Page 24 - Book_Wec 06-09-SPREADS-Low-Res

evoluTIon of Power SecTor around 1900 kWh per year by 2030, increasing at a compound annual
Before 1956 (introductory stage)
electricity Supply Act 1948
1 establishment of semi-autonomous State
Electricity Boards (SEBs)
1956-1991 (Nationalisation stage)
Industrial Policy Resolution (1956)
Generation and distribution of power under
2 state ownership
Power losses, subsidies, infrastructure
bottlenecks and resource constraints
1991-2003 (liberalisation era)
Legislative & policy initiatives (1991)
3 Private sector participation in generation
Fast track clearing mechanism for foreign
investoment proposals
Electricity Regulatory Commissions Act (1998)
for establishing central and state regulatory
bodies and rationalisation of tariffs
2003 onwards (Growth era)
4 Electricity Act (2003) and ammendments to this
act to spur competition
Deen Dayal Upadhyay Gram Jyoti Yojana
(DDUGJY) and Integrated Power Development
Scheme for rural and urban areas respectively
Ujwal DISCOM Assurance Yojana (UDAY)
enabling electrification of all villages and their
tracking using Grameen vidyutikaran App
Amendment in National tariff Policy to focus
on renewable energy
2018: india ranks 4 in power generation out of
th
25 Asia Pacific nations; 24 most easiest to do
th
business out of 137 countries (World Bank’s
‘Getting Electricity’ ranking)
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growth rate (CAGr) of around 4.3% per annum which is currently at
1181 kWh.
India is the third largest primary energy consumer in the world and
accounted for 5.8% of the global primary energy consumption in 2018.
As per BP Statistical review 2019, India accounts for 12% of the global
coal consumption. The country experienced a large increase in oil
consumption, increasing by 0.3 Mb/d in 2018. renewable energy grew
by 26.9% in the year 2018 with 4.9% renewable energy consumption
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of the world share .
Power Sector
India’s power sector is one of the most diversified in the world.
India relies heavily on conventional fuels to meet its energy demand.
The power generation sources range from conventional sources such
as coal, lignite, natural gas, oil, hydro and nuclear power to viable
non-conventional sources such as wind, solar, and agricultural and
domestic waste. Out of the total installed capacity of 360.5 GW, the
share of thermal is close to 63% while the share of renewable energy
in the overall capacity mix is 22% (~ 81 GW), followed by hydro (~13%)
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& nuclear (~2%) as of July 2019 . During Fy 2018, renewable capacity
surpassed conventional sector addition to the total generation ca-
pacity. The sector has witnessed significant investments in the last
few years, which resulted in reducing the energy and power demand
deficit. In July 2019, country witnessed energy deficit of 0.5% and peak
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demand deficit of 0.7% . The per capita electricity consumption has
increased from 1,010 units in Fy 2015 to 1,181 units in Fy 2019.
The energy generation from conventional fuel observed 4.48%
growth to reach at 1,249 bn units (Fy 2019) as compared to gener-
ation of 1,048 bn units (Fy 2015 ). The overall generation (Including
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generation from grid connected renewable sources) in the country
has been increased from 1110.5 BU during 2014-15 to 1376 BU during
2018-19.
Share of renewable (including hydro above 25GW) in total elec-
tricity generation increased from 6% in 2014-15 to 10% in 2018-19.
no. of transmission lines have increased from 313437 ckm in 2014-15
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to 413407 ckm in 2018-19 .
A number of policy and reform for distribution sector like SAUBH-
AGyA, Affordable 24x7 Power for All, IPDS, UDAy, UJALA, Energy Effi-
ciency etc. for growth of the sector has been introduced. Government
of India launched “Pradhan Mantri Sahaj Bijli Har Ghar yojana (SAUB-
HAGyA)” on September 2017 to achieve universal household electri-
shaping new energy dimensions
investments from private sector across the value chain. Most of the
SOME fAcTS participation by private investors has happened in generation sector,
• FDI inflows in the Indian non-conventional energy sector driven by de-licensing of generation, fiscal incentives for large scale
between April 2000 and December 2018 stood at USD 7.48 capacity additions and competitive procurement of power. The sec-
bn. FDI equity inflows in power sector have increased from
tor has evolved from a nascent market to a developing market led by
USD 707.04 mn (2014-15) to USD 1105.64 mn (2018-19).
policy reforms and increased private sector participation. Challenges
• More than USD 42 bn has been invested in India’s still exist, however a number of possibilities and opportunities for
renewable energy sector since 2014.
growth do co-exist in the sector.
• New investments in clean energy in the country reached As per national Electricity Plan 2018-based on 19th EPS, some of
USD 11.1 bn in 2018. the projections for Indian Power Sector are as follows:
• Solar sector in India received investments of of USD 9.8 bn • Peak Demand to rise to 226 GW by 2022 and to 299 GW by
in FY2018. 2027
• USD 500 bn worth of investment in creating renewable • Energy requirement to be 1,566 BU in 2022 and 2047 BU in
energy generation capacity with tendering of 500 Gigawatt 2027
(GW) by 2028 in addition to USD 250 bn investment in • Inter-regional Power Transfer Capacity to increase to
grid expansion and modernisation.
118,050 MW by 2022
• Share of rE in Total Generation to be 20.1% by 2022 and
24.44% by 2027
fication in the country within two years. Under UDAy (Ujwal DISCOM
Assurance yojana) scheme for financial and operational improvement renewables
of DISCOMs, various States have issued bonds for a total amount of
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Inr 232163 crores (USD 32.76 bn ). Short-term energy transactions renewable energy is increasing year-to-year in the energy mix of In-
have increased from 80.87 BU to 120.97 BU with CAGr of 10.59% in dia. As a part of its Paris Agreement commitments, the Government
the last five years. The cross border power transfer by India with of India has set an ambitious target of achieving 175GW of renewable
neighbouring countries is taking place through inter-Governmental energy capacity by 2022. These include 100GW of solar capacity ad-
bilateral cooperation. dition and 60GW of wind power capacity. Government plans to estab-
The policy landscape in India has progressively evolved since In- lish renewable energy capacity of 500GW by 2030.
dependence and has led to radical changes in the power sector, espe- India saw the first inflection point for renewable energy generation
cially in terms of competition, private sector involvement and focus in 2016-17 when the capacity addition in renewable energy was high-
on green energy over the last decade, commencing with the passing of er than the capacity addition for conventional energy sources. Since
the Electricity Act 2003. Till early 1990s, the sector was shielded from last two decades State and Central governments have tried to focus
private sector participation, however, the growing demand-supply on off-grid solutions to meet power demands. The total off-grid instal-
gap led to private sector participation in the sector. The amendment lation is still at a miniscule level as compared to ~360GW (as on July
of Supply Act (1948) in 1991, followed by the enactment of Electricity 2019) of installed power capacity in India.
Act(2003) and notification of Mega Power Policy(1995), national Tariff With government’s ambitious target of 175 GW, the clean energy
Policy (2005), national Electricity Policy and Integrated Energy Policy sector has become quite attractive for both domestic and foreign
have all led to a much liberal power sector, which then saw active investors. India is expected to attract investments of up to USD 80
bn in the next four years. India’s rE policies have a multi pronged
Technology disruptions have unlocked and integrated approach. The rE targets give thrust to large solar
parks, decentralised roof top installations and off-grid solutions
vast new sources of energy while
as well. rE policy initiatives positively connect to livelihood op-
changing the contours of demand tions such as in the case of the farmer oriented KUSUM (Kisan Urja
Suraksha Evam Uttham Mahabhiyan) scheme. Transformation of
energising sustainable & prosperous Future 11