Date: 22nd July, 2011

Sanya Sapra Smrittee Priya Sneha Bhadra

Sonam Rawat Priya Yadav Karan Manhas

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Installed Capacity in 1947 was 1,300 MW Installed Capacity as on 31/03/2011 is 174361.40 MW India is worlds 6th largest energy consumer It accounts for 3.4% of global energy consumption Present energy shortages are 9.3% Peak demand shortfall are 12-15% T&D Losses are close to 30% Collection Losses are 7%

*Energy Power Survey by GOI

SECTORWISE DISTRIBUTION

21.50% 47.29% CENTRAL STATE 31.21% PRIVATE

SOURCES

10.58% 21.55% 54.29% 10.15% 2.74% 0.69% COAL

GAS
DIESEL NUCLEAR HYDRO OTHERS

Three major pillars of power sector

Generation

Transmission

Distribution

Central Sector

Private Sector

State Sector

6th largest in terms of power generation 53.7% of Indias commercial energy demand is met through the countrys vast coal reserves The country has also invested heavily in recent years on renewable sources of energy such as wind energy The state of Maharashtra is the largest producer of thermal power in the country India was one of the pioneering countries in establishing hydroelectric power plants.
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Transmission of electricity is bulk transfer of power over a long distance at high voltage, generally of 132kV and above The entire country has been divided into five regions for transmission systems The Interconnected transmission system within each region is called the regional grid

Ability of the power system to safely withstand a contingency without generation rescheduling or loadshedding was the main criteria for planning the transmission system
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The total installed generating capacity in the country is 171926.40MW,and the total number of consumers is over 146 million Reforms have been undertaken through unbundling The State Electricity Boards into separate Generation, Transmission and Distribution units and privatization of power distribution has been initiated either through the outright privatization or the franchisee route

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commercial production and distribution of electricity started in 1889 in Calcutta

Power sector was mainly under the government control They owned 95 % of distribution and around 98% of generation through states' and central government utilities Funded by government budgets in the form of long term, concessional interest loans
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1991 The Electricity Laws, 1991

Private Sector allowed 100% foreign investment allowed New pricing structure for sales to SEBs. 5 Year Tax holiday

1992-1997

1992
Intensive wooing of foreign investors in US, Europe & Japan

8 projects given "fast-track" status. sovereign guarantees from Central Government Seven reached financial closure

1995-1996
World Bank Reform Model Orissa Electricity Reform Act passed Distribution privatized

1996
Common Minimum Action Plan for Power Recommend policy to create CERC and SERCs Licencing , planning and other functions to be delegated to SERCs.

1998
CEA Clearance exempted for projects under 1000MW Liquid fuel policy - naphtha allocations to IPPs

1998
Mega-Power Policy The Electricity Laws (Amendment) Act, 1998 and Electricity Regula tory Commissions Ordinance

1999
Andhra Pradesh Electricity Reforms Act

2000
Power Ministers' Conference and Electricity Bill 2000 Reorganisation and restructuring of the SEBs Amendments to the Indian Electricity Act, 1910 made in 1998

Karnataka Electricity Reforms Act

Indian Electricity Act 1910 Electrical (Supply) Act 1948 Electricity Regulatory Commission Act 1998 Central Electricity Act 2003 - 10th June, 2003

Regulates the granting of licences to market operators, producers, transmitters and ,distributors
Defines who controls the distribution and consumption of energy. It regulates licencees accounts, the installation of electricity-supply lines and other works. It determines who controls the supply, transmission and use of energy by non-licencees.

It provided the basis for the takeover of most electricity generation and distribution by the State Electricity Boards

Its provisions mainly govern the constitution of the Central Electricity Authority, State Electricity Boards, Generating Companies, Consultative Councils and local Advisory Committees, their statutory powers and functions.
It empowers the State to make rules providing for management and accounts of the State Electricity Boards and to issue directions to licensees for regulating the supply, distribution, consumption or use of electrical energy

Amendment in 1975 to enable generation in Central sector.

Amendment to bring in commercial viability in the functioning of SEBs Section 59 amended to make the earning of a minimum return of 3% on fixed assets a statutory requirement (w.e.f 1.4.1985) . Amendment in 1991 to open generation to private sector and establishment of RLDCs. Amendment in 1998 to provide for private sector participation in transmission, and also provision relating to Transmission Utilities.

This Act establishes a central independent regulatory commission and allows states to establish their own commissions. The CERC has a mandate to introduce competition and efficiency in the electricity-supply industry both centrally and in interstate operations. Tariffs, conditions of supply and service and, in many cases, licensing of investments and operations are within its purview. The SERCs are a mirror of the CERC at the state level. Their primary role is to rationalise retail tariffs, but their mandate also covers the determination of wholesale1,from producers to dispatchers.

No licence is required for Generation and captive generation has been freely permitted
No license required for generation and distribution in notified rural areas

Transmission Utility at the Central as well as State level, to be a Government company with responsibility for planned and coordinated development of transmission network. Provision for private licensees in transmission. Trading, a distinct activity recognised with the safeguard of the Regulatory Commissions being authorised to fix ceilings on trading margins, if necessary.

Open access in distribution with provision for surcharge for taking care of current level of cross subsidy with the surcharge being Gradually phased out.Distribution licensees would be free to undertake generation and trading
The State Governments are required to re-organise the SEBs. However, they may continue the SEB as State Transmission Utilities and licensees for such time the State and Central Government agree.

Setting up of the State Electricity Regulatory Commission made mandatory

An Appellate Tribunal to hear appeals against the decision of the CERC and SERCs. Metering of all electricity supplied made mandatory

Thrust to complete rural electrification and provide for management of rural distribution by panchayats, cooperative ,societies, non-government organizations, franchises, etc.

ORISSA The Orissa Government was the first to introduce major reforms in power sector through enactment of Orissa Reforms Act, 1995. Under this Act, Orissa Generating Company, Orissa Grid Company and Orissa Electricity Regulatory Commission have been formed.
HARYANA Government of Haryana has also initiated reform program by unbundling the State Electricity Board into separate companies and Haryana Electricity Regulatory Commission has been constituted
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State Electricity Regulatory Commission Act

The Govt introduced this act With a view to improve the

functioning of State Electricity Boards Central Electricity Regulatory Commission at the national level State Electricity Regulatory Commission in the States For rationalization of tariff and the matters related thereto

Govts of UP, Rajasthan, MP, Goa, Karnataka and Maharashtra have referred their proposals for setting up independent regulatory mechanism in their States
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the burning issue today is supply of coal in adequate quantities to thermal plants.
The CIL (Coal India Ltd) not in a position to meet the entire need of the thermal electricity producing plants The losses suffered by the SEBs (State Electricity Boards) Reasons for losses are the losses during T&D Power theft Electricity tariffs do not reflect the true cost of production and distribution

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Government of India has an ambitious mission of POWER FOR ALL BY 2012 installed generation capacity should be at least 200,000 MW by 2012 from the present level of 167278.36MW Power requirement will double by 2020 to 400,000MW

Sufficient power to achieve GDP growth rate of 8% Reliable power Quality power Optimum power cost Commercial viability of power industry Power for all

Power Generation Strategy Transmission Strategy Distribution Strategy Regulation Strategy Financing Strategy Conservation Strategy Communication Strategy

Low cost generation, Optimization of capacity utilization Controlling the input cost Optimisation of fuel mix

Technology upgradation
Utilization of Non Conventional energy sources

Development of National Grid Technology upgradation

Optimization of transmission cost

System upgradation loss reduction theft control

consumer service orientation

quality power supply commercialization Decentralized distributed generation and supply for rural areas

Demand Side management

Load management Technology upgradation

Financing Strategy

Generate Resources

Regulation Strategy

Protecting consumer interests Making sector commercially viable

Cummunication Strategy

Enhance the general public awareness

Number of Villages (1991 Census)- 593,732

Villages Electrified (31/08/2010)- 503,924 Village Level Electrification % - 84.9