CapacityThe total installed capacity (excluding renewable energy) in India has increased to 234,745 MW in 2014-15 from 142,677 MW in 2009-10, an additionof 92,068 MW. Moreover, around 43,300 MW of captive power capacity is also connected to the grid (as on March 2013).

Capacity additions have exceeded the target set each year since 2011-12 to 2014-15. The Electricity Act, 2003 coupled with competitive bidding forpower procurement implemented in 2006, encouraged the participation of private players who announced large capacity additions. As a result, privateplayers have commissioned significant number of projects over the last three years leading to a robust growth in capacity addition.

Power - Installed Capacity

Source: CEA

Note: The above chart excludes renewables. Figures represent conventional power only

Target vs Actual Capacity Additions

Source: CEA

Note: The above chart excludes renewables. Figures represent conventional power only

As per CRISIL Research estimates, the total capacity additions in the Twelfth Plan (2012-13 to 2016-17) is expected to be around 67,163 MW. Over50 per cent of the additional capacity is expected from the private sector.

This document is being provided for the exclusive use of karan tripathi at Institute of Management TechnologyNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

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Installed capacity and capacity addition by fuelCoal based capacities account for a large portion (~70 per cent) of the overall fuel mix as it continues to remain the most widely available and thecheapest source of fuel available. On the other hand, the share of hydro plants has declined to 18 per cent in 2014-15 from about 26 per cent in2009-10. The share of hydro plants fell on account of issues such as delay in environmental clearances, difficulties in land acquisition, adverse weatherconditions and frequent labour strikes.

Installed capacity by fuel used

Source: CEA

Installed capacity by fuel (2009-10 vs. 2014-15)

Source: CEA

Installed capacity & capacity addition by ownershipOwing to The Electricity Act, 2003 which provided for the de-licensing of thermal power generation, the share of the state sector has declined to 39 percent in 2014-15 from 53 per cent in 2009-10, while that of private sector has increased to 30 per cent in 2014-15 from 11 per cent in 2009-10.Incremental capacity by state sector is expected to decline, as upcoming projects (in addition to those which are already in advanced stages ofplanning and implementation) are likely to slip due to the poor financial health of SEBs.

This document is being provided for the exclusive use of karan tripathi at Institute of Management TechnologyNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

Power - Installed capacity by ownership

Source: CEA

While the private sector has added significant capacities over the last year, most of those project have been awarded through the introduction ofcompetitive bidding in 2006. Few key players in the private sector include Tata Power, Adani Power, JSW Energy and Reliance Power. In 2014-15,around 36 per cent of the total capacity additions had been competitively bid. A significant share of these capacities are imported coal based projects, afew examples being Mundra UMPP (4000 MW) of Tata Power, Salaya TPP (1200 MW) of Essar Power and Mundra TPP (4620 MW) of Adani Power.

Capacity Additions - Competitively bid projects

Source: CEA

Note: The above chart excludes renewables. Figures represent conventional power only

This document is being provided for the exclusive use of karan tripathi at Institute of Management TechnologyNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval

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Major projects commissioned from 2012-13 to 2014-15:

Source: CRISIL Research

This document is being provided for the exclusive use of karan tripathi at Institute of Management TechnologyNo part of this Report may be published/reproduced/distributed in any form without CRISIL's prior written approval