Energy and Power Sector: An Overview
The average growth rate of India’s gross domestic product (GDP) during the period 2006-09, was 8.6 %. High growth in the economy resulted in an increase in the demand for energy. According to the Central Electricity Authority (CEA), India’s average per capita electricity consumption is only 26% of the global per capita consumption. Energy demand in the country currently exceeds supply and there is an estimated gap of 83,950 million units as of FY 2009-10.
The demand for power is growing exponentially and the scope for growth of the sector is immense. India's total installed capacity of power generation was 159,389 MW till March 2010. Of this, Thermal power accounts for an overwhelming 64.3% of the total installed capacity; Hydel power plants account for 23.1%, Nuclear power plants for 2.9% and Renewable Energy sources for 9.7%.
Recent Developments and Government Initiatives
The Government of India (GoI) is keen to increase per capita consumption of energy to raise standards of living in the country. GoI targets providing electricity to all by 2012. Under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), the Ministry of Power plans to electrify 120,000 villages in the 11th Five Year Plan (2007-12)
Energy Transmission and Distribution is a key component of the electricity supply chain, but this segment has lagged in operational efficiency as well as financial performance. Recognizing the urgent need for reforms in the power distribution sector, the GoI introduced the R-APDRP (Restructured – Accelerated Power Development and Reforms Programme) in 2007. R-APDRP aimed at strengthening transmission and distribution networks and reduction in aggregate technical and commercial (AT&C) or transmission and distribution (T&D) losses.
Uner R-APDRP, GoI has planned to spend US$ 11 Billion across various states to develop an ICT-enabled power infrastructure. In the first phase of this programme about US$ 2 Billion is planned to be spent. Key ICT opportunity areas in this phase include – Energy Accounting & Auditing, SCADA Systems, MIS, Meter Reading (Billing & Collection), Automatic Data Logging System, GIS Mapping, Automatic Meter Reading, Prepaid Electricity etc.
Smart Grids: A smart grid delivers electricity from suppliers to consumers using two-way digital technology to control appliances at consumers' homes to save energy, reduce cost and increase reliability and transparency. The basic concept of a Smart Grid is to add monitoring, analysis, control, and communication capabilities to the electrical delivery system to maximize the throughput of the system while reducing the energy consumption. A smart grid includes an intelligent monitoring system that keeps track of all electricity flowing in the system. It also incorporates the use of superconductive transmission lines for less power loss, as well as the capability of integrating renewable electricity such as solar and wind.
Currently Smart Grid technology is at a nascent stage in India and is expected to evolve as demand grows and it becomes too expensive to ignore high T&D losses in the grid.
Renewable Energy: India has an estimated renewable energy potential of about 85,000 MW from wind power, small hydro and biomass and bio-energy. The country also has the potential to generate 35 MW per sq km using solar photovoltaic and solar thermal energy. Renewable Energy (RE) projects worth US$ 16,500 million, for the generation of 15,000 MW power, are planned in the 11th Five Year Plan. The Government of India also provides financial assistance to develop solar power generation facilities. Further, as per the tariff policy of 2006 there is a mandate for states to buy at least 0.25% of their energy from solar projects 2013 onwards.
CMR Energy Practice provides strategic and tactical insights, market intelligence, market sizing, market ecosystem mapping, and business advisory services to industry stakeholders. It covers the entire spectrum of Energy production, distribution and consumption, including Power Generation (Thermal and Hydroelectric), Transmission and Distribution, and Renewable Energy (Solar, Wind and Bio-Power).
CMR Energy Practice Expertise Areas
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