13th October 2008 Indian Power Sector

7/31/2019 13th October 2008 Indian Power Sector

1/98

INDIAN POWER SECTOR

SCENARIO-Charu Kheman

Sr. Manager

(Corporate Planning

13th October 2008


2/98


3/98

Economic Scenario

Indian Economy on a growth path , broad consensus exists on economic

reforms

. %44

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. %44. %99

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FY 44 FY 44 FY99 FY 44 FY99 FY 44 FY99

GDP Growth

Source: Economic Survey and RBI


4/98

Economic Scenario

Power intensity (GW / GDP) is related to the dominating sector growth

India - 55% contribution to GDP byService Sector

China 49% contribution to GDP byManufacturing

Japan 57% contribution to GDP byService Sector


5/98

4444 9999 4444 9999

Source: Integrated Energy Policy GOI

132 GW220 GW

425 GW

778 GW

Large Capacity addition required to meet the demand

Projected Capacity Requirement


6/98


7/98

Under the VIIth Schedule of the Indian Constitution, the power

sector is on the concurrent list

LegislativeLegislative

functionfunction

ExecutiveExecutive

FunctionFunctionExecutionExecution

Centre

States

ParliamentParliamentMOP,MOP,

GOIGOICentral PSEsCentral PSEs

StateState

AssembliesAssembliesState Govts.State Govts.

SEBs/StateSEBs/State

UtilitiesUtilities

/IPPs/Lic./IPPs/Lic.

Regulatory

Function

CERC

SERCs

CEACEA

BEEBEE


8/98

Central, State and Private utilities have a complementary role fo

optimal development of power sector in India.

Under MOP: NTPC, NHPC, NEEPCO,DVC,BBMB

Other Ministries: NLC, NPCCentral

State

Joint

Private

SEBs/State Gencos

NJPC, THDC, NHDC

IPPs, Licensees (CESC, BSES, AEC)

TransmissionCTU-Power GridCentral

State STUs- SEBs/State TRANSCOs

Transmission

Distribution

Generation

State STUs- SEBs/State Discoms (Major player)

Private Pvt Discoms and Licensees

Distribution

Power Trading: PTC, NVVNL Financing: PFC, REC


9/98

INDIAN POWER SECTOR - EVOLUTIONINDIAN POWER SECTOR - EVOLUTION


10/98

One time settlement scheme for outstanding dues of CPSUs

National Electricity Policy -2005

Tariff Policy 2006

Integrated Energy Policy 2006

New Hydro Policy 2008

Accelerated Power Development and Reforms Programme - APDRP

Rural Electrification RGGVY

National Mission for Enhanced Energy Efficiency under National ActionPlan for Climate Change

Legislative/administrative Initiatives taken by theGovernment to improve the health of Power Sector.Legislative/administrative Initiatives taken by the

Government to improve the health of Power Sector.


11/98

ELECTRICITY ACT 2003ELECTRICITY ACT 2003


12/98

Role of Government

Central Government to prepare (Section3) -

National Electricity Policy; andTariff Policy

Policy on development of non-

conventional energy sources.Rural Electrification


13/98

Generation free from licensing. (Section 7)

Requirement of TEC for non-hydro generation done away

with. (Section 7)

Captive Generation is free from controls. Open access to

Captive generating plants subject to availability of

transmission facility. (Section 9)

Clearance of CEA for hydro projects required. Necessary

due to concern of dam safety and inter-State issues.

(Section 8)

Generation from Non-Conventional Sources / Co-generation to be promoted. Minimum percentage of

purchase of power from renewables may be prescribed by

Regulatory Commissions. (Section 61(h),86 (1) (e))

Generation


14/98

There would be Transmission Utility at the Centre and in the States to

undertake planning & development of transmission system. (Sections

38 & 39)

Load despatch to be in the hands of a govt company/organisation.

Flexibility regarding keeping Transmission Utility and load despatch

together or separating them. Load Despatch function critical for grid

stability and neutrality vis a vis generators and distributors.

Instructions to be binding on both. (Sections 26, 27,31, 38, 39)

Private transmission companies to be licensed by the Appropriate

Commission after giving due consideration to the views of the

Transmission Utility. (Sections 15 (5) (b))

The Load Despatch Centre/Transmission Utility / Transmission

Licensee not to trade in power. Facilitating genuine competition

between generators. (Sections 27, 31, 38, 39,41)

Transmission


15/98

Distribution to be licensed by SERCs. Distribution licensee free to take up generation &

Generating co. free to take up distribution license .This would facilitate private sector participationwithout Government guarantee/ Escrow. (Sections ,4

)44

Retai l tariff to be determined by the RegulatoryCommission. (Section )44

Metering made mandatory. (Section )44

Provision for suspension/revocation of licence byRegulatory Commission as it is an essential servicewhich can not be allowed to collapse. (Section s ,99

)99

Distribution


16/98

Open access to the transmission lines to be provided to

distribution licensees, generating companies. (Sections38-40) This would generate competitive pressures and lead to

gradual cost reduction.

Open access in distribution to be allowed by SERC in phases.(Sections 42)

In addition to the wheeling charges provision for surcharge ifopen access is allowed before elimination of cross subsidies,to take care of

a)Current level of cross subsidy

b)Licensees obligation to supply.(Section 42) This would give choice to customer.

Open Access

Trading/ Market development


17/98

Trading distinct activity permitted withlicencing. (Section )44

Regulatory Commission may fix ceiling on

trading margin to avoid artificial price volatility.

(Sections ( ) (b) & ( ) (b))444 444

The Regulatory Commission to promote

development of market including trading.

(Section )44

Trading/ Market development


18/98

Regulatory Commissions/Appellate Tribunal

State Electricity Regulatory Commission to be constituted withinsix months. (Section 82)

Provision for Joint Commission by more than one State/UT(Section 83)

Provision for constitution of Appellate Tribunal consisting ofChairman and three Members. (Section 110, 112)

Appellate Tribunal to hear appeals against the orders oCERC/SERC, and also to exercise general supervision and controover the Central/State Commissions. (Section 111)

Appeal against the orders of Appellate Tribunal to lie before theSupreme Court. (Section 125)

Appellate Tribunal considered necessary to-

Reduce litigation and delay in decisions through High Court.

Provide technical expertise in decision on appeals.


19/98

CEA to continue as the main technical Advisor of the

Govt. of India/ State Governments with the

responsibility of overall planning. (Section 70)

CEA to specify the technical standards for electricalplants and electrical lines. (Section 73)

CEA to be technical adviser to CERC as well as SERCs.

(Section 73)

CEA tospecify the safety standards. (Section 53)

Central Electricity Authority


20/98

Tariff Principles

Regulatory Commission to determine tariff for supply of electricity by

generating co. on long/medium term contracts.(Section 62)

No tariff fixation by regulatory commission if tariff is determined through

competitive bidding or where consumers, on being allowed open access

enter into agreement with generators/traders.

Consumer tariff should progressively reduce cross subsidies and move

towards actual cost of supply. (Section 61 (g))

State Government may provide subsidy in advance through the budget

for specified target groups if it requires the tariff to be lower than that

determined by the Regulatory Commission. (Section 65)

Regulatory Commission to look at the costs of generation, transmission

and distribution separately.(Section 62 (2))


21/98

Total Village Electrification in 5 years.

By year 2012 : Per capita availability 1000 units.

Installed capacity over 200,000 MW.

Spinning reserves 5% .

Minimum lifeline consumption of one unit per household

per day.

Inter-regional transmission capacity 37,000 MW. Quality and reliable power supply.

National Electricity Policy

T iff P li


22/98

Tariff Policy

Tariff of all Generation and Transmission Projects in Private Sector

through Competitive route - Public sector to complete transition in five

years.

Reduction of cross subsidy to (+)(-) 20% in next five years.

Emphasis on facilitating Open Access in Distribution; clear formulation

on cross subsidy surcharge.

Transmission Tariff framework sensitive to distance and direction.

Strict Implementation of Performance Standards. Agriculture Tariff to leverage sustainable use of Ground Water

Resources.


23/98

23

Salient Feature of Hydro Policy 2008

1. Exemption from tariff based bidding up to January 2011 extendedto private players provided they obtain CEA concurrence, sign

PPA and get Financial Closure by January 2011

2. States to follow transparent procedure for awarding potential site

to the private players.

3. Developer to follow ICB process for award of contract for supplyof equipment and construction of the project.

4. The tariff of the project be decided by the appropriate Regulatory

Commission. However, the cost incurred by the developer for

getting the site allotted shall not be part of the project cost.

5. To recover the cost for getting the project allotted, the developewould be allowed merchant sales up to 40% of the saleable

energy.


24/98

24


6. For this dispensation the requirement is obtaining concurrence

from CEA / States, all clearances, financial closure and award ofwork to be over by January 2011 and completion of project

within 4 years thereafter.

7. The delay in commissioning of project by every six months

would result in reduction of merchant sales by 5%.

8. Any extension beyond January 2011 if made to CPSUs shall alsobe applicable to private players.

9. Large storage projects and run-of-the-river projects above 500

MW capacity could be given suitable increase in construction

time by appropriate regulator.

10.An additional 1% free power beyond the 12% at present would be

earmarked for Local Area Development Fund for regular stream

of revenue for welfare schemes sustained over the life of the

project.

S li F f H d P li 2008


25/98

25


11. It has been recommended to the State Government to contribute 1% from

the free power they obtain as contribution towards this fund.12. From commissioning of the project 100 units of electricity per month would

be provided by the developer to each project affected family through

relevant distribution company.

13. 12% Free Power plus 1% power for LAD Fund would be allowed for tarif

determination, however, any power beyond 13% would be met by the

developer and would not be pass through. The cost of unused electricitycould be made available to PAF in cash / kind at rates to be determined by

SERC.

14. The project authorities would involve in RGGVY implementation within

certain radius ( Up to 100 MW: 2Kms, 100-250 MW: 5 Kms, 250-500 MW: 7.5

Kms and above 500 MW:10Kms) and bear the 10% share of states as

(RGGVY scheme are given 90% grant and 10% loan)

15. The R&R package can be more liberal than National R&R Policy 2007.

16. Soft loans to the projects up to 25 MW for accelerated development of smal

Hydel projects.

Accelerated Power Development and Reforms


26/98

Accelerated Power Development and Reforms

Program (APDRP)

Distribution is the key segment of theelectricity chain. APDRP was launched to assist State

utilities to reduce the sub transmits &Distribution losses.

The restructured APDRP scheme has beenapproved by GOI to further improve the

distribution sector.

R l El t ifi ti


27/98

Rural Electrification

GOI launched Rajiv Gandhi GraminViduytikaran Yojana (RGGVY) in 2005 to

provide electricity access to all rural

households.

RGGVY subsidizes the capital cost by 90%

through GOI grants.

Energy Efficiency High Priority


28/98

Energy Efficiency High Priority

Bureau of Energy Efficiency (BEE) has been created

Standards and Labeling of appliances.

Energy Conservation Building Code (ECBC)

Energy conservation norms for industry and

performance standards for equipment

Public awareness campaign launched.

Greater thrust by way of National Mission on

Enhanced Energy Efficiency

Growth of installed capacity in India


29/98

Growth of installed capacity in India

4444 9999 4444

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4444 9999 9999 4444 4444 9999 4444 4444 4444 J ul-44

(Figures in MW)

NTPC starts

adding capacity in

1982

Excluding 19509 MW Captive Generating Capacity ( As on 31.3.07) connected to Grid

Growth of installed capacity India vs China


30/98

Growth of installed capacity India vs. China

4444 9999 4444

99999 44444

99999

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999999

444444

444444

4444 9999 9999 4444 4444 9999 4444 4444 4444 Jul- 44

(Figures in MW)

All India Thermal Plant Load Factor


31/98

All India Thermal Plant Load Factor

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%

Power Infrastructure in India


32/98

Fuel wise break-up (MW)

(Excluding captive capacity of 19509 MW connected to grid)

Thermal 93115 64.0%

Coal77199 53.0%

Gas14716 10.1%

Diesel1200 0.8%

Hydro 36159 24.8%

Nuclear 4,120 2.8%

Renewable 12195 8.4%

TOTAL 145588 100.0%

Sector wise break-up (MW)

State

Sector

%44

Private

Sector

%44

Central

Sector

%44

Total generation in 2007-08 704.45

BU(Source-CEA)

Power Infrastructure in India

Adverse Generation Mix


33/98

Peak ShortagesPeak Shortages

System Unreliability/Grid InstabilitySystem Unreliability/Grid Instability

Frequency ExcursionsFrequency Excursions

Fast Depleting Fossil FuelFast Depleting Fossil Fuel

Environmental Issues : COEnvironmental Issues : CO22 EmissionsEmissions

Frequency Variation Damages ThermalFrequency Variation Damages ThermalTurbine Parts And Electrical AppliancesTurbine Parts And Electrical Appliances

Adverse Generation Mix

A deficit scenario persists


34/98

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REQUIREMENT AVAILABILITY

7.8%7.5%

8.8%7.1%

7.3%

8.3%

9.6%

DURING 2007-08, PEAKING SHORTAGES WERE 16.6%

9.8%Million Units

A deficit scenario persists

DEMAND - SUPPLY


35/98

RegionRegion APRIL 2008 JULY 2008APRIL 2008 JULY 2008

Requir-Requir-ementement Avail-Avail-abilityability Surplus/Surplus/Deficit (-)Deficit (-) PeakPeakDemandDemand PeakPeakMetMet Surplus/Surplus/Deficit (-)Deficit (-)

(MU)(MU) (MU)(MU) (MU) (%)(MU) (%) (MW)(MW) (MW)(MW) (MW) (%)(MW) (%)

NorthernNorthern 7128971289 6462464624 -6665 / (-9.3)-6665 / (-9.3) 3261632616 2941629416 -3200 (-9.8)-3200 (-9.8)

WesternWestern 8410884108 7034170341 -13767 (-16.4)-13767 (-16.4) 3717137171 2763427634 -9537 (-25.7)-9537 (-25.7)

SouthernSouthern 6795967959 6401164011 -3948 (-5.8)-3948 (-5.8) 2664026640 2503525035 -1605 (-6.0)-1605 (-6.0)

EasternEastern 2741827418 2586125861 -1557 (-5.7)-1557 (-5.7) 1165511655 1075010750 -905 (-7.8)-905 (-7.8)

North-North-

EasternEastern

31503150 26812681 -469 (-14.9)-469 (-14.9) 17441744 13431343 -401 (-23.0)-401 (-23.0)

All IndiaAll India 253924253924 227518227518 -26406 (-10.4)-26406 (-10.4) 106922106922 9136391363 -15559-15559(-14.6)(-14.6)

DEMAND - SUPPLY

Per Capita Consumption of Electricity


36/98

Per Capita Consumption of Electricity

.4444999 .9999

.9999.4444

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As per U.N. Methodology

NATIONAL ELECTRICITY POLICY TARGETS PER CAPITA

AVAILABILITY OF 1000 KWH BY 2012

Kwh

Restructuring the SEBs


37/98

Restructuring the SEBs

A vertically integrated entity

responsible for all the activities thereby

leading to hidden inefficiencies across

the chain

SEB

Generation Transmission Distribution Generation Transmission Distribution

3 separate corporate entities withprivate participation

Setting up of National Grid


38/98


Objectives: Enable transfer of power from surplus todeficit regions.

Enable optimal development and utilizationof power potential through coal and hydroresources.

Improve economy, reliability and quality of

power supply.



39/98

,4444

,444,9999

,4444

March '9 9 Dec.'44 March '4 4 March '44

Cumulative Inter Regional Transfer Capability (MW)

1

g p

Present : 16950 MW

DOMESTIC FUEL CONCENTRATION


40/98

LIGNITE

COAL

LIGNITE

HBJline

CBM

NAT.GAS

KOLKATA

CHENNAI

MUMBAI

Coal is the only proven source of domesticfuel for long term power generation

Coal is the only proven source of domesticfuel for long term power generation


41/98

fuel for long term power generationfuel for long term power generation

COAL

Proven reserves : 97.92 Billion Tonne

LIGNITE

Proven reserves : 4.5 Billion Tonnes

78% domestic Production is used for Power Generation

Coal is going to be the main stay of power generation in the

country for at least next 25-30 years

Natural Gas

Proven Reserves : 1100 BCM

Nuclear EnergyNuclear Energy


42/98

gygy

Reserve ElectricityPotential

GWe-yrUranium-MetalUranium-Metal 61,000 -T61,000 -T

- In PHWR- In PHWR 320320

- In Fast- In Fast

BreedersBreeders

42,00042,000

Thorium-MetalThorium-Metal(In Breeders)(In Breeders)

2,25,000 T2,25,000 T 155,000155,000

HYDRO POTENTIAL


43/98

O O

Ranking Study

Potentialassessed

(845 Schemes)

Ranking Study

of un-harnessed399 schemes

Hydro Initiative

(162 schemes) 50,000 MW

107,000 MW

150,000 MW

The largest potential estimated is 37.91% in the North EasternRegion followed by 35.88% in the Northern Region.

Stepping up Nuclear Generation


44/98

Nuclear power is favored in the context of

energy security and the absence ofGreenhouse Gas emissions.

The present nuclear capacity is 4120 MW

and accounts for only 2.8 per cent of theinstalled capacity. 3160 MW is underconstruction.

The Vision 2020 of the Department of

Atomic Energy envisages a cumulativeinstalled capacity of 20,000 MW by the year2020.

pp g p

Renewable Energy


45/98

Renewable Energy

A viable option to achieve sustainable development.

India has abundant renewable energy sources suchas sun, wind, biomass, small hydro etc.

Wind Power

The gross potential of the wind power sector has been assessed

as 45,000 MW. The technical potential at 20 per cent gridpenetration is estimated at 13,000 MW.

Solar Power

India has one of the highest insolation in the world & has huge

potential for solar power generation by way of Solar

Photovoltaic and solar thermal.

Solar Energy


46/98

INDIAS SOLAR INSOLATION IS AMONGST THE HIGHIEST IN THE WOLRD

1700-1900

1500 - 1600

1200 - 1400

1000 - 1200

900 - 1000

INDIA, US

SPAIN, ITALY

AUSTRALIA

CHINA

JAPAN

GERMANY

Specific annual solar energy yield Kwh / Kwp

S gy

Demand Side Management


47/98

There has been over emphasis on the supply side managementso far in India. However, in order to minimize the overalrequirement and cost of power, Demand Side Management(DSM) needs to be pursued.

The Planning Commission has estimated over 25,000 MWequivalent of capacity creation through end-use energyefficiency in different sectors of the economy.

Energy efficiency combined with load management and shiftingof load from peak to off-peak period, the overall benefit could bemuch more significant.

Given huge potential of energy efficiency and DSM, the

government have enacted Energy Conservation Act and set upBureau of Energy Efficiency for Rapid penetration of energyefficiency and DSM in the economy and the power systemrespectively.

g

STRENGTHS AND OPPORTUNITIES


48/98

Abundant coal reserves (enough to last at least 200

years) Vast hydro-electric potential (150,000 MW out of

which only 18 per cent has so far been tapped)

A large pool of highly skilled technical personnel.

Emergence of strong and globally comparable

central utilities like NTPC.

Political consensus on reforms.

Potentially one of the largest power markets in theworld

Plan-wise Capacity Addition


49/98

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Capacity Addition Target

Achievement

Learning from 10th Plan


50/98

50

The major reasons for slippages in the 10th Plan Projects are:1. Delay in supplies / erection by suppliers / contractors.

1. Delay in award of works mainly in state sector

2. Projects not taken up / Escrow cover not given / financial closure notachieved / funds not tied up

3. Delay in clearances / investment decisions (Hydro Projects)

1. Delay in tie-up of Super Critical Technology

2. Non-availability of Gas

3. Hydro Projects delay in environmental clearances, geological surprisesnatural calamities, R&R issues

Original Target - 41110 MW

Actual Addition - 21180 MW

(Central 13005 MW, State 6245 MW, Private 1930 MW)

Constraints being faced by Power Sector


51/98

51

Limitations in Project Management Capabilities.

Timely availability of raw materials like CRGO, Copper, specia

piping materials and inputs such as turbine forgings.

Limited vendors for Balance of Plant equipment.

Availability of adequate number of young and talented

manpower in Power Sector.

Availability of gas at reasonable prices.

Inadequate domestic testing facilities for transformers i.e. open

circuit tests.

11th Plan Capacity Addition Fuel-wise


52/98

Thermal

%44

Hydro%44

Nuclear

%4

THERMAL HYDRO NUCLEAR TOTAL

59693 15627 3380 78700

MW

11th Plan Capacity Addition Sector-wise


53/98

Central

%44

State

%44

Private%44

CENTRAL STATE PRIVATE TOTAL

36874 26783 15043 78700

MW

The Challenges


54/98

54

Areas which could affect target achievement:

1. Power Plant Equipment

2. Timely and Adequate Supply of Key input

materials including Fuel

3. Technology

4. Construction and Erection Agencies

5. Infrastructure development

6. Manpower training and development

7. Financial Resources

Power Plant Equipment


55/98

55

1. Need to substantially augment equipment manufacturing.

2. Outsourcing of equipment manufacturing on system basis

to ancillary units.

3. The supplier and construction agency for the project should

be monitored in terms of MW Commissioned.

4. More suppliers for Balance of Plant equipment are

essential.

5. Plant wise plans for hiring various construction equipmentlike Crane etc.

6. New infrastructure leasing arm could be set up.

Key Input Materials


56/98

56

1.Shortage of Special materials such as CRGO steel,

castings and forgings for Turbine Generators due

to international demand.

2. Indigenous manufacturing capacity of CRGO

should be created at the earliest.

3.Advance procurement of the material

4.Adequate fuel availability

Technology


57/98

57

1.Need to set up efficient power plants in terms of

conversion and environment.

2.Transfer and indigenization of super criticaltechnology.

Construction & Erection Agencies


58/98

58

More construction and erection agencies

to be attracted to the power sector.

Infrastructure Development


59/98

59

1.Adequate rail network for coal movement.

2.Development of new rail links; the Railways

connectivity with Ports.

3.Augmentation of Port capacity

4.Widening / strengthening of roads for timely / safe

transportation of equipment sites.

Manpower Training and Development


60/98

60

1. Shortage of skilled Engineers andManagers.

2. Skilled manpower for HP Welding,

Aluminum Welding, Cable jointing, CraneOperation etc.

3. Training facilities for Engineers, Projects

Managers and other skilled manpower.

Funds Requirement


61/98

61

During 11th Plan estimated to be Rs. 10,31,600 crores with following break up:

Particulars Funds requirement(Rs. Crores)

Generation (including Nuclear) 4,10,896

R&M 15,875

Transmission 1,40,000Distribution including RuralElectrification

2,87,000

Non-Conventional / Captive 1,15,500

Merchant Plants 40,000Total 10,09,271

Source: CEARs. 22,329 Crores required for Distributed Generation, HRD,

R&D & Demand Side Management

HIGHER EFFICIENCY UNITS


62/98

Sub - critical units Super - critical units

Old Recent

Unit Size 500 MW 500 MW 660 MW 660 MW

MS Pressure kg/cm2 170 170 247 247

MS Steam Temp(O C) 537 537 537 565

RH Steam Temp(O C) 537 565 565 593

Gross Efficiency (HHV) % 38.00 38.26 38.84 39.96

Plant Turbine Heat Rate CO2 Emission / MW SO2 Emission / MW

500 MW

(170 bar/537 C/537 C)

BASE BASE BASE

660 MW

(246 bar/537 C/565 C)

2.6% 2.6 % 2.6 %

660 MW

(246 bar/565 C/593 C)

5.1% 5.1 % 5.1 %

Higher Size Units of 800 MW with Super / Ultra Super Critical Technologies

Ultra Mega Power Projects (UMPP) initiative


63/98

MOP along with CEA and PFC has taken an initiative for the development

of Coal based environment friendly Ultra Mega Power Projects as pithead stations and coastal based stations each with a capacity of about

4000 MW using super critical technology.

These projects to be awarded to developers on the basis of tariff based

competitive bidding guidelines issued by Ministry of Power. The projects

are to be developed as per case -2 of the guidelines.

The Competitive Bidding process and project development work shall be

undertaken by the wholly owned subsidiaries (Shell Companies/SPVs)

established by Power Finance Corporation.

These projects will be developed by the developers on BOO (Build, Ownand Operate) basis.

Ultra Mega Power Projects initiative


64/98

The Mega Power benefits shall be available to the Ultra Mega Power

Projects.

The expenditure incurred by the shell company in developing the project

shall be recovered from the selected developer.

The responsibilities of Shell companies are as under Appointment of Consultants for DPR & other study reports. Acquisition of land for the project. Obtaining fuel linkage/fuel blocks for pit head projects. Obtaining GR and other related data from CMPDI for the coal

blocks. Obtaining clearance for allocation of water by State

Governments/Maritime Board. Obtain various approvals and statutory clearances like R&R

approval & MoEF clearances. Tie-up for off-take/sale of power

UMPP Projects

P j t St t


65/98

Project Status

Sasan (M.P) Awarded to Reliance Power Limited with Levellised

tariff of Rs 1.196/kWh

Mundra (Gujrat) Awarded to Tata Power Limited with Levellised tarifof Rs 2.264/kWh

Krishnapatnam (A.P) Reliance has quoted the lowest price of Rs 2.333/kWh. LOI awarded to Reliance by CAPL.

Tilaiya (Jharkhand) RFQ completed

RFP submission date 04.11.08

Other UMPPs in Chhattisgarh, Orissa, Maharashtra, Karnataka, Tamil Nadu

Bid Submission for the project


66/98

The bid to be submitted in two parts, Financial and Nonfinancial bids.

Non-Financial Bid Board Resolution from bidding company committing 100%

equity requirement Bid Bond of Rs. 120 crore Bidder Undertaking along with scheduled CoD date and

Contract Capacity of each unit

Covering letter Original Power of Attorney Disclosure Statement

Financial BidThe financial bid shall consist of quote for the capacity charges and

energy charges in two parts, Non-Escalable Charges and EscalableCharges.

The Bidder has the option to quote firm Quoted Energy Charges and/orfirm Quoted Capacity Charges for the term of the PPA

Bid Evaluation for the project


67/98

The escalated Quoted Tariffs ( Rs per kWh) of each of the Bidder for each

contract year for the term of PPA calculated as per the RFP shall be

discounted by the discount factors and such aggregate discounted value for

the term of the PPA shall be divided by the sum of such discount factors to

calculate the levelised tariff of each Bidder.

The Levelised Tariff shall be calculated by assuming uniformly for allBidders that entire Contracted Capacity has been Commissioned on the date

which is sixty nine (69) months from the proposed last date of signing of the

RFP Project Documents

The Levelised Tariff calculated as above shall be ranked from the lowest tothe highest and the Bidder with lowest Levelised Tariff shall be declared as

the Successful Bidder.

Tariff Structure The tariff shall be paid in two parts comprising of Capacity and Energy


68/98

The tariff shall be paid in two parts comprising of Capacity and EnergyCharges. For the payment purpose, the tariff will be quoted tariff

escalated as per the provisions of PPA.

Capacity Charges shall be paid on actual availability and shall be linked

to the Normative Availability computed on annual basis. Full Capacity

Charges shall be payable based on Contracted Capacity at Normative

Availability (80%).

Energy Charges shall be paid as per the schedule.

Incentive shall be paid for availability beyond normative by 85% at the

rate of @ 40% of Quoted Non-Escalable Capacity Charges subject to a

maximum of 25 paisa/kWh.

In case the Availability is less than 75%, a penalty @20% of the simple

average Capacity Charges applied on the energy (in kwh) corresponding

to the difference between 75% and the Availability during the year.

Tariff Structure


69/98

Tariff in INR only.

Multi part tariff to form basis of bidding:

i) Capacity Charges Escalable & Non Escalable

component (Rs/kWh)

ii) Energy Charges Escalable & Non Escalable

component

a) Fuel Energy Charges (USD/kWh)

b) Transportation Energy Charges (USD/kWh)

c) Fuel Handling Energy Charges (Rs/kWh)


70/98

Oil Proved Reserves -2007


71/98

71

.4444

.4444

.9999.4444

.444.444

.444

.444 .444

.44

.44

.444

.4444

.4444

.4444

.4444

.4444

Sau

diA

ra

Iran Ira Kuwa

UA Venezue

Russi

Liby

Kazakhs

Indi

Million Barrels

Total World : . Million Barrels44444

Source: BPStatistical Review of World Energy (June ) 4444

Oil Production -2007


72/98

44444

4444

4444

44444444

4444

4444

44444444

444

4

4444

4444

4444

4444

44444

44444

SaudiAra

IranIraq

Kuwai

UA

Venezue

Russi

Liby

Kazakhst

Indi

Thousand Barrels Per Day

World Prodcution Thousand Barrels per Day44444


Coal Proved Reserves -2007


73/98

444444

999999

444444

99999

99999

44444

4444444444

4444 4444 4444

4

44444

444444

444444

444444

444444

USA

Russia

China

Au

stralia

India#

SouthAfrica

Uk

raine

Kazakhstan

Poland

Indonesia

Thailand

Million Tonnes

#As Per th Plan Document prepaerd by Planning Comm ission India's Proved Coal Reserves as on44

999999 99999

World Proved Coal Reserves is MT444444

Source: BP Statistical Review of World Energy (June )9999

Coal Production -2007


74/98

4444

999

4444

999

444

444

9944

444 44499

4

444

4444

4444

4444

4444

4444

US

Russi

Chin

Austral

India

SouthAfr

Ukrain

Kazakh

s

Polan

Indo

nes

Tha

ilan

Million Tonnes

World Coal Production in was MT44444444


# As per th Plan Document Prepared by Planning Commission, the Coal Prodcution in -44 444444

was . MT4444

World Natural Gas Proved Reserve is . Trillion Cu. Meter44444

NG Proved Reserves -2007


75/98

.4444

.4444.4444

.999.999 .444 .999 .444 .444

.444

.

444

.444

.4444

.4444

.4444

.4444

.4444

.4444

.4444

.4444

Russi

IranQatar

SaudiAra

UA

US

Nigeri

Venezuel

Algeri

Indi

Trillion Cu. Meter

Source : BPStatistical Review of World Energy (June ) 4444

World Natural Gas Production was Billion Cu. Meter in4444 4444

NG Production -2007


76/98

.4444

.4444

.444.444

.999

.4444

.444.444

.444

.444

.44

.4444

.4444

.4444

.4444

.4444

.4444

.4444

Russi

IranQata

SaudiAra

UA

US

Nigeri

Venezue

Algeri

Indi

Billion Cu. Meter


World Hydro Power A Snapshot


77/98

Hydro is contributing more than 50% of nationaHydro is contributing more than 50% of nationa

electricity supply in about 60 countries.electricity supply in about 60 countries. Asia has the greatest amount of hydroAsia has the greatest amount of hydro

development under way.development under way.

The leading countries in hydro development areThe leading countries in hydro development areChina, India Vietnam, Russia and Brazil.China, India Vietnam, Russia and Brazil.

Canada, the leading country in North America isCanada, the leading country in North America is

producing about 60% of electricity needs fromproducing about 60% of electricity needs from

hydropower and was described as, Emerginghydropower and was described as, Emerging

Energy Superpower, at recent G8 summitEnergy Superpower, at recent G8 summit

TOTAL GENERATION Tw4 4 4 4

Fuel-wise Generation - Japan


78/98

TOTAL GENERATION - Tw4 4 4 4

Coal

%44

Oil%44Gas

%44

Nuclear%44

Hydro

%4

RES

%4

Source: EIA - 2005

TOTAL GENERATION T h444

Fuel-wise Generation - France


79/98

TOTAL GENERATION - Twh444

Coal%4

Oil

%4Gas

%4

Nuclear

%44

Hydro

%99

RES%4

Source: EIA - 2005

4 4 4

Fuel-wise Generation - Germany


80/98

TOTAl GENERATION - T4 4 4

Coal%44

Oil

%4

Gas

%44

Nuclea%99

Hydro

%4

RES

%4

Source: EIA - 2005

TOT AL GENERA TION4 4 4

Fuel-wise Generation - USA


81/98

TOT AL GENERA TION -4 4 4

Coa

%44

Oil

%4

Ga%99

Nuc lea

%99

Hydr %4

RE%4

Source: EIA - 2005

TOTAL GENERATION Twh4 44

Fuel-wise Generation - Brazil


82/98

TOTAL GENERATION - Twh4 44

Coal

%4

Oil

%4 Gas%4Nuclear

%4

Hydro

%44

RES

%4

Source: EIA - 2005

TOTAL GENERATION - Twh4444G

Fuel-wise Generation - China


83/98

Coal

%44

Nuclear

%4

Hydro%44

Gas

%4

Oil

%4

RES%4

Source: EIA - 2005

TOTAL GENERATION Twh4 4 4

Fuel-wise Generation - Russia


84/98

TOTAL GENERATION - Twh4 4 4

Coal

%44

Gas

%44

RES

%4

Oil

%4

Hydro

%99

Nuclear

%99

Source: EIA - 2005

TOTAL G ENERATION -4444

Fuel-wise Generation - World


85/98

TOTAL G ENERATION 4444

Coal

%44

Oil%4Gas%44

Nuclea

%44

Hydr%99

RES%4

Source: EIA - 2005

CO2 EMISSIONS

Million Tonnes


86/98

4444

4444

9999

4444

4444

4444

US RussiaEU4 China

India(

)

444

India(Current)

Million Tonnes

Source: McKinsey Analysis

CO2 EMISSIONS - PER CAPITA


87/98

.44

.44.4

.4

.4.4

US

Russia

EU4

China

India(

)

444

India(Current)

Tonnes / Capita

Source: McKinsey Analysis


88/98

44 I 2007

Electricity- Per Capita consumption


89/98

,44

,9999

,444

,444

,44

,999

,44

,44

44

44

W or ld A ve ra ge

U S A

J a p a n

Ge r m a n y

R u s s ia

Br a z i l

C h i n a

E g y p t

Ind iaIn 2007

Figures in kwh

Source: UNDP Human Development Report 2007-08 Data for 2004

Electricity Consumption - Japan


90/98

Agriculture

& Others

%4

Transport

%4Residential

%44

Commercial

%99

Industry

%99

Source: EIA - 2005

Electricity Consumption - France


91/98

Industry

%44

Transport

%4Residential

%99

Commercial

%99

Agriculture &

Others

%4

Source: EIA - 2005

Electricity Consumption - Germany


92/98

Transpor

%4

Residenti

%44

Commerci

%44

Agriculture

Others%4

Industr

%44

Source: EIA - 2005

Electricity Consumption - USA


93/98

Industry

%44

Transport

%4

Residential%44

Agriculture

& Others

%4Commercial

%44

Source: EIA - 2005

Electricity Consumption - Brazil


94/98

Residential

%44 Transport%4

Agriculture &Others

%4Industry

%99

Commercial

%44

Source: EIA - 2005

Electricity Consumption - Russia


95/98

Industry

%44

Transport

%44

Residential

%99

Commercial

%44

Agriculture &

Others

%4

Source: EIA - 2005

Electricity Consumption - World


96/98

Industry

%44

Transport

%4

Residential

%99

Commercial

%99

Agriculture &

Others

%4

Source: EIA - 2005


97/98

RECAPTULATERECAPTULATE

TOWARDS GREENER TOMORROW


98/98

POWER PRODUCER OF INTERNATIONAL REPUTE