Transcript Power Sector – The Way Forward

INDIA
Power Development Strategy
Presentation in World Bank, Washington DC
R.V. SHAHI
SECRETARY
MINISTRY OF POWER
GOVERNMENT OF INDIA
June 23, 2003 1
Indian Power Sector

Power in Concurrent list :
• Both Central and State Governments have jurisdiction

Power Sector in States
• Vertically integrated State Electricity Boards
(being restructured)

Central Public Sector Undertakings
• Own 30% of the capacity
2
Growth of the Indian Power Sector
 Generating capacity has grown manifold from 1712 MW in
1950 to more than 108,000 MW today.
 The growth in the transmission lines has been from 2708
ckm in 1950 to more than 200,000 ckm today.
 About 84% of 587,000 villages have been electrified,
balance to be electrified by 2007.
 55% households have access to Electricity, balance to be
covered by 2012.
3
Present scenario - the challenge
•
Financial health of SEBs
40000
Business as usual continues
Results targeted
30000
20000
Losses
(Rs. Cr.)
10000
0
1992 1994 1996 1998 2000 2002 2004 2006 2007
Years
Contd. ..
4
Present scenario - the challenge
•
Contd. …..
Power : removing shortages and improving Reliability & Quality
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Results targeted
10
Peaking
Shortage %
5
0
2003
Installed
Capacity
108,000 MW
2005
2007
146,000 MW
2010
2012
212,000 MW
5
POWER SECTOR DEVELOPMENT
OBJECTIVES
• Sufficient power
for 8% growth
• Reliable power
• Quality power
• Inexpensive
power
• Commercial
viability
• Power to All
STRATEGY
ACTION


Generation
Transmission

Distribution


Regulation


Financing


Conservation
Communication
Legislative initiatives







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Power Generation
# STRATEGY
 Low cost generation
 Optimum utilization of capacity
 Control Input cost
 Better fuel mix
 Hydro improvement
 Technology upgradation
 Non conventional energy sources
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# ACTION
 Strengthened monitoring effort
 Advance Action plan for projects identified / under
approval stage
 Expansion of existing stations
 Pit head stations
 Coastal stations
 Generation delicensing
 Captive capacity utilization
 Select IPPs to be assisted
 R&M of old plants (AG&SP)
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Transmission
# STRATEGY
 National Grid
 Interstate connections
 Technology upgradation
 Optimization of Transmission cost
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# ACTION
 Development of National Grid
: 8000 MW today to 30,000 MW of inter regional
transfer capability by year 2012
 Technology upgradation
 RLDCs modernization
 Close monitoring on reliability
 Private participation
 Independent Power Transmission Co.
 Joint Venture with Powergrid
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Distribution
# STRATEGY
Distribution Reforms aimed at
 System upgradation
 Loss reduction (Aggregate Technical & Commercial
losses)
 Theft control
 Consumer orientation
 Commercialization
 Decentralized distributed generation and supply for
rural areas
 Introducing competition
 I.T. to replace human interfaces
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# ACTION
 Energy accounting
 Metering
 Organization restructuring
 Franchisees
 Technology input
 Anti theft laws
 Accelerated Power Development & Reform Programme
(APDRP)
• Incentive linked development package
• Five years Business plan
• Reliability index
• Rating of utilities
 Rural Elect. Supply Technology Mission (REST)
 Accelerated Rural Electrification Programme (AREP)
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Regulation
# STRATEGY
 Commercial viability
 Consumer services & satisfaction
# ACTION
 Tariff policy
 Multi year tariff approach
 To bring about commercial viability : Planning &
monitoring by Regulatory Commissions
 Grid discipline
 Development of competitive energy market
 Consumer services
 Quality, reliability & safety
 Growth of power industries
•
Collaborative efforts of Government and Regulatory
Commissions
13
Financing
 Performing Central Undertakings on their own
 One time settlement of outstanding dues of CPSUs
 Central Govt. Plan allocation for Xth Plan up by 270%.
 NTPC, Powergrid, PFC, REC, the
Undertakings to access equity market.
major
Central
 All Central undertakings to access debt market up to
debt leveraging scope
 External assistance from JBIC, ADB, World Bank etc.
 Other Investors/ Lenders to finance based on progress
on reforms.
 Discussions on with major Business groups to invest
in the Sector.
14
Conservation
# STRATEGY
 Demand Side management
 Load management
 Technology upgradation to provide energy
efficient equipment / gadgets.
15
# ACTION
 Bureau of Energy Efficiency.
 Notified industries.
 Interface with IEEMA & other Industry Bodies.
 Awareness.
 Demand Side Management
 Specifications / Labelling / Norms
 Certification agency.
 Energy audit.
 25,000 MW saving potential to be achieved by 2012.
16
Communication
 Political consensus.
 Public Awareness
 Media support
17
Legislative
 Electricity Act, 2003 - notified on 10th June ‘03 :

Creates liberal framework for power development

Facilitates private investment

Delicenses generation : Captive further liberalised

Multiple licencess in Distribution

Creates competitive environment

Stringent provisions
electricity

Empowers States to restructure Electricity Boards

Mandates creation of Regulatory Commissions

Open access on Transmission & Distribution

Power marketing / trading
for
controlling
theft
of
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The way forward
•
Reforms leading to commercialization of Distribution sector
•
Sector viability in medium / long term to support investments
•
Decentralized distribution / generation for electrification of
rural areas
•
Streamlined / exemption in clearance procedures along with
delegation to States
•
Amicable project specific R&R packages
•
Public sector investments have been stepped up during
transition period
•
Funding for Generation (Hydro & Thermal), Transmission and
Rural Electrification
•
The Sectoral development should now get the boost with
confidence and cooperation of Promotors, Investors and
Financial Institutions
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Thank You
Ministry of Power
Website
http://powermin.nic.in
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