1 lakh MW capacity addition needed in 12th Plan for 9 percent growth

1 lakh MW capacity addition needed in 12th Plan for 9 percent growth

Monday, 27 June 2011, 03:41 Hrs   |    2 Comments
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Hyderabad: One lakh megawatt power capacity addition in the 12th Five-Year Plan is a must for the country to sustain 9 percent GDP growth, said economist and Prime Minister''s Economic Advisory Council Chairman C Rangarajan .

He said there has to be a coordinated plan between the power and coal sectors and issues like environment need to be considered to achieve the target.

"If we have to sustain the rate of growth at 9 per cent over a five-year period, we must ensure that additional capacity to the extent of one lakh megawatts is available or established in the 12th Plan period," Rangarajan told PTI.

The government has set a target for one lakh megawatt power capacity addition in the 12th Plan, which will begin from April, 2012, while reducing the 11th Plan target to 62,347 MW from over 78,000 MW.
The Power Ministry expects capacity addition in the current Five-Year Plan, ending March 31, 2012, to be around 51,000 MW, much less than the revised target.

Prevailing conditions like tighter norms for coal extraction may be a dampener for achieving the target for the next Five-Year Plan, according to industry.

The Indian Electrical & Electronics Manufacturers'' Association (IEEMA), a trade body representing the electrical and industrial electronics industry, anticipates that the government will significantly revise downward the power generation targets for the 12th Five-Year Plan.

"The delayed progress may force the government to revise downward the target for the 2011-12 and may also impact the 12th Five-Year Plan period starting April, 2012. The government had reduced the 11th Plan target to 62,347 MW from over 78,000 MW," the trade body said in a statement recently.

According to Fitch Ratings, coal supply issues are likely to hit the power sector and may not encourage investors to the sector.

Rangarajan said without a coordinated plan between the power sector and coal sector, the rate of growth at 9 per cent may not be sustainable.

"I think we need to tackle all these issues like environment and ensure that there is improvement in the use of power, there is improvement of coal efficiency and also greater availability of coal... All these are taken into account (to achieve the target)," the economic advisor said.
Replying to a question on the recent hike in diesel prices, he said there could be a medium-term effect on inflation that may ease out after some time.
Source: PTI
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Reader's comments(2)
1: Very alarming picture in power sector as given by Dr.C.Rangarajan.

India has a 12% shortage in power during the peak hours between 5pm and 11pm, but experts say this number could be higher.
“This (the shortage) was expected as projects have not come on schedule. Against our target of 11,000MW of capacity addition in 2008-09, we have achieved only 3,500MW. Hydropower generation in south has stopped due to less water in the rivers. Hydropower projects based in south India account for 30% or 11,400MW of the country’s installed capacity of 38,000MW of such power. To make matters worse, of country’s total installed capacity of 147,000MW, only around 85,000MW is operational at any given point of time.
India’s track record in adding power generating capacity is poor: in the five years to 2007, the country added 20,950MW of capacity, against a target of 41,110MW.
“There is around 20,000MW shortage in the country. Timely completion of projects is a concern. However, we expect this summer to be same as the last. We will have shortages and there is no way of escaping them. Hydro generation has fallen by 10% and will only pick up once the monsoons are here. However, with the coming of the Krishna Godavari gas, the gas-based capacity of around 6,000MW will receive a boost,” said another CEA official who didn’t want to identified.
Per Capita Consumption of Electricity
Per capita consumption of electricity is expected to rise to over 1000 kilowatt hours per annum (kwh/ annum) in next 10 years (from present level of 580 kwh). Compare this against over 10,000 kwh/ annum in the developed countries!
Plant Load Factor (PLF)
The actual all India PLF of Thermal Utilities during April 03- March 04 was 72.7% as against the target of 72.0%.
16th Electric Power Survey (EPS) projections
By the year 2012, India’s peak demand would be 157,107 MW with energy requirement of 975 BU.
Unbalanced Growth & Shortages
Along with this quantitative growth, the Indian electricity sector has also achieved qualitative growth. This is reflected in the advanced technological capabilities and large number of highly skilled personnel available in the country. While this must be appreciated, it must also be realized that the growth of the sector has not been balanced. The availability of power has increased but demand has consistently outstripped supply and substantial energy & peak shortages of 7.1% & 11.2% prevail in India. Coupled with this is the urban-rural dichotomy in supply- as per Census 2001, only about 56% of households have access to electricity, with the rural access being 44% and urban access about 82%. In the case of those who do have electricity, reliability and quality are matters of great concern. The annual per capita consumption, at about 580 kWh is among the lowest in the world.
These problems emanate from:
- inadequate power generation capacity
- lack of optimum utilisation of the existing generation capacity
- inadequate inter-regional transmission links
- inadequate and ageing sub-transmission & distribution network leading to power cuts and local failures/faults
- T&D losses, large scale theft and skewed tariff structure
- slow pace of rural electrification
- inefficient use of electricity by the end consumer
- lack of grid discipline
Dr.A.Jagadeesh Nellore(AP)
Posted by:Dr.A.Jagadeesh - 26 Jun, 2011
Thank you Dr.A.Jagadeesh... your post was very useful...
Muthuvel Replied to: Dr.A.Jagadeesh - 27 Jun, 2011