This document provides an overview of NTPC Limited, the largest state-owned power generating company in India. Key details include: 1) NTPC has an installed capacity of 34,194 MW across 15 coal-based and 7 gas-based power stations located across India. 2) NTPC aims to increase capacity to 75,000 MW by 2017 and 128,000 MW by 2032, with a diversified fuel mix including coal, gas, nuclear, renewable and hydro sources. 3) In addition to power generation, NTPC has diversified into related businesses like coal mining, power trading, ash utilization, equipment manufacturing and power distribution to ensure fuel security and optimize asset utilization.

1. NATURAL GAS AS AN ALTERNATE FUEL
FOR ELECTRICITY GENERATION IN INDIA
Summer Project Report
Presented To
The Academic Faculty
By
Varun Kumar Choudhary
Roll no.- 11BM60019
Industry Guide-
Dr. A. P. Dash
Senior Faculty, Project Management Institute,
NTPC Ltd. New Delhi.
Mr. B. P. Rath
Manager, New Project Development
NTPC Ltd.
Faculty Guide-
Dr. Kalyan Kumar Guine
Professor, Vinod Gupta School of Management,
IIT Kharagpur.
Vinod Gupta School of Management,
Indian Institute of Technology, Kharagpur
1

2. Acknowledgement
I express my profound gratitude to my supervisors, Professor A.P Dash and B. P Rath sir whose
benign guidance has enlightened my path through the course of this work. Besides their
dedication to academic life, their disciplined and austere habits have been a source of constant
inspiration to me. They are humane with willingness to help others, care for everyone, and
always being concerned about the progress. It was an enriching experience to work and learn
under them.
Varun Kumar Choudhary
2

3. Table of Contents
1. Executive Summery - ........................................................................................................ 5
2. NTPC PROFILE:- ............................................................................................................ 6
3. Project Objective- ........................................................................................................... 11
4. Introduction- ................................................................................................................... 12
4.1 Electricity is prime mover of Indian economy: ............................................................................. 12
4.2 Electricity demand in India-........................................................................................................... 14
4.3 Dependence of Electricity demand on GDP growth rate-.............................................................. 15
4.4 Major available resources for electricity generation-..................................................................... 17
5. Coal as a fuel for electricity generation- ....................................................................... 19
5.1 Predominant Position of Coal- ....................................................................................................... 19
5.2 Inventory of geological resources of coal in India- ....................................................................... 19
5.3 Type and category-wise coal resources of India-........................................................................... 20
5.4 Consumption pattern of coal-......................................................................................................... 21
5.5 Factors Affecting Coal Prices in India-.......................................................................................... 21
5.5.1 Domestic coal production and demand: .............................................................................. 23
5.5.2 Coal Import- ........................................................................................................................ 23
5.5.3 Domestic Coal Price Fixation- .................................................................................. 24
5.5.4 Quantity of Coal to be sold at market price:- ...................................................................... 25
5.5.5 Impact of crude oil price on Thermal coal prices:- ............................................................. 25
5.5.6 Impact of Exchange rate on coal prices:- ............................................................................ 26
5.5.7 Impact of availability of land on coal prices-...................................................................... 27
6. Renewable resources in India:-...................................................................................... 29
7. Natural Gas in India:- .................................................................................................... 37
7.1 Current Natural Gas Scenario in India-.......................................................................................... 37
7.2 Demand and Forecasts for India- ................................................................................................... 38
7.3 Competitive demand from Fertilizer & City Gas Sector- .............................................................. 39
7.4 Structure of the natural gas sector in India- ................................................................................... 40
7.5 Domestic Natural Gas in India- ..................................................................................................... 41
7.6 Domestic Gas pipe lines network in India- .................................................................................... 43
7.7 Trance-national gas pipe lines- ...................................................................................................... 44
7.7.1 TAPI- pipeline- ................................................................................................................... 45
3

4. 7.7.2 Iran–Pakistan–India pipeline- ............................................................................................. 46
7.7.3 Myanmar-Bangladesh-India Pipeline- ................................................................................ 47
7.8 Liquefied Natural Gas (LNG) – ..................................................................................................... 49
7.8.1 Regasification Capacity of India-........................................................................................ 49
7.9 Coal gasification in India-.............................................................................................................. 50
8. 8 Factors affecting Natural gas pricing:- ...................................................................... 51
8.1 Natural gas pricing in India- .......................................................................................................... 51
8.1.1 APM (Administered Pricing Mechanism) Gas Pricing:- ....................................................... 54
8.1.2 Pricing of Gas under Pre-NELP Production Sharing Contracts (PSC)................................... 55
8.1.3 Pricing of Gas with reference to NELP Provisions-.............................................................. 55
8.2 Imported Gas (LNG) Pricing- .......................................................................................................... 55
8.3 Pricing Issue:- ................................................................................................................................. 57
8.4 Framework of New Pool Pricing Mechanism:- .............................................................................. 59
8.4.1 Need for Pool Pricing:- ........................................................................................................ 59
8.4.2 Proposed Roadmap of Pool Pricing Mechanism:-............................................................... 60
8.5 Effect of Globalization of Gas market on gas prices:- .................................................................... 62
9. 9 Shale Gas:- .................................................................................................................... 66
9.1 Shale gas historical back ground and development:- .................................................................... 66
9.2 Shale Gas Reserve:- ........................................................................................................................ 68
9.3 Hydraulic fracking- breakthrough in shale gas:- ............................................................................ 69
9.4 Issues with Hydraulic fracking:- ..................................................................................................... 71
9.5 Implication of shale gas reserve on traditional gas producers in US:- .......................................... 71
9.6 Implication on Indian gas market:- ................................................................................................ 72
9.7 China planned for shale gas development:- .................................................................................. 72
10. Energy Security in India:- .............................................................................................. 74
11. Findings & Recommendations:- .................................................................................... 79
12. References:- ..................................................................................................................... 82
4

5. 1 Executive Summery -
In India installed capacity for power generation is 199.87 Gigawatt (GW) as of March 2012; the
world’s fifth largest, of which approximately 30,000 MW running idle due to shortage of fuel
supply. The International Energy Agency estimates that estimates India will add between 600
GW to 1200 GW of additional new power generation capacity before 2050. Due to acute
shortfall in domestic coal production to meet demand and higher exchange rate is severely
affecting power sector in India. Exploration of huge shale gas reserve of USA and China and
natural gas have changed prospective of fuel supply. Indian coal is of high ash content and low
sulfur content. Its contribution to power sector is around 56.4% and natural gas contribution to
power sector is around 9.2% of total power generation. Our objective is the scope of natural gas
as an alternate fuel for electricity in India. Due to higher prices of coal and petroleum,
substitutively fuel demand can be met by natural gas. Natural gas demand is continuously
increasing and furcating is done at different scenarios of growth rate. There are three options for
natural gas- domestic natural gas, piped natural gas and imported liquefied natural gas. Domestic
gas production in India is continuously falling down is not viable option. Presently we have a
country wide network of 12,000 km of gas pipeline and having capacity to transport 230 mmscmd
of gas. Study of natural gas pricing method in India and factors affecting natural gas pricing and
scope of new pricing method pool pricing in India. Demand from different sectors i.e. fertilizer,
city gas sector and power sector. And scope of shale gas exploration and production.
With a burgeoning population, we have to recognize that resources are scarce and plan
accordingly. End use efficiency, reduction of wastage and accountability has great potential for
improvement. Investment in coal base electricity needs critical appraisal because of availability,
land requirement, pollution, green house gas emission and ash disposal and increasing cost of
environment needs critical appraisal. Natural gas based electricity generator are generally not
approved because of lack of domestic availability of natural gas besides domestic gas sector has
received a thrust with shale gas and Hydraulic fracking technology in US. A relook into fuel
import i. e. import of coal vis a vis import of natural gas is a national imperative in view of the
need for electricity keeping in view all other collateral concerns. Diesel generator can be
replaced by natural gas plant- In India electricity generated by DG set- 1200 MW at cost of Rs.
12/kwh and grid power at cost of Rs 3/kwh. This market will grow at the rate of 20% for coming
years. Natural gas can be used for distributed power generation-Due to heavy distribution and
transmission losses (around 30%) distributed generation by natural gas is better option as it can
be produced at cost of Rs. 6 to 7 per kwh.
5

6. 2 NTPC PROFILE:-
NTPC Limited (formerly National Thermal Power Corporation) is the largest state-
owned power generating company in India. Forbes Global 2000 for 2010 ranked it 341th in the
world. It is an Indian public sector company listed on the Bombay Stock Exchange although at
present the Government of India holds 84.5%(after divestment the stake by Indian government
on 19october2009) of its equity. With a current generating capacity of 34194 MW, NTPC has
embarked on plans to become a 75,000 MW company by 2017. It was founded on November 7,
1975.
NTPC's core business is engineering, construction and operation of power generating plants and
providing consultancy to power utilities in India and abroad.
The total installed capacity of the company is 34,194 MW (including JVs) with 15 coal based
and 7 gas based stations, located across the country. In addition under JVs, 5 stations are coal
based & another station uses naphtha/LNG as fuel. The company has set a target to have an
installed power generating capacity of 1,28,000 MW by the year 2032. The capacity will have a
diversified fuel mix comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy
Sources(RES) including hydro. By 2032, non fossil fuel based generation capacity shall make up
nearly 28% of NTPC’s portfolio.
NTPC has been operating its plants at high efficiency levels. Although the company has 18.79%
of the total national capacity it contributes 28.60% of total power generation due to its focus on
high efficiency. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country was
24.51% and it generated 29.68% of the power of the country in 2008–09. Every fourth home in
India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the country's total installed capacity is
6

7. 17.75% and it generated 27.4% of the power generation of the country in 2010–11. NTPC is
lighting every third bulb in India. 170.88BU of electricity was produced by its stations in the
financial year 2005–2006. The Net Profit after Tax on March 31, 2006 was INR 58,202 million.
Net Profit after Tax for the quarter ended June 30, 2006 was INR 15528 million, which is
18.65% more than for the same quarter in the previous financial year. 2005).
In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh
issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company
in November 2004 with the Government holding 89.5% of the equity share capital. In February
2010, the Shareholding of Government of India was reduced from 89.5% to 84.5% through
Further Public Offer. The rest is held by Institutional Investors and the Public.
Pursuant to a special resolution passed by the Shareholders at the Company’s Annual General
Meeting on September 23, 2005 and the approval of the Central Government under section 21 of
the Companies Act, 1956, the name of the Company "National Thermal Power Corporation
Limited" has been changed to "NTPC Limited" with effect from October 28, 2005. The primary
reason for this is the company's foray into hydro and nuclear based power generation along with
backward integration by coal mining.
(NTPC) is in the 138th position in Fortune 500 in 2009. 10 Indian companies make it to FT's top
500.
Vision
“To be the world’s largest and best power producer, powering India’s growth.”
Mission
“Develop and provide reliable power, related products and services at competitive prices,
integrating multiple energy sources with innovative and eco-friendly technologies and
contribute to society.”
Core Values – BCOMIT
 Business Ethics
 Customer Focus
 Organizational& Professional Pride
 Mutual Respect & Trust
 Innovation & Speed
 Total Quality for Excellence
7

8. Diversified Growth
As per new corporate plan, NTPC plans to become a 75 GW company by the year 2017
and envisages to have an installed capacity of 128 GW by the year 2032 with a well-
diversified fuel mix comprising 56% coal, 16% gas, 11% nuclear energy, 9% renewable
energy and 8% hydro power based capacity.
As such, by the year 2032, 28% of NTPC’s installed generating capacity will be based on
carbon free energy sources. Further, the coal based capacity will increasingly be based on
high-efficient-low-emission technologies such as Super-critical and Ultra-Super-critical.
Along with this growth, NTPC will utilize a strategic mix of options to ensure fuel security
for its fleet of power stations.
Looking at the opportunities coming its way, due to changes in the business environment,
NTPC made changes in its strategy and diversified in the business adjacencies along the
energy value chain. In its pursuit of diversification NTPC has developed strategic alliances
and joint ventures with leading national and international companies. NTPC has also made
long strides in developing its Ash Utilization business.
 Hydro Power: In order to give impetus to hydro power growth in the country and
to have a balanced portfolio of power generation, NTPC entered hydro power
business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more
projects have also been taken up in Uttarakhand. A wholly owned subsidiary,
NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW.
 Renewable Energy: In order to broad base its fuel mix NTPC has plan of capacity
addition of about 1,000 MW through renewable resources by 2017.
 Nuclear Power: A Joint Venture Company "AnushaktiVidhyut Nigam Ltd." has
been formed (with 51% stake of NPCIL and 49% stake of NTPC) for development
of nuclear power projects in the country.
 Coal Mining: In a major backward integration move to create fuel security, NTPC
has ventured into coal mining business with an aim to meet about 20% of its coal
requirement from its captive mines by 2017. The Government of India has so far
allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint
venture route.
 Power Trading: 'NTPC VidyutVyapar Nigam Ltd.' (NVVN), a wholly owned
subsidiary was created for trading power leading to optimal utilization of NTPC’s
assets. It is the second largest power trading company in the country. In order to
facilitate power trading in the country, ‘National Power Exchange Ltd.’, a JV of
NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange.
 Ash Business: NTPC has focused on the utilization of ash generated by its power
stations to convert the challenge of ash disposal into an opportunity. Ash is being
used as a raw material input by cement companies and brick manufacturers. NVVN
is engaged in the business of Fly Ash export and sale to domestic customers. Joint
ventures with cement companies are being planned to set up cement grinding units
8

9. in the vicinity of NTPC stations.
 Power Distribution: ‘NTPC Electric Supply Company Ltd.’ (NESCL), a wholly
owned subsidiary of NTPC, was set up for distribution of power. NESCL is
actively engaged in ‘Rajiv Gandhi GraminVidyutikaranYojana’programme for
rural electrification.
 Equipment Manufacturing: Enormous growth in power sector necessitates
augmentation of power equipment manufacturing capacity. NTPC has formed JVs
with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing.
NTPC has also acquired stake in Transformers and Electricals Kerala Ltd. (TELK)
for manufacturing and repair of transformers.
Future Capacity Additions
NTPC has formulated a long term Corporate Plan upto 2032. In line with the Corporate Plan,
the capacity addition under implementation stage is presented below:
STATE MW
PROJECT
Coal
1. Indira Gandhi STPP- JV with IPGCL & HPGCL ( 3 x 500) Haryana 1000
2. Sipat I (3 x 660) Chhattisgarh 1980
3. Simhadri II Unit - IV( 500) Andhra Pradesh 500
4. Vallur I -JV with TNEB ( 2 x 500) Tamilnadu 1000
5. Vallur Stage-I Phase-II -JV with TNEB ( 1 x 500) Tamilnadu 500
6. Bongaigaon(3 x 250) Assam 750
7. Mauda ( 2 x 500) Maharashta 1000
8. Rihand III(2X500) Uttar Pradesh 1000
9. Vindhyachal-IV (2X500) Madhya Pradesh 1000
10. Muzaffarpur Expansion (2x195) – JV with BSEB Bihar 390
11. Nabinagar TPP-JV with Railways (4 x 250) Bihar 1000
12. Barh II (2 X 660) Bihar 1320
13. Barh I (3 X 660) Bihar 1980
Hydro
1. Koldam HEPP ( 4 x 200) Himachal Pradesh 800
2. TapovanVishnugad HEPP (4 x 130) Uttarakhand 520
3. Singrauli CW Discharge(Small Hydre) Uttar Pradesh 8
Total 14748
Subsidiaries
NTPC Electric Supply Company Ltd. (NESCL)
The company was formed on August 21, 2002. It is a wholly owned subsidiary company of
NTPC with the objective of making a foray into the business of distribution and supply of
electrical energy, as a sequel to reforms initiated in the power sector.
NTPC Vidyut Vyapar Nigam Ltd. (NVVN)
9

10. The company was formed on November 1, 2002, as a wholly owned subsidiary company of
NTPC. The company’s objective is to undertake sale and purchase of electric power, to
effectively utilise installed capacity and thus enable reduction in the cost of power. NVVN
NTPC Hydro Ltd. (NHL)
The company was formed on December 12, 2002, as a wholly owned subsidiary company of
NTPC with an objective to develop small and medium hydroelectric power projects of up to
250 MW. More>>
Pipavav Power Development Co. Ltd. (PPDCL)
A memorandum of understanding was signed between NTPC, Gujarat Power Corporation
Limited (GPCL) and Gujarat Electricity Board (GEB) in 2004 for development of a 1000 MW
thermal power project at Pipavav in Gujarat by forming a new joint venture company between
NTPC and GPCL with 50:50 equity participation. Pursuant to the decision of Gujarat
Government, NTPC Ltd. has dissociated itself from this company. PPDCL is under winding
up.
Kanti Bijlee Utpadan Nigam Limited, (formerly known as Vaishali Power Generating
Company Limited)
To take over Muzaffarpur Thermal Power Station (2*110MW), a subsidiary company named
‘Vaishali Power Generating Company Limited (VPGCL)’ was incorporated on September 6,
2006 with NTPC contributing 51% of equity and balance equity was contributed by Bihar State
Electricity Board. This company was formed to renovate the existing unit and run the plant.
The second unit has been successfully re-synchronized on October 17, 2007 after 4 years of
being idle. Renovation and modernization of the first unit is under progress. The company was
rechristened as ‘Kanti Bijlee Utpadan Nigam Limited’ on April 10, 2008.
Bharatiya Rail Bijlee Company Limited (BRBCL)
A subsidiary of NTPC under the name of ‘Bharatiya Rail Bijlee Company Limited’ was
incorporated on November 22, 2007 with 74:26 equity contribution from NTPC and Ministry
of Railways, Govt. of India respectively for setting up of four units of 250 MW each of coal
based power plant at Nabinagar, Bihar. Investment approval of the project was accorded in
January, 2008.
10

11. 3 Project Objective-
To find out viable option for fuel supply to set new power plant on India. Study of power sector
in India and all available fuel supply option for electricity generation in India to find out scope
of natural gas as an alternate fuel for electricity generation. Electricity demand projection in
India at different growth rate scenarios. Natural gas supply option as domestic natural gas
reserve and natural gas import. Study of piped natural gas and LNG import. To find out viable
natural gas supply option while keeping in mind price, gas reserve, infrastructure requirement
and time period required to be operational. Natural gas as a fuel for distributed power
generation to reduce transmission losses and replacement of DG sets by natural gas based
turbines. Natural gas price mechanism in India and in different regional gas market and impact
of globalization of gas market. Scope of shale gas exploration and impact of it on India and
traditional natural gas producer.
11

12. 4 Introduction-
4.1 Electricity is prime mover of Indian economy:
Electricity is the prime mover of growth and is vital to the sustenance of a modern economy. The
projected growth of the Indian economy depends heavily on the performance and growth of the
power sector. It is the endeavor of the Government to ensure that agriculture, industry,
commercial establishments and all households receive uninterrupted supply of electricity at
affordable rates. The electricity sector in India had an installed capacity of
199.87 Gigawatt (GW) as of March 2012, the world's fifth largest. Captive power plants generate
an additional 31.5 GW. Thermal power plants constitute 66% of the installed capacity,
hydroelectric about 19% and rest being a combination of wind, small hydro, biomass, waste-to-
electricity, and nuclear. India generated 855 BU electricity during 2011-12 fiscal year.
In terms of fuel, coal-fired plants account for 57% of India's installed electricity capacity,
compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal,
renewal hydropower accounts for 19%, and natural gas for about 9%.
In December 2011, over 300 million Indian citizens had no access to electricity. Over one third
of India's rural population lacked electricity, as did 6% of the urban population. Of those who did
have access to electricity in India, the supply was intermittent and unreliable. In 2010, blackouts
and power shedding interrupted irrigation and manufacturing across the country.
The per capita average annual domestic electricity consumption in India in 2009 was 96 kWh in
rural areas and 288 kWh in urban areas for those with access to electricity, in contrast to the
worldwide per capita annual average of 2600 kWh and 6200 kWh in the European Union. India's
total domestic, agricultural and industrial per capita energy consumption estimate vary
depending on the source. Two sources place it between 400 to 700kWh in 2008–2009. As of
January 2012, one report found the per capita total consumption in India to be 778 kWh.
India currently suffers from a major shortage of electricity generation capacity, even though it is
the world's fourth largest energy consumer after United States, China and Russia.The
International Energy Agency estimates India needs an investment of at least $135 billion to
provide universal access of electricity to its population.
The International Energy Agency estimates India will add between 600 GW to 1200 GW of
additional new power generation capacity before 2050.This added new capacity is equivalent to
the 740 GW of total power generation capacity of European Union (EU-27) in 2005. The
technologies and fuel sources India adopts, as it adds this electricity generation capacity, may
make significant impact to global resource usage and environmental issues.
12

13. India's electricity sector is amongst the world's most active players in renewable energy
utilization, especially wind energy. As of December 2011, India had an installed capacity of
about 22.4 GW of renewal technologies-based electricity, exceeding the total installed electricity
capacity in Austria by all technologies.
India's network losses exceeded 32% in 2010 including non-technical losses, compared to world
average of less than 15%. Both technical and non-technical factors contribute to these losses, but
quantifying their proportions is difficult. Some experts estimate that technical losses are about
15% to 20%, A high proportion of non‐technical losses are caused by illegal tapping of lines, but
faulty electric meters that underestimate actual consumption also contribute to reduced payment
collection. A case study in Kerala estimated that replacing faulty meters could reduce
distribution losses from 34% to 29%.
Key implementation challenges for India's electricity sector include new project management
and execution, ensuring availability of fuel quantities and qualities, lack of initiative to develop
large coal and natural gas resources present in India, land acquisition, environmental clearances
at state and central government level, and training of skilled manpower to prevent talent
shortages for operating latest technology plants.
For the past two decades, India has had to face increasing deficit in power supply, both for
meeting its normal energy requirements as well as its peak load demand. The problem is acute
during peak hours and summers, and necessitates planned load shedding by many utilities to
maintain the grid in a healthy state. The average all-India shortages in 2009-10 were at 10 per
cent in terms of normal energy requirement and about 13 per cent in terms of peak load.
With the shortage at both the normal and the peak levels, Indian power industry does not exhibit
much cyclicality. Further, with assured returns, the margins of players and their profitability is
almost independent of the economic cycles. Electricity is the most important component of
primary energy. India’s electricity consumption has grown at an average rate of 7.3 per cent
during the period 2002-07 to about 577.9 TWh. Consumption has increased at a faster rate since
2002-03, reflecting buoyant industrial demand. Industrial consumers are the largest group of
electricity consumers, followed by the domestic, agricultural and commercial consumers, in that
order. India’s per capita electricity consumption increased from 178 kWh in 1985-86 to 704.4
kWh in 2007-08. Over the period, 2001-08, per capita consumption has increased at an average
rate of 4.45 per cent. It is still much lower compared to the international standards.
13

14. 4.2 Electricity demand in India-
Electricity demand at peak load and at normal load is mentioned below in table. In past ten years
normal energy shortfall is regularly increasing, in 2003-04 it was 7.1 % and in 2008-09 it was
11.1% of demand. Peak load energy shortage is also high. Indian economy is one of fastest
growing economy of world. As economy is growing energy demand is also growing to meet
industrial demand.
Table- Electricity Demand and Supply
FY Energy Peak Demand
(MU) (MW)
Demand Availability Shortage % Demand Met Shortage %
2002-03 545,983 497,890 48,093 8.8 81,492 71,547 9,945 12.2
2003-04 559,264 519,398 39,866 7.1 84,574 75,066 9,508 11.2
2004-05 591,373 548,115 43,258 7.3 87,906 77,652 10,254 11.7
2005-06 631,024 578,511 52,513 8.3 93,214 81,792 11,422 12.3
2006-07 693,057 624,716 68,341 9.9 100,715 86,818 13,897 13.8
2007-08 737,052 664,660 72,392 9.8 108,866 90,793 18,073 16.6
2008-09 777,039 691,038 86,001 11.1 109,809 96,785 13,024 11.9
2009-10 830,594 746,644 83,950 10.1 118,472 102,725 15,747 13.3
2010-11 861,591 811,100 50,491 5.9 152746 137013.2 15732.84 10.3
Table- Electricity demand projection at different growth rate-
Installed Capacity
Energy Requirement Peak Demand
Required
(Billion kWh) (GW) (GW)
GDP
6.00% 8.00% 9.00% 6.00% 8.00% 9.00% 6.00% 8.00% 9.00%
growth at
2011-12 1097 1,097 1,097 158 158 158 199 199 199
2016-17 1407 1,524 1,586 203 220 228 255 276 288
2021-22 1804 2,118 2,293 260 305 330 327 384 416
2026-27 2267 2,866 3,219 327 413 464 411 520 584
2031-32 2850 3,880 4,518 411 560 651 517 704 820
14

15. Electricity demand projection as mentioned in above table was done on basis falling elasticity of
electricity, data source- report of planning commission of India.
Table- Elasticity used for projection-
Year Electricity
(falling Elasticity)
2011-12 to 2021-22 0.85
2021-22 to 2031-32 0.78
4.3 Dependence of Electricity demand on GDP growth rate-
Electricity is prime mover of growth rate. As industrialization grows power demand also grows
to maintain higher production rate. By analyzing past 20 years data, shows that growth in
electricity demand is varies as per GDP growth rate and we got following relationship between
electricity demand and growth rate-
Y = 29167X + 227827
Where Y= Electricity Demand
X= GDP growth rate
Also electricity demand projection was done for GDP growth rate of 6%, 8% and 9% for next
20 years at falling elasticity of electricity.
15

16. Chart-As per data in Annexure -2
1000000 12
Electricity Demand and GDP Growth Rate
900000
10
800000
E %
700000
l 8
e 600000 G
c D
500000 6
t P
r 400000
i 4 G
300000
c r
i 200000 o
2
t w
100000
y t
0 0 h
M
U
Year
Electricity Demand(Mus) GDP Growth Rate(%)
Electricity Demand and GDP
1000000
E D 900000
l e 800000
c m 700000
t a 600000
r n 500000
i d 400000
c
300000
i
(
M 200000
t
U 100000
y
)
0
5.5 4.8 6.7 7.6 7.6 4.1 6.2 7.4 4 5.2 3.8 8.4 8.3 9.3 9.3 9.8 7.6 9.1 8.8 6.9
GDP growth rate
y = 29167x + 227827
R² = 0.9736
Electricity Demand and GDP Linear (Electricity Demand and GDP)
16

17. 4.4 Major available resources for electricity generation-
Major power
resources
option
Nuclear
Hydro Energy Coal Wind Energy Solar Energy Natural gas
Energy
Domestic coal Domestic gas
Piped Natural
Imported coal
gas
Blended Coal LNG
Legnite
17

18. Sector wise power generation in 2012 in India
Oil Neclear
1% 2%
gas RES
9% 12%
hydro
19%
coal
57%
The 17th electric power survey of India report claims-
 Over 2010–11, India's industrial demand accounted for 35% of electrical power
requirement, domestic household use accounted for 28%, agriculture 21%,
commercial 9%, public lighting and other miscellaneous applications accounted for
the rest.
 The electrical energy demand for 2016–17 is expected to be at least 1392 Tera Watt
Hours, with a peak electric demand of 218 GW.
 The electrical energy demand for 2021–22 is expected to be at least 1915 Tera Watt
Hours, with a peak electric demand of 298 GW.
18

19. 5 Coal as a fuel for electricity generation-
5.1 Predominant Position of Coal-
 -In terms of fuel, coal-fired plants account for 57% of India's installed electricity
capacity, compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal,
renewal hydropower accounts for 19%, and natural gas for about 9%.
 -A cumulative total of 285862.21 Million Tonnes of Geological Resources of Coal have
so far been estimated in India as on 1.4.2011.
 -Coal is likely to remain our mainstay of fuel for power generation till 2030-31.
However, current shortage is cause of concern.
5.2 Inventory of geological resources of coal in India-
As a result of exploration carried out up to the maximum depth of 1200m by the GSI, CMPDI,
SCCL and MECL etc, a cumulative total of 285862.21 Million Tonnes of Geological Resources
of Coal have so far been estimated in the country as on 1.4.2011. The details of state-wise
geological resources of coal are given as under:
GONDWANA COAL FIELDS: - Annexure -2
TERTIARY COAL FIELDS- Annexure- 3
Categorization of coal resources-
The coal resources of India are available in older Gondwana Formations of peninsular India and
younger Tertiary formations of north-eastern region. Based on the results of Regional/
Promotional Exploration, where the boreholes are normally placed 1-2 Km apart, the resources
are classified into ‘Indicated’ or ‘Inferred’ category. Subsequent Detailed Exploration in selected
blocks, where boreholes are less than 400 meter apart, upgrades the resources into more reliable
‘Proved’ category. The Formation-wise and Category-wise coal resources of India as on
1.4.2010 are given in table below:
(in Million Tonnes)
Proved Indicated Inferred Total
Formation
Gondwana Coals 113407.79 137371.76 33590.02 284369.57
Tertiary Coals 593.81 99.34 799.49 1492.64
Total 114001.60 137471.10 34389.51 285862.21
* Includes 749.92 M.T. of Inferred resources established through mapping in North-
Eastern region.
19

20. 5.3 Type and category-wise coal resources of India-
The Type and Category-wise coal resources of India as on 1.4.2011 are given in
table below:-
(in Million Tonnes)
Proved Indicated Inferred Total
Type of Coal
(A) Coking :-
-Prime Coking 4614.35 698.71 0 5313.06
-Medium Coking 12572.52 12001.32 1880.23 26454.07
-Semi-Coking 482.16 1003.29 221.68 1707.13
Sub-Total Coking 17669.03 13703.32 2101.91 33474.26
(B) Non-Coking:- 95738.76 12368.44 31488.11 250895.31
(C) Tertiary Coal 593.81 99.34 799.49* 1492.64
Grand Total 114001.60 137471.10 34389.51 285862.21
* Includes 749.92 M.T. of Inferred resources established through mapping in North-
Eastern region.
Status of Coal Resources in India during Last Five Years:
As a result of Regional, Promotional and Detailed Exploration by GSI, CMPDI and SCCL etc, the
estimation of coal resources of India has reached to 267.21 Bt. The estimates of coal resources in the
country during last 5 years are given below:
(in Million tonnes)
Geological Resources of Coal
As on
Proved Indicated Inferred Total
1.1.2006 95866 119769 37666 253301
1.4.2007 99060 120177 38144 257381
1.4.2008 101829 124216 38490 264535
1.4.2009 105820 123470 37920 267210
1.4.2010 109798 130654 36358 276810
20

21. 5.4 Consumption pattern of coal-
By analyzing past 30 years data, shows that coal consumption is increasing year by yearas
power demand increasing in India. Due to limited coal reserves, if coal consumption keep
growing at same rate as per past trend, all economic coal reserve will be extracted within 30
years.we got following relationship for coal consumption pattern in India.
Y = 18035X + 41974
Where Y= Coal consumption
X= Year
Annexure- 4
900000 0.2
C y = 18035x + 41974
800000
o R² = 0.9425
a 700000 0.15
l
600000
0.1
T 500000
o 400000
n 0.05
n 300000
e 200000 0
s
100000
0 -0.05
1990
1995
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1991
1992
1993
1994
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Consumption
Year
% Change
5.5 Factors Affecting Coal Prices in India-
21

22. Significant demand from China and India is increasingly accounting for the bulk of worldwide
coal usage. Hence, coal demand and consequently coal prices will depend on the strength of the
economic recovery in the emerging markets, particularly China and India as mentioned. As
several of coal commodity currencies (Aussie Dollar, SA Rand and the Columbian Peso) have
floating exchange rates, any appreciation in the value of these currencies consequently increases
the prices for holders of non-commodity currencies.
Coal price
Coal Coal to
Domestic Cost of Crude oil
Demand Coal sold at Exchange
coal Land prices
and Import market rate
pricing
Production price
22

23. 5.5.1 Domestic coal production and demand:
Domestic coal production is not meeting demand. Currently around 37,000 MW capacities of
power plants running idle due to shortage of fuel supply. Coal India is also not meeting coal
production target. Due to coal supply shortage prices are going up. Due to industrialization,
power demand is growing. It is estimated that at the end of terminal year of 11th Five Year
Plan (2011-12), the coal demand would be about 713 Million Tonnes, whereas the indigenous
availabilitywould be about 630 Million Tonnes. Therefore, there is likely to be a gap of 83
Million Tonnes, which is required to be met through imports. The details are given below:-
(Fig. in million tonnes)
XI Plan
Source 2008-09 2009-10 2010-11 2010-11
Proj.
Actual Actual BE RE 2011-12
4 4 4 4 4
CIL
01.44 15.88 60.5 33.5 86.5
4 4 4 5 4
SCCL
4.54 9.37 7.05 0.5 7
4 4 6 5 9
Others
4.03 9.25 5.87 2.05 6.41
Total
4 5 5 5 6
indigenous
90.01 14.5 73.42 36.05 29.91
supply
5 5 6 6 7
Demand
50 97.98 56.31 24.78 13.24
Gap to be met 5 8 8 8 8
through imports 9.98 3.48 2.89 8.73 3.33
Total Import 5 7 8 8 8
(a+b) 9 3.25 2.89 8.73 3.33
5.5.2 Coal Import-
As per the present Import Policy, coal can be freely imported (under Open General License) by
the consumers themselves, considering their needs and exercising their own commercial
prudence. Due to higher international coal prices and regularly depreciating rupees value, import
of coal is not economical option for power generation. Coking coal is being imported by Steel
Authority of India Limited (SAIL) and other Steel sector manufacturing unites mainly to
bridge the gap between the requirement and indigenous availability and to improve the
quality. Coal based power plants, cement plants, captive power plants, sponge iron plants,
industrial consumers and coal traders import non- coking coal. Coke is imported mainly by
Pig-Iron manufacturers and Iron &Steel Sector consumers using mini-blast furnace. Details
of import of coal and products during the last five years are as under:
23

24. Table:-Coal import (Fig. in million tonnes)
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Coking Coal 16.89 17.88 22.03 21.08 23.46 27.6
Non Coking coal 21.7 25.2 27.76 37.92 44.28 52.02
Coke 2.62 4.69 4.25 1.88 2.2 4.63
Total Import 41.21 47.77 54.04 60.88 69.94 84.05
5.5.3 Domestic Coal Price Fixation-
Government of India deregulated the prices of Non-Coking Coal of grades A,B&C,
Coking coal and Semi/Weakly coking coal on 22.03.1996. Subsequently, on12.03.1997,
Government of India deregulated the prices of non-coking coal of grade D, Hard Coke
and Soft Coke and also allowed Coal India Ltd to fix coal prices for grades E,F&G till
Jan'2000 on every six months by updating cost indices as per escalation formula
contained in the 1987 report of the Bureau of Industrial Cost & Prices. With effect from
01.01.2000, CIL was free to fix the prices of all grades of coal in relation to the market
prices.
Pursuant of the above, CIL fixed the prices of coal from time to time and last such revision
has been made on26.02.2011, to be effective w.e.f 00 hrs of 27-02-11.
Grade wise Basic Price of coal at the Pit-head prices of all varieties of Run of
Mine Coal have been given in Table I to V applicable to the Power Utilities
(including IPPs), Fertilizers and Defense and in Table VI to X applicable to
consumers other than the Power Utilities, (including IPPs), Fertilizers and
Defense excluding statutory levies for Run-of-mine (ROM) Non-Long-
Flame Coal ,Long flame Coal, Coking Coal, Semi Coking Coal & Weakly
Coking Coal, direct feed Coal, Assam Coal for various subsidiaries of CIL as
shown below:
COMPANYWISEGRADEWISECOALPRICESOFCILFORPOWER
UTILITIES (INCLUDINGIPPs), FERTILIZERSANDDEFENCE
 Basic Price of Run of Mine Non-Long-Flame Non-Coking Coal- Annexure- 5
 Basic Price of Run of Mine of Other Non-Coking Coal- Annexure- 6
 Basic Price of Run of Mine Long-Flame Non-Coking Coal- Annexure- 7
 Coking Coal (Run of Mine) Annexure- 8
 Semi Coking & Weakly Coking Coal (Run Of Mine) Annexure- 9
 Direct feed Coking Coal (Run of Mine) Annexure- 10
 Assam Coal (Run of Mine) Annexure- 11
24

25. 5.5.4 Quantity of Coal to be sold at market price:-
Coal distribution through e-auction was re-introduced in the new coal distribution
policy in 2007 mainly to provide access to companies that do not have regular sources
of supply. Most of the through e-auction is transported through roads. Only 10% of
total coal production of Coal India Ltd is being sold by e-auctioning and prices for
remaining are being administered by Government of India. Coal India is being asked
to sign fuel supply agreement with power sector companies and not increase supplies
to other sectors. Present spot market prices are at least 60% higher than notified prices
of coal. Coal prices in domestic spot market have risen by 50% over past three years.
As mentioned below in table Coal India may cut e-auctioning 10 to 7% by 2016-17.
Diversion of coal from e-auction is expected to enable CIL to offer 47 MT more coal
to power sector.
Table- Coal e-auction plan for Coal India Ltd. up to 2016-17
Year 2012-13 2013-14 2014-15 2015-16 2016-17
Production(MT) 464 486 508 530 556
e-auction% 10 10 9 8 7
Amount(MT) 46 49 46 42 39
5.5.5 Impact of crude oil price on Thermal coal prices:-
The coal demand revived upon the energy price surges during the two oil crises. The
primary factor having spurred the revival was that coal was priced much cheaper than
the- then skyrocketing oil and gas prices. Then such demerits as handling difficulties and
environmental load, if taken into account, can undermine utility of coal unless it should
be priced cheap, the greatest merit. In short, the oil price sets the ceiling of coal prices.
Particularly up to first half of the 2008, coal has demonstrated price advantages over
crude oil. After that at the time of uncertainty during global recession, crude oil prices
fall abruptly while not in case of coal. Again in 2009 prices of both coal and crude oil
started rising, and from January, 2011 coal again demonstrated advantages over crude
oil.
As it is clearly shown in graph coal prices are directly related to crude oil prices, varies
according to crude prices change. Namely price ratio of steaming coal to crude oil has
been as small as staying within the 0.38 – 0.45 range. For these reasons, the ceiling on of
coal prices can be put at around 75% of the crude oil price equivalent heat value.
25

26. 140
Relationship Between Crude oil and coal prices 250
120
U 200
S
100 U
$
/ S
150
b 80 $
a /
r 60 t
100
r o
e 40 n
l 50
20
0 0
Oct-07
Jan-08
Oct-08
Jan-09
Oct-09
Jan-10
Oct-10
Jan-11
Oct-11
Jan-12
Apr-07
Apr-08
Apr-09
Apr-10
Apr-11
Apr-12
Jul-07
Jul-08
Jul-09
Jul-10
Jul-11
Table- Crude oil prices and coal prices per month Crude oil Price per barrel
Coal price per metric ton
Annexure- 12
5.5.6 Impact of Exchange rate on coal prices:-
A sharp decline in the value of the rupee is bound to affect the power generation capability
of power plants that are heavily dependent upon imported coal for electricity generation.
This would mean an increase in the level of energy deficit in the country. Moreover, a fall
witnessed in power generation capacity is likely to have an adverse effect on all the three
sectors of the economy namely agriculture, industry and services.
Another dimension to the rupee depreciation episode is that not only has the expenditure on
imports increased but this coupled with an inflexible tariff structure means that the power
companies are going to suffer huge losses.
The global prices of thermal coal in November 2011 were lower than that in May 2011.
Yet, the depreciation of rupee has meant that the importer has to pay an additional Rs.
684.6 per tonne to import the same quantity of coal.
Please refer to table below:
Table: Impact of Rupee Depreciation on Thermal Coal Price-
Month Price $ Exchange rate Price Rs
May 127.6 45.05 5739.5
November 121.9 52.7 6424.1
Difference -5.7 7.7 684.6
Annexure- 13
26

27. 9000 250
8000
7000 200
R
6000
u 150 U
p 5000 S
e 4000
100
e $
3000
s
2000 50
1000
0 0
7-Jul
8-Apr
8-Jul
9-Apr
9-Jul
10-Apr
11-Apr
12-Apr
0.00
10-Jul
11-Jul
7-Oct
8-Oct
9-Oct
10-Oct
11-Oct
8-Jan
9-Jan
10-Jan
11-Jan
12-Jan
coal price in RS per MT coal price in US& per MT Exchange rate
5.5.7 Impact of availability of land on coal prices-
Due to soaring up of land prices and compensation to land owner as per new land
acquisition policy hues amount of money is paid for coal mining lease and that cost further
increasing coal prices. New land pricing policy detail is given bellow-
Land Acquisition Policy in India:-
The Indian Ministry of Rural Development introduces its new draft Land Acquisition and
Rehabilitation & Resettlement Bill which is a policy framework to balance
between land acquisitions for industrialization with the concerns of those who depend on
that land for livelihood.
The new draft Land Acquisition and Rehabilitation & Resettlement Bill of 2011 which will
go through a cabinet vote very soon, has been designed to address the concern of balancing
the need for land to support rapid industrialization on one hand, and the needs of the people
who depend on it for their livelihood.
India is the third largest economy in the world today, but it faces an urgent need for growth
through industrialization, especially through manufacturing. This puts the nation in need
for land for a number of purposes from fuelling the inevitable process of urbanization and
greater industrialization, to a variety of 'public purposes'.
The nation has had a land acquisition act since 1894 which as over the time, seen quite a
few amendments. But the recent heightening of public concern over land acquisition issues
and the absence of a comprehensive law covering the issues of resettlement, rehabilitation
and compensation of livelihoods, has highlighted the need for a wholesome law.
The bill states the legitimate reasons for land acquisition as the above mentioned ones and
additionally defines the purview of the term ‘public purposes’ as the following:
27

28. 1. Strategic purposes: e.g., armed forces, national security;
2. Infrastructure and Industry: where benefits largely accrue to the general public
3. Land acquired for R&R purposes
4. Village or urban sites: planned development -residential purpose for the poor and
educational and health schemes
5. Land for private companies for public purpose;
6. needs arising from natural calamities.
Rehabilitation and Resettlement
It has been observed in the past that the rehabilitation and resettlement aspect is frequently
neglected once the acquisition is over, leading to widespread resentment and rebellion from
the ‘affected families’, who are basically those people who either lose the and that they
own, or livelihood that they had derived from the acquired land. The current draft
necessitates the application of its rehabilitation and resettlement requirements if
the land acquired by private companies exceeds 100 acres.
The new bill states that the Government can either acquire land for its own use or for the
use of private companies for stated public purpose. But the draft makes it clear that
no acquisition can take place until 80% of the project affected families give their consent to
the acquisition. Also, the government can make no acquisition of multi-cropped or irrigated
lands or even land for the private purposes of private companies.
The rehabilitation and resettlement requirements which are a major highlight of this
draft included a number of minimum entitlements making a special provision of scheduled
castes and scheduled tribes.
Compensation and benefits
As per the compensation package, the award amount paid for the land acquired in case of
urban areas should be not less than double the market value determined, and not less than
six times in case of rural areas.
For landowners the entitlements include a subsistence allowance of Rs. 3000 per month per
family for 12 months along with Rs. 2000 per family as annuity for 20 years, with the use
of appropriate indexes for inflation. The loss of a house has to be compensated with the
building of a new one adhering to some minimum size requirements. Entitlements for
transportation and employment provisions also need to be guaranteed. An unemployment
benefit has to be paid if not even a single member of the family is given employment
opportunities. For those who lose their livelihood, the bill states similar entitlements.
28

29. 6 Renewable resources in India:-
Status of renewable energy resources in India-
New & Renewable Energy
Cumulative deployment of various Renewable Energy Systems/ Devices in the country as on
30/04/2012
Renewable Energy Program/ Target for Achievement Total Cumulative
Systems 2012-13 during achievement achievement u
April,2012 during 2012- p to 30.04.2012
13
I. POWER FROM RENEWABLES:
A. GRID-INTERACTIVE POWER (CAPACITIES IN MW)
Wind Power 2500 36.65 36.65 17389.31
Small Hydro Power 350 5.75 5.75 3401.06
Biomass Power 455 16.00 16.00 1166.10
Bagasse Cogeneration 7.50 7.50 1992.73
Waste to Power -Urban - - 89.68
20
-Industrial - - -
Solar Power (SPV) 800 37.72 37.72 979.00
Total 4125.00 103.62 103.62 25017.88
B. OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ)
Waste to Energy - 20.00 1.20 1.20 102.95
Urban
-Industrial
Biomass(non-bagasse) 60.00 2.50 2.50 385.00
Cogeneration
Biomass Gasifiers - 1.50 - - 16.12
Rural- Industrial 10.00 - - 134.09
Aero-Genrators/Hybrid 0.50 - - 1.64
systems
SPV Systems (>1kW) 30.00 - - 85.21
Water mills/micro hydel 2.00(500 -. - 1877 Nos.
Nos.)
Total 126.00 3.70 3.70 725.01
II. REMOTE VILLAGE ELECTRIFICATION
No. of Remote Village/Hamlets - - - -
provided with RE Systems
III. OTHER RENEWABLE ENERGY SYSTEMS
Family Biogas Plants (No. in 1.25 - - 45.09
29

30. lakhs)
Solar Water Heating - Coll. 0.60 - - 5.46
Areas (Million m2)
Solar Energy in India:-
Solar water heaters have proved the most popular so far and solar photovoltaic for
decentralized power supply is fast becoming popular in rural and remote areas. More than
700000 PV systems generating 44 MW have been installed all over India. Under the water
pumping program more than 3000 systems have been installed so far and the market for
solar lighting and solar pumping is far from saturated. Solar drying is one area which offers
very good prospects in food, agricultural and chemical products drying applications.
The Jawaharlal Nehru National Solar Mission (JNNSM) has set ambitious targets for
power generation from solar energy in India. The Mission aims to have about 10 GW of
grid-connected solar power plants by 2022. The mission is divided into 3 phases and the
targets for grid-connected solar PV plants for each phase are-
Phase 1 2010-2013 500 MW
Phase 2 2013-2017 1,500 MW
Phase 3 2017-2022 7,000 MW
Total 10,000MW
In addition to the JNNSM, several state governments have separate solar policies
(Rajasthan, Gujarat and Karnataka) and many other state governments (Tamil Nadu,
Maharashtra, Andhra Pradesh etc) are drafting solar policies on their own. Apart from this,
the Renewable Purchase Obligation (RPO) is expected to drive the growth of the solar PV
power generation sector.
India is densely populated and has high solar insulation, an ideal combination for
using solar power in India. Much of the country does not have an electrical grid grid, so
one of the first applications of solar power has been for water pumping; to begin replacing
India's four to five million diesel powered water pumps, each consuming about
3.5 kilowatts, and off-grid lighting. Some large projects have been proposed, and a
35,000 km² area of the Thar desert has been set aside for solar power projects, sufficient to
generate 700 to 2,10 Gigawatts.
The Indian Solar Loan Program, supported by the United Nations Environment
Program has won the prestigious Energy Globe World award for Sustainability for helping
to establish a consumer financing program for solar home power systems. Over the span of
three years more than 16,000 solar home systems have been financed through 2,000 bank
30

31. branches, particularly in rural areas of South India where the electricity grid does not yet
extend.
Launched in 2003, the Indian Solar Loan Programme was a four-year partnership between
UNEP, the UNEP Risoe Centre, and two of India's largest banks, the Canara Bank and
Syndicate Bank.
Announced in November 2009, the Government of India proposed to launch its Jawaharlal
Nehru National Solar Mission under the National Action Plan on Climate Change with
plans to generate 1,000 MW of power by 2013 and up to 20,000 MW grid-based solar
power, 2,000 MW of off-grid solar power and cover 20 million sq. meters with collectors
by the end of the final phase of the mission in 2020.
Also, TERI's Lighting a Billion Lives Campaign started in 2008 aims to replace kerosene
and paraffin lamps with CFLs to provide off-the-grid lighting to villages and thus ease the
load on the power grid while at the same time provide the people with safe, non-polluting
light at night. So far, it has provided 35,000 CFLs to 640 villages in 16 states in India and
also about 500 CFLs in Myanmar. This campaign has reportedly benefited 175,000 people.
India's largest photovoltaic (PV) power plants- Annexure -2
Wind Energy:-
In progress are wind resource assessment programme, wind monitoring, wind mapping,
covering 800 stations in 24 states with 193 wind monitoring stations in operations.
Altogether 13 states of India have a net potential of about 45000 MW.
The development of wind power in India began in the 1990s, and has significantly
increased in the last few years. Although a relative newcomer to the wind industry
compared with Denmark or the United States, India has the fifth largest installed wind
power capacity in the world. In 2009-10 India's growth rate was highest among the other
top four countries.
As of 31 March 2011 the installed capacity of wind power in India was 16078 MW, mainly
spread across Tamil Nadu (6007 MW), Maharashtra (2310.70 MW), Gujarat (2175.60
MW), Karnataka(1730.10 MW), Rajasthan (1524.70 MW), Madhya Pradesh (275.50
MW), Andhra Pradesh (200.20 MW), Kerala (32.8 MW), Orissa (2MW), West Bengal (1.1
MW) and other states (3.20 MW). It is estimated that 6,000 MW of additional wind power
capacity will be installed in India by 2012. Wind power accounts for 6% of India's total
installed power capacity, and it generates 1.6% of the country's power. India's wind atlas is
available.
The worldwide installed capacity of wind power reached 197 GW by the end of 2010.
China (44,733 MW), US (40,180 MW), Germany (27,215 MW) and Spain (20,676 MW)
are ahead of India in fifth position. The short gestation periods for installing wind turbines,
and the increasing reliability and performance of wind energy machines has made wind
power a favored choice for capacity addition in India.
31

32. Suzlon, an Indian-owned company, emerged on the global scene in the past decade, and by
2006 had captured almost 7.7 percent of market share in global wind turbine sales. Suzlon
is currently the leading manufacturer of wind turbines for the Indian market, holding some
52 percent of market share in India. Suzlon’s success has made India the developing
country leader in advanced wind turbine technology.
Wind Power projects in India-
Power Plant Producer Location State Total
Capacity
Vankusawade Wind Suzlon Energy Ltd. Satara Dist. Maharashtra 259 (MWe)
Park
Cape Comorin AbanLoyd Chiles Offshore Kanyakumari Tamil Nadu 33
Ltd.
KayatharSubhash Subhash Ltd. Kayathar Tamil Nadu 30
Ramakkalmedu Subhash Ltd. Ramakkalmedu Kerala 25
Muppandal Wind Muppandal Wind Farm Muppandal Tamil Nadu 22
Gudimangalam Gudimangalam Wind Farm Gudimangalam Tamil Nadu 21
Puthlur RCI Wescare (India) Ltd. Puthlur Andhra 20
Pradesh
LamdaDanida Danida India Ltd. Lamda Gujarat 15
Chennai Mohan Mohan Breweries & Chennai Tamil Nadu 15
Distilleries Ltd.
Jamgudrani MP MP Windfarms Ltd. Dewas Madhya 14
Pradesh
Jogmatti BSES BSES Ltd. ChitradurgaDist Karnataka 14
PerungudiNewam Newam Power Company Perungudi Tamil Nadu 12
Ltd.
Kethanur Wind Farm Kethanur Wind Farm Kethanur Tamil Nadu 11
Hyderabad APSRTC Andhra Pradesh State Road Hyderabad Andhra 10
Transport Corp. Pradesh
Muppandal Madras Madras Cements Ltd. Muppandal Tamil Nadu 10
PoolavadiChettinad Chettinad Cement Corp. Poolavadi Tamil Nadu 10
Ltd.
Shalivahana Wind Shalivahana Green Energy. Tirupur Tamil Nadu 20.4
Ltd.
32

33. Tidal Energy-
• Tides generated by the combination of the moon and sun’s gravitational forces
• Greatest affect in spring when moon and sun combine forces
• Bays and inlets amplify the height of the tide
• In order to be practical for energy production, the height difference needs to be at
least 5 meters
• Only 40 sites around the world of this magnitude
• Overall potential of 3000 gigawatts from movement of tides
India set to get Asia’s first power plant-
With the proposed commissioning of a 50-Mw tidal power project off the coast of Gujarat
in 2013, India is ready to place its first “seamark” that will be a first for Asia as well.
London-based marine energy developer Atlantis Resources Corporation, along with
Gujarat Power Corporation Ltd, has signed a memorandum of understanding (MoU) with
the Gujarat government to start this project.
The cost for the plant is expected to be in the vicinity of Rs 750 crore. This plant is also is
expected to be scaled up to 250 Mw.
Timothy Cornelius, CEO, Atlantis Resources Corporation, said with just about 2 giga watt
of tidal power installations in the world today, this is a completely new and uncharted
power sources with immense potential. “Tidal power today is what wind energy was 10
years back,” he said.
Due to the high investment in setting up the project, a typical tidal power project is
expected to break even between 8 and 12 years after commissioning. Despite the long
gestation period to make it commercially viable, tidal power has unparalleled
environmental advantages.
“Tidal current power uses turbines to harness the energy contained in the flow of ocean
tides. It is unique as like tidal movements, power output is highly predictable and
sustainable with zero visual impact and the turbines are completely submerged. Tidal
power is like putting a wind turbine subsea and the turbine rotors rotate slowly, causing
very little environmental impact to marine flora and fauna,” said Cornelius.
The power offtaker would be Gujarat Power Corporation. The final cost of power per unit
will be determined at the completion of front-end engineering and design (FEED) phase,
but was expected to be competitive when compared to the large solar power projects
planned for development in Gujarat, the company said.
The project is currently owned by Atlantis and GPCL and project equity participants will
be sought at the completion of FEED phase.
33

34. Late last year, Atlantis became the turbine supplier to the largest planned marine power
project in the world, MeyGen, a 378-Mw tidal power project in the Pentland Firth in
Northern Scotland.
Current estimates suggest 15 per cent of the world’s power demands can be met by tidal
current power sources, while the estimates for India are currently around 5 per cent of its
annual demand for power.
“It is only an estimate, but it could be certainly more than 5 per cent, inclusive of wave
power and tidal power, from what we know now. However, resource investigation has just
begun and with so much coast line, I would expect this number to increase significantly,”
said Cornelius.
Sea water, which is 832 times denser than air, gives a 5 knot ocean current more kinetic
energy than a 350-km an hour wind, thus allowing ocean currents to have a very high
energy density. Accurate predictions of tidal current movements also make this one of the
most predictable and, therefore, reliable sources of renewable energy available today.
Nuclear Energy-
The global nuclear industry is moving forward at a brisk pace, only slightly slowed by the
Fukushima accident. The International Atomic Energy Agency’s most realistic estimate is
that 90 new nuclear plants will enter service by 2030. Ten new nuclear plants went online
over the past two years.
The home of more than one billion people, India has had one of the world’s fastest-growing
economies over the past decade. During this same time frame, the country has made big
strides in increasing its capacity for nuclear generation of electricity.
India now envisages increasing the contribution of nuclear power to overall electricity
generation capacity from 3.2% to 9% within 25 years. By 2020, India's installed nuclear
power generation capacity will increase to 20,000 MW.
India now ranks sixth in terms of production of nuclear energy, behind the U.S., France,
Japan, Russia, and South Korea.
There are now 439 nuclear reactors in operation around the world in over 30 countries,
providing almost 16% of the world’s electricity.
Given the emphasis on rapid expansions in the Indian nuclear power industry, it is
imperative to bring the Indian know-how and resources together with global nuclear skills
and experience to introduce a new dimension to the upcoming nuclear power projects.
Looking at all above important issues, UBM India is bringing its 4th International
Exhibition and Conference from 25 to 27 September 2012 at Mumbai. The exhibition and
the concurrent summit will be an excellent global networking opportunity for the
exhibitors, visitors and delegates. It will provide an opportunity for all companies showcase
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35. their nuclear expertise and know-how and identify business opportunities in the Indian
market.
Presently Nuclear power is the fourth-largest source
of electricity in India after thermal, hydroelectric and renewable sources of electricity.As of
2010, India has 20 nuclear reactors in operation in six nuclear power plants, generating
4,780 MW while seven other reactors are under construction and are expected to generate
an additional 5,300 MW.
In October 2010, India drew up "an ambitious plan to reach a nuclear power capacity of
63,000 MW in 2032", but "populations around proposed Indian NPP sites have launched
protests, raising questions about atomic energy as a clean and safe alternative to fossil
fuels". There have been mass protests against the French-backed 9900 MW Jaitapur
Nuclear Power Project in Maharashtra and the 2000 MW Koodankulam Nuclear Power
Plant in Tamil Nadu. The state government of West Bengal state has also refused
permission to a proposed 6000 MW facility near the town of Haripur that intended to host
six Russian reactors. A Public Interest Litigation (PIL) has also been filed against the
government’s civil nuclear program at the Supreme Court. Despite these impediments the
capacity factor of Indian reactors was at 79% in the year 2011-12 as against 71% in 2010-
11. Nine out of Twenty Indian reactors recorded an unprecedented 97% Capacity factor
during 2011-12. With the imported Uranium from France, the 220 MW Kakrapar 2 PHWR
reactors recorded 99% capacity factor during 2011-12. The Availability factor for the year
2011-12 was at 89%.
Bio-mass Energy-
Bio-energy contribution to the total primary energy consumption in India is over 27%.
Indeed, this is the case for many other countries, because biomass is used in a significant
way in rural areas in many countries. However, the contribution of biomass to power
production is much smaller than this - currently, biomass comprises only about 2650 MW
of installed capacity, out of a total of about 172000 MW of total electricity installed
capacity in the country (May 2011).
India is the pioneer in biomass gasification based power production. While gasification as a
technology has been prevalent elsewhere in the world, India pioneered the use of biomass
gasification for power production. As a result, prominent Indian solution providers in
biomass gasification are implementing their solutions in other parts of the world.
EAI estimates the total installed capacity of biomass gasification based power production
in India will be about 140 MW, out of a total of about 2600 MW of biomass based power
(cumulative of grid connected and off grid). Of the total, biogas based power generation
has the share (about 1400 MW), followed by combustion-based biomass power production
(about 875 MW). While biomass gasification currently contributes little to power
production, EAI foresees significant growth for this sector in future.
Waste Resource-
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36. Every year there is an estimated 30 million tons of solid waste and 4,400 million cubic
meters of liquid waste generated in urban areas of India alone. The problems caused by
solid and liquid wastes can be significantly mitigated through adoption of environment-
friendly waste-to-energy technologies. These technologies hold the promise of reducing
quantity of wastes and in addition, generate a substantial quantity of energy from them, and
greatly reduce pollution of water and air. In spite of the unquantifiable level of benefits,
they are still not seen as an attractive business opportunity. The reason for this is the lack of
understanding about the various (technology/process) options available and long term
viability of the waste to energy projects.
We at EAI have been researching the waste to energy industry for the past few years and
have developed a thorough understanding of the various technology options and their
viabilities. Diverse business opportunities along the value chain, the global scenario and the
market segment for each of the waste to energy technologies are well known to us and we
are poised to provide a balanced opinion about waste to energy industry.
can provide extensive research and consulting assistance for value generation from the
following types of waste:
 Industrial solid waste
 Municipal solid waste
 Hazardous waste
 Industrial liquid waste
 Sewage and Fecal Waste
 Agro and crop waste
We can also provide customized inputs for value and energy generation based on the
following processes:
 Anaerobic digestion
 Pyrolysis
 Gasification
 Combustion
 Fermentatio
Limitation of Renewable energy resources in India-
 Renewable energy often relies on the weather for its source of power that is
unpredictable and intermittent.
 Solar power is dependent on availability of sunlight. Thus the availability of power
fluctuates from zero to maximum every day.
 The current cost of renewable energy technology is also far in excess of traditional
fossil fuel generation.
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37. 7 Natural Gas in India:-
7.1 Current Natural Gas Scenario in India-
India is the world’s seventh largest energy producer, accounting for 2.49% of the worlds
total annual energy production. It is the fifth largest energy consumer, accounting for
about
3.45 % of total energy consumption in 2004, which has been increasing by an average of
4.8 % percent a year since 1990. The share of commercial energy in total primary energy
consumption increased from 59.7 % in 1980-81 to 79.3 % in 2008-09. India’s GDP has
grown at more than 8-8.5 % during the last few years, and is expected to grow minimum at
the rate of 7.5-9 % in the coming few years. The growth has taken place despite the huge
deficit in energy infrastructure and infrastructure. Even today, half of the country’s
population does not have access to electricity or any other form of commercial energy, and
still use non- commercial fuels such as firewood, crop residues end during cakes as a
primary source of energy for cooking in over two-thirds of households.
Major gas projects in India-
Project State Commissioned Capacity (MW)
RGPPL, Anjanvel Maharashtra 1480
Dadri Uttar Pradesh 817
Paguthan Gujarat 654.73
Auraiya Uttar Pradesh 652
Jhanor-Gandhar Gujarat 648
Kawas Gujarat 645
Faridabad Haryana 430
Anta Rajasthan 413
Vemagiri Power Generation Ltd. Andhra Pradesh 388.5
Rajiv Gandhi CCPP Kayamkulam Kerala 350
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38. 7.2 Demand and Forecasts for India-
The demand of natural gas has sharply increased in the last two decades at the global
level. In India natural gas was first discovered off the west coast in 1970s, and today, it
constitutes 10 % of India’s total energy consumption. Over the last decade it has gained
importance as a source of energy and its share is slated to increase to about 25 % of the
total energy basket by 2025-2030. In its Reference Scenario, the IEA expects Indian gas
demand to increase to 94 billion cubic meters by 2020 and to 132 billion cubic meters by
2030, driven by the industrial and power generation sectors. This means anannual
increase of 5.4 % – one of the highest in the world. In the 450 Scenario, demand by 2020
would be slightly lower (89 billion cubic meters), but by 2030 would almost remain at
the same level as in the Reference Scenario –
132 billion cubic meters– as gas would be needed to displace coal. The latest available
th
Indian demand forecasts for the 11 Five- year plan (2007-12) show gas demand
increasing by between 37 % and 58 % over that period and the power sector being the
main driver for incremental gas demand (see Table below).
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39. Natural Gas Demand Projection
Reference- http://ebookbrowse.com/rr07-23-india-natural-gas-indd-pdf-d132734147
7.3 Competitive demand from Fertilizer & City Gas Sector-
Further, ICRA expects the prospects for the CGD business to remain good in the long term,
given the under-penetration of city gas in India in the absence of adequate gas and
transmission pipeline capacity. Natural gas allocation will invite Expression of Interest
(EOI) from those interested, henceforth called applicant, in the use of the gas as advertised.
It will also indicate the compression/transportation charges, as applicable, to each field in
advance and clarify that these shall have to be borne by the applicant (s).
EOIs shall be submitted in a sealed cover super scribing the priority sector they belong to.
The sectors have been prioritized as given below.
a. Gas-Based Urea fertilizer plants
b. LPG Plants
c. Power Plants supplying power to the grid/state utilities at regulated rates under PPA.
d. CGD systems for domestic and transport sectors
e. Steel/Refineries/Petrochemicals for feedstock purposes.
f. CGD for industrial and Commercial Consumers.
g. Any other customers for captive and merchant power, feedstock or fuel purpose.
Allocation shall start from applicants highest in the priority as mentioned above. Further,
only if the full gas demands of all applicants in the preceding sector are met, will the
succeeding priority sector be taken up for allocation in that sector.
Reference- http://www.petroleum.nic.in/
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