1

AJIT KUMARED(BD)

CURRENT SCENARIO OF POWER GENERATION AND TRANSMISSION IN

INDIA

• Brief About NTPC

• Electricity Generation

• Scenario , Options & Challenges

• New Technologies

• Electricity Transmission

• Scenario of Transmission system

• Important Initiatives

• Indian Power Sector- Challenges and Mitigation

• Conclusion

Agenda

29 MARCH 2010

NTPC LimitedNTPC Limited- - An overviewAn overview

Journey so far

11333

20249

36014

Today

1975NTPC

incorporated (wholly owned by

GoI)

1997

Became a Navratna

Comapany

2004Listed on

Indian Stock

Exchanges(GoI holding

89.5%)

2010• Became a

Maharatna Company

• GOI further divested 5% equity

Shareholding

As on 31.12.2011

11333

20249

39674

NTPC - Stature

5

The Largest Power Generator in the Country

348th largest company in the world (FORBES ranking – 2011)

#1 Independent Power Producer (IPP) in the world (Platts-250 ranking – 2011)

10th largest power generator in the world, 3rd largest in Asia.

One of the largest Indian companies in terms of market cap

20 Joint Ventures and 5 Subsidiaries 20 Joint Ventures and 5 Subsidiaries For Synergistic Business DiversificationFor Synergistic Business Diversification

Group NTPC

Turnaround of Taken-over Power PlantsTurnaround of Taken-over Power Plants

1978 1992 1995 2000

Commissioned 2490 MW in FY11 – Highest ever in one year.

Commissioned 2660 MW from Apr’12 to Nov’12 IPMA award for Simhadri project in the year 2005.

IPMA award for Vindhyachal project in the year 2008.

IPMA award for Dadri Project Stage-II in the year 2011

Commercial Operation Time in Months

Excellence in Project Management Excellence in Project Management

Total Income PAT

8.9% 4.9%

COMPARISION – Three Quarter PeriodCOMPARISION – YEAR ON YEAR

Financial Performance

Total Income PAT

4.3%16.6%

Rs. Crores Rs. Crores

Net Worth

~ Rs. 67000 Cr.

Net Worth

~ Rs. 67000 Cr.

Total Assets

~ Rs. 125000 Cr.

Total Assets

~ Rs. 125000 Cr. Market Cap

~ Rs. 145000 Cr. Market Cap

~ Rs. 145000 Cr.

Capex for FY13 - Rs. 20995 CroresCapex for FY13 - Rs. 20995 Crores

4923457399 8728 9103 41242

452526321

6630

Human Capital – Continuously Improving Productivity

10%

Rs.1.38 Crs

Rs. 2.30 Crs

Rs 0.29 Crs

Rs. 0.38 Crs

Sales Per Employee

PAT Per Employee

Up67%

Up 31%

7.99MUs

9.27MUs

Generation Per Employee

Up 16%

Talent pool of ~25,000 employees Planned interventions at various stages of career Systematic training- 7 days training per employee per year Power Management Institute (PMI) – Playing a pivotal role in individual

and organizational learning. Leadership Development Centre to identify and groom potential

leaders. Training Simulators for 660 MW / 500 MW / 200 MW coal and gas based

plants Featured amongst the Great Places to work in India for last six years

consecutively

Ranked 6th in the Aon Hewitt Best

Employers in India 2011.

FY07 FY11

2011

Planning for accelerated growth Today

~39674 MW

Coal Gas Nuclear Hydro Renewables

2032~ 128000 MW

ELECTRICITY GENERATION

SCENARIO

India: Installed Power generation capacity

Status as of Oct 2012Status as of Oct 2012

3 %3 %

Installed capacity : 209 GWInstalled capacity : 209 GW

Source : CEASource : CEA

RES :Renewable Energy SourcesRES :Renewable Energy Sources

66%66%

19%19%

12 %12 %

Per Capita Consumption-Global scenario

USA

OECD countries

Middle East

Latin America

China

World Average

India

14000

8365

2980

1695

1802

2596

800

Values are in KWhValues are in KWh

Electric Power- Demand projections

220441

861

1381

1854

0

500

1000

1500

2000

GW

2011-12

2021-22

2031-32

2041-42

2051-52

Year

Installed Capacity Reqd (GW)

Source : Central Electricity Authority (CEA), IndiaSource : Central Electricity Authority (CEA), India1 GW(gigawatt) = 1O6 KW(kilowatt)

The task ahead India’s growing economy requires adequate supply of energy

Per capita consumption of electricity of 800 Kwh is lower

than world average of 2200 Kwh

Energy deficit ~ (-7%) & Peak Demand Deficit ~(-9.4%)

T&D Losses ~ 25 to 50%

India’s installed electric power generation would have to

increase to 861 GW by 2030 to sustain economic growth of

8-9%.

India needs to effectively tap all sources of Power

Generation

17

India’s Energy Resource Base

Resource Estimated Reserves

COAL 285 Billion Tonnes

LIGNITE 40 Billion Tonnes

GAS 1240 Billion Cu m

URANIUM 61,000 Tonnes

THORIUM 2,25,000 Tonnes

HYDRO 1,48,000 MW(Potential)

RENEWABLES 1,83,000 MW(Potential)

Coal Based Power

•High ash content (25-45%)

•Low sulphur (< 0.5%)

•Low calorific value~3000Kcal/kg

•High ash content (25-45%)

•Low sulphur (< 0.5%)

•Low calorific value~3000Kcal/kg

•CO2 emissions

•Ash disposal

•Coal transportation bottleneck through rail

•CO2 emissions

•Ash disposal

•Coal transportation bottleneck through rail

Need for Clean Coal TechnologiesNeed for Clean Coal Technologies

•Supercritical/Ultrasupercritical

•Integrated Gasification Combined Cycle

• Carbon Capture & Sequesterization

•Supercritical/Ultrasupercritical

•Integrated Gasification Combined Cycle

• Carbon Capture & Sequesterization

Indian Coal QualityIndian Coal Quality Issues with Coal based PowerIssues with Coal based Power

Installed capacity : 17624 MWInstalled capacity : 17624 MW

660/800 MW units planned for all future coal based projects Parameters adopted

247 kg/cm2 535/565 and 565/593 deg C Supercritical technology mandatory for Ultra Mega Projects Many more supercritical units in pipeline.

Supercritical TechnologyImpact Area

Efficiency Improvement CO2 Reduction Affordability

Integrated Gasification Combined Cycle

Gasifier

Gas Cleanup

Combined Cycle

RawGas

CleanGasCoal

Power

High efficiency ~ 43-45 %

Potential for achieving even higher efficiency ~ Using advanced class Gas Turbines( Up to 50 %)

Potential for Green House Gas(GHG) Reduction

Low water consumption: Since 2/3 of power is generated from Gas Turbine

India pursuing demo project of 100 MW- Feasibility study done by Nexant USA through USAID

Gas based power

•Gas Availability for power generation to be enhanced.

•Expanding gas pipelines/LNG terminals

•Advanced class Gas turbines : Thermal efficiency of 60%

•Gas Availability for power generation to be enhanced.

•Expanding gas pipelines/LNG terminals

•Advanced class Gas turbines : Thermal efficiency of 60%

• Installed capacity – 18903 MW• Installed capacity – 18903 MW

Nuclear Power

4780 MWe4780 MWe

4800 MWe(*)

4800 MWe(*)

21780 MWe(cumulative)21780 MWe(cumulative)

63000 MWe(cumulative)63000 MWe(cumulative)

Projections- 2020

Projections- 2020

Projections- 2030

Projections- 2030

Under Construction

Under Construction

CurrentCapacityCurrentCapacity

(*) at Kudankulam, Kakrapar, Rawathbhata(*) at Kudankulam, Kakrapar, Rawathbhata

Nuclear Power - Positive developments

•Signing of Indo-US Civil Nuclear agreement

•Nuclear Supplier Group (NSG) waiver

•India can now import fuel and technology even for existing nuclear plants

•Govt of India is in discussions with advanced technology

suppliers

•NTPC and NPCIL have formed a JV company for setting up nuclear plants

•BHEL and L&T are augmenting nuclear manufacturing capabilities through colloborations.

Nuclear power - Challenges

•Issues related to Nuclear Civil liability bill

•Fuel policy of Govt of India

•Availability of Nuclear sites

•Availability of Skilled Manpower

•Augmentation in domestic manufacturing capabilities

•Amendment of Atomic Energy Act to allow wider

participation

•Issues related to Nuclear Civil liability bill

•Fuel policy of Govt of India

•Availability of Nuclear sites

•Availability of Skilled Manpower

•Augmentation in domestic manufacturing capabilities

•Amendment of Atomic Energy Act to allow wider

participation

Hydroelectric Power

• Installed capacity – 39,000 MW

• Estimated potential – 148,000 MW

• Installed capacity – 39,000 MW

• Estimated potential – 148,000 MW

•Land acquisition issues

•Resettlement and Rehabilitation issues

•Regulatory delays affecting clearances

•Impact on eco system and submergence of forest land

•Financing issues for projects with large gestation period

•Constraints related to transmission capacity particularly from NE states

•Land acquisition issues

•Resettlement and Rehabilitation issues

•Regulatory delays affecting clearances

•Impact on eco system and submergence of forest land

•Financing issues for projects with large gestation period

•Constraints related to transmission capacity particularly from NE states

Solar Power

•Estimated potential– 2.5 trillion MWp

• Installed capacity – 1000 MWp

•Estimated potential– 2.5 trillion MWp

• Installed capacity – 1000 MWp

Jawaharlal Nehru National Solar Mission has been launched by Govt of India in Jan-10 to boost the development of Solar Power.

Jawaharlal Nehru National Solar Mission has been launched by Govt of India in Jan-10 to boost the development of Solar Power.

TARGETS UNDER JNNSM

Wind Power

• Installed capacity – 17,000 MW

• Estimated potential – 45,000 MW

• Installed capacity – 17,000 MW

• Estimated potential – 45,000 MW

•Identification of high wind potential sites•Improvements in technology to increase availability • Focus on new growth avenues

•Offshore Wind turbines•Large capacity Wind Turbines( > 3 MW)•Small capacity Turbines ( < 600 KW)

•Improved grid infrastructure in unconnected high potential areas

•Identification of high wind potential sites•Improvements in technology to increase availability • Focus on new growth avenues

•Offshore Wind turbines•Large capacity Wind Turbines( > 3 MW)•Small capacity Turbines ( < 600 KW)

•Improved grid infrastructure in unconnected high potential areas

Biomass Power

• Installed capacity – 2000 MW

• Estimated potential – 16000 MW

• Installed capacity – 2000 MW

• Estimated potential – 16000 MW

•Unorganized biomass market

•Addressing issues related to transportation and storage issues for biomass

•Unorganized biomass market

•Addressing issues related to transportation and storage issues for biomass

ELECTRICITY TRANSMISSION

• Present installed capacity - 294000ckm 220kV Transmission Line - 150000ckm 400kV Transmission Line - 125000ckm HVDC 800/600kV Line - 3600ckm HVDC 500kV Line – 7400 ckm 765kV Transmission Line - 7600ckm

• Present Inter regional Capacity – 38650MW• Expected by 2017 - 75000MW

• Estimated Additions of Transmission Network in 12th Plan – 155000 to 180000ckm

Source: CEA & Planning Commission reports

Transmission System

Source: CEA & Planning Commission reports

Transmission System and Its Growth

Transmission System and Its Growth

+/- 600 kV / 800 kV

• Implementing HVDC lines for Interregional links• Development of 1200kV UHVAC Test Station at Bina• Smart Grid • GPS/GIS (Global Positioning/Information System) based survey techniques• High temperature endurance conductor• Controlled switching of circuit breakers• Multi circuit and Compact towers to reduce corridor requirement.• High rise towers to avoid tree cutting and hindrance in

monuments

Important Initiatives

New Technologies

•Ultrasupercritical Technology ( 700 deg C)

•Integrated Gasification Combined Cycle

•HV Transmission system – AC & DC

•Energy Storage systems

•Smart Grid & Smart Networking

•Solar Thermal- High temperature and grid parity

•Solar Photo Volataic – High Efficiency solar cells

•Fuel cells

•Ultrasupercritical Technology ( 700 deg C)

•Integrated Gasification Combined Cycle

•HV Transmission system – AC & DC

•Energy Storage systems

•Smart Grid & Smart Networking

•Solar Thermal- High temperature and grid parity

•Solar Photo Volataic – High Efficiency solar cells

•Fuel cells

CHALLENGES MITIGATING MEASURES

Land Acquisition Revamping of land acquisition policy backed by a win-win R&R policy

Environmental Clearances

-Expeditious approval

Fuel Availability -Development of new coal mines by CIL/Utilities matching planned generation capacities.-Securing coal linkages not only in india but abroad also

Equipment Shortage -Procurement from abroad

Indian Power Sector Challenges & Mitigating Measures

CHALLENGES MITIGATING MEASURES

Manpower shortage -Proper training

-New courses in power generation tech.

Financials - Multilateral financing-Development of power plants in PPP

initiatives

Project execution -World best practices in project

management

Regulatory issues -Ensuring Grid Discipline

Indian Power Sector Challenges & Mitigating Measures

• Adoption of New and Efficient Technologies

• Investing in Research and Development

• Availability of large scale skilled/unskilled manpower

• Extensive Engagement with Society

• Sensitivity towards Environment

• Sustainable Growth

Conclusions

GROWTH IN POWER GENERATION AND TRANSMISSION CAPACITIES REQUIRE

Discussions

NTPC Limited NTPC Limited ( A Government of India Enterprise)

Lighting every third bulb in Indiawww.ntpc.co.in

39

4040

Highest capacity utilization

Performing at global levelsElectricity Generation Billion UnitsElectricity Generation Billion Units

#