Hydro Generation

Hydroelectricity generation enhances India’s energy security, is ideal for meeting the peak demand and is not linked to issues concerning fuel supply, especially the price volatility of imported fuels. Only about 20% of vast hydel potential of 150,000 MW in India has been tapped so far.

Until the 1980s the growth rate in hydro and thermal generation was comparable, but during the 1980s, hydro generation increased at a rate of only 4.4% compared to a growth rate of 11.6% in thermal generation. Owing to the decline in hydro development and prevailing peak power deficits, coal-fired thermal power units, which should generally be used for base load operation, were being used to meet peaking requirements. This leads to non-optimal utilisation of economic and perishable resources.

Countries like Norway, Canada have been utilising 60% and 44% of their hydro potential whereas India has lagged far behind. Considering the present adverse hydro thermal mix of 25:75, Hydroelectric power in India country needs priority attention for the full development of the feasible hydro potential.

Nuclear Power

In India, fourteen nuclear power plants are producing about 2800 Mega Watt constituting 2.2% in the overall capacity profile. Nuclear power is considered a reliable source of energy to meet base load demand. Nuclear power generation in India is going to get a big push with the Government putting in place an ambitious expansion programme to increase it to about 10,000 MW by the year 2012 and about 20,000 MW by the year 2020. In ‘Vision 2020’, it was deemed possible and necessary to have an installed Nuclear Power Capacity of 20,000 MW by the year 2020. Consequently the share of nuclear power will increase in the overall generation profile.

To achieve this, Public sector investments are being stepped up, the Department of Atomic Energy is looking at using recycled fuel and is also examining the option of private sector partnership to see that not only targets are achieved but exceeded. Nuclear power plants are being set up at locations away from coal mines. Economics of generation will be, among others, important considerations while setting up nuclear plants. Already, companies like Reliance have announced their interest in setting up nuclear power plants if the sector is opened up for private participation.

Considering that India has vast thorium reserves, Nuclear Power Corporation of India Limited (NPCIL) is poised to play a leading role in future to meet the ever increasing energy demands. The Company is enhancing its initial target of 1300 MW capacity addition during X plan (2002-07) to 2520 MW. The installed capacity at the end of XIth Plan would be around 10280 MW and 20,000 MW by the year 2020.

For detailed & updated information on the Indian Power Sector, refer to the report - 'Overview of Power Sector in India 2005- revised edition'

Captive Generation

The existing installed capacity of 25,000 MW of captive generation, offers a sizeable potential capacity which could be well harnessed for meeting requirements. This does not include captive units of less than 1 MW capacity in industry and the large numbers of DG Sets in operation as standby for domestic, commercial and agricultural users. Captive units in industries are used to supplement the power drawn from the grid and as stand by in case of power cuts. More than half of the existing captive power capacity was added in the 1980s. With the looming power shortages, similar spurt is expected in the future also.

Long term arrangements for supply of energy particularly during peak hours could also be useful in the mutual interest of the utilities and the captive generating stations. The captive generators are being encouraged to supply their surplus power to the grid.

The Electricity Act, 2003 is very liberal with respect to setting up of captive power plants and captive generation has been freed from all controls. The Act allows captive plants to be set up in group which is primarily aimed at enabling such small & medium industries as may not be in a position to set up plant of optimal size in a cost effective manner. This is not only for securing reliable, quality & cost effective power for the industry but also to facilitate creation of employment opportunities through speedy & efficient growth of industry.

Rural Electrification

Rural electrification is viewed as a prime mover for agricultural and agro- industrial development, employment generation and improvement in the quality of life of people in rural areas.

The distribution of electricity including rural electrification is under the jurisdiction of the State Governments who are considering various options for necessary institutional framework to be put in place not only to ensure creation of rural electrification infrastructure but also to operate and maintain supply system for securing reliable power supply to consumers. Electricity Act, 2003 provides the requisite framework for expediting electrification in rural areas with necessary empowerment. It permits operation of the standalone system in rural areas, independent of regulatory regime. It also provides distribution of electricity in rural areas, responsibility of operation & maintenance and collection of bills by utilities or by panchayats, local authorities, NGOs and other franchises.

Status
The status of village electrification as on 31.08.2004 is as follows:

Number of villages (according to 1991 census): 587,258
Number of villages Electrified: 495,298
Percentage of Villages Electrified: 84.3%
Balance villages to be electrified: 91,960
Potential of Energy of Pumps: 19,594,000
Number of Pumpsets Energised: 14,177,684
Percentage of Pumpsets Energised: 72.4%

During the year 2003-2004, 4589 inhabited villages were electrified and 192,721 pumpsets/ tubewells were energised. Cumulatively 494,587 villages have been electrified and 14,002,634 electric irrigation pumpsets have been energised as on 31.3.2004. As regards the electrification of tribal villages, out of a total of 107,045 tribal villages in the country, 82,976 villages have been electrified as on 31.3.2004. Similarly, 301,019 Harijan Bastis have been electrified as on the same date.

For detailed & updated information on the Indian Power Sector, refer to the report - 'Overview of Power Sector in India 2005- revised edition'