Power Sector India

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The Indian Power Industry is one of the largest and most important industries in India as it fulfils the energy requirements of various other industries. It is one of the most critical components of infrastructure that affects economic growth and the well-being of our nation. India has the world’s 5th largest electricity generation capacity and it is the 6th largest energy consumer accounting for 3.4% of global energy consumption. Due to the fast-paced growth of the Indian economy, the country’s energy demand has grown at an average of 3.6% p.a. over the past 30 years. In India, power is generated by State utilities, Central utilities and Private players. The share of installed capacity of power available with each of the three sectors can be seen in the pie-chart below:

As per the latest Report of CEA (Central Electricity Authority) i.e. as on 31-03-2011, the Total Installed Capacity of Power in India is 173626.40 MW. Of this, more than 75% of the installed capacity is with the public sector (state and central), the state sector having the largest share of 48%. 1.Total Installed Capacity: | Power for All by 2012| |

Sector| MW| %age|
State Sector| 83,313.65| 45.88|
Central Sector| 56,572.63| 31.15|
Private Sector| 41,671.84| 22.95|
Total | 1,81,558.12| |
|
|   |

Fuel| MW| %age|
Total Thermal | 118409.48 | 65.21|
                                             Coal| 99,503.38| 54.80|                                              Gas| 17,706.35| 9.75|                                              Oil| 1,199.75| 0.66| Hydro (Renewable)| 38,206.40| 21.04|

Nuclear| 4,780.00| 2.63|
RES** (MNRE)| 20,162.24| 11.10|
Total| 1,81,558.12| 100.00|
Renewable Energy Sources(RES) include SHP, BG, BP, U&I and Wind Energy SHP= Small Hydro Project ,BG= Biomass Gasifier ,BP= Biomass Power, U & I=Urban & Industrial Waste Power, RES=Renewable Energy Sources Working of the Power Industry: -

Thermal Power: - In India, major proportion of power is generated from thermal sources where the main raw material used is coal. Around 83% of thermal power is generated using coal as a raw material whereas 16% of thermal power is generated with the help of Gas and 1% of thermal power is generated with the help of Oil.

Hydro Power: - Hydroelectric power or hydroelectricity is electrical power which is generated through the energy of falling water. India has hydro power generation potential worth 1,50,000 MW, of which only 25 % has been harnessed till date. Nuclear Power: - A Nuclear Power Plant is a thermal power station in which the heat source is one or more nuclear reactors. A nuclear reactor is a device to initiate and control a sustained nuclear chain reaction. In the process, heat is generated which is then used to generate electricity.

Renewable Energy Sources: – The energy obtained from renewable sources like sun, wind, biomass can be converted into power. Renewable energy sources have great potential to contribute to improving energy security of India and reducing green-house gas emissions. India is among the five largest wind power generators in the world. What does the Past Say??…

How has the relationship between India’s economic growth and Power generation growth been? As seen in the graph below, there is a positive correlation between the GDP Growth rate and the growth in Power Generation. As will be seen in the later part of this Shastra, India is currently facing acute shortage of power. The Indian growth story looks positive which will lead to higher economic growth and more demand for power. In order to sustain the growth in GDP, India needs to add power generation capacity commensurate with this pace....
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