Energy and alternative Energy
The National Electricity Policy has set the goal of adding new generation capacity of more than one lac MW during the 10th and 11th Plan periods to have per capita availability of over 1000 units of electricity per year and to not only eliminate energy and peaking shortages but to also have a spinning reserve of 5% in the system. Development of the power sector has also to meet the challenge of providing access for electricity to all households in next five years.
The Electricity Act also mandates non-discriminatory open access in transmission to generating companies, distribution licensees and consumers and also open access in distribution for consumers with loads above 1 MW. These provisions regarding non-discriminatory open access in transmission and distribution will facilitate the emergence of merchant power plants.
Attractive investment opportunities are likely to develop in distribution of power as several State governments have agreed to allow the gradual entry of the private sector in distribution.
The Government’s power sector policy seeks to attract significant private sector investment in the Indian power sector. Key initiatives include:
- Private sector permitted to set up coal, gas or liquid based thermal projects, hydel projects and wind or solar projects of any size.
- Foreign equity participation upto 100% in the power sector under the automatic route
- Role of the Central Government is minimal and the State Government and State Electricity Boards (SEBs) are empowered to negotiate directly with developers, facilitating speedy clearances for the investor
- Ancillary sectors such as coal have been significantly deregulated.
- The State Electricity Boards of Orissa, Haryana, Andhra Pradesh, Uttar Pradesh, Karnataka and Rajasthan have been unbundled/corporatized. Fourteen States (Orissa, Haryana, Andhra Pradesh, Uttar Pradesh, Delhi, West Bengal, Maharashtra, Karnataka, Himachal Pradesh, Gujarat, Punjab, Arunachal Pradesh, Rajasthan and Tamil Nadu) have constituted/notified constitution of State Electricity Regulatory Commission.
Opportunities in Power Generation
· Generation, Transmission and Distribution
· 78% Hydro potential to be harnessed
· Shelf of generation projects identified
· Convergence of Transmission, Telecom and Information Technology
· Renovation and Modernization
· Cross Country Grids
· Efficiency improvement in generation
· Reduction of T&D losses: Energy Audit / metering
· Energy Conservation and Demand Side Management
Investment Policy
Investment Opportunities for Private Companies in Transmission
Private Sector Participation through Joint Venture Route
Private Sector Participation through IPTC Route
Investment Opportunities in Distribution