Its All About Power Sector

The figures below indicate a very impressive growth during the first year of 12th Five year plan and leaves behind a lot of concerns over availability of fuel supply (coal and gas) to these plants. A noteworthy of this is the supply of gas to power plants which left most of the plants running below 30% PLF which are expected to run at 90% and above in actual terms.

• The targets fixed for Capacity addition for Thermal and Hydro Power for the year 2012-13 are well exceeded. The target of 15956 MW fixed for non-nuclear capacity addition through conventional sources – thermal and hydro for the year 2012-13 has been well achieved and exceeded with the capacity addition of 16,407 MW. The achievement of 16,407 MW comprises 4397 MW from the central sector, 2907 MW from the state sector and 9103 MW in the private sector.
• Under the central sector, 100% target has been achieved in the thermal sector by the commissioning of 4023 MW of central sector projects – 5 projects of NTPC totaling 2660 MW – Mauda Unit 1, (Maharasthra), 500 MW, Rihand III, Unit 5. (UP), 500 MW, Sipat Unit 3, (Chhattisgarh) – Super critical Unit, 660 MW, Vindhyachal IV Unit 11, UP, 500 MW and Indra Gandhi Unit 3 in Haryana (500 MW). Except for Chattishgarh, all these have turbines and generator made by BHEL. Two other projects with main plant equipment by BHEL namely Vallur, in joint sector between NTPC and TANGEDCO (Tamil Nadu State Government Corporation) 500 MW in Tamil Nadu and Tripura Gas Module 1 (363 MW) set up by ONGC have also been commissioned. DVC also in the central sector has been also able to achieve its target of 500 MW with the commissioning of the 500 MW Koderma project in Jharkhand.
• As regards hydro sector, 60% of the target of 645 MW in the central sector was achieved by NHPC in February, 2013 and the balance projects will be commissioned in the next 10 days. NHPC is thereby set to achieve 100% of the hydro target also in the central sector. Important hydro projects which have already been commissioned include Chamera (210 MW) in J&K, 3 units of Teesta Low Dam III totaling 99 MW in West Bengal. Other important projects which will be commissioned include Uri II, 240 MW in J&K and 1 unit Parbati III (130 MW) in Himachal Pradesh.
• The private sector has achieved 125% of the set target of 7250 MW by commissioning 9103 MW as on 17 March, 2013. This record capacity addition has been possible with the commissioning of the Tata Group’s four Mundra UMPP units of 800 MW units (Gujarat) each commissioned during the year. With this, Tatas now hold record of 3,200 MW, the maximum capacity addition ever during a year by any Utility with NTPC closely following at 3,160 MW. Furthermore, the first 660 MW unit of the second Ultra Mega project at Sasan (MP) has already been synchronized and is also likely to be commissioned in the next 10 days.
• BHEL has achieved commissioning of 6,027 MW of projects and about 1,540 MW are already under advance stages of commissioning following their synchronization whereby, BHEL is likely to achieve its 2012-13 target of 7948 MW. More than 4000 MW of projects have been synchronized and are in advanced stages of commissioning.

Considering that the above achievements are likely to project lesser deductions in capacity addition during the mid-term appraisal, which otherwise was a different scenario during other five year plans, what arises is the improvements in the distribution sector and financial health status. The coal availability, demand and supply, similarly gas availability, the utilities preferences towards load shedding and aversion to procure power at market competitive price are all considered a threat to the power industry growth. There is an immediate need to make the entire value chain follow the same graph line in terms of growth.

Give your suggestions as comment below so as how to connect all these sectors (Conventional, Non-Conventional, Transmission, Distribution, Consumption) with a similar growth pattern.
Source: Cerebral Business Research Pvt. Ltd.