Power sector growth in India Statistics All India Coal Consumption by Power Generation Utilities (in million tonnes)

2001-02 240 2002-03 253 2003-04 263 2004-05 278 2005-06 280 2006-07 302 2007-08 330 2008-09 355

All India Annual per Capita consumption of Electricity (in kWh) 2002-03 566.69 2003-04 592.00 2004-05 612.50 2005-06 631.50 2006-07 671.89 2007-08 717.13 2008-09 733.54
Recognising that electricity is one of the key drivers for rapid economic growth and poverty alleviation, the industry has set itself the target of providing access to all households over the next few years. As per government reports, about 44% of the households did not have access to electricity. Hence, meeting the target of providing universal access is a daunting task requiring significant addition to generation capacity and expansion of the transmission and distribution network.

Indian Electricity Scenerio (source-Ministry of power)

Performance

Policy Initiatives / Decision Taken

Electricity Act 2003 has been enacted and came into force from 15.06.2003. The objective is to

introduce competition, protect consumers interests and provide power for all. The Act provides for National Electricity Policy,Rural Electrification, Open access in transmission, phased open access in distribution, mandatory SERCs, license free generation and distribution,power trading, mandatory metering and stringent penalties for theft of electricity. It is a comprehensive legislation replacing Electricity Act 1910, Electricity Supply Act 1948 and Electricity Regulatory Commission Act 1998.The Electricity Act, 2003 has been amended on two occasions by the Electricity (Amendment) Act,2003 and the Electricity(Amendment)Act,2007. The aim is to push the sector onto a trajectory of sound commercial growth and to enable the States and the Centre to move in harmony and coordination.
Policies, Rules and guidelines etc.issued under the Electricity Act.

Generation Performance
1.0 ELECTRICITY GENERATION PERFORMANCE

1.1 The electricity generation target for the year 2010-2011 was fixed as 830.757 Billion Unit (BU). i.e growth of around 7.67% over actual generation of 771.551 for the previous year (2009-2010). The generation during April, 2010 was 66.570 BU as compaired to 62.780 BU generated during April 2009, representing a growth of about 6.04%. 1.2 Programme, actual achievement and growth in electricity generation in the country during
2007-08 to 2010-11 :Year 2007-08 2008-09 2009-10 2010-11 Target 710.0 774.09 789.511 830.757 Achievement 704.5 723.8 771.551 811.143 % of target 99.2 93.47 97.73 97.64 % growth 6.3 2.74 6.6 5.56

1.3

The electricity generation target for the year 2010-11 has been fixed at 830.757 BU

comprising of 690.857 BU thermal; 111.352 BU hydro; 22.000 nuclear; and 6.548 BU import from Bhutan
2.0 Plant Load Factor (PLF):

2.1 Notwithstanding the fact that many of the Thermal Power Station (TPSs) in the country are vary old, the plant load factor has shown improvement over the years 2007-08 to 2009-10. 2.2 The PLF in the country during 2006-07 to 2009-10 is as under:
Year 2007-08 2008-09 2009-10 Target (%) 77.1 79.17 77.20 Actual (%) 78.6 77.19 77.50 Central 86.7 84.30 85.49 Sector-wise Actual State 71.9 71.17 70.90 Private 90.8 91.01 85.68

3.0 Power Supply Position

The power supply

National Electricity Policy

The Gazette of India EXTRAORDINARY PART I - Section 1 PUBLISHED BY AUTHORITY No., New Delhi, Dated . Ministry of Power

New Delhi, Dated the 12th, February, 2005

RESOLUTION

No. 23/40/2004-R&R (Vol.II)

1.0 INTRODUCTION

1.1 In compliance with section 3 of the Electricity Act 2003 the Central Government hereby notifies the National Electricity Policy. 1.2 Electricity is an essential requirement for all facets of our life. It has been recognized as a basic human need. It is a critical infrastructure on which the socio-economic development of the country depends. Supply of electricity at reasonable rate to rural India is essential for its overall development. Equally important is availability of reliable and quality power at competitive rates to Indian industry to make it globally competitive and to enable it to exploit the tremendous potential of employment generation. Services sector has made significant contribution to the growth of our economy. Availability of quality supply of electricity is very crucial to sustained growth of this segment. 1.3 Recognizing that electricity is one of the key drivers for rapid economic growth and poverty alleviation, the nation has set itself the target of providing access to all households in next five years. As per Census 2001, about 44% of the households do not have access to electricity. Hence meeting the target of providing universal access is a daunting task requiring significant addition to generation capacity and expansion of the transmission and distribution network. 1.4 Indian Power sector is witnessing major changes. Growth of Power Sector in India since its Independence has been noteworthy. However, the demand for power has been outstripping the growth of availability. Substantial peak and energy shortages prevail in the country. This is due to inadequacies in generation, transmission & distribution as well as inefficient use of electricity. Very high level of technical and commercial losses and lack of commercial approach in management of utilities has led to unsustainable financial operations. Cross-subsidies have risen to unsustainable levels. Inadequacies in distribution networks has been one of the major reasons for poor quality of supply. 1.5 Electricity industry is capital-intensive having long gestation period. Resources of power generation are unevenly dispersed across the country. Electricity is a commodity that can not be stored in the grid where demand and supply have to be continuously balanced. The widely distributed and rapidly increasing demand requirements of the country need to be met in an optimum manner. 1.6 Electricity Act, 2003 provides an enabling framework for accelerated and more efficient development of the power sector. The Act seeks to encourage competition with appropriate regulatory intervention. Competition is expected to yield efficiency gains and in turn result in availability of quality supply of electricity to consumers at competitive rates. 1.7 Section 3 (1) of the Electricity Act 2003 requires the Central Government to formulate, inter alia, the National Electricity Policy in consultation with Central Electricity Authority (CEA) and State

The power sector is struggling to add about half of its initial planned capacity of 78,577 MW in the 11th five-year plan ending March 31, 2012, owing to shortage of fuel linkages (coal and gas) and environmental concerns. The power sector is expected to add only 7,675 MW of generation capacity this year against the Planning Commission's target of 17,601 MW. Even the new plants commissioned are running at half the capacity due to non availability of coal.

Power to all by 2012 distance dream

'Power to all by 2012 a distant dream'
Piyush Pandey, TNN Jul 6, 2011, 12.40am IST Tags:

Manmohan Singh| Jairam Ramesh

MUMBAI: Government's ambitious target of 'Power to all by 2012' under the National Electricity Policy may remain a distant dream. The power sector is struggling to add about half of its initial planned capacity of 78,577 MW in the 11th five-year plan ending March 31, 2012, owing to shortage of fuel linkages (coal and gas) and environmental concerns. The power ministry is struggling to reach a capacity of even 50,000 MW even after the Planning Commission has reduced the target to 62,000 MW in the mid-term review of the current 2007-2012 plan. The current capacity addition has so far been 34,462 MW till FY11. Prime Minister Manmohan Singh is expected to review the performance of power, coal and environment sector in a high level meeting on Wednesday to take stock of the situation. The meeting will address issues relating to stranded power projects owing to shortage of coal supply and environmental clearances.