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1 February 12,2013
Tushar PandeySenior President and Country Head
Public and Social Policies Management Group
MANAGING POWER Smart Governance through Technology
2
Power Sector in India, is the fourth
largest in the world
Power Sector in India
India requires a Robust transmission and distribution (T&D) network to increase evacuation capacity and
coverage , prevent cascading failures and transmission losses.
India loses $68 billion, or about Rs 4,14,800 crore of its Gross Domestic Product due to electricity shortage.
Per-capita consumption of electricity in India is only about one-fourth of the world average and 404 million people in India do not have access to electricity
Existing grids are constrained and under pressure to deliver the growing demands for power, along with providing stable and sustainable supply of electricity.
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FUEL GENERATIONTRANSMISSIO
N DISTRIBUTION
& SUPPLY
68%
17%
2% 12%
Energy Generation MW
Thermal Power Hydro (Renewable) NuclearRES** (MNRE)
59%
9%
1%
India’s energy basket indicates heavy dependence on thermal power for production of electricity.
GENERATION CAPACITY - 2,36,387MW,
•India accounts for 4.4% of global energy consumption.
•Energy and peak availability shortage is 8.7% and 9%, respectively
Power Sector in India
(AT&C) LOSSES were 26.1which is HIGHEST when compared against largest power producing countries such as China, Japan , US and Russian Federation
•Only 67% of households in India have electricity connection
•45% of rural households do not have electricity connection
DEMAND - 89 GW (12TH FYP)
Electric power transmission and distribution losses
WEAKEST LINK IN THE INDIAN POWER SECTOR
Source: Ministry of Power, GOI Source: World Bank data
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Smart Grid: Catalyst for Change
Improving the country’s energy security by reducing reliance on imported fossil fuels
Bring in economies of scale to support large projects as compared to smaller stand-alone renewable energy projects
Energy accounting and settlements
Smart Meters
Demand Side Management
Green Buildings
Administering green energy certificates mechanisms
IMPACT
•Reduced impact on environment•Balance renewable – integrating VRE
Defer capital expenditures
A smart grid is an electrical grid with automation, communication and IT systems that can monitor power flows from points of generation to points of consumption (even down to the appliances level) and control the power flow or curtail the load to match generation in real time or near real-time.
Meet fast-growing energy needs in a sustainable manner
CAPACITYMeeting the
growing demands for electricity-
Demand response management
system
RELIABLE NETWORK
Monitor grid stability
EFFICIENCY
Augmenting electricity supply on both new as well as existing
systems
SUSTAINABILITY
Integration of renewable power
sources
• Emergency Capacity• Prevent load
Shedding and grid failure
•Increase capacity of existing infra •Leverages SMART GRID’s nationwide transmission •Infrastructure for telecom
Real time Grid Operation and Management
Facilitate power evacuation
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Smart Grid Implementation
Greenfield Cities DMIC
24 new SMART CITIES
Industrial Parks• 11 investment
regions • 13 industrial
areas
Agro-Processing Zones
Supporting Infra – Rail, Airports, Logistics Facilities, Road
Brown-field ImplementationsImplement through PPP mechanism tailored to each setup BOOT , Concession, VGF etc.
Generate- • Economic activity, Employment •Demand for Power - Total Power Requirement for DMIC corridor is1,700 MW. The composition is as follows:
• Industrial: 1000MW• Social: 600MW• Mixed: 100MWImplementSMART GRID INFRA to provide reliable supply of power, thereby, improving the economics of operation,encouraging investment and fostering economic growth.
GoI Initiative:
SMART GRID - 14 pilot projects have been approved by the government.
Implemented National Grid
Restructured-Accelerated Power Development and ReformProgram (R-APDRP)
Green Corridor
Various missions aimed at promoting growth of RE
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Current Policy Framework
Ministry of Power formulates the policy structure and takes decisions pertaining to investments in power projects.• Electricity Act, 2003 governs the sector• National Smart Grid Mission• Restructured-Accelerated Power
Development and Reform Program (R-APDRP)
State Electricity Boards own and operate state grid and distribution network
Power Grid Corporation of India Limited (PGCIL) owns and operates inter-regional and inter-state transmission lines, facilitating transfer of power from surplus to deficit regions.
Private Sector – distribution and power generation
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Challenges faced by the Power Sector
Timely implementation of projects• Difficulty in obtaining clearance s• Difficulty in acquiring land
Power Tariff regulation
Regulatory Disputes between center and state
• Poor grid discipline
Poor infrastructure – poor evacuation and transmission of power
Pilferage and high AT&C losses
More investment in transmission sector is required
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Suggestions
Standardization of the process for award of projects, within specific time-frame.
Single window clearance for Power projects
Frame Antitheft legislation to minimize AT&C losses
Set up regulatory body to minimize project delays due to disputes
Rationalize power tariff to facilitate ‘open access’ and approvals for the same
Establish Demand Response Management
Clear policy framework defining roles and responsibility of both Center and State
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Financing
• The Twelfth Plan (2012 - 2017) estimates a total investment of INR 95 BN in developing Smart Grid infrastructure.
50 bn Grants
through government
45 bnPrivate Sector
Service
Contract
Management Contra
ct
Leases
Concession BOT
BOO divestiture
Public
Provider
Investment
Government
Private
Enabler
Spectrum of Public Private Partnership Options
operational efficiencies
innovative technologies
managerial effectiveness
access to additional finances
construction and
commercial risk sharing
• Foster private sector participation:
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Way Forward
Smart Grid Investment Fostering PPP
Removing entry barriers for smart grid solution providers
Encourage private sector to set up power projects of any size to increase investments and incentive for renovation of existing power plants
Ease out legal process by setting up arbitration cell
Formulate standard agreement for commissioning power projects
Un-bundling or SEBs to bring in transparency, accountability and better management
VGF for promoting private sector to take up projects.
Bring PPP approvals under the RTI
Market Estimated Investment (US$ million) 2015
Software and Hardware
339
Smart Meters 446
Sensors 2236
Comm &wireless
289
Smart and T&D equip
392
Source: ZPRYME
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Way Forward
Coordination between various states and center on policy issues and implementation is required to ensure seamless integration of Smart Grid technologies across the country and facilitate stakeholder participation.
Private sector participation would bring efficiency in operations and minimize losses.
Suitable measures to augment financial
resources facilitating integration of smart and micro grid needs to be established. Framing and enforcing anti-theft legislation and legal system for speedy resolution of disputes would foster private sector participation in the distribution sector
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Way Forward
Stakeholder collaboration
India has a large pool of professionals and experts in the IT and telecom sector which can be leveraged for development of smart and micro grids.
Establishing collaborative community models and fostering empowered consumer base would make way for sustainable power infrastructure.
Human Resource Development
Smart Grids enable the more sophisticated use of the electricity system requiring development of Skill development and Training infrastructure.
12th FYP envisages a capacity addition of about 1,00,000 MW (including renewable) requiring a work force of the order of 4 lakh out of which nearly 3 lakh will be technical.
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Social Equity
Local Community
Contribute Land
Transmission lines
NGOFacilitating synergetic partnerships
Promoter (Entrepreneur/s or
Company)
Government
Knowledge Bank
Private Sector Efficiency
Facilitating Land Acquisition
Structure Social Equity Advisory and PPP implementation Equity in
ProjectEmployment Empowerment
1. Social Equity • Transmission projects face delay due to inability to
acquire land• Social Equity Model can facilitate timely
implementation of projects by partnering with local community , ensuring their support and equity in project.
2. Community Energy Partnership Program (Ontario, Canada)
Ontario’s FIT (Feed In Tariff ) program provides guaranteed purchase of all of the power supplied by renewable energy projects for 20 years (40 years for waterpower) at a fixed price that is high enough to generate a reasonable rate of return.
3. Industries and commercial establishments in Tamil Nadu are letting out their lands or rooftops in return for cheaper solar power.
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Alternate Financing Mechanism Plan
Kerosene /other fuel sources
Govt. Subsidy
Frame plan to study towards establishing financial viability of smart grid
Increase coverage and Consumer Base
Installing Renewable Energy sources should qualify as PSL
Utilize M-commerce industry for power sector
Branch Correspondents to provide due diligence of co-operative for
implementing micro-grid projects
Study Incremental Benefit- understanding Smart Grid Value Chain
404 million people in India do not have access to electricity
Meet energy need
Emissions SMART GRID
Offset cost –
Reduce AT & C losses
Integrate Renewable Sources and hence reduce environment impact
Reduce dependence on fossil fuels and their imports
POWER FOR ALL
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YES BANK Limited
Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021 Tel: + 91 11 6656 9000; Fax: +91 11 4168 0144
Public and Social Policies Management (PSPM)GroupTushar Pandey, Senior President & Country HeadNorthern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021 Tel: + 91 11 6656 9056; [email protected]
About YES BANK
YES BANK, India’s new age private sector Bank, is the outcome of the professional commitment of top management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the “Future Industries of India”. YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail and wealth management clients.
YES BANK is steadily building Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate Finance, Business (SME) and Transactional Banking, Retail Banking and Wealth Management business lines across the country. YES BANK has institutionalized YES International Banking that offers a complete suite of international banking products and services, driven by state-of-the-art technology, which includes Debt, Trade Finance, Corporate Finance, Investment Banking and Business Advisory Services, Treasury and Global Indian Banking. The Bank’s constant endeavor is to provide a delightful banking experience expressed with simplicity, empathy and totality.
Contacts
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Disclaimer
YES BANK LimitedRegistered & Corporate Office: Nehru Centre, 9th Floor, Discovery of India, Worli, Mumbai 400018 Tel: + 91 22 6669 9000; Fax: + 91 22 6669 9018
Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021 Tel: + 91 11 6656 9000; Fax: +91 11 4168 0144
Disclaimer
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements", and future developments and the competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or disseminated in any manner.