Glimpses of the 20th India Power Forum

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Backdrop

Power is one of the most critical components of infrastructure crucial for the economic growth and welfare of nations. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country. massive addition to the installed generating capacity is required. Indian power sector is undergoing a significant change that has redefined the industry outlook.The Government of India's focus on attaining. 'Power for all' has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing at both the market and supply sides (fuel, logistics, finances, and manpower).

The total installed capacity of power stations in India stood at 3.43.789 MW as on March 2018, in which State sector (84,517 MW). CentralSector (103.761MW).and Private Sector (155,511).

At present the main concern of the Indian Power sector is its stressed assets. As many as 24 power projects with 41.81 GW capacity may be under a severe financial stress, but the troubled sector still holds hope in growth drivers including higher demand from the Railways, proposed Law to enforce power purchase agreements (PPAs) on the Discoms, increasing focus on electric vehicles and reaching electricity to all un-electrified villages, a study has noted. "Stressed assets remain a key concern for power sector in India. Out of the 24 stressed projects having capacity of 41.81 GW. 8.300 MWs are without any power purchase agreements (PPA). 9500 MW capacity are having partial PPAs (i.e. less than 40%). The balance capacity is having PPAs greater than 40%. Avenues need to be found out to utilize the power available in the stranded capacities. which are already commissioned or nearing completion.

Another concern is the declining share of hydro power in the overall power generating capacity. Over the years, there has not been concentrated efforts in developing hydro power due to various reasons and Lack of political will. With the growth in the renewables. it is more important that hydro power capacity is enlarged to provide full backup to the capacity addition in renewables.

Our assessment shows that all is not that bad, as is made out by stock analysts or the bankers getting panicky, having financed the big projects. There are good prospects, provided we are able to enforce PPAs and work on the plans already finalised. The government proposes to amend the law making obligation under PPA, statutorily binding all discoms to have PPAs to cover 100 percent requirement. While there are insufficient PPAs. Electrification of these household would lead to increase in demand. On oneside of the coin the generation capacity specially viz.a.viz. looks to have a torrid time in this business and on other side is going to offer massive opportunities for the foreign players which are keen on assets acquisition to boost their portfolio in India.

In this backdrop, this Conference will debate on "Revitalising the Power Sector"

Organised By
India Energy Forum
Supported By
MOP
Knowledge Partner
IMaCS
Sponsors
Jindal Power
Power Grid
NTPC
PFC
Techno
Coal India
NHPC
SJVN