Power Sector in India

Electricity Generation Stats

1400
1200
1000
800
600
400
200
0
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Target (BU) 789.51 830.75 855 930 975 1023 1137.5 1178 1229
Achievements (BU) 711.55 811.14 876.88 912.05 967.15 1048.673 1107.822 1160 1205

Scenario
The Indian power sector is evolving from a “nascent/ opening” market phase to a “developing” phase. The
sector forms a backbone to the growing economy. As per the estimates of Planning Commission,
Government of India (GoI), to ensure a sustained 8% growth of the economy, by 2031-32 India needs to
increase its primary energy supply by three to four times and its electricity generation by five to six times of
the 2003-04 levels.

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Power Sector in India
Power Supply Stats
1400 0.00%
1200 -2.00%
1000
-4.00%
800
-6.00%
600
-8.00%
400
200 -10.00%

0 -12.00%
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Requirement (BU) 830 861 937 995 1002 1068 1114 1142 1212
Availability(BU) 746 788 857 908 959 1030 1090 1135 1203
Surplus -10.10% -8.50% -8.50% -8.70% -4.20% -3.60% -2.10% -1.60% -2.00%

Prevailing Situation Per Capita Consumption Increase in Consumption

The prevailing situation in the country is
characterized by persistent shortages and
unreliability and also high prices for
industrial consumers.
The electricity consumption per capita
for India is 1010kWh, howeverOne-
fourth of the households in the country
still have no access to electricity,
With a huge demand yet to be met in
terms of electrification, the
consumption is expected to rise to
around 2280 BU by 2021-22 and
around 4500 BU by 2031-32

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Renewables in India

Power Sector
Gas Nuclear
8% Diesel 2%
0% Hydro 2022 Renewable Target
14%
Wind 400 175
9%

Capacity (in Thousand MW)

300

Other SHP 200

15% 1% 54.9
100 34.3
Biomass 24.9
2%
0
Coal 2012 2015 2017 2022
61%
Waste To Wind Solar Biomass Small Hydro Total
Solar
Power
3%
0%

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Renewable Energy Sector Growth Drivers
Renewable Purchase Obligation
(RPO)
• RPO introduced in the New Tariff Policy
Renewable • Mandates all coal-fired plants commissioned after
Purchase a specific date to generate a certain percentage of
Obligation their power from renewable energy sources
(RPOs)
Green Corridor
• Fast Tracks Evacuation for green power
Green
enabling more renewables to be added to the
Corridor
grid
Accelerated Accelerated Depreciation
Depreciation & & GBI
Generation Based
Incentive • Tax Incentive allowing companies to depreciate
40% of the asset in the first year of operation
• As per GBI Rs.0.5 per unit is paid additionally over
and above the PPA resulting in Improved viability
and funding of wind power projects

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Renewable Energy Sector Growth Drivers

Amendments in Tariff Policy

• Waiving off inter-state transmission charges to
promote effective utilisation of renewable sources
Tariff Policy

Priority Sector Lending

• As per Reserve Bank of India’s notification released
Priority on 23rd April 2015, bank loans up to Rs.15 crore per
Sector borrower (AD customer) for installation of wind mills
Lending will be classified under Priority Sector Lending.

Attractive Attractive Preferential Tariffs

Preferential
Tariffs • Higher Tariffs relative to the APPC Cost
• Significant boost to IPP demand
• Locked by long term PPA agreements.