Power is an essential requirement for all facets of
our life and has been recognized as a basic human need. It is the
critical infrastructure on which the socio-economic development
of the country depends. The growth of the economy and its global
competitiveness hinges on the availability of reliable and quality
power at competitive rates. The demand of power
in India is enormous and is growing steadily. The vast Indian power
market, today offers one of the highest growth opportunities for
India is endowed with a wealth of rich natural resources
and sources of energy. Resources for power generation are unevenly
dispersed across the country. This can be appropriately and optimally
utilized to make available reliable supply of electricity to each
and every household. Electricity is considered key driver for targeted
8 to 10% economic growth of India. Electricity supply at globally
competitive rates would also make economic activity in the country
competitive in the globalized environment.
As per the Indian Constitution, the power sector is
a concurrent subject and is the joint responsibility of the State
and Central Governments. The power sector in India is dominated
by the government. The State and Central Government sectors account
for 58% and 32% of the generation capacity respectively while the
private sector accounts for about 10%. The bulk of the transmission
and distribution functions are with State utilities. The private
sector has a small but growing presence in distribution and is making
an entry into transmission. Power Sector which had been funded mainly
through budgetary support and external borrowings, was opened to
private sector in 1991.
Growth of Power Sector
Growth of Power Sector infrastructure in India since
its Independence has been noteworthy making India the third largest
producer of electricity in Asia. Generating capacity has grown manifold
from 1,362 MW in 1947 to 113,506 MW (as on 30.09.2004). The over
all generation in India has increased from 301 Billion Units (BUs)
during 1992- 93 to 558.1 BUs in 2003- 04.
In its quest for increasing availability of electricity,
India has adopted a blend of thermal, hydel and nuclear sources.
Out of these, coal based thermal power plants and in some regions,
hydro power plants have been the mainstay of electricity generation.
Oil, natural gas and nuclear power accounts for a smaller proportion.
Of late, emphasis is also being laid on non-conventional energy
sources i.e. solar, wind and tidal.
All India Fuelwise Generating Installed Capacity
(as on September 30, 2004)
CAPACITY GROWTH (MW)
For detailed & updated information on the Indian
Power Sector, refer to the report - 'Overview
of Power Sector in India'
The elasticity ratio (elasticity of electricity consumption
with respect to GDP) was 3.06 in the first Plan and peaked at 5.11
during third plan and declined to 1.65 in the Eighties. While consumption
went up by 3.14% for every 1% growth in GDP in the first five-year
plan period (1951- 56), it went up by only 0.97% in the eighth plan
period (1992- 97).
The growth in electricity consumption over the past
decade has been slower than the GDP’s growth. This could be
due to high growth of the services sector or it could reflect improving
efficiency of electricity use. Moreover, captive generation –
which isn’t captured by these numbers — has also increased.
However, as growth in the manufacturing sector picks up, the demand
for power is also expected to increase at a faster rate. Demand
will also increase along with electrification. In order to support
a rate of growth of GDP of around 7% per annum, the rate of growth
of power supply needs to be over 10% annually.
Per Capita Consumption of Electricity
Per capita consumption of electricity is expected
to rise to over 1000 kilowatt hours per annum (kwh/ annum) in next
10 years (from present level of 580 kwh). Compare this against over
10,000 kwh/ annum in the developed countries!
Plant Load Factor (PLF)
The actual all India PLF of Thermal Utilities during April 03-
March 04 was 72.7% as against the target of 72.0%.
16th Electric Power Survey (EPS) projections
By the year 2012, India’s peak demand would be 157,107 MW
with energy requirement of 975 BU.
Unbalanced Growth & Shortages
Along with this quantitative growth, the Indian electricity
sector has also achieved qualitative growth. This is reflected in
the advanced technological capabilities and large number of highly
skilled personnel available in the country. While this must be appreciated,
it must also be realized that the growth of the sector has not been
balanced. The availability of power has increased but demand has
consistently outstripped supply and substantial energy & peak
shortages of 7.1% & 11.2% prevail in India. Coupled with this
is the urban-rural dichotomy in supply- as per Census 2001, only
about 56% of households have access to electricity, with the rural
access being 44% and urban access about 82%. In the case of those
who do have electricity, reliability and quality are matters of
great concern. The annual per capita consumption, at about 580 kWh
is among the lowest in the world.
These problems emanate from:
- inadequate power generation capacity
- lack of optimum utilisation of the existing generation capacity
- inadequate inter-regional transmission links
- inadequate and ageing sub-transmission & distribution network
leading to power cuts and local failures/faults
- T&D losses, large scale theft and skewed tariff structure
- slow pace of rural electrification
- inefficient use of electricity by the end consumer
- lack of grid discipline
SHORTAGE (in MW)
For detailed & updated information on the Indian Power Sector,
refer to the report - 'Overview
of Power Sector in India'