Indian Power Sector

Research report by 'RR Financial Consultants'
     
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India has the fifth largest electricity generation capacity in the world. Transmission & Distribution network of 6.6 million circuit km - the third largest in the world. CAGR of 5% over the last 5 years


Coal fired plants constitute 54% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 8% from renewable sources.


Per capita consumption of electrical power in India is still far behind that of developed countries, India’s per capita is at 347 kWh, while that of developed countries is in the region of more than 10,000 kWh. Total investment opportunity in the sector by the end of 2012 is US $150 billion


Rapid economic growth has increased the burden on India’s Infrastructure, one of the country’s weak spots. An Infrastructure deficit is widely considered to be one of the factors that could severely hamper India’s economy growth. In the past few years, policy makers have recognized this and have made concerted efforts to accelerate infrastructure development. Much progress is evident in sectors like Telecommunications, road, transport. But the power sector continues to lag behind despite the introduction of progressive measures. Shortages, tariffs and dependency on imported fuels are on the rise, while the poor health of distribution continues to inhibit the inflow of

investments. Unless the changes, India’s economic growth will be at risk and India’s power demand is likely to cross 300 GW, in the next 10 years according to an estimate. Meeting this demand requires a fivefold to tenfold increase in the pace of capacity addition .The profile of planned capacities will also need to be suitably modified to fulfill peak demand , keep emissions on check , reduce dependence on imported fuels and provide affordable power.


   
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