Introduction p4/ West Bengal p9/ Odisha p12/ Chhattisgarh p15/ Jharkhand p18/Bihar p20
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Foreword
Power is among the key infrastructure that contributes towards the development of any nation.
Policymakers in India have been trying to introduce new methods on organisational and financial
reforms, on operational and information technologies, as well as on corporate governance aspects,
to enable the utilities to become viable, efficient and responsive to customer demands.
Since the liberalisation of the Indian economy in the 1990s, the electricity sector in India has
witnessed significant growth. Installed electricity generation capacity in India has reached 250
GW, with a contribution of 69% from thermal followed by 29% from hydro and renewable energy
sources and 2% from nuclear. In transmission, the country has adopted extra high voltage and high
voltage DC (HVDC) technologies to meet requirements. Presently, the transmission capacity in
India is more than 2,90,000 circuit kilometers comprising 500kV HVDC, 756kV, 400kV and 220kV.
Power distribution utilities are improving their efficiencies by reducing losses, through significant
investment in capital works and O&M activities, information technology (IT) enabled process
improvements and improving customer service orientation. With investments in distribution
infrastructure, rural electrification has crossed over 95%1.
Eastern India is keeping pace with the development in the sector and has taken several initiatives
which contribute towards its growth. Odisha is the first state in India which introduced and
implemented power sector reforms. Bihar has taken key initiatives to operate the public private
partnership model in power distribution. West Bengal demonstrates a flawless public governing
system in all three aspects viz generation, transmission and distribution. Chhattisgarh is leading
power generation by enabling effective utilisation of its natural resources. Jharkhand is mineral
rich and has the tremendous potential for power generation through various sources.
However, in recent times, the Indian electricity sector has been witnessing a number of challenges
generating stations either running dry due to poor monsoon or facing shutdown due to nonavailability of fuel; transmission networks falling prey to either natural calamities or adverse
grid disturbances due to defaults by the utilities, thereby causing extensive electricity outages
and unhappy consumers who sometimes resort to violent means of protest, against rising prices
and lengthy power-cuts in non-priority areas. The pressure on conventional sources of electricity
generation as well as their environmental and socio-economic implications, have compelled
policymakers, thought leaders, investors, utilities as well as consumers to look for the expansion of
sustainable non-conventional energy sources.
The viability and sustainability of the Indian electricity sector are dependent on the success of
the electricity distribution business, whether these are owned by the government or private
sector. A number of experiments have been done with the electricity distribution sector in India,
across all states, with initiatives from the central as well as state governments, regulators, multilateral agencies, utilities and investors. However, the Indian electricity sector is saddled with
approximately 1.5 lakh crore INR of debt.
While there is no dearth of ideas for actions necessary to revive the electricity sector in India, there
is a need of commitment by the governments, regulators, the utilities and consumer groups, to
convert these ideas into actionable items and implement them.
Initiatives such as smart grid, IT enablement and process automation, energy efficiency, demand
side management, public private partnership, high voltage transmission system, renewable energy
generation, systems operations , power trading, shall play significant roles in facilitating the
development of sustainable power in coming years.
In this context, Confederation of Indian Industry (CII) along with PricewaterhouseCoopers
Private Limited (PwC) as a knowledge partner, is bringing together policymakers, thought leaders,
investors, utilities, regulators, funding agencies to discuss and present options for the Indian
electricity sector to establish clean, reliable and affordable modes of electricity sourcing and
supply, and set forth directions to follow, for stakeholders of the Indian power sector.
2 CII-PwC
Introduction
10000
20000
30000
40000
50000
60000
70000
Central
Hydro
6004
Thermal
14878
Nuclear
5300
State
1608
13922
Private
3285
43540
Source: CEA
2. CEAs Monthly All India Installed Generation Capacity Report
3. International Energy Agencys World energy statistical report
4. UN data-data.un.org
5. CEAs Power Sector at Glance Nov12
6. Indian Electrical Equipment Industry Mission Plan 2012-2022, Ministry of Heavy Industries & Public Enterprises
4 CII-PwC
80000
Initiative
Components
Energy Conservation,
Building Code (ECBC)
Strengthening state
designated agencies (SDAs)
National Energy
Conservation Awards
Energy efficiency in
enterprises
Certification and
Accreditation
Education Programme
Source: MoP
22,816 participants
Investment
Saving in energy
26487 MU
Towards sustainable
development
Sustainable development in India has
caught the attention of the central and
state governments, and encompasses
a variety of development schemes in
clean energy, water and sustainable
agriculture. India is expected to begin
the greening of its national income
accounting, making depletion in natural
resources wealth a key component in its
measurement of GDP.
During the 11th Plan period, the country
has witnessed accelerated policy change
in increasing the influence of solar in
power generation. The Jawaharlal Nehru
National Solar Mission was launched by
the central government in 2010 aiming
to install 20,000 MW of grid connected
solar power by 2022. In Phase I of
the mission, 1047 MW of solar power
was inducted in 2012. Chandigarh,
Gandhinagar, Nagpur and Mysore will
be developed as model solar cities along
with 42 others. In this plan period,
total renewable energy generation has
reached 24,915 MW with 10,260 MW
grid connected wind, 1491 MW of small
hydro and 2041 MW of bio mass. With
the introduction of the mechanism for
renewable energy certificates, the market
for renewable energy has emerged along
with the mandate of renewable purchase
obligations (RPO). The governments
focus in renewable energy has continued
in the 12th Plan.
State
Utility
Implementation details
Status
Haryana
UHBVN
Feasibility study
completed
Himachal
Pradesh
HPSEB
AMI, PLM, OMS, power quality management (PQM) for 650 consumers at
KalaAmb
Tendering stage
Punjab
PSPCL
OMS for 9,818 consumers at the Industrial Division of City Circle Amritsar
Tendering stage
Rajasthan
JVVNL
Chhattisgarh
CSPDCL
Tendering stage
West Bengal
WBSEDCL
Regulatory approval
obtained
Tripura
TSECL
Tendering stage
Assam
APDCL
AMI, PLM, OMS, PQM, distributed generation (DG) for 15,000 consumers at
Guwahati Distribution Region
Tendering stage
Gujarat
UGVCL
Tendering stage
Maharashtra
MSEDCL
Tendering stage
Karnataka
CESCL
AMI, PLM, OMS, PQM, DG/ Microgrid for 21,824 consumers at Additional
City Area Division, Mysore
Implementing agency
selected
Kerala
KSEB
Tendering stage
Puducherry
Electricity Department
Andhra Pradesh
TSPDCL (previous
APCPDCL)
AMI, PLM, OMS, PQM for 11,904 consumers at Jeedimetla Industrial Area
Tendering stage
Requirement (MU)
126,722
Availability (MU)
125,170
-1,552
-1.2%
20,738
Availability (MW)
20,462
-276
-1.3%
West Bengal
Key indicators
Requirement (MW)
7,325
Availability (MW)
7,294
Surplus(+)/deficit(-) (MW)
Surplus (+)/deficit (-) (%)
-31
-0.4
91.35
99.9
42,762
-0.3
468
Regulatory developments
Fixed RPO
Year
Solar
Total
2014-15
0.15%
4.5%
2015-16
0.20%
5.0%
2016-17
0.25%
5.5%
2017-18
0.30%
6.0%
11
Odisha
Key indicators
Requirement (MW)
3727
Availability (MW)
3722
-5
-0.1
41.95
81.6
24546
-1.7
585
Gross
potential
(MW)
Feasible
potential
(MW)
300
150
50000
10000
Wind
1700
910
Biomass
1700
750
Solar PV &
thermal
Small hydro
Total
120
120
43802
11930
13
Regulatory developments
The OERC has published a regulation for
the Renewable and Co-generation Energy
Purchase Obligation and its compliance.
The Regulation prescribes that every
obligated entity shall purchase not less
than 6% of its total annual consumption
of energy from co-generation and
renewable energy sources from 201314 onwards with 0.5 percentage points
increase every year till 2015-16.
Year
Solar
Non-solar
Co-generation
Total
2014-15
0.25%
1.80%
4.45%
6.5%
2015-16
0.30%
2.00%
4.70%
7.0%
14 CII-PwC
Chhattisgarh
Key indicators
Requirement (MW)
3,365
Availability (MW)
3,320
Surplus(+)/deficit(-) (MW)
-45
-1.3
25.54
97.40
18,800
-0.7
736
15
Regulatory developments
The Chhattisgarh State Electricity
Regulatory Commission (CSERC)
has notified a regulation in 2013
for promoting renewable energy
development for the period 2013-2016.
Fixed RPO
Year
Solar
Others
(hydel ,
wind)
2.25%
Total
2014-15 0.75%
Biomass/ RE
based cogeneration
3.75%
2015-16 1.00%
3.75%
2.50%
7.25%
6.75%
17
Jharkhand
Key indicators
Requirement (MW)
1,111
Availability (MW)
1,069
Surplus(+)/deficit(-) (MW)
Surplus (+)/deficit (-) (%)
Population (in million)
Villages electrified (%)
Energy availability (MU)
-42
-3.8
32.97
92
7,007
-1.9
213
18 CII-PwC
Regulatory developments
In July 2010, JSERC introduced a
regulation for promoting renewable
energy development which was amended
in 2012.
Solar
Non-Solar
Total
2014-15
1.00%
3.00%
4.00%
2015-16
1.00%
3.00%
4.00%
Surface
temperature
(celsius)
Average
subsurface
temperature
(celsius)
Surajkund,
Hazaribagh
District
87
165
Jarom, Palamu
District
56
150
Thatha or
Konraha,
Palamu District
65
150
Tantolaya or
Tantlol, Santhal
Paragana
70
180
Fixed RPO
Year
19
Bihar
Key indicators
Requirement (MW)
2,465
Availability (MW)
2,312
Surplus(+)/deficit(-) (MW)
-153
-6.2
103.80
95.50
14,759
Surplus(+)/deficit(-) (%)
-4.1
142
57. bihar.newstrust.in/2012/04/bachatlamp-yojana.html
20 CII-PwC
Regulatory developments
BERC in July 2010 passed a regulation
for promoting renewable energy
development within the state, which was
later amended in 2012.
Fixed RPO
Year
Solar
Total
2014-15
0.75%
5.00%
Conclusion
21
About CII
The Confederation of Indian Industry (CII) works to create and sustain an
environment conducive to the development of India, partnering industry,
Government, and civil society, through advisory and consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed
organization, playing a proactive role in Indias development process.
Founded in 1895, Indias premier business association has over 7200
members, from the private as well as public sectors, including SMEs and
MNCs, and an indirect membership of over 100,000 enterprises from around
242 national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues,
interfacing with thought leaders, and enhancing efficiency, competitiveness
and business opportunities for industry through a range of specialized
services and strategic global linkages. It also provides a platform for
consensus-building and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify
and execute corporate citizenship programmes. Partnerships with civil
society organizations carry forward corporate initiatives for integrated and
inclusive development across diverse domains including affirmative action,
healthcare, education, livelihood, diversity management, skill development,
empowerment of women, and water, to name a few.
The CII theme of Accelerating Growth, Creating Employment for 201415 aims to strengthen a growth process that meets the aspirations of
todays India. During the year, CII will specially focus on economic growth,
education, skill development, manufacturing, investments, ease of doing
business, export competitiveness, legal and regulatory architecture, labour
law reforms and entrepreneurship as growth enablers.
With 64 offices, including 9 Centres of Excellence, in India, and 7 overseas
offices in Australia, China, Egypt, France, Singapore, UK, and USA, as
well as institutional partnerships with 312 counterpart organizations in
106 countries, CII serves as a reference point for Indian industry and the
international business community.
22 CII-PwC
Contacts
Confederation of Indian Industry
Eastern Region Office
6 Netaji Subhas Road
Kolkata - 700 001
T: 033-22307727/ 28/ 1434/ 033-22303354
F: 033-22301721/ 2231 2700
E: ciier@cii.in
Corporate Office
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road,
New Delhi 110 003
T: 91 11 45771000 / 24629994-7
F: 91 11 24626149
E: info@cii.in
W: www.cii.in
* Reach us via Membership Helpline:
00-91-11-435 46244 / 00-91-99104 46244
CII Helpline Toll Free No: 1800-103-1244
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