Tika Limbu - ADB Initiatives

8/6/2019 Tika Limbu - ADB Initiatives

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o ADB in India Operation Since 1986;

o Operations in 22 States;

o Loans = 159 ($24 billion) among top 3 OCR;

o TA = 306 ($227 million);

o 3-year CPS Lending Program:

~ $2.4 billion in 2011 and 2012, and

~ $2.5 billion in 2013.

o Cumulative Lending as of 31 December 2010:

ADB IN INIDA (1986 2010)


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POWER SECTOR PROBLEMS/CHALLENGES

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T & D Loss - All India


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ALL STATES T & D LOSSES 208-09

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Source: PFC


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ELECTRIC POWER RESEARCH INSTITUTE (EPRI)

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REASONS FOR HIGH T & D LOSS

o

Inadequate Investment - Generation and T&D = 1:1 (1956 -97 = 1:0.45)o Unplanned Expansion / Load Management;

o Inefficient & Aging Equipment;

o High Share of Domestic and Agriculture Load;

o Poor Governance;

o Higher Electricity Price.

8Source: PRAYAS


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ENERGY POLICIES

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STRATEGY 2020

ENERGY POLICY 2009

ELECTRICITY REGULATORY COMMISSION ACT 1998

ENRGY CONSERVATION ACT 2001

ELECTRICITY ACT 2003NATIONAL TARIFF POLICY 2006

INTEGRATED ENERY POLICY (IEP) 2006

Accelerated Power Dev & Reform. Prog. (APDRP) 2002-07

R APDRP 2008-12

POWER FOR ALL BY 2012 INITIATIVE

50,000 MW HYDROPOWER INITIATIVE - 2003

NEW HYDROPOWER POLICY - 2008

JAWAHARLAL NEHRU NATIONAL SOLAR MISSION - 2010

INDIA

ADB


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STRATEGY 2020

FOR 3 Strategic Agendas = VISION

1. Inclusive Growth;2. Environmentally Sustainable Growth;3. Regional Integration.

FOCUS - Drivers of Changeso Private Sector Development;o Good Governance/Capacity Building;o Gender Equity;o Knowledge Solutions; ando Partnerships.

ON 5 Core Operational Area1. Infrastructure;

2. Environment & Climate Change;3. Regional Cooperation / Integration;4. Financial Sector Development; and5. Education.


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ADB ENERGY POLICIES

o Energy Policy 1981 (First) Dealing with 1970s Oil Crisis;

o Energy Policy 1995 (Second) Addressing Governance Issues;

o Energy Policy 1995 (Revised 2000) Deregulation / Privatization;

o Energy Policy 2009 Aligning with Strategy 2020

ENERGY EFFICIENCY INITIATIVE (EEI)

CARBON MARKET INITIATIVE (CMI)

AISA SOLAR ENERGY INITIATIVE (ASEI)

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ELECTRICITY ACT 2003

ENVIRONMENT FOR REFORMS IN THE SECTOR

o Increased Competition;

o Open Access to Transmission and Distribution Networks;

o Merit Order Purchase;

o Power Trading; and

o Time-bound Restructuring of State Electricity Boards.

FUNADAMENTAL SHIFT IN POLICY

role of developmental input to consumer-driven tradable commodity.

support largely by central government budgets APDRP & R-APDRP

AS OF MARCH 2010 State Regulatory Commission operational in 26 States out of 28 States

15 States unbundled their utilities, and 7 more are going for this.

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ADB IN STATE LEVEL T & D SECTOR

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1. GUJARATo Year 2000

o Loans = 2o Input = $350 milliono Completed

2. MADHYA PRADESHo Year 2001

o Loans = 8

o Input = $970 milliono Ongoing = $400 million

3. ASSAMo Year 2003o Loans = 4o Input = $400 milliono Ongoing = $50 million

4. BIHARo Year 2010o Loans = 1o Input = $132.2 milliono

Beginning

2003-04 2004-05 2005-06 2006-07 2007-08ASSAM 36.28 35.47 34.99 32.51 29.83

MADHYAPRADESH

41.44 41.3 40.07 39.24 35.64

GUJARAT 24.2 30.43 27.91 24.87 26.13

BIHAR 36.66 38.88 43.96 50.67 48.79

0

10

20

30

40

50

60

%o

fLoss

T & D Losses in 4 States


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Gujarat Power Sector Development Project(20002007) = $300 million

1. Policy Loan = $150 million

o Supported - Gujarat Electricity Industry Act, 2003

State Electricity Regulatory Commission (GERC),

Restructured Gujarat State Electricity Board (GSEB) into 7successor companies

o GSECL GENERATION COMPANY - 1,

o GETCL TRANSMISSION COMPANY - 1,

o UGVCL, DGVCL, MGVCL and PGVCL DISTRIBUTION COMPANIES - 4,o GUVNL RESIDUAL COMPANY - 1

2. Project Loan = $200 million

o Investment in Transmission Investment linked to Private generators

o Investment in Transmission & Distribution lines and substations

T & D losses 2002 = 34.02% (loan approval) to 2008 = 22.23% (projectcompletion) -> Target = 25.83%

Revenue collection 2002 = 80% (loan approval) to 2008 = 100% in 3DISCOMS and 95% in 1 DISCOM (project completion).

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MP TRANSCO BEFORE AND AFTER

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Assam Power Sector Development Program(20032009) = $250 million

1. Policy Loan = $150 million

o Support Policy in line with Electricity Act 2003,

State Electricity Regulatory Commission (AERC),

Restructured Assam State Electricity Board (ASEB) into sixsuccessor companies

o APGCLGENERATION COMPANY - 1,

o AEGCL TRANSMISSION COMPANY - 1,

o LAEDCL, CAEDCL, and UAEDCL DISTRIBUTION COMPANIES - 3,

2. Project Loan = $100 million

o Transmission and Substations

o Distribution lines and Rural Electrifications

o Revenue Management

T & D Losses 2004 = 38.94% (loan approval) to 2008= 29.67% (ProjectCompletion)

Revenue Collection 2002 = 94% (loan approval) to 2008 = 97%(Project Completion).

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ASSAM PILOT CASE STUDY

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A pilot project in Assam reduced losses in a feeder with mainlyindustrial customers from over 65% to 6% in only 4 weeks afterthe metering, monitoring and controls were established.


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NATIONAL GRID IMPROVEMENT

o POWERGRID = EXECUTING AGENCY

o CREATE A SINGLE NATIONAL GRID BY 2012

During 1992 - 2004 = 3 loans total value of $925 million

During 2008 - 2009 = $600 million

During 2011 = $750 million (including NSO) - PROPOSED

o UPGRADE INTER-REGIONAL TRANSMISSION SYSTEM

Power control, and

Operations and management of transmission system,

o STATE OF THE ART 800 KV; 6,000 MW, HVDC

First in India

Second in Asia Efficient

Lower GHG / Environment

Bulk Power Transfer

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800 KV 6,000 MW, HVDC

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ONGOING PROJECT

o 1,800 km from North Eastern Region to the Northern Region of Indiao Estimated cost $1,860.9 million (ADB $600 million)o Power losses ~ 3%o Completion by 2012o Avoids about 20 million tons in CO2 emission in first phase (20102015)

o Total 7 million tons CO2 equivalents over the lifetime of the project.

PROPOSED PROJECT -

o 1,365 km from Champa in Chhattisgarh - Kurukshehtra in Haryanao Estimated Cost $2,250 million (ADB $750 million)

o Completion by 2016o Potential CO2 reduction of 536,000 tons per year


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ADB EVOLVING TREND IN ENERGY SECTOR


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ADB - EVOLVING TREND IN ENERGY SECTOR

24

year thermal power hydrocarbonenergy sector

development

renewable energy

generation

transmission and

distribution

large

hydropower

Nos million $ Nos million $ Nos million $ Nos million $ Nos million $ Nos

million

$

1986 1 1501987

1988 1 160

1989 1 230

1990 1 200

1991 2 517 1 150

1992 1 147 1 250

1993 2 560

1994 1 150

1995 1 2751996 1 100

1997 1 150

1998

1999

2000 1 200 2 4002001 1 200 1 150

2002 1 150

2003 1 100 1 1502004 1 400

2005

2006

2007 4 385 1 41.92

2008 2 462.4 1 150

2009 4 455.9 1 59.12010 3 290.9 1 208

2011 4 1,200 2 3214 740 5 1227 7 447 1100 24 4,419.2 6 780.02


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OUTPUTS - ADB INDIA ENERGY SECTOR(2004 2009)

Output Indicators QuantityInstalled energy generation capacity (MW equiv.) 318

Transmission lines installed or upgraded (km) 10,458

Distribution lines installed or upgraded (km) 16,223

New HH connected to electricity (number) 1,420,912

GHG emission reduction (tCO2-equiv/yr) 1,957,000


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SECTOR ASSISTANCE PROGRAM EVALUATION - 2007

ADBs approach to lending at state level is working well;

Sustained TAs needed to support the reform programs;

Corporatization providing benefits - as privatization;

Sector governance improved significantly in the 3 SEBs;

ADB assistance were relevant, efficient, and effective.


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LESSONS LEARNED

o PRIVATIZATION IS NOT THE ONLY OPTION;

o CORPORATIZATION CAN DELIVER RESULTS;

o REFORM INITIATION NEEDS CAREFUL ASSESSMENT;

o NEEDS TO CATALYZE PRIVATE SECTOR AND PPP.

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CHALLENGES TO INDIAN POWER SECTOR

o Maintaining Pace of Reforms;

o Improving Governance;

o Increasing Energy Security;o Minimizing Environmental Impacts.

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Tika Limbu - ADB Initiatives

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