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Capacity, Generation and Consumption Patterns

Capacity

India's power generation capacity stood at around 96600MW in FY00. The major portion of the capacity has been set up by SEBs (58%). This was followed by centrally controlled plants which contributed 34%. IPPs have started contributing to installed capacity only as recently as 1996 when the first IPP, GVK's 216MW power plant at Jegurupadu in Andhra Pradesh was commissioned. The installed capacity is distributed as follows:

Sector  

Thermal

Hydel

Nuclear

Wind

Grand Total

Central Sector

24,961

5,234

2,665

0

32,860

State Sector

38,308

17,798

0

50

56,156

Private Sector

5,809

426

0

0

6,235

Utility

3,324

426

0

0

3,750

IPPs

2,485

0

0

0

2,485

Others

488

30

0

850

1,368

All India

69,566

23,488

2,665

900

96,619

Although the CEA had initially projected a shortfall of 150000MW in 15 years and therefore a capacity addition target of 10000MW every year, the actual capacity addition has been far short of targets. The capacity addition in the last five years was as follows

Year

Capacity addition (MW)

1995-96

2,124

1996-97

1,625

1997-98

3,227

1998-99

4,242

1999-00

3,735

Interestingly, of the total capacity added last year, 49% was added by the states, which indicates that despite weak financial health, states have been the largest contributors to incremental capacity. Central plants contributed 44%, and the private sector contributed a measly 4%.

Revised Capacity Addition Targets

The CEA has recently revised the capacity addition target to 100000MW in the next 15 years from 150000MW earlier. This implies an annual addition of 8500MW. This revision is under the assumptions that a National Grid would be in place, T&D losses would be minimised and R&M of plants would be carried out at a vigourous pace, which would together take care of 25000MW of capacity. But at the present rate of capacity addition, even 8500MW looks like a tall target.

Generation

The gross generation of power in FY00 stood at 477492mn units. The generation, as in the case of installed capacity, was skewed in favour of SEBs.

1999-00

1998-99

1997-98

SEBs / EDs 260,223

244,305

233,145

Central Sector 180,679

172,876

162,026

Private Sector 37,444

31,225

25,451

Total 477,492

448,406

420,622

Plant Load Factor

The average PLF in India was 56.4% in FY00. Low PLFs are partly due to inadequate investment in R&M of power plants.

Consumption

The All-India Energy consumption in FY99 was 313bn KWH. The electricity consumption over the past five years has grown at a CAGR of 7.2%. The elasticity of electricity consumption to GDP growth has been estimated at 1.1X. The consumption in the past five years has been as follows

Year

Electricity Consumption (bn KWH)

1995-96

263

1996-97

269

1997-98

293

1998-99

313

1999-00

NA

Sector-wise consumption patterns (FY99)

Sector

Consumption (mn KWH)

%

Domestic

57553

18.4

Agriculture

93687

30.0

Commercial

15182

4.9

Industry

105207

33.6

Railway

6660

2.1

Export

3642

1.2

Others

30754

9.8

Total

312685

100.0

Industry remains the biggest consumer of electricity and its share in the overall electricity consumption has gone up from 32.6% in 1997-98 to 33.6% in 1998-99. It is closely followed by agriculture and then domestic consumption.

T&D Losses

Transmission & Distribution (T&D) losses arise on 2 counts:

  • When electricity is transmitted over long distances, some amount of electricity is lost. Installation of HVDC equipment can solve the problem to some extent. However, even the best designed system has T&D losses of 5-6%.

  • In the Indian context, a significant portion of losses arise due to thefts and pilferages. These can be eliminated through better vigilance and installation of theft-proof meters. 

The T&D losses in India have been as follows:

Year

T&D losses (%)

1995-96

22.2

1996-97

23.0

1997-98

21.8

1998-99

20.8

1999-00

NA

The high incidence of T&D losses is partly responsible for huge power shortages and distorted tariffs.

Shortages

 

Peak Shortage (%)

Energy shortage (%)

1996-97

NA

11.5

1997-98

11.3

8.1

1998-99

13.9

5.9

While the energy shortfall has reduced over the last few years, peak shortfall continues to rise. However, the reduction in energy shortfall has been at a time when industry was going through recessionary conditions. It is expected that with a pick up in industrial activity, the energy shortages are likely to rise in the next few years.
There are however pockets of deficit and surplus in India, which implies that a well established National Grid for the transportation of electricity would reduce the shortfall to some extent. 

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