Indian Power Sector has gone through many ups and downs in the last decade (2004-2014) with insufficiency in fuel supply leading to sub optimal plant operation debt ridden distribution sector compelling them to go for load shedding, significant T& D losses due to lack of requisite transmission infrastructure & hence unavailability of power in different region of the country. But with proactive approach & prompt decisiveness of new government in centre regarding sorting the issues most diligently, Indian power sector is poised to see tremendous growth in near future.
Pertaining to proposed changes in coal linkage policy, fuel availability to conventional power plants is most pertinent to improve. 100 GW solar dream has given a much needed thrust to Indian renewable sector, which will spearhead its green energy portfolio to a new height. Central Govt carved out financial restructuring package like UDAY scheme, will change financial health of state DISCOMs.
But the huge debt burden (Nearly 5 Lakh Corer total debt) on distribution sector loosened the whole value chain. The cash starved distribution companies find it tough to purchase power from the generating companies’ even if the power availability scenario has improved in the country. This result in reducing the Plant Load Factor (PLF) of the generating companies to as low as 65.1% and also affect the revenue generation process of generating companies. So distribution sector strengthening and regulatory changes in the sector may improve the investor confidence and fund availability to the sector. .
Currently, India is struggling in terms of bad power assets which lie stranded in distinct regions of the country thereby forcing imposition of power outages in lieu of the shortages being faced. However, there is undoubtedly remarkable growth achieved by the power sector in 2004-14 decade which can be listed as:-
AT&C loss levels being scaled down from 35% to 26% at the end of FY 14
The tune of private investments in generation was massive and amount to INR. 3,000 Billion
Although, there was a slippage of 24 GW in the planned power generation capacity additions for the 11th Plan but still this plan saw the maximum installed capacity growth of 54 GW
The lack of awareness in terms of timely revision of power tariffs by the State entities saw a welcome change with majority of states and UTs went on to revise the tariffs in FY 14.
The new renewable policy (2015) creates a path for achieving 175 GW by year 2022.
In its attempt to demystify the complete dynamics of power sector from generation, transmission, distribution to trading SNP Infra Research Solutions has evolved with this report on “Indian Power Sector”. This report will not only detail the current situation of all the segments of Indian power sector but also will factor the impact of government policies implementation on each segment of power sector and in-store opportunities.
This report encompasses exhaustively the set of possible impacts of impending current issues post the government policy reform and power sector restructuring initiatives. Also, the dossier focuses on identifying opportunities associated with power generation, distribution, transmission, trading and rural electrification. The report also attempts to identify and dive deep into key developments and trends across power sector in India such as capacity additions in generation, transmission networks and distribution networks.
Nascent Draft Tariff Regulations for control period 2014-19 also finds an exhaustive coverage in the report with all possible impacts duly assessed and examined. The ardent need of finances is not only the need of the hour for Indian power sector, as far as project execution is concerned but also the identifying right channel partners to fund the same is equally pivotal. Hence, the dossier attempts to identify right ways of financing a power project in India by analysing resource capabilities, competencies and investment potential as three key parameters.
The report focuses on minute details of the investment tune planned in the sector coupled with the evaluation of country’s economic environment. This report not only deals in with all facets of power sector but also covers the intricacies and nuances of all allied industries by covering all equipment & machinery providers and the associated developments experienced with them. Also, the report profiles all power projects through an exhaustive and exclusive database.
Through this report SNP Infra Research attempts to unleash and address the associated challenges with both conventional and unconventional streams of the Indian power sector and presents a path finding guide for all existing and likely to venture stakeholders in the segment.