1341228806--Vital Stats - Power.pdf

## Vital Stats Some Data On Power Supply

The deficit in the supply of electricity relative to demand at peak hours in 2011-12 was 11 per cent.  While generation capacity has increased, the fuel supply situation has deteriorated.  Here, we present some factors affecting the power supply situation. 

## Peak Demand For Power Has Not Been Matched By Adequate Peak Supply

Sources: Ministry of Power Annual Report 2011-12; Central Electricity Authority 

## Installed Generation Capacity Has Increased 63 Per Cent In The Last Five Years Installed Generation Capacity (Mw)

 
Installed 
Capacity at end of 
10th Plan 
Capacity 
added 
under 11th 
Plan 
12th Plan 
Target 
Target 
under 11th 
Plan 
Revised 
Target 
Thermal 
86,015 
59,693 
50,757 
48,540 
63,781 
Hydro 
34,654 
15,627 
8,237 
5,544 
9,204 
Nuclear 
3,900 
3,380 
3,380 
880 
2,800 
Total 
124,569 
78,700 
62,374 
54,964 
75,785 

Sources: Ministry of Power Annual Report 2011-12; Monthly Review of 
Power Sector for March 2012 (Central Electricity Authority); Mid-Term 
Assessment of the 11
                    th Plan (Planning Commission); Press Information 
Bureau release dated 7
                      th May 2012 

## However, Coal Production Has Stagnated Coal Production (Million Tonnes)

2011-12 
MTA 
Target 
2011-
12 
Actual 
 
2006-
07 
2007
-08 
2008-
09 
2009-
10 
2010-
11 
Demand 
464 
504 
546 
604 
656 
713 
696 
Domestic production 
431 
457 
493 
532 
533 
630 
540 
Import 
43 
50 
56 
59 
73 
83 
99 
Net gap in demand/ supply (%) 
7 
9 
10 
12 
19 
12 
22 

Sources: Mid-Term Assessment of the 11th Plan (Planning Commission); 
Press Information Bureau release dated 14th May 2012; Rajya Sabha unstarred question No. 1260 

� Peak demand refers to the period of highest consumer 
demand for power. 
� Peak demand for power increased from 81,492 MW in 2002 
to 130,250 MW in 2011.  Peak supply increased from 71,547 MW in 2002 to 115,847 in 2012. 
� The gap between peak demand and peak supply increased 
from 9,945 MW in 2002 to 14,403 MW in 2011. This represents a shortage of 11 per cent of peak demand in 2011. 
� India's per capita consumption of electricity in 2009 was 597 
kWh, as compared to the global average of 2730 kWh.  
� The Mid-Term Appraisal (MTA) of the 11th Plan revised the 
target for additional generation capacity from 78,700 MW to 
62,374 MW.  The actual capacity added during the 11th Plan 
period was 54,964 MW, which represents the largest capacity addition under any plan period. 
� The total installed generation capacity was 202,979 MW as of 
31st May 2012.  Coal powered sources represent around 57 
per cent of this capacity.  Hydropower accounts for 19 per cent of capacity, gas for 9 per cent, renewable sources for 12 per cent and nuclear for 2 per cent.   
� The achievement in hydro capacity and thermal capacity has 
been 67 per cent and 96 per cent of the revised target respectively. 
� Coal accounts for more than half of the installed generation 
capacity in the country.  The target for coal production for 2011-12 was revised downward from 680 mt (million tonnes) to 630 mt.  The actual coal production in 2011-12 was only 540 mt, an increase of 1 per cent over the previous year.  
� Coal India Limited (CIL) accounts for around 80 per cent of 
the country's coal output.  It produced 436 mt of coal in 2011-12, as against the MTA target of 487 mt.  The growth in production over the previous year was 1 per cent.  
� The total coal production target for 2016-17 is 795 mt, with 
CIL contributing 615 mt of this amount. 

## Supply Of Natural Gas Is Significantly Lower Than Demand Availability Of Natural Gas

 

## State Utility Boards And Electricity Departments Face Higher Costs Than Revenues Per It Gap Between Average Cost And Average Tariff Per Unit Of Power Electricity Tariffs For Industry Are Significantly Higher Than Tariffs For Agriculture Tariffs For Agriculture And Industry (Paise/Kwh)

 
Unit cost 
Average tariff 
per unit 
Gap between 
cost and tariff 
Average 
tariff for 
agriculture 
2007-08 
404 
306 
98 
78 
416 
2008-09 
460 
326 
134 
95 
433 
2009-10 
476 
333 
143 
101 
450 
2010-11 
484 
357 
127 
123 
478 
2011-12 
487 
380 
108 
153 
497 

Source: Annual Report 2011-12 on the Working of the State Power Utilities & Electricity Departments (Planning Commission) 

� The demand for gas in 2011-12 was 280 
million standard cubic metres per day (MMSCMD).  Of this, only 166 
MMSCMD could be supplied from both domestic production and imports.  
� Domestic gas availability is forecast to 
decline from 120 MMSCMD in 2011-12 to 104 MMSCMD in 2012-13. 
� The average natural gas production from 
the KG-D6 block was 36 MMSCMD in February 2012, as opposed to the planned production of 70 MMSCMD. The output from KG-D6 is expected to further decline in 2012-13 and 2013-14. 
� The average tariff for electricity was Rs 
3.8 per kWh in 2011-12, as against an average cost of Rs 4.87 per kWh.  The gap between the average tariff and average cost per unit was Rs 1.08 per kWh, or 22 per cent of the cost per unit. 
� The gap between average tariff and 
average cost per unit of electricity has ranged from between 20 per cent and 30 per cent of cost per unit in the last five years. 

Average 
tariff for 
industry 

 
� The average tariff per unit of electricity 
for agriculture is significantly lower than the overall average tariff.  In 2011-12, the average tariff per unit for agriculture was Rs 1.53 paise per kWh, while the overall average tariff was Rs 3.8 per kWh. 
� The average tariff per unit of electricity 
for industry in 2011-12 was Rs 4.97 per kWh. 

## Transmission Losses Have Decreased But Remain Significant National Transmission Losses

� Transmission & Distribution (T&D) losses 
are the losses incurred in transmission and distribution.   
� T&D losses have also come down from 31 
per cent in 2004-05 to 25 per cent in 2009- 10.  In addition to technical losses, these may include losses due to theft and diversion.   
 
Source: Monthly Review of Power Sector for March 2012 (Central Electricity Authority) 

## Financial Losses For State Utilities Will Continue To Remain Significant

Forecast of performance of state utilities  
 
2011-
12 
2012-
13 
2013-
14 
2014-
15 
2015-
16 
2016-
17 
Financial Performance (Rs crore) 
Revenue 
208735 
229321 
251687 
276310 
303109 
334087 
Subsidies 
and grants 
36066 
39493 
43039 
46943 
51145 
55780 

 
� The High Level Panel on Financial Position 
of Distribution Utilities has forecast financial losses for 15 states that account for 91 per cent of all energy consumed. 

Total 
revenue 
244802 
268815 
294726 
323252 
354254 
389867 
Total 
expenditure 
272351 
296024 
321291 
348879 
378418 
411977 
Profit/ loss 
(27549) 
(27209) 
(26565) 
(25626) 
(24164) 
(22110) 

� The report forecasts a decline in 
Transmission & Distribution losses from 23 per cent in 2011-12 to 19 per cent in 2016- 17.  

Tariffs and Costs per unit (Rs per kWh) 
Average 
cost per 
unit 
4.7 
4.65 
4.6 
4.56 
4.51 
4.46 

� The losses for utilities in the top 15 states are 
expected to decline from Rs 27,549 crore in 2011-12 to Rs 22,110 crore in 2016-17.  

Average 
tariff per 
unit 
4.21 
4.21 
4.21 
4.21 
4.21 
4.21 

� The report expects the average cost per unit 
of power to remain significantly higher than the average tariff per unit of power. 

Of which 
subsidy 
0.48 
0.48 
0.49 
0.49 
0.49 
0.49 
T&D losses (%) 
T&D losses 
23 
22 
21 
20 
19 
19 
Source: Report of High Level Panel on Financial Position of Distribution Utilities 
or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS").  The opinions expressed herein are entirely those of the author(s).  PRS 

Some Data on Power Supply