Power : The Building Block of Economy POWER SYSTEM COMPONENTS

Generation Primary Transmission(132/220/400/765KV)

Electricity- the most imp. Infrastructural CB

input in the dev. & growth of economy. Power Plant

CB Bus-bar Steel Tower

Indian Power Sector Overview

Xmer 220 kV
Sending end SS Primary Grid

Consumption of electricity- imp. Index of

(11/220kV) Bus-bar
(220/66 kV)

Commercial/ 66 kV
Industrial Transmission
advancement of the country & standard of Customer

Secondary Transmission(66/132KV)
living. Urban
Customers
Distribution Transformer
(11/0.415 kV) Primary Distribution

Economic growth rate of 8-9% on a Secondary Distribution

Secondary Grid
(66/11 kV)

sustained basis is necessary for us to Underground Cable

Distribution
Pole

catch up with the rest of the world.

To Other
Residential Residential 66Kv
Customer Substations
Customer

An Analogy Power System vs Human Body The Generation

GENERATION
Human Body Power System
Blood Pressure Voltage Thermal Power Plant Solar
RLDC::Brain Generation :: Heart Heart Beat Frequency Hydro Power Plant Tidal
The Pulse 72 Beats/Minutes 50 Cycles/Seconds Nuclear Power Plant Wind
USER
Cause Stress/Anxiety Load-Gen.-Mismatch Diesel Power Plant Geothermal
Risk Heart Beat Deviation Frequency Deviation Gas Power Plant Bio-mass
Sub-Transmission :: Sub-Arteries Combine Cycle plant Fuel cells

Transmission :: Main Arteries

Distribution :: Capillaries

Energy Resource Map Of India Development of the Electricity Current Scenario in India
Hydro
Industry in the last 50 yrs.
Hydro potential in North Power Installed Capacity : 1,73,635 MW
Jammu
east and upper part of The industry has mainly developed through
Ludhiana Northern Region State controlled instruments.
NR Delhi NEPAL
Partabpur
SIKKIM

BHUTAN Coal reserves mainly in Until 1975 dev. mainly through SEBs/electricity Energy Generation (p.a.) : 788355 MU
RAPP Jaipur Guwahati
Lucknow CHICKEN
NECK NER Eastern Region deptts. controlled by the respective state govts.
MAR

Patna BANGLA
DESH
ER
Supply Demand Gap
NM

Vindhyachal

1975 The Electricity (supply) Act was : 9.8 % Peak

MYA

Distribution of energy
Gandhinagar
Kolkata
Indore Bhopal Korba
Pipavav
WR Talcher/Ib Valley

Tarapur
Raipur Bhubaneswar resources and consumption amended. Intervention of the central govt in : 8.5% Average
LEGEND Coal centres are extremely development of generation facilities led to the Per Capita Power Consumption : 850 kWh
Mumbai
Vizag
Simhadri
Hyderabad Generation Load-Centre

SR Coal
unbalanced formation of NTPC, NHPC
Kaiga Krishnapatnam

Kozhikode
Bangalore
Ennore
South Madras
Hydro
Necessitate power transfer Effect of this intervention started being felt in
PLF
Mangalore Chennai
Cuddalore Lignite
over long distances : 75.07%
Kayamkulam
Thiruvananthapuram
Kudankulam
Coastal early 80s.
COLOMBO Nuclear
SRI LANKA

1
 ALL INDIA INSTALLED GENERATION CAPACITY TOTAL INSTALLED CAPACITY 173,624 MW
Per Capita Energy Consumption (as on 31.03.2011)
Central
10000 Sector:
9000 54412 MW
Low per capita

8000
energy consumption
MW
State Sector:
7000
82452 MW
6000
5000 Private 36761
4000 Sector: 82,452.00
3000
36761 MW
2000 State Sector
All India:
1000
173625 MW
0 54,412.00 Central Sector

United Kingdom
Russian Federation

Germany
China

India
Japan

Canada

France
USA

South Korea

World Average
Private Sector
As on 31st
March,2011

SOURCE:
CEA Website

India has an installed power generating capacity of 173625 MW

(as on 31 March, 2011) of which the thermal power stations share is Thermal, Nuclear and Hydro Indias Energy Needs
112823 MW (65%).
Installed capacity of power plants in India 6% increase in GDP would contribute to 9%
INSTALLED POWER GENERATING CAPACITY
till 31st March, 2011 was around 173 GW of increase in energy demand
which Energy intensity is energy consumption per
unit of GDP
Thermal contribution is about 65%
High energy intensity points to energy
18,454.00 Nuclear provides 2.8% of electricity generated wastages in economy which can be minimised
4,780 Thermal

37,567.00
Hydro Hydro contribution is about 21.6% through efficient use of energy
Nuclear
RES (Exploitable potential 60% at 84000 MW) Indias energy intensity is 3.7 times of Japan,
112,823.00 Renewables 10.6% 1.55 times of USA, 1.47 times of Asia and 1.5
times the world average
Ratio for developed countries < 1

Electricity Demand Projections Growth of Indias Power Sector

serious growth after the 60s
Year Total Electricity Required Installed Capacity (MW)
( Billion kWhr)
140

Installed Generation Capacity (GW)

GDP Growth Rate 120
7% 8% 7% 8% 100

2011-12 1031 1097 206757 219992 80

2016-17 1377 1524 276143 305623 60

2021-22 1838 2118 368592 424744 40

2026-27 2397 2866 480694 574748 20

0
2031-32 3127 3880 627088 778095
1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Source: Energy Policy Report, Planning Commission, India

2
 Growth of the Indian Power
Sector : INSTALLED CAPACITY
INSTALLED CAPACITY went up from1.36 GW
in 1947 to more than 167 GW as of 31.11.10;
capacity comparable to UK / GERMANY.
Or a targeted 9.5% growth in the power sector, a
capacity addition of 78,577 MW has been
proposed for the 11th Plan
Operation performance of power stations- salient features
Gross annual generation crossed 800 BU (811 BU)
Gross monthly generation figure has crossed 75 BU mark
(75.5 in Mar11)
Gross daily generation figure has crossed 2.5 BU mark
(2.508 on 18th Mar11)
Nuclear generation achieved a remarkable growth rate of
41.04% due to improved availability of nuclear fuel
Generation from hydro based plants improved with a
growth rate of 10.01% due to revival of good monsoon
after 2 successive yrs of deficit rainfall conditions.
Operation performance of power stations- salient features
Thermal generation achieved a growth rate of 3.81%. Coal based
generation achieved a growth rate of 3.99%.
Average PLF of the thermal based plants was 75.1% as compared to
77.68% in 2009-10.
53 stations with an aggregate installed capacity of 53827.5 MW
achieved PLF of national average
19 thermal stations with an aggregate installed capacity of 21995 MW
operated above 90% PLF.
Operational availability of thermal stations marginally reduced to
84.24% from 85.10 % during the previous yr. Growth rate in respect
of liquid fuel based GTs, multi fuel stations as well as DG sets had a
negative growth rate.
3
 Reasons for low PLF compared to last year Plant Load Factor
Increased forced outages of plants
1 per cent increase in PLF effectively means
Unscheduled/extended plant maintenance of some capacity addition of approx 1000 MW (requiring
thermal units nearly Rs.4000 Cr.)

Forced shut down/ backing down due to raw water Increasing the PLF of SEB plants would reduce the
problems, coal shortages and receipt of poor quality cost of supply and benefit the SEBs.
coal

Receipt of lower schedule from beneficiary states.

Indian Power Sector Long Term Trends MAJOR REASONS FOR POWER
SECTOR ILLS
Potentially 3rd largest electricity market
India is 3rd largest economy 1
globally By 20302

(US$m m )
15 13.2
(KWH bn)
8,000
5,619
5,971
Inadequate power generation capacity;
Lack of optimum utilization of the existing
10.1
10
4,000
4.25 4.1 1,730 1,641
5
2.6 2.1 2.0 1.8 1.7 1.7
0
1,151
776 871
generation capacity;
0

India

Japan
China

Russia

Canada

Brazil
US
Inefficient use of electricity by the end

Italy

Brazil
US

UK
Germany
China

India

Japan

France

Russia
Estimated to be the fastest growing economy In the world by 20122 Indian Power Sector characterized by huge energy shortages(3)
consumer;
10
800
(MU)
8.8% 10%
Inadequate inter-regional transmission links;

680
8.8% 8.4%

GDP Growth %
700 8%

632
7.3%

620
7.1%

591

579
Huge T&D losses (theft) and skewed tariff

559

548
546
600 6%

519
498
5
500 4%

0
400

300
2%

0%
structure, making SEBs unviable.
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2002-03 2003-04 2004-05 2005-06 2006-07
Energy Requirement (Normative) Energy Availability (Normative)
Brazil China India Russia Germany
Shortage (%)

Source: (1) World Bank; (2) International Energy Outlook 2006; (3) Report of Working Group on Power for Eleventh Plan (2007-12) 32

Growth of Indian Power Sector: TRANSMISSION

Optimum utilization of the existing
generation capacity through R&M
Old SEB units performing at low efficiency due
to lack of R&M / poor maintenance. States
unable to undertake R&M because of funds
constraints.
R&M is a cost effective (Rs 1 Cr/MW for thermal
and Rs 60-70 Lakh/MW for hydro) and quick
return option for increasing generation (new
capacity @ Rs 4-5 Cr/MW).
170 thermal (11,000 MW) and 35 hydel (3,000
MW) units identified for R&M by CEA.
90 BU (20% of current annual generation)
expected through R&M
SYSTEM
Required development of high voltage transmission Inadequate inter-regional transmission links
system did suffer in the early years.
During 80s, when NTPC had the jurisdiction of creating Uneven distribution of power resources (coal, hydel,etc.)
HV transmission system along with their super thermal
power stations, transmission side of the industry got a Transporting coal costlier than transmitting power.
boost.
Scenario of simultaneous surplus (ER) and shortage (Other
Subsequently, PGCIL was formed out of NTPC and from regions)
1992, PGCIL has added significantly towards creation of
HV transmission system and development of the Existing interregional transmission capacity only about 22350
national grid MW
Transmission sector opened up for private sector
participation with the amendment of the ES Act in 1998

4
Evolution of Grid Interconnection in India EVOLUTION OF POWER SYSTEM IN
Isolated systems
INDIA
PRE INDEPENDENCE - SMALL ISOLATED SYSTEM
Isolated systems developed in and around
PRIOR TO 60s - GENERATION/TRANSMISION BY SEBS
industrial & urban areas
National DURING 60s - LIMITED INTERCONNECTION BETWEEN NEIGHBOURING
STATES
Regional Establishment of CEA under the Electricity
70s - EMERGENCE OF CENTRAL SECTOR GENERATION
( NTPC/NHPC/NUCLEAR ETC.) (Supply) Act, 1948 for coordinated
State PLANNING OF GENERATION/TRANSMISSION ON
development of Power Sector
REGIONAL BASIS
Local
LATE 80s INTEGRATED GRID OPERATION THROUGH 400kV SYSTEM The Act also provided for formation of
LATE 90s - ASYNCHRONOUS INTER REGIONAL LINKS
State Electricity Boards (SEBs) in the
LONG DISTANCE HVDC LINKS / B2B STATIONS States
1950s 1960s 1970s 1990s

Regional Grid System

State Grid Systems
1975: Central Sector generation utilities created
The systems around urban and industrial areas
grew into full fledged State Grid systems
Benefits of these to be shared by the states of the region.

The country was demarcated in to five Regions Construction of associated transmission system for
for the purpose of coordinated power sector evacuation of power as well as delivery of power to the
planning constituent states, also entrusted to these corporations

Regional Electricity Boards were established in Focus of planning and development in the transmission
each of the regions for facilitating integrated system shifted from State Grid system to Regional Grid
operation of state systems system

Inter-state lines were planned which were By the end of 1980's strong regional networks came into
treated as Centrally sponsored schemes. existence.

August 2006
Inter Region Links Five Regional Grids North synchronized National Grid
Two Frequencies
With Central Grid
1989: Power Grid Corporation of India formed to Focus of planning the generation and the
March 2003
give thrust to implementation of transmission West synchronized NEW Grid transmission system shifted from the
system associated with Central generating With East & Northeast
October 1991
orientation of regional self-sufficiency to
stations South
East and Northeast Grid
SR Synch the concept of optimization of utilization of
synchronized By 2013-14
resources on All India basis
few inter-regional links were also planned and Central Grid
MERGING
developed to facilitate exchange among the OF
MARKETS
various regions (limited to emergency situations) North A strong National Grid system would
West
East Installed Capacity: 173 GW enable such an all-India generation
resource planning as well as grid operation and South
Northeast planning and development
Inter Regional
Renewable: 18.4 GW
consequently the operational frequencies of
Capacity:
various regions continued to be Region specific. Five Regional Grids 22 GW
Five Frequencies Target 2012: 200 GW

5
Objectives underlying the formation
of National Grid Perspective transmission plan upto 2012

To transfer power from surplus regions to MW

Cumulative Capacity of Interregional links

deficit regions 30000 30000

25000

Utilise maximum resources from 20000

14000

diversified regions 15000

10000
4950

Ensure reliable, economical and quality 5000

power 0
Existing 2007 2012

REGIONAL GRIDS GEOGRAPHICAL

Inter regional MW capacity
Link
NER-ER 1,260

ER-NR 7,930

ER-SR* (excl. 1,130

30,500 MW
MW Talcher-Kolar
40370
bipole)
2284 MW ER-WR 2,990

21091 SR-WR 1,720

49027 MW MW
16,000
WR-NR 4,220

Other 132 KV 600

Links

Installed Generation Capacity Talcher Kolar 2,500

43009 MW
HVDC Bipole
Current ~ 173 GW
Target for Year 2012: 200 GW Total as on 22,350
date
Target for 2012 37,700

Transmission System for Hydro

development in NER Acquiring Right of Way (ROW) for constructing transmission
system is getting increasingly difficult. This necessitates creation
30-35 GW of Hydro potential in North-eastern of high capacity Transmission Highways , so that in
Region future, constraints in ROW do not become bottleneck in
10 GW from Sikkim and Bhutan harnessing natural resources

Substantial power from this region would be

required to be transmitted to NR/WR over distances
Four major power regions of the country namely,
exceeding 2000 km.
North-Eastern, Eastern, Western and Northern
Right of way constraints in the chicken neck area. are now operating as one synchronous grid.
Hybrid network of EHVDC and high capacity 400
kV AC developed.

6
 DEVELOPMENT OF NATIONAL GRID

NATIONAL GRID : THE ADVANTAGES 765 KV RING MAIN SYSTEM

International Interconnections
URI
WAGOORA
DULHASTI THE POWER HIGHWAY
KISHENPUR RAVI SATLUJ

STRONG BACKBONE ANYWHERE TO ANYWHERE TRADING JULLANDHAR

Nepal Bhutan
ECONOMIC OPERATION BALLABGARH
(DELHI RING)
MOGA
A'PUR
TEHRI CHICKEN NECK
Over 16 links of 132/33/11 KV Tala: 1020 MW
BHUTAN
OPTIMAL UTILISATION OF SCARCE NATIONAL
MEERUT
HISSAR TALA RANGANADI
DIHANG DAMWE Radial links with Nepal Chukha: 336 MW
BEARILLY TEESTA

NR JAIPUR
M'BAD LUCKNOW
KATHAL- Net import by Nepal Kurichu: 60 MW
RESOURCES SHIROHI
BHIWADI
AGRA
ALLAHABAD
/UNNAO
G'PUR

VARANASI
M'PUR
PURNEA
BONGAIGAON

MISA
GURI
MARIANI
Net import by India
HARNESS DIVERSITY
MALANPUR SILIGURI/BIRPARA
2500 SINGRAULI BADARPUR
MW BARH
500MW TIPAIMUKH
KAHALGAON
ZERDA VINDHYA- B'SHARIF

SAVING OF 13,000 MW BY YEAR 2012 India- Bhutan synchronous links

DEHGAM NAGDA SATNA CHAL
NORTH
MAITHON
NER
BINA JAMSHEDPUR
GANDHAR/ SIPAT KARANPURA BANGLA
LIMBDI
SEONI 400 kV Tala-Binaguri D/C

AMRELI KAWAS DESH

ADDED STABILITY JETPUR

PIPAVAV
CHEGAON
VAPI BHANDARA
TARAPUR AKOLA
KORBA
RAIPUR ER
ROURKELA

HIRMA 400 kV Tala-Malbase-Binaguri

BOISAR WARDA

BOUNDARY-LESS OPERATION DHABOL

PADGHEAMRAVATI
WRPARLI
CHANDRAPUR
1000MW
TALCHER
JEYPORE 220 kV Chukha-Birpara D/C
LONIKAND
220 kV Chukha-Malbase-Birpara
HUB AND SPOKE ARRANGEMENT KOYNA
KARAD
RAMAGUNDAM
W GAZUWAKA
CHEAP HYDRO POWER FROM THE NORTH-
EAST AND PIT HEAD THERMAL POWER 132 kV Kurichu-Bongaigaon
0M
FROM THE EAST ENTERS THE RING AND
SR
KOLHAPUR
200
GENERATORS HAVE READY EVACUATION PATH VIJAYAWADA
EXITS TO POWER STARVED REGIONS

W
PONDA
Bangladesh

M
NARENDRA

00
20
KAIGA SIRSI
KRISHNAPATNAM

CHITTOOR
400 KV AC line between
THE NATIONAL GRID ENVISAGED BY POWERGRID IS A MYSORE
BANGALORE
HOSUR SOUTH CHENNAI Sri Lanka Baharampur(India) and
HYBRID NETWORK COMPRISING A 765 kV HUB WITH 400 KOZHIKODE PUGALUR
SINGARPET
CUDDALORE
LEGEND
EXISTING/ X PLAN NATIONAL XI PLAN Madurai(India) and Bheramara(Bangladesh) with

LA
GRID

kV AC AND 500kV HVDC SPOKES

COCHIN SALEM IX PLAN
Anuradhapura(Sri-Lanka) 500 MW HVDC sub-station at

K
SH
KARAIKUDI 765 KV LINES

through 500 KV HVDC Bheramara

KAYAMKULAM

AD
KAYATHAR 400 KV LINES
TRIVANDRUM

WE
HVDC B/B
Maps not to scale
KUDANKULAM
under sea cable

EP
HVDC BIPOLE

765 KV LINES IN X PLAN. TO BE CHARGED AT 400KV INITIALLY

TO BE CHARGED AT 765 KV UNDER NATIONAL GRID

Control Centres
Load Despatch Centers in India
Bulk electric power systems comprise of Surplus Regions
hundreds of generating units interconnected by
an intricate web of transmission & distribution The control of the grid is planned to be
Hierarchy of Indian Power
spread across vast geographical stretches. done at 3 levels of hierarchy namely NR System

NLDC, RLDC and SLDC. NER National Grid

2300 1
For ensuring a reliable and quality supply to the
ER
consumers, the power system must be operated WR Regional Grids
5
within the prescribed reliability standards.
State Utilities
33
Each level of hierarchy has definite roles
The system operators positioned at well-
equipped control centres provide the
and responsibilities
coordination services that are vital for operating
the system within the operating limits. Deficit Regions

Role of NLDC Role of RLDC Role of RLDC

NLDC
Economy and Efficiency of National Grid
Scheduling and dispatch of electricity over the inter-regional links RLDC RLDC
Monitoring of operations and grid security of National Grid Apex body Functions
Restoration of synchronous operation of National Grid optimum scheduling
Trans-national exchange of power for
and despatch of
Feedback to CEA & CTU for national Grid Planning Real time operation , control & contingency integrated electricity
Dissemination of information operation
analysis Comply Directions Monitor grid operation
Supervision Generation scheduling/ re-scheduling the Keep accounts of
Coordinate SLDC
Exclusive Restoration directions electricity transmitted
functions Metering & data collection Exercise Supervision
Supervision & control
RLDC Compiling & furnishing of operation data and control over
Coordinate Operation of Regional UI pool Account. Reactive Central State the ISTS
RPC for
regional outage Plan energy account and Congestion charge account For ST Licensee Real time operations
Inter Regional Links Operation of ancillary services Open
Generating company
Access-
Nodal
Generating station / Sub-
Accounting Agency stations
any other concerned person

7
 Role of SLDC Role of RPC Role of CTU
SLDC Apex body in a State RPC CTU
Optimum scheduling and despatch Ensure Facilitate the stable and smooth operations of the system
Monitor grid operations compliance Functions:
Directions and regional level operation analysis to undertake Planning shall operate
Keep accounts of electricity transmission of
transmitted
exercise facilitate inter-state/inter-regional transfer of power electricity through
supervision and facilitate planning of inter-state/intrastate transmission system RLDC
ISTS
Activities of control coordinate maintenance of generating units
Real-time operation Licensee, to ensure development
generating company, coordinate maintenance of transmission system of an efficient, co-
exercise supervision and control generating station, protection studies ordinated and
Planning for maintaining proper voltages economical ISTS STU
sub-station State Govt.
Power System and any other Consensus on issues related to economy and efficiency
concerned person State1 ISTS lines
Central RPC
MS SRPC shall certify Availability Decisions Govt.
Directions CTU/to provide non-discriminatory Open Access Generating
of transmission system
Will not engage in trading and generation
State2 Companies
State RLDC Prepare Regional Energy Account,
Weekly UI, Reactive & Congestion For LTOA & MTOA nodal agency
RLDC/SLDC/CTU/ CEA Licensees
charge account 66
STU/ Users

Role of CEA
Role of STU
Long-term plan (10-15 years)
will formulate short-term and perspective plans for transmission system
Annual plan (5 year forward term)
STU specify technical standards for construction of electrical plants, electric lines and
CEA CTU
connectivity to the grid
Identification of major
to undertake inter/intra state transmission system inter state/regional lines including
transmission of Planning shall operate system strengthening schemes specify safety requirements for construction, operation and maintenance of
electricity through continuously updated to reflect Planning schemes shall also consider: electrical plants and electrical lines
intra-state transmission load projections and generation scenarios CEAs:
SLDC Long-term perspective plan
system
NEP specify grid standards for operation and maintenance of transmission lines
Electric Power Survey of India report
to ensure development Transmission Planning Criteria and
of an efficient, co- Avoid congestion guidelines
specify conditions for SEMs
ordinated and RPC Feedback
economical intra-state NLDC/RLDC/SLDC feedback Promote and assist timely completion of schemes
CTU
transmission system State Govt. CERC Regulations
Renewable capacity addition (MNRES) To collect and record electrical data- cost, efficiency
Intra-state transmission system
Generating
To carry out investigation ( Electrical system)
RPC
STU/to provide non-discriminatory Open Access Companies Shall Prepare National Electricity Plan (NEP)

Licensees
CEA
68

Institutional Framework Power Sector Institutions (Pre 1990)

Central Power Organization
Institution Functions
GOVERNMENT STATE
OF INDIA GOVERNMENT CEA 1950 Arbitration, Advice, Power Policy
CPRI 1960 Power Engineering Research
Equipment Testing and Certification
DEPT. OF NATIONAL MINISTRY MNES CERC

Regulatory Environment
ATOMIC DEVELOPMENT OF POWER REC 1969 Finance and Planning for Rural Electrification
ENERGY COUNCIL
MOEF 1974 Policy, Legislation
NTPC 1975 Thermal Power Generation
NRB AEC NPC PLANNING DVC THDC PGCIL PFC
COMMISSION BBMB REC NHPC 1975 Hydro Power Generation
PFC 1986 Finance for Power Projects, T&D and Renovation
PGCIL 1989 Regional Grid Monitoring, Transfer of Power,
Transmission Line Construction
CENTRAL NJPC NTPC ENERGY NPTI EMC 1989 Energy Conservation Information,
ELECTRICITY NHPC MANAGEMENT CPRI
AUTHORITY NEEPCO CENTRE Research,Training

8
 Organisation Structure Organisation Structure (contd.) State Power Organization
STATE
MOP in the Union GOI PFC under GOI to assist the various EBs & GOVERNMENT

CEA as the Statutory technical wing of the MOP, GOI, to other organisations in the power sector.
assist in overall planning, coordination & regulation of Department of Energy/Power under various
power development programmes of the country. state goverments. MINISTRY OR
DEPARTMENT OF
SERC
A no. of corporations under GOI to develop and operate SEBs under respective state governments to POWER

power stations which include NTPC, NHPC, NEEPCO take care of generation of thermal and hydro
STATE
ELECTRICITY
etc. power as also transmission & distribution within
INSPECTION
ORGANISATION

REC, a GOI company for assisting the SEBs in the their own states. Some of the state governments
development & programmes of rural electrification. have also set up power generation corporations.
PGCIL, under GOI to establish & maintain HV Professional organisations like CPRI, NPTI,
transmission system and regional load despatch centres. Energy Management Centre, Council of Power STATE STATE PRIVATE
ELECTRICITY ELECTRICITY SECTOR
Utility etc. BOARDS DEPARTMENTS LICENSEES

Main amendments to the Indian

The Indian Electricity Act, 1910
Provided basic framework for electric supply
industry in India.
Growth of the sector through licensees. License
by State Govt.
Provision for license for supply of electricity in a
specified area.
Legal framework for laying down of wires and
other works.
Provisions laying down relationship between
licensee and consumer.
The Electricity (Supply) Act, 1948
Mandated creation of SEBs.
Need for the State to step in (through
SEBs) to extend electrification (so far
limited to cities) across the country.
Electricity Supply Act
Amendment in 1975 to enable generation
in Central sector.
Amendment in 1991 to open generation to
private sector.
Amendment in 1998 to provide for private
sector participation in transmission, and also
provision relating to Transmission Utilities.

The Electricity Regulatory Energy Conservation Act, 2001 Electricity Act 2003
Commission Act, 1998
It is a comprehensive legislation replacing
The Act primarily ensures energy efficiency in
Electricity Act 1910, Electricity Supply Act
consumption & consequently Demand Side
Provision for setting up of Central / State 1948 and Electricity Regulatory Commission
Management (DSM) for reducing need for installing
Electricity Regulatory Commission with Act 1998.
new capacity.
powers to determine tariffs.
Bureau of Energy Efficiency (BEE) has been set up The aim is to push the sector onto a trajectory of
on 1st March, 2002 for formulating norms for sound commercial growth and to enable the States
Constitution of SERC optional for States. and the Centre to move in harmony and coordination.
processes, consumption standards, testing,
certification and labeling procedures etc.
Distancing of Government from tariff The objective is to introduce competition,
determination. protect consumers interests and provide
power for all.

9
 Electricity Act 2003
The Act provides for National Electricity Policy,
Rural Electrification, Open access in
transmission, phased open access in
distribution, mandatory SERCs, license free
generation and distribution, power trading,
mandatory metering and stringent penalties for
theft of electricity
Objectives of National Tariff Policy
Ensure availability of electricity to
consumers at reasonable and competitive
rates
Ensure financial viability of the sector and
attract investments
Promote competition, efficiency in
operations and improvement in quality of
supply
Distribution
Real challenge of reforms lies in the efficient
management of the distribution system.
Private sector participation in distribution to be
encouraged.
Energy Audits, energy accounting and
declaration of results to be made mandatory.
HVDS to be introduced.
Stringent measures against theft of electricity.
Indian Power Sector- Pre and Post EA 2003
Generation
To provide availabilty of over 1000 units of
per capita electricity by 2010, more than
1,00,000 MW wld be required during 2002-
12.
No requirement of licensing for generation.
Techno-economic clearance for thermal
generation project no longer required.For
hydro generation, concurrence of CEA
required only above certain capital
expenditure. Captive generation, freed
from all controls.
Electricity (Amendment) Act, 2007
The Electricity (Amendment) Act, 2007, amending certain
provisions of the Electricity Act, 2003
The main features of the Amendment Act are:
Central Government, jointly with State Governments, to
endeavour to provide access to electricity to all areas including
villages and hamlets through rural electricity infrastructure and
electrification of households.
No License required for sale of electricity from captive units.
Definition of theft expanded to cover use of tampered meters
and use for unauthorized purpose.
Theft made explicitly cognizable and non-bailable.
Deletion of the provision for elimination of cross subsidies. The
provision for reduction of cross subsidies would continue.
Salient features of the National
Electricity Policy
Access to Electricity : Available for all households in next five
years.
Availability of Power : Demand to be fully met by 2012. Energy
and peeking shortages to be overcome and spinning reserve to
be available.
Supply of Reliable and Quality Power of specified standards in
an efficient manner and at reasonable rates.
Per capita availability of electricity to be increased to over 1000
units by 2012.
Financial Turnaround and Commercial Viability of Electricity
Sector.
Protection of consumers' interests.
Transmission
Simultaneous planning of adequate
transmission capacities to avoid mismatch
between generation and transmission
facilities.
Non-disriminatory Open Access in
transmission introduced to promote
competition.
ACCELERATED POWER DEVELOPMENT AND
REFORMS PROGRAMME
The Accelerated Power Development Reforms Programme
(APDRP) was launched in 2002-03 for implementation in
the 10th Plan as additional central assistance to the states
for strengthening and up gradation of sub-transmission and
distribution systems of high-density load centres like towns
and industrial areas.
The main objectives of the programme were to reduce
AT&C loss and to improve quality and reliability of supply.
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 RAJIV GANDHI GRAMEEN VIDYUTIKARAN
Upgradation / Strengthening of sub- YOJANA(RGGVY) OF RURAL ELECTRICITY
transmission and distribution system
INFRASTRUCTURE & HOUSEHOLD ELECTRIFICATION
Launched on 4th April, 2005 for the attainment of the National
Common Minimum Programme (NCMP) goaI for providing
Fix Static meters on all HT and LT access to electricity to all households in the country in five
years.
consumers and high accuracy tamper
Rural Electrification Corporation (REC) is the nodal agency
proof meters for other consumers. for the scheme.
Under the scheme 90% capital subsidy would be provided for
Get Energy audit conducted for all overall cost of the project for provision of:
distribution circles and sub divisions. Rural Electricity Distribution Backbone (REDB) with at least one
33/11 kV (or 66/11kV) substation in each block
Introduce time of the day metering
Village Electrification Infrastructure (VEl) with at least one
for HT and LT consumers. distribution transformer in each village/habitation.
Decentralized Distribution Generation (DDG) Systems where
grid supply is either not feasible or not cost-effective.
Legislative/administrative Initiatives taken by the
Government to improve the health of Power Sector
(recap)
Electricity Regulatory Commissions Act, 1998.
Electricity Laws (Amendment) Act, 1998 to facilitate private
investment in transmission.
Ultra Mega Power Projects (UMPPs)
Setting up of Power Trading Corporation.
Development of merchant power Plants
New Hydel Policy to provide thrust to Hydro capacity addition.
Accelerated Power Development & Reforms Programme
Energy Conservation Act in place
Electricity Bill 2001 tabled in Parliament
Settlement of Outstandings of PSUs with States
Private participation in transmission
Development of transmission projects through competitive
bidding

Power Sector Reforms to Drive Growth Strengths and opportunities in the sector
Strengths and opportunities in the sector
PREVIOUSLY REFORMS GOING FORWARD
(contd.)
Abundant coal reserves (enough to last at least
Losses of SEBs
Irregularity of payment to Suppliers
Settlement of SEBs dues
Rising role of Private Sector
200 years). Emergence of strong and globally comparable
Electricity Act, 2003
Capex planned impacted APDRP (Accelerated Power Development and
Increased project size (Ultra Mega
Generation & Transmission Projects) central utilities (NTPC, POWERGRID,).
Acute Shortage
Vast hydroelectric potential
Reforms Program)

AREP (Accelerated Rural Electrification New technologies

Focus on Generation

Wide outreach of state utilities.

Program)
Thrust on Hydro and Nuclear
T&D Losses Power Trading

Large pool of highly skilled technical personnel.

Impressive power development in absolute
terms (comparable in size to those of Germany
and UK).
Expertise in integrated and coordinated
planning (CEA and Planning Commission).
Enabling framework for private investors.
Well laid out mechanisms for dispute resolution.
Political consensus on reforms.
Potentially, one of the largest power markets in
the world.

POWER SCENARIO IN INDIA

Thank you!

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