Transcript Document
Presentation
on
Investment Opportunities in
Indian Power Sector
and
Cooperation with IEA
By
R.V. SHAHI
Secretary, Ministry of Power
Government of India
December13, 2006
1
Strengths of Indian Economy
India has been able to achieve an economic growth rate of
8% per annum during last few years.
Industrial growth rate over 9%.
Domestic savings rates have been rising and reached over
29%.
Inflation level
moderate, despite of sharp rise in
international oil prices.
Current Account Deficit only 1.3% of GDP.
Foreign exchange reserves about USD 170 billion.
2
Strengths of Indian Power Sector
During 2007-12, average Economic growth rate projected at
9% pa.
Power sector to also grow by 9% to sustain the economic
growth.
Installed capacity to reach 800 GW by 2031-32 from the
present level of 128 GW. Present captive generation 41,000
MW.
Enabling environment created by enacting Electricity Act
and various policies framed thereunder.
3
New Liberal Competitive Framework
New Electricity Act
2003 - Liberal and competitive
framework.
Entry Barriers
•Removed in generation.
•Reduced in transmission, distribution and supply.
Open access in transmission already in place in
interconnected all India grid.
Open access to consumers above 1 MW by Jan, 2009.
4
Contd..
New Liberal Competitive Framework
100% FDI permitted in all segments.
Duty free import of equipment permitted for Mega Power
Projects.
Most project execution through International Competitive
Bidding.
5
National Electricity Policy
Total Village Electrification in 5 years.
By year 2012 :
Per capita availability 1000 units.
Installed capacity over 200,000 MW.
Spinning reserves 5% .
Minimum lifeline consumption of one unit per
household per day.
Inter-regional transmission capacity 37,000 MW.
Quality and reliable power supply.
6
Tariff Policy
Tariff of all Generation and Transmission Projects in
Private Sector through Competitive route- Public sector to
complete transition in five years.
Reduction of cross subsidy to (+)(-) 20% in next five years.
Emphasis on facilitating Open Access in Distribution; clear
formulation on cross subsidy surcharge.
Transmission Tariff framework sensitive to distance and
direction.
Strict Implementation of Performance Standards.
Agriculture Tariff to leverage sustainable use of Ground
Water Resources.
Time bound introduction of MYT.
7
Competitive Tariff Bidding for Project
Development
Tariff based International Competitive Bidding for
selection of project developer.
7 Large coal based Ultra Mega projects of 4000 MW each
being developed.
Mix of Coastal projects with imported coal and pit head
integrated coal mining- cum- power projects.
Use of more efficient super critical technology – lower CO2
emissions.
Final tariff bids already received for 2 projects- selection
8
of successful bidder by December, 2006.
Contd..
Competitive Tariff Bidding contd..
Two more projects to be awarded in April/ June’ 2007.
Bids of other projects in pipeline.
States initiating bids for smaller capacity thermal projects.
Bids for transmission projects in pipeline.
9
The Energy Strategy
Full development of hydro potential. Hydro power
irrespective of size, renewable source of energy.
Domestic coal to remain primary source. Emphasis on
Super Critical Plants and Clean Coal Technologies.
Import of coal on moderate scale for coastal locations.
Use of gas dependent on availability and price.
Import of gas – LNG terminals. Gas pipelines from
Western and Central Asia.
10
Contd..
Alternate Sources of Energy
Emphasis on Biomass.
Wind power potential – success story for rapid
development. More than 3800 MW added in the last four
years.
At over 5500 MW , Wind capacity 4th largest in the
world.
Development of mini and micro hydroelectric projects.
Solar power needs intensive R&D for cost reduction .
Extensive development of solar dependent on CDM
benefits to offset present high cost.
11
Contd..
The Energy Strategy
Nuclear power presently 3,900 MW- Share of Nuclear
power to be enhanced. No CO2 emissions.
• Mastery in fuel cycle and technology.
• Fuel Constraint.
Rapid increase in share of nuclear power dependent on
International Cooperation.
12
Energy Efficiency – High Priority
Bureau of Energy Efficiency (BEE).
Standards and Labeling of appliances.
Building Codes being developed.
Energy
conservation
norms
for
industry
and
performance standards for equipment being developed.
Public awareness campaign launched.
13
Low Energy Intensity and Low Carbon
Path of Development
Energy Intensity
TPES/GDP
(KgOE/2000PPP$)
Per Capita CO2
Emissions
(Tonnes/capita)
India
0.18
1.02
China
0.23
3.66
USA
0.22
19.73
OECD
0.19
11.09
14
Investment Requirements During XI Plan
(2007-2012) in Power Sector
USD 50 Billion for Generation.
Another USD 50 Billion for Transmission, Distribution
and Rural Electrification.
Total USD 100 Billion.
At present 43,000 MW generation capacity is already
under
execution.
Investment
of
USD
50
Billion
committed.
Public sector investments have been stepped up ; will
need to be supplemented through private investments.15
Merchant Power Plants
Development of Merchant power plants with highly
competitive tariff- a new electricity market development
initiative.
To fill the demand supply gap.
Facilitated by Open access
in transmission and
distribution.
Full market risk to be absorbed by the developer.
Coal linkage to be provided for plants up to 1000 MW
size. Captive coal blocks for plants in the range of 5001000 MW.
16
Present India - IEA Cooperation
MoU signed with IEA during April 1998 for cooperation
in power sector.
Training programmes organised by IEA on Energy
statistics, forecasting etc.
Jointly organised International workshop on Standards
and Labeling.
India participating in IEA Greenhouse Gas R&D
programme.
India
participating
in
IEA DSM
implementation
agreement.
17
Proposed Future India - IEA Cooperation
Energy Efficiency and Demand Side Management.
Data
Management,
Demand
supply
mismatch
projections, Energy Balance : method of assessment.
Establishing World over that Hydro power irrespective
of size is renewable, and accepting these projects under
CDM.
Collaboration in Clean Coal Technologies.
20 year projections for gas availability and prices.
Capital cost benchmarks for Nuclear power projects.
20 year projections
prices.
for nuclear fuel availability and
18
THANK YOU
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