Saturday, December 30, 2006

Power Sector: Engine of Growth of the Economy

Key Statistics

- The State and Central Government sectors account for 58% and 32% of the generation capacity respectively while the private sector accounts for about 10%
- India is the third largest producer of electricity in Asia
- Total Generation Capacity of around 1,13,000 MW
- Per capita consumption of electricity at 580 kwh which is expected to rise to 1000kwh in the next 10 years
- About 56% of households have access to electricity, with the rural access being 44% and urban access about 82%
- Peak & energy shortages of 7.1% & 11.2%
- T&D losses are in the range of 18% to 62% in various States. The aggregate technical & commercial (AT&C) losses are in the range of 50% of power generation. Out of the total generated power, about 55% is billed and only about 41% is realised.

Issues plaguing the Power Sector

- inadequate power generation capacity
- lack of optimum utilisation of the existing generation capacity
- inadequate inter-regional transmission links
- inadequate and ageing sub-transmission & distribution network leading to power cuts and local failures/faults
- T&D losses, large scale theft and skewed tariff structure
- slow pace of rural electrification
- inefficient use of electricity by the end consumer
- lack of grid discipline

Targets

- Plans to augment generation capacity by 1 lakh MW by 2012 out of which 77,000 is to come up in public sector and the rest in private sector
- 50,000 MW of Renewable Energy to be developed by 2017
- Access to electricity to be available for all households in the next 5 years.
- Availability of power on demand to be fully met by 2012.
- Energy shortage and peaking shortage to be overcome by providing adequate spinning reserves.
- Reliability and quality of power to be supplied in efficient manner.
- Electricity Sector to achieve financial turnaround and commercial viability.
- Consumers’ interests to be accorded top priority

Strategy

Strategies to achieve 'Power for All':

- Power Generation Strategy with focus on an integrated approach including low cost generation, optimization of capacity utilization, controlling the input cost, optimisation of fuel mix, technology upgradation, capacity addition through nuclear and non-conventional energy sources, high priority for development of hydro power, a comprehensive project monitoring and control system
- Transmission Strategy with focus on development of National Grid including Interstate connections, Technology upgradation & optimization of transmission cost.
- Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss reduction, theft control, consumer service orientation, quality power supply commercialization, Decentralized distributed generation and supply for rural areas.
- Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable.
- Financing Strategy to generate resources for required growth of the power sector.
- Conservation Strategy to optimise the utilization of electricity with focus on Demand Side management, Load management and Technology upgradation to provide energy efficient equipment / gadgets.
- Communication Strategy for political consensus with media support to enhance the general public awareness.

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