Page 25 - Book_Wec 06-09-SPREADS-Low-Res

evoluTIon of Power SecTor around 1900 kWh per year by 2030, increasing at a compound annual investments from private sector across the value chain. Most of the

growth rate (CAGr) of around 4.3% per annum which is currently at SOME fAcTS participation by private investors has happened in generation sector,
1181 kWh. • FDI inflows in the Indian non-conventional energy sector driven by de-licensing of generation, fiscal incentives for large scale
India is the third largest primary energy consumer in the world and 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
accounted for 5.8% of the global primary energy consumption in 2018. 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).
As per BP Statistical review 2019, India accounts for 12% of the global policy reforms and increased private sector participation. Challenges
coal consumption. The country experienced a large increase in oil • 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.
consumption, increasing by 0.3 Mb/d in 2018. renewable energy grew growth do co-exist in the sector.
Before 1956 (introductory stage) by 26.9% in the year 2018 with 4.9% renewable energy consumption • New investments in clean energy in the country reached As per national Electricity Plan 2018-based on 19th EPS, some of
2
electricity Supply Act 1948 of the world share . USD 11.1 bn in 2018. the projections for Indian Power Sector are as follows:
1 establishment of semi-autonomous State • 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
Electricity Boards (SEBs) Power Sector 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
1956-1991 (Nationalisation stage) India’s power sector is one of the most diversified in the world. energy generation capacity with tendering of 500 Gigawatt 2027
Industrial Policy Resolution (1956) India relies heavily on conventional fuels to meet its energy demand. (GW) by 2028 in addition to USD 250 bn investment in • Inter-regional Power Transfer Capacity to increase to
grid expansion and modernisation.
Generation and distribution of power under The power generation sources range from conventional sources such 118,050 MW by 2022
2 state ownership as coal, lignite, natural gas, oil, hydro and nuclear power to viable • Share of rE in Total Generation to be 20.1% by 2022 and
Power losses, subsidies, infrastructure non-conventional sources such as wind, solar, and agricultural and 24.44% by 2027
bottlenecks and resource constraints domestic waste. Out of the total installed capacity of 360.5 GW, the fication in the country within two years. Under UDAy (Ujwal DISCOM
share of thermal is close to 63% while the share of renewable energy Assurance yojana) scheme for financial and operational improvement renewables
1991-2003 (liberalisation era) in the overall capacity mix is 22% (~ 81 GW), followed by hydro (~13%) of DISCOMs, various States have issued bonds for a total amount of
2
6
Legislative & policy initiatives (1991) & nuclear (~2%) as of July 2019 . During Fy 2018, renewable capacity Inr 232163 crores (USD 32.76 bn ). Short-term energy transactions renewable energy is increasing year-to-year in the energy mix of In-
3 Private sector participation in generation surpassed conventional sector addition to the total generation ca- 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
pacity. The sector has witnessed significant investments in the last the last five years. The cross border power transfer by India with of India has set an ambitious target of achieving 175GW of renewable
Fast track clearing mechanism for foreign
investoment proposals few years, which resulted in reducing the energy and power demand neighbouring countries is taking place through inter-Governmental energy capacity by 2022. These include 100GW of solar capacity ad-
deficit. In July 2019, country witnessed energy deficit of 0.5% and peak bilateral cooperation. dition and 60GW of wind power capacity. Government plans to estab-
Electricity Regulatory Commissions Act (1998) 3
for establishing central and state regulatory demand deficit of 0.7% . The per capita electricity consumption has The policy landscape in India has progressively evolved since In- lish renewable energy capacity of 500GW by 2030.
bodies and rationalisation of tariffs increased from 1,010 units in Fy 2015 to 1,181 units in Fy 2019. dependence and has led to radical changes in the power sector, espe- India saw the first inflection point for renewable energy generation
The energy generation from conventional fuel observed 4.48% cially in terms of competition, private sector involvement and focus in 2016-17 when the capacity addition in renewable energy was high-
2003 onwards (Growth era)
growth to reach at 1,249 bn units (Fy 2019) as compared to gener- on green energy over the last decade, commencing with the passing of er than the capacity addition for conventional energy sources. Since
4 Electricity Act (2003) and ammendments to this ation of 1,048 bn units (Fy 2015 ). The overall generation (Including the Electricity Act 2003. Till early 1990s, the sector was shielded from last two decades State and Central governments have tried to focus
4
act to spur competition
generation from grid connected renewable sources) in the country private sector participation, however, the growing demand-supply on off-grid solutions to meet power demands. The total off-grid instal-
Deen Dayal Upadhyay Gram Jyoti Yojana has been increased from 1110.5 BU during 2014-15 to 1376 BU during 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
(DDUGJY) and Integrated Power Development 2018-19. of Supply Act (1948) in 1991, followed by the enactment of Electricity 2019) of installed power capacity in India.
Scheme for rural and urban areas respectively
Share of renewable (including hydro above 25GW) in total elec- Act(2003) and notification of Mega Power Policy(1995), national Tariff With government’s ambitious target of 175 GW, the clean energy
Ujwal DISCOM Assurance Yojana (UDAY) tricity generation increased from 6% in 2014-15 to 10% in 2018-19. Policy (2005), national Electricity Policy and Integrated Energy Policy sector has become quite attractive for both domestic and foreign
enabling electrification of all villages and their
tracking using Grameen vidyutikaran App no. of transmission lines have increased from 313437 ckm in 2014-15 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
5
to 413407 ckm in 2018-19 . bn in the next four years. India’s rE policies have a multi pronged
Amendment in National tariff Policy to focus
on renewable energy A number of policy and reform for distribution sector like SAUBH- Technology disruptions have unlocked and integrated approach. The rE targets give thrust to large solar
AGyA, Affordable 24x7 Power for All, IPDS, UDAy, UJALA, Energy Effi- parks, decentralised roof top installations and off-grid solutions
2018: india ranks 4 in power generation out of vast new sources of energy while
th
25 Asia Pacific nations; 24 most easiest to do ciency etc. for growth of the sector has been introduced. Government as well. rE policy initiatives positively connect to livelihood op-
th
business out of 137 countries (World Bank’s of India launched “Pradhan Mantri Sahaj Bijli Har Ghar yojana (SAUB- changing the contours of demand tions such as in the case of the farmer oriented KUSUM (Kisan Urja
‘Getting Electricity’ ranking) HAGyA)” on September 2017 to achieve universal household electri- Suraksha Evam Uttham Mahabhiyan) scheme. Transformation of

10 shaping new energy dimensions energising sustainable & prosperous Future 11