2015 Paris agreement.
India has ambitiously aimed for 500 GW of RE capacity
by 2030, a crucial step towards sustainable energy
independence.
As of March 2024, the country has successfully
installed approximately 190GW* of RE, indicating
significant progress.
* Including large hydro
Indian Power Sector
Quick Facts
To meet the 2030 target, an annual installation rate of
around 50GW is imperative. To put this into perspective,
in the fiscal year (FY) 2023-24, India added only a little
over 18GW of RE capacity.
India must accelerate its efforts, requiring more than 2.5
times the installation compared to the previous fiscal
year.
India ranks 4th in Wind Power Capacity and 5th in Solar
Power Capacity globally. (Source: REN21 Renewables
2024 Global Status Report)
Distributed solar in the form of rooftop and ground
mounted modules is expected to grow rapidly.
Indian Power Sector
Quick Facts
Following a 7% increase in India’s electricity demand in
2023, we expect growth above 6% on average annually
until 2026, supported by strong economic activity. India
posts the fastest growth rate through 2026 among
major economies.
Over the next three years, India will add electricity
demand roughly equivalent to the current consumption
of the United Kingdom.
INDIA – Growth in Power Sector
• Hydroelectricity - clean energy. Its
generation not linked to any fuel supply,
especially price & volatility of imported
fuels.
• It enhances our energy security and ideal
for meeting peak demand.
Areas of concern
• Share of hydro generation in India -
Gradually declined in the past 25 years.
• Desirable hydro share - 40 %. Current share
- about 10.8% in India.
• Thermal generation generally to be used
for base load operation - also used to meet
peaking requirements.
• Thermal sector contributes 56% of total
installed power capacity.
Areas of concern
• Less than one fourth of vast hydel
potential of 1,50,000 MW has been
tapped so far.
• Compared to the high utilisation of
hydro potential in countries like Norway
(58%), Canada (41%) & Brazil (31%),
utilisation of only 17% hydel potential
by India is extremely low.
Areas of concern
• Mismatch in generation and demand.
• Due to chronic power shortages, there
is a tendency among state owned
plants to overdraw from the grid
during peak hours.
• Pre-dominance of thermal (base load)
stations & inadequate peaking
capacity (hydro / GTs) limiting
flexibility of generation as per load
pattern.
Areas of concern
• Lack of grid discipline leads to critical
situations – as happened on 30 July 2012 in
Northern region, when the entire grid failed.
Half of India went out of power.
• Failure of this proportion - not only causes
severe stress on power plant equipment &
reduces its life, but also has a cascading
effect on industries & people.
• Adds up to huge economic losses & causes
immense damage to country’s image.
Areas of concern
Areas of concern
• Driven by one of the fastest
growing economies in the world,
the demand for electricity in India
is enormous and growing steadily.
• Existing installed capacity - not
adequate to meet the growing
requirement.
Strengths and opportunities
• Abundant coal reserves (enough to
last 200+ years).
• Vast hydroelectric potential (150,000
MW).
• Large pool of highly skilled technical
personnel.
Strengths & opportunities
• Impressive power development in absolute
terms (comparable in size to those of
Germany and UK).
• Expertise in integrated and coordinated
planning (CEA and Planning Commission).
• Emergence of strong and globally
comparable central utilities (NTPC,
POWERGRID).
• Potentially, one of the largest power
markets in the world.
Nuclear Energy Sources
• Present nuclear capacity - 8180 MW -
accounts for ~ 1.84% of total installed
capacity.
• Major constraint - depleting uranium
reserves. One motivation for Indo-US and
other recent agreements.
• The total nuclear capacity is likely to be
about 22500 MW by the year 2031.
Capacity creation thro’ Energy
Conservation & Demand Side Mgnt.
• There has been over emphasis on supply
side management in the power sector so
far in India.
• There is an estimated potential of 20,000
MW through energy conservation &
Demand Side Management (DSM).
Capacity creation thro’ Energy Conservation
& Demand Side Mgnt.
DSM through:
Energy efficient bulbs & motors.
• Time of the day metering and
differential tariff for peak and off
peak hours.
• Suitable mass awareness and
extension efforts.
Major Players in the Power Sector
Major Players in the Power Sector
Types of plants
Thermal power plants can deploy a wide range of
technologies. Some of the major technologies include:
• Steam cycle facilities (most commonly used for
large utilities);
• Gas turbines (commonly used for moderate sized
peaking facilities);
• Cogeneration and combined cycle facility (the
combination of gas turbines or internal
combustion engines with heat recovery systems);
and
• Internal combustion engines (commonly used for
small remote sites or stand-by power generation).
Today’s Challenges
Challenges
Current global scenario faced by power plants is
characterized by many challenging problems,
including:
1. Pressure to meet stringent government
requirements to maximize the use of natural
resources & minimization of environmental impact.
2. Competition among independent power producers
to satisfy the energy demands of end users.
3. Coal quality & availability constraints.
4. Cyclic loading, two shift operation.
5. Power generation technology.
6. Clean coal based technologies
Summary
Large potential for the growth of the power
sector in India.
