Power Generation & Distribution

 

Overview

India has surpassed Russia and Japan and is the one of the largest producer and consumer of electricity in the world, but faces many shortcomings in its distribution chain and access to electricity by all is still a distant goal. Domestic Utility sector has an installed capacity of around 272 GW as on March 2015 and the gross electricity generated in the 2014-15 fiscal was 1,106,000 GWh. Of the total installed capacity, Renewable Power plants accounted for 28% of electricity generated and Non Renewable, 72%. In 2014-15, the per capita electricity consumption was 1010KWh and total consumption by utilities and non-utilities was about 940 billion KWh. Indian agricultural sector recorded the highest electric energy consumption (18.45%) among all countries in 2014-15. However, the cheaper electricity tariff in India has not corresponded to higher per capita electricity consumption.

The Power sector in India – Generation, Transmission and Distribution, is largely controlled by the Ministry of Power. Union and State Governments govern generation of electricity but recently public private partnerships have also been given importance due to the high CAPEX capacity that Private enterprises have. The Central Sector or PSUs, a little over 41% by the State level Corporations and 29% by the private sector enterprises generate about 30% of the total capacity. Of the total electricity produced in the country, nuclear power contributes only 2% and coal, a staggering 59%. A lopsided graph portrays the continuous reliance on non-sustainable sources of energy to produce electricity in the country.

 

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Outlook

India has launched several rural electrification programs, despite which, blackouts and discontinuous flow of electricity prevail. In India, where 46% of rural households have access to electricity, about 85% of the villages have an electricity line. The Power Grid Corporation of India monitors the inter-state transmission of electricity.

The Nuclear Power Corporation of India under the Department of Atomic Energy controls and operates nuclear power stations to generate electricity. By 2032, it seeks to establish 63 GW of generation capacity as an environmentally sustainable and economically viable source of electricity to meet the growing needs of India. Center owned NTPC comfortably leads the way among the top power generation and distribution companies in India. Power Grid Corp and NHPC are center owned as well, but private owned companies like Tata Power, Reliance Power and Adani Power put up good competition and well-structured channels to enhance this industry.

Although the International Energy Agency estimated that India would achieve power generation capacity to the tune of 600 GW to 1200 GW by 2050, the installed capacity growth rates, at present are short of the capacity needed to suffice its commitment of universal access of electricity by 2017 since they are considerably less than those of China are.

 

Future Potential

About 1.4 billion people across the world have zero access to electricity and India accounts for over 300 million of such people. There is a lacuna between generation and distribution of electricity that can be attributed to technical malfunctioning or pilferage. Although certain companies resort to intentional blackouts and load shedding, a better distribution channel and strict monitoring of access to electricity would solve these problems. Steps to prevent wastage of this expensive commodity must be taken. Limited fossil fuel reserves, increasing usage of electricity especially in urban India and a growing pressure to distribute electricity in every part of the country has deterred the agenda of electricity generators and distributors of the country.

However, with an economically exploitable hydro energy potential that can be harnessed to the extent of 84,000 MW at 60% load, making India rank 5th in terms of hydroelectric potential across the globe should be commercialized on a larger scale. Solar power is another economically viable option. With only initial installation as the major expense, the abundant sunshine and favorable weather around the year, solar energy should be popularized in the north and northwestern parts of the country. India can utilize its massive thorium resources to opt for nuclear power. 62 reactors, mostly of thorium, are being developed to be operational by 2025. 

Apart from standby generators and pumped storage for meeting peak load demands, alternative storage schemes such as compressed air storage, batteries should be made as cheaper options as they are very costly. Currently, India has about 6800 MW pumped storage capacity through its hydro power plants. A well-placed structure to monitor centralized and decentralized power stations and good electricity storage schemes would cut power wastage in India.

 

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models

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