Analysis of Power Sector in India

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Hydro-power and coal based thermal power have been the main sources of generating electricity in the Indian power sector which has registered significant progress since 1950 when the process of planned development of the economy began. Nuclear power development has been at a slower pace, since its inception in the late sixties. In spite of the overall development in the recent times, the power supply industry has been under constant pressure to bridge the gap between supply and demand.

The Indian Power Sector has always received adequate priority since the process of planned development began in 1950. It has been getting 18-20% of the total Public Sector outlay in initial plan periods.

Total installed Capacity
State Sector71,25055.4
Central Sector43,23133.7
Private sector13,95110.9

Total Thermal84,40065.6

2. High Voltage Transmission Capacity
765/800 KV-2,037
400 KV91,05273,753
220 KV1,52,9671,12,901
(Trans. Dn)

3. Per Capita Consumption of Electricity:
606 KWH/Year
(Pl. Dn.)

4. Rural Electrification:
No. of Villages (Census 1991)5,95,732

Villages Electrified4,471,360
30th May 2006.

Electrification % age79.40%

Rural Households (Census 2001)1,38,271,559

Having access60,180,685

Electrification % age44%

Power Situation (April 2006-January 2007)

Energy5,72,812 MU5,19,656 MU-9.30%

Peak Demand1,00,403 MW86,425 MW-13.90%

Structure of power supply industry

In December 1950 about 63% of the installed capacity in the Utilities was in the private sector and about 37% was in the public sector. The Electricity (Supply) Act, 1948, proposed creation of State Electricity Boards (SEBs) for planning and implementing the power development programs in their respective States.

GOI formed Electricity Regulatory Commission Act, 1998 for setting up of Independent Regulatory bodies both at the Central level and at the State level. The Central Electricity Regulatory Commission (CERC) at the Central level and the State Electricity Regulatory Commission (SERCs) at the State level.

|Policy |
|Plan |
|Regulations |
|Generation |
|Transmission |
|System Operation |
|Distribution |
|Trading |
|Appeal |

Many more amendments in electricity Act were introduced in 2003. Various provisions provided in the Electricity Act 2003 are as follows:

Open access allowed in transmission: The transmission sector was opened up to private investment through the grant of a license by an appropriate authority. Power can be moved to the end-use destination (captive use) without the payment of any surcharge by a captive generation unit. Central Transmission Utility (CTU) has responsibility of planning, co-ordination and development of transmission systems at inter-state levels, whereas state transmission utilities (STU) will control the inter-state transmission of electricity The formation of a National Load Dispatch Centre (NLDC) at the national level is for optimum scheduling and dispatch of electricity between Regional Load Dispatch Centres (RLDCs).

RLDCs are meant to monitor grid operations, monitor the quantity of electricity transmitted through the regional grid and exercise supervision and control of the inter-state transmission system

The respective state governments have to establish state load dispatch centres (SLDCs), which will be responsible for optimum scheduling, dispatch of electricity and real time operations to...
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