Indian Power Sector Analysis

Electricity generation is the process of converting non-electrical energy to electricity. For electric utilities, it is the first process in the delivery of electricity to consumers. The other processes, electric power transmission and electricity distribution, are normally carried out by the electrical power industry. Electricity is most often generated at a power station by electromechanical generators, primarily driven by heat engines fuelled by chemical combustion or nuclear fission but also by other means such as the kinetic energy of flowing water and wind. There are many other technologies that can be and are used to generate electricity such as solar photovoltaics and geothermal power.

World’s leading electricity generation in 2017:

1. China – 6495 (TW-H)
2. USA    – 4282 (TW-H)
3. India –   1497 (TW-H)
4. Russia – 1091.2 (TW-H)
5. Japan – 1020 (TW-H)
6. Canada – 693.40 (TW-H)
7. Germany – 654.20 (TW-H)

India to become world’s first country to use LED’s for all lighting needs by 2019, which saves Rs. 40000 crores on annual basis.

Major Players in Power Sector:

1. NTPC
2. Tata Power
3. Reliance Power
4. CESC Ltd
5. NHPC
6. PFC
7. Adani Power
8. Power Grid Corporation
9. Damodar Valley Corporation
10. SJUN

Sources of Power:

1. Thermal Energy contributes to 64.09% by using Coal, Gas and Diesel.
2. Renewable Energy Contributes to 20.81% by using Wind energy and solar energy.
3. Hydro Energy Contributes to 13.15%.
4. Nuclear Energy contributes to 1.96% and most importantly India have largest reserves of Thorium.

Total Installed Capacity:

Thermal Energy: 221.77 Gw

Renewable Energy: 72.01 Gw

Hydro Power Energy: 45.49 Gw

Nuclear Energy: 6.78 Gw

India has 72.01 Gw of Renewable energy and the target is to achieve 175 Gw by 2022.

Electricity generation recorded at 4.02% (YOY) basis

INVESTMENTS:

PE Investments in Aug 2018 were US $532million

·         Power is one of the key attracting FDI inflows into India.

·         From April 2000 to June 2018, India recorded US $6.84 billion in non-conventional sector

Overall fundamental will remain strong:

–          Demand for electricity is expected to increase at a CAGR of 7% to 1894.7 TW’H over FY07-22

–          Current production levels are not enough to meet demand

–          India is forecasted to be a power surplus country by FY19 with peak power surplus at 2.5%

–          The peak power demand in the country stood at 176.54GW as of Sep 2018.

-By Etikala Ravi Teja (raviteja.etikala@gmail.com)