POWER SCENARIO IN INDIA

2 The 17th electric power survey of India 153 Electricity in India 3.1 Electricity Consumption3.2 Electricity Generation3.3 Electricity Transmission and Distribution 171924 4 Types of En

SEMINAR REPORT ON

POWER SCENARIO IN INDIA

SUBMITTED TO SAVITRIBAI PHULE UNIVERSITY OF PUNE

FOR PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF ENGINEERING

IN ELECTRICAL ENGINEERING

DEPARTMENT OF ELECTRICAL ENGINEERING

STES’s NBN SINHAGAD TECHNICAL INSTITUTE CAMPUS

NBN SINHAGAD SCHOOL OF ENGINEERING

10/1, AMBEGAON (BK) PUNE-411041 2014-15

Towards the partial fulfillment of the degree of bachelor of engineering in

electrical engineering as awarded by the university of pune, at NBN Sinhagad school of engineering during the academic year 2014-15.

ACKNOWLEDGEMENT

I am immensely glad to represent this seminar report entitled,

“Power Scenario in India”.

I take this opportunity to express my profound gratitude and deep regards to myguide Prof.Mrs.S.S.Pitre and our H.O.D.Prof.Ms.V.S.Deshpande for their exemplaryguidance, monitoring and constant encouragement throughout the course of this thesis Theblessing, help and guidance given by them time to time shall carry me a long way in thejourney of life on which I am about to embark

Patil Vaibhav Ravindra

(Roll No-59)

2 The 17th electric power survey of India 15

3 Electricity in India

3.1 Electricity Consumption3.2 Electricity Generation3.3 Electricity Transmission and Distribution

171924

4 Types of Energy Sources

4.1 Conventional Sources4.2 Non-Conventional Sources

25305

Resources availability 5.1 Resource potential in electricity sector

5.2 Electricity as substitute to imported LPG andKerosene

3839

6

Problems with India’s Power sector 40

7 Role of Government in power sector

7.1 Electricity trading with neighbour countries

7.2 Rural Electrification

7.3 Government owned power companies

424343

8 Regulation and administration

8.1 Human Resources management 8.2 Funding of power infrastructure 4445

Abstract

India is a country with more than 1.2 billion people accounting for more than 17%

of world’s population It is the seventh largest country in the world with total land area of3,287,263 sq kilometers India measures 3214 km from north to south and 2993 km fromeast to west It has a land frontier of 15,200 km and coastline of 7,517 km India has 28 statesand 7 union territories It faces a formidable challenge in providing adequate energy supplies

to users at a reasonable cost It is anticipated that India’s nominal GDP will exceed US $ 2trillion by March 2012 India’s nominal GDP crossed the US $ 1 trillion mark in 2007-2008which means that the annual growth rate of nominal GDP during the period is stupendous 18percent Thus the energy challenge is of fundamental importance In the last six decades,India’s energy use has increased 16 times and the installed electricity capacity by 84 times In

2008, India’s energy use was the fifth highest in the world Nevertheless, India as a countrysuffers from significant energy poverty and pervasive electricity deficits In recent years,India’s energy consumption has been increasing at a relatively fast rate due to populationgrowth and economic development, even though the base rate may be somewhat low With aneconomy projected to grow at 8-9% per annum, rapid urbanization and improving standards

of living for millions of Indian households, the demand is likely to grow significantly As perthe estimates made in the Integrated Energy Policy Report of Planning Commission of India,

2006, if the country is to progress on the path of this sustained GDP growth rate during thenext 25 years, it would imply quadrupling of its energy needs over 2003-04 levels with a six-fold increase in the requirement of electricity and a quadrupling in the requirement of crudeoil The supply challenge is of such magnitude that there are reasonable apprehensions thatsevere shortages may occur

Demand, Demand Trends, Generation, Transmission, Distribution, ElectricityTrading, Regulation and Administration

List of Tables

1.1 Growth of Installed Capacity in India 12

1.2 All India Power Supply Position 2014-15 14

3.1 Growth of Electricity Consumption in India 173.2 Per-Capita Electricity Consumption ( 2011-12 ) 18

3.3 Reported Data ( October 2012 ) 203.4 All India Installed Capacity ( State wise ) 203.5 All India Installed Capacity ( Sector wise ) 23

3.6 Installed Transmission and Distribution Capacity

( Jun 2014 )

24

4.1 Renewal Energy Installed Capacity India ( Jan 2014 ) 30

Chapter 1

Introduction to Energy

In recent years availability of power in India has both increased and improved butdemand has consistently outstripped supply and substantial energy and peak shortagesprevailed in 2009-10 There are also various estimates of 25000 to 35000 MW of powerbeing produced by diesel generation to meet the deficits Electricity shortage is not the onlyproblem Its spread is anequally serious issue In the past, the selection of an energy resourcefor electricity generation was dominated by finding the least expensive power generatingplant Although such an approach is essential, there is growing concern about other aspects ofpower generation such as social, environmental and technological benefits and consequences

of the energy source selection Figure 1 shows a comparison of different energy sources forlife cycle emissions It can be observed that coal has the maximum global warming potentialfollowed by Natural Gas and others Further, it needs to be re-emphasized that for India, likemost developing countries, the cost of producing electricity is of paramount concern whileplanning for the type of plant to be installed and commissioned and more so with abundantsupply of coal However, in the long run if we take the effect of the pollutants on humanhealth and environment and cost as well as efforts needed to improve or alter the path ofdegradation, the initial higher cost of using renewable resources for producing energy maynot be too big A high degree of caution is also needed as emerging economies like India maynot at present have financial resources to leapfrog directly to cleaner mechanisms of energy.Since global warming is an international phenomenon and it has no boundaries there is anurgent need for the transfer of technology and development of appropriate financialinstruments from developed the world to nations who are still trying to find their rightfulplaces No argument is needed to understand that the world is today facing the problem ofglobal warming due to rapid industrialization and urbanization followed by the westernworld In terms of per capita equity India is 145th in the world with a release of 1.25 t CO2per annum

1.1 Overview

The Indian economy has experienced unprecedented economic growth over the lastdecade Today, India is the ninth largest economy in the world, driven by a real GDP growth

of 8.7% in the last 5 years (7.5% over the last 10 years) In 2010 itself, the real GDP growth

of India was the 5th highest in the world This high order of sustained economic growth isplacing enormous demand on its energy resources The demand and supply imbalance in

By 2016-17 and 844 MTOE by 2021-22 This will meet around 71 per cent and 69per cent of expected energy consumption, with the balance to be met from imports, projected

to be about 267.8 MTOE by 2016-17 and 375.6 MTOE by 2021-22 3 India’s energy baskethas a mix of all the resources available including renewables

The dominance of coal in the energy mix is likely to continue in foreseeable future

At present India's coal dependence is borne out from the fact that 54 % of the total installedelectricity generation capacity is coal based and 67% of the capacity planned to be addedduring the 11 Five year Plan period 2007-12, is coal based Furthermore, over 70 % of theelectricity generated is from coal based power plants Other renewables such as wind,geothermal, solar, and hydroelectricity represent a 2 percent share of the Indian fuel mix.Nuclear holds a one percent share

The share of Coal and petroleum is expected to be about 66.8 per cent in totalcommercial energy produced and about 56.9 per cent in total commercial energy supply by2021-22 The demand for coal is projected to reach 980 MT during the Twelfth Plan period,whereas domestic production is expected to touch 795 MT in the terminal year (2016-17).Even

Though the demand gap will need to be met through imports, domestic coalproduction will also need to grow at an average rate of 8 per cent compared to about 4.6 percent in the Eleventh Five Year Plan The share of crude oil in production and consumption isexpected to be 6.7 per cent and 23 per cent respectively by 2021-22

In 2011-12, India was the fourth largest consumer in the world of Crude Oil andNatural Gas, after the United States, China, and Russia India’s energy demand continued torise in spite of slowing global economy Petroleum demand in the transport sector is expected

to grow rapidly in the coming years with rapid expansion of vehicle ownership While India’sdomestic energy resource base is substantial, the country relies on imports for a considerableamount of its energy use, particularly for Crude Petroleum

Combustible renewables and waste constitute about one fourth of Indian energy use.This share includes traditional biomass sources such as firewood and dung, which are used bymore than 800 million Indian households for cooking

C E India faces a significant challenge in providing access to adequate, affordable andclean sources of energy, especially cooking fuel to a large section of the population, most ofwho live in rural areas As per the 2011 Census, almost 85% of rural households weredependent on traditional biomass fuels for their cooking energy requirements NationalSample Survey2009-10 reveals the continued dependence on firewood in rural areas forcooking, with percentage of households depending on firewood remaining at 76.3% in 2009-

10 – a drop of only 2 percentage points since 1993-94 – even though the percentage usingLPG has increased from about 2% to 11.5% over the same period On the other hand, theincidence of dependence on firewood for cooking in urban areas has fallen from about 30%

to 17.5%between 1993-94 and 2009-10 – a drop of more than 12 percentage points – and theincidence of dependence on kerosene has plunged from 23.2% to 6.5% during the sameperiod – a 72%fall, while the percentage of urban households using LPG has more thandoubled from under b30% to 64.5% In other words, the growth in prevalence of use of LPG

in urban areas has-been balanced by a decline in use of kerosene, in the first place, andfirewood and chips, in the second In rural areas, the rise in LPG use has been mainly at theexpense of dung cake, followed by kerosene and ‘other’ sources Further, as per the NSSOReports (55th, 61st and66th Rounds), there has been an increase in biomass fuel use in terms

of absolute quantity consumed over the past decade among rural households This is an area

of concern given the considerable health impacts of burning biomass fuels apart from beinghindrance to achieving developmental goals, i.e ensuring a minimum standard of living andprovisioning of basic minimum needs Thus, a transition to cleaner forms of energy in terms

of access to electricity and other modern energy forms would have implications not only onenergy security, but also with respect to enabling gender equality and bring about greaterdevelopment and social progress

The state of preparedness of the country for generation of the energy it requires andthe quality or efficiency of the technology used in the generation can be well analyzed by theindicators of installed capacity and capacity utilization, respectively The power sector inIndia had an installed capacity of 236.38 Gigawatt (GW) as of March 2012 recording anincrease of 14% over that of March 2011 Captive power plants generate an additional 36.5

GW Thermal power plants constitute 66% of the installed capacity, hydroelectric about 19%and rest being a combination of wind, small hydro-plants, biomass, waste-to-electricityplants, and nuclear energy India generated about 855 BU electricity during 2011-12 fiscal

As of March 2012, the per capita total consumption in India was estimated to be 879kWh India's electricity sector is amongst the world's most active players in renewable energyutilization, especially wind energy As of March 2012, India had an installed capacity of about24.9 GW of new and renewable technologies-based electricity During the Eleventh Five YearPlan, nearly 55,000 MW of new generation capacity was created, yet there continued to be anoverall energy deficit of 8.7 per cent and peak shortage of 9.0 per cent Resources currentlyallocated to energy supply are not sufficient for narrowing the gap between energy needs andenergy availability

As per the 2011 Census, 55.3% rural households had access to electricity However,NSS results shows that in the year 1993-94, 62% households in rural India were usingkerosene as primary source of energy for lighting In 2009-10, on the other hand, 66%households were found using electricity for lighting Thus electricity has, during theintervening years, evidently replaced kerosene as the most common fuel used for lighting byrural households This substitution of kerosene by electricity appears to have been most rapidduring 1993-94 to 1999-2000, when about 11% households seem to have switched toelectricity The substitution appears to have slowed down since then, with 8% morehouseholds switching over to electricity during the seven or eight years after 1999-2000, andpicked up pace again thereafter, with another 9% of rural households added to the category ofelectricity users since 2006-07 Indeed, this may widen as the economy moves to a highergrowth trajectory India's success in resolving energy bottlenecks therefore remains one of thekey challenges in achieving the projected growth outcomes Further, India's excessivereliance on imported crude oil makes it imperative to have an optimal energy mix that willallow it to achieve its long-run goal of sustainable development

Energy exploration and exploitation, capacity additions, clean energy alternatives,conservation, and energy sector reforms will, therefore, be critical for energy security Energyconservation has also emerged as one of the major issues in recent years Conservation andefficient utilization of energy resources play a vital role in narrowing the gap betweendemand and supply of energy Improving energy efficiency is one of the most desirableoptions for bridging the gap in the short term

The first demonstration of electric light in Calcutta was conducted on 24 July 1879 by

P W Fleury & Co On 7 January 1897, Kilburn & Co secured the Calcutta electric lightinglicense as agents of the Indian Electric Co, which was registered in London on 15 January

1897 A month later, the company was renamed the Calcutta Electric Supply Corporation.The control of the company was transferred from London to Calcutta only in 1970 Enthused

by the success of electricity in Calcutta, power was thereafter introduced in Bombay Mumbaisaw electric lighting demonstration for the first time in 1882 at Crawford Market, andBombay Electric Supply & Tramways Company (B.E.S.T.) set up a generating station in

1905 to provide electricity for the tramway The first hydroelectric installation in India wasinstalled near a tea estate at Sidrapong for the Darjeeling Municipality in 1897 The firstelectric train ran between Bombay's Victoria Terminus and Kurla along the Harbour Line, in

1925 In 1931, electrification of the meter gauge track between Madras Beach and Tambaramwas started

Table no.1.1:- Growth of Installed Capacity in India [ 4 ]

Total (in

% Growth (on yearly basis)

Total

Other Renewable

Sub-Total Renewable

31-Dec-1947 756 - 98 854 - 508 - 508 1,362

-31-Dec-1950 1,004 - 149 1,153 - 560 - 560 1,713 8.59%31-Mar-1956 1,597 - 228 1,825 - 1,061 - 1,061 2,886 13.04%31-Mar-1961 2,436 - 300 2,736 - 1,917 - 1,917 4,653 12.25%31-Mar-1966 4,417 137 352 4,903 - 4,124 - 4,124 9,027 18.80%31-Mar-1974 8,652 165 241 9,058 640 6,966 - 6,966 16,664 10.58%31-Mar-1979 14,875 168 164 15,207 640 10,833 - 10,833 26,680 12.02%31-Mar-1985 26,311 542 177 27,030 1,095 14,460 - 14,460 42,585 9.94%31-Mar-1990 41,236 2,343 165 43,764 1,565 18,307 - 18,307 63,636 9.89%31-Mar-1997 54,154 6,562 294 61,010 2,225 21,658 902 22,560 85,795 4.94%31-Mar-2002 62,131 11,163 1,135 74,429 2,720 26,269 1,628 27,897 105,046 4.49%31-Mar-2007 71,121 13,692 1,202 86,015 3,900 34,654 7,760 42,414 132,329 5.19%

31-Mar-2012 112,022 18,381 1,200 131,603 4,780 38,990 24,503 63,493 199,877 9.00%30-June-

2014 148,478 22,608 1,200 172,286 4,780 40,730 31,692 72,422 249,488 10.35%

1.2 Demand

Some 800 million Indians use traditional fuels – fuel wood, agricultural waste andbiomass cakes – for cooking and general heating needs These traditional fuels are burnt in

source of energy, it’s burning releases high levels of smoke, PM10 particulate matter, NOX,SOX, PAHs, polyaromatics, formaldehyde, carbon monoxide and other air pollutants Somereports, including one by the World Health Organization, claim 300,000 to 400,000 people inIndia die of indoor air pollution and carbon monoxide poisoning every year because ofbiomass burning and use of chullahs Traditional fuel burning in conventional cook stovesreleases unnecessarily large amounts of pollutants, between 5 to 15 times higher thanindustrial combustion of coal, thereby affecting outdoor air quality, haze and smog, chronichealth problems, damage to forests, ecosystems and global climate Burning of biomass andfirewood will not stop, these reports claim, unless electricity or clean burning fuel andcombustion technologies become reliably available and widely adopted in rural and urbanIndia The growth of electricity sector in India may help find a sustainable alternative totraditional fuel burning

In addition to air pollution problems, a 2007 study finds that discharge of untreatedsewage is single most important cause for pollution of surface and ground water in India.There is a large gap between generation and treatment of domestic wastewater in India Theproblem is not only that India lacks sufficient treatment capacity but also that the sewagetreatment plants that exist do not operate and are not maintained Majority of the government-owned sewage treatment plants remain closed most of the time in part because of the lack ofreliable electricity supply to operate the plants The wastewater generated in these areasnormally percolates in the soil or evaporates The uncollected wastes accumulate in the urbanareas cause unhygienic conditions, release heavy metals and pollutants that leaches to surfaceand groundwater Almost all rivers, lakes and water bodies are severely polluted in India.Water pollution also adversely impacts river, wetland and ocean life Reliable generation andsupply of electricity is essential for addressing India's water pollution and associatedenvironmental issues

Other drivers for India's electricity sector are its rapidly growing economy, risingexports, improving infrastructure and increasing household incomes

Demand trends

In a May 2014 report, India's Central Electricity Authority anticipated, for 2014–15

fiscal year, a base load energy deficit and peaking shortage to be 5.1% and 2% respectively.India also expects all regions to face energy shortage up to a maximum of 17.4% in NorthEastern region

Table No.1.2:- All India (Anticipated) Power Supply Position in FY2014-15 [ 4 ]

power available than its internal demand The state was expecting more capacity to becomeavailable It was expecting to find customers, sell excess capacity to meet power demand inother states of India, thereby generate revenues for the state Andhra Pradesh leads in thegreatest power deficit with peak power being less by 3.2 GW against demand

Despite an ambitious rural electrification programed, some 400 million Indians loseelectricity access during blackouts While 80% of Indian villages have at least an electricityline, just 52.5% of rural households have access to electricity In urban areas, the access toelectricity is 93.1% in 2008 The overall electrification rate in India is 64.5% while 35.5% ofthe population still lives without access to electricity

According to a sample of 97,882 households in 2002, electricity was the main source

of lighting for 53% of rural households compared to 36% in 1993

Chapter 2 The 17th Electric Power Survey of India

Over 2010–11, India's industrial demand accounted for 35% of electrical powerrequirement, domestic household use accounted for 28%, agriculture 21%, commercial 9%,public lighting and other miscellaneous applications accounted for the rest

The electrical energy demand for 2016–17 is expected to be at least 1,392 Tera WattHours, with a peak electric demand of 218 GW

The electrical energy demand for 2021–22 is expected to be at least 1,915 Tera WattHours, with a peak electric demand of 298 GW

If current average transmission and distribution average losses remain same (32%),India needs to add about 135 GW of power generation capacity, before 2017, to satisfy theprojected demand after losses

McKinsey claims that India's demand for electricity may cross 300 GW, earlier thanmost estimates To explain their estimates, they point to four reasons:

 India's manufacturing sector is likely to grow faster than in the past

 Domestic demand will increase more rapidly as the quality of life for more Indiansimprove

 About 125,000 villages are likely to get connected to India's electricity grid

 Currently blackouts and load shedding artificially suppresses demand; this demandwill be sought as revenue potential by power distribution companies

A demand of 300 GW will require about 400 GW of installed capacity, McKinseynotes The extra capacity is necessary to account for plant availability, infrastructuremaintenance, spinning reserve and losses

In 2010, electricity losses in India during transmission and distribution were about24%, while losses because of consumer theft or billing deficiencies added another 10–15%

According to two studies published in 2004, theft of electricity in India amounted to

a nationwide loss of $4.5 billion This led several states of India to enact and implementregulatory and institutional framework; develop a new industry and market structure; andprivatize distribution The state of Andhra Pradesh, for example, enacted an electricity reformlaw; unbundled the utility into one generation, one transmission, and four distribution andsupply companies; and established an independent regulatory commission responsible forlicensing, setting tariffs, and promoting efficiency and competition Some state governmentsamended the Indian Electricity Act of 1910 to make electricity theft a cognizable offence andimpose stringent penalties A separate law, unprecedented in India, provided for mandatoryimprisonment and penalties for offenders, allowed constitution of special courts and tribunalsfor speedy trial, and recognized collusion by utility staff as a criminal offence The stategovernment made advance preparations and constituted special courts and appellate tribunals

as soon as the new law came into force High quality metering and enhanced auditinformation flow was implemented Such campaigns have made a big difference in the Indianutilities' bottom line Monthly billing has increased substantially, and the collection ratereached more than 98% Transmission and distribution losses were reduced by 8%.Power cutsare common throughout India and the consequent failure to satisfy the demand for electricityhas adversely effected India's economic growth

Chapter 3 Electricity in India

% of Total

Per-Capita Consumpt ion (in

Provision al

Table No.3.2 Per-Capita Electricity consumption (kWh) (in 2011–12) [ 4 ]

The percapita

North Eastern Region 257.98

India's electricity generation capacity additions from 1950 to 1985 were very lowwhen compared to developed nations Since 1990, India has been one of the fastest growingmarkets for new electricity generation capacity India's electricity generation capacity hasincreased from 179 TW-h in 1985 to 1053 TW-h in 2012.

India's Power Finance Corporation Limited projects that current and approvedelectricity capacity addition projects in India are expected to add about 100 GW of installedcapacity between 2012 and 2017 This growth makes India one of the fastest growing marketsfor electricity infrastructure equipment India's installed capacity growth rates are still lessthan those achieved by China, and short of capacity needed to ensure universal availability ofelectricity throughout India by 2017

The table below presents the electricity generation capacity, as well as availability toIndia's end user and their demand The difference between installed capacity and availability

is the transmission, distribution and consumer losses The gap between availability anddemand is the shortage India is suffering This shortage in supply ignores the effects ofwaiting list of users in rural, urban and industrial customers; it also ignores the demand gapfrom India's unreliable electricity supply

Table No.3.3 Reported data [ 4 ]

Total installed capacity (GW) 209.27 October 2012

Available base load supply (MU) 893371 October 2012

Available peak load supply (GW) 125.23 October 2012

Demand base load (MU) 985317 October 2012

Demand peak load (GW) 140.09 October 2012

State-owned and privately owned companies are significant players in India's

electricity sector, with the private sector growing at a faster rate India's central government

and state governments jointly regulate electricity sector in India

Major economic and social drivers for India's push for electricity generation include

India's goal to provide universal access, the need to replace current highly polluting energy

sources in use in India with cleaner energy sources, a rapidly growing economy, increasing

household incomes, limited domestic reserves of fossil fuels and the adverse impact on the

environment of rapid development in urban and regional areas

Table No.3.4 State-wise All India installed capacity [ 4 ]

State / Union

Territory

Nucle ar (in

Total Therma l

Sub-Hydel

Other Renewa ble

Total Renewa ble

24,525.3 6

69,355.9 5

Table No.3.5 Sector-wise All India installed capacity [ 4 ]

In 2010, the five largest power companies in India, by installed capacity, indecreasing order, were the center-owned NTPC, center-owned NHPC, followed by threeprivately owned companies: Tata Power, Reliance Power and Adani Power

In India's effort to add electricity generation capacity over 2009–2011, bothcentral government and state government owned power companies have repeatedly failed toadd the capacity targets because of issues with procurement of equipment and poor projectmanagement Private companies have delivered better results

3.3 Electricity transmission and distribution

Table No.3.6 Installed transmission (circuit km) and distribution capacity (Jun 2014)