POWER

For updated information, please visit [Link] August 2020

Table of Contents

Executive Summary……………….….……..3

Advantage India…………………..….……...4

Market Overview …………………….……...6

Strategies Adopted………….….…..……...15

Growth Drivers……………………..............17

Opportunities…….……….......…………….26

Industry Associations………..………….....31

Useful Information………..........…………..33
 EXECUTIVE SUMMARY

▪ India is the third largest producer and second largest consumer of electricity in the world and had an installed
Third largest producer and power capacity of 371.97 GW as of July 2020. The country also has the fifth largest installed capacity in the
third largest consumer world.
globally ▪ India was ranked fourth in wind power, fifth in solar power and fifth in renewable power installed capacity as of
2018.

▪ India has been on a path to achieve 100 per cent household electrification as envisaged under the Saubhagya
Electrification scheme. As of March 2019, more than 26.2 million households were electrified under the Saubhagya scheme.
achievements ▪ Under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), 100 per cent villages across the country stands
electrified as on April 2018.

▪ As on July 31, 2020, India had an installed renewable energy capacity of 88.04 GW.

▪ Wind energy is estimated to contribute 60 GW, followed by 100 GW from solar power and 15 GW from
Robust growth in biomass and hydropower by 2022. The target for renewable energy has been increased to 175 GW by
renewables 2022.

▪ The Government plans to double the share of installed electricity generation capacity of renewable energy to
40 per cent till 2030.

Favourable policy
▪ 100 per cent FDI is allowed under the automatic route in the power segment and renewable energy.
environment

Note: GW – Gigawatt,
Source: Make in India website, Ministry of New and Renewable Energy, IEA, CEA (Central Electricity Authority, Assorted articles

3 Power For updated information, please visit [Link]

 Power

ADVANTAGE INDIA
 ADVANTAGE INDIA

▪ Expansion in industrial activity to boost demand

for electricity. ▪ In June 2019, Government launched US$ 5
billion of transmission-line tenders in phases
▪ Growing population along with increasing
to reach 175 GW target by 2022.
electrification and per-capita usage to provide
further impetus. ▪ In June 2020, Government launched pan-
India Real Time Market in electricity.
▪ Power consumption is estimated to reach
1,894.7 TWh in 2022.

▪ India ranked sixth in list of countries to make

significant investment in clean energy by allotting
US$ 90 billion.

ADVANTAGE
INDIA
▪ India’s power sector is forecast to attract ▪ 100 per cent FDI allowed in the power sector
investment worth Rs 9-9.5 trillion (US$ 128.24- has boosted FDI inflow in this sector.
135.37 billion) between FY19-FY23.
▪ On April 28, 2018, all un-electrified inhabited
▪ Total FDI inflow in the power sector reached census villages were electrified, supported
US$ 14.98 billion between April 2000 and by schemes like Deen Dayal Upadhyay
March 2020. Gram Jyoti Yojana (DDUGJY) and
Integrated Power Development Scheme
▪ As per Economic Survey 2018-19, additional
(IPDS).
investment in renewable plants till 2022 would
be about US$ 80 billion. Investment worth US$
250 billion will be required for the period 2023-
2030.

Note: FDI - Foreign Direct Investment, TWh - Terawatt-Hour, Crisil Research , GW- Gigawatt
Source: CEA, Department Of Promotion Of Industry And Internal Trade

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 Power

MARKET OVERVIEW
 EVOLUTION OF THE INDIAN POWER SECTOR

▪ Legislative and policy initiatives (1991)

▪ Private sector participation in generation
▪ Electricity (Supply) Act 1948
▪ Fast-track clearing mechanism of private investment proposals
▪ Establishment of semi-
autonomous State Electricity ▪ Electricity Regulatory Commissions Act (1998) for establishing Central and
Boards (SEBs) State Electricity Regulatory Commissions and rationalisation of tariffs

Before 1956 1956–1991 1991–2003 2003 onwards

Introductory Nationalisation Liberalisation Growth
Stage Stage Era Era

▪ Electricity Act (2003)

▪ Amendments made in Electricity Act so as to create competition
▪ Industrial Policy Resolution (1956) ▪ Implementation of Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Integrated
▪ Generation and distribution of power Power Development Scheme for rural and urban areas, respectively
under state ownership ▪ Implementation of Ujwal DISCOM Assurance Yojana (UDAY) which would enable
▪ Power losses, subsidies, infrastructure electrification to all villages and tracking it using the Grameen Vidyutikaran App
bottlenecks and resource constraints ▪ Amendment in National Tariff Policy (2016) has been made, wherein Government is
focusing more on sustainable utilisation of renewable energy resources
▪ In May 2018, India ranked 4th in the Asia Pacific region out of 25 nations on an index that
measures their overall power
▪ India’s rank jumped to 22 in 2019 from 137 in 2014 on World Bank’s Ease of Doing
Business - "Getting Electricity" ranking
Source: MNRE, Corporate Catalyst India, IFLR

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 INDIA AMONG TOP FOUR POWER GENERATING
NATIONS

▪ With a generation of 1,561 TWh, India is the third largest producer World’s leading electricity
Visakhapatnam generation
port traffic intonnes)
(million 2018 (TWh)
and the third largest consumer of electricity in the world.

▪ Although power generation has grown more than 100-fold since 8,000
independence, growth in demand has been even higher due to
accelerating economic activity. 7,000

7,111.8
▪ India is on its way to become the world's first country to use LEDs for
all lighting needs, thereby saving Rs 40,000 crore (US$ 6.23 billion) 6,000
on an annual basis.

▪ India's energy firms have made significant progress in the global 5,000
energy sector. According to S&P Global Platts Top 250 Global
Energy Rankings, 10 out of 14 Indian energy companies make it to

4,460.8
4,000
the list with RIL and IOC at third and seventh position, respectively.

3,000

2,000

648.7
654.4
1,561.1
1,000

1,151.6
1,110.8
0
China US India Russia Japan Canada Germany

Note: TWh - Terawatt Hours

Source: BP Statistical Review World Energy 2019

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 POWER GENERATION HAS GROWN RAPIDLY OVER
THE YEARS

▪ With electricity production of 1,252.61 BU in India in FY20, the Visakhapatnam

Electricity production
port traffic (million
in India tonnes)
(BU)
country witnessed growth of around 0.26 per cent over the previous
fiscal year.
CAGR 3%
▪ During FY16–FY20, electricity production in India grew at a CAGR of 1,400
3 per cent.

▪ All un-electrified inhabited census villages were electrified by April

1,252.61
1,200

1249.20
1201.5
28, 2018, ahead of the deadline of May 1, 2018.

1160.1
1107.8
1,000

800

600

177.32
400

200

0
FY16 FY17 FY18 FY19 FY20 FY21*

Notes: BU – Billion Unit, *- till June 2020

Source: BP Statistical Review, Ministry of Power

9 Power For updated information, please visit [Link]

 SOURCES OF POWER WITH SHARES IN TOTAL
INSTALLED CAPACITY … (1/2)
India has large reserves of coal. By end of July 2020, total installed coal thermal
Coal power capacity in India stood at 199.5 GW. By 2022, it is expected to witness total
installed capacity addition of 47.86 GW.

Thermal 62.4% India’s gas thermal power capacity measured about 24.99 GW as of July 2020. By
Gas & Lignite 2022, it is expected to witness total installed capacity addition of 0.41 GW. Lignite
thermal power capacity measured around 6.36 GW as of July 2020.

Diesel India’s diesel thermal power capacity measures about 0.50 GW as of July 2020.

Wind energy is the largest renewable energy source in India. Projects like the Jawaharlal Nehru National
23.4% Solar Mission (aims to generate 20,000 MW of solar power by 2022) are creating a positive environment
Renewable among investors keen to exploit India’s potential. There are plans to set up four solar power plants of 1 GW
each. As of July 2020, India had 88.04 GW of renewable energy capacity. The target is to achieve installed
capacity of 175 GW by FY22.

12.3% With a large swathe of rivers and water bodies, India has enormous potential for hydropower. As of July 2020,
Hydro India’s hydro power generating capacity stood at 45.69 GW. By 2022, it is expected to witness total installed
capacity addition of 6.82 GW.

1.8% As of July 2020, India had 6.78 GW of installed nuclear capacity. With one of the world’s largest reserves of
Nuclear thorium, India has a huge potential in nuclear energy. By 2022, it is expected to witness total installed capacity
addition of 3.30 GW.

Notes: GW - Gigawatt
Source: Ministry of Coal, NHPC, CEA, BP Statistical Review 2015, Corporate Catalyst India, Indian Power Sector, Ministry of Power

10 Power For updated information, please visit [Link]

 SOURCES OF POWER WITH SHARES IN TOTAL
INSTALLED CAPACITY … (2/2)

▪ In FY20, total thermal installed capacity in the country stood at

Installed Visakhapatnam
capacity for different sources
port traffic of power
(million – FY20 (GW)
tonnes)
230.81 GW. Renewable, hydro and nuclear energy installed capacity
totalled 86.76 GW, 45.70 GW and 6.78 GW, respectively.

▪ By 2022, India has set a target to achieve total production of 175 GW 250
from renewable resources, out of which, 100 GW will be produced
from solar power.

▪ As part of the green corridor project, power lines would transmit 20 200
GW of power capacity from 34 solar parks across 21 states.

▪ In April 2020, NTPC Vindhyachal became the largest power plant in

the country to achieve a plant load factor (PLF) of 100 per cent.
150

230.81
100

50
86.76

45.70
6.78
0
Thermal RES Hydro Nuclear

Notes: GW – Gigawatt,
Source: Ministry of Coal, NHPC,Central Electricity Authority (CEA), Corporate Catalyst India

11 Power For updated information, please visit [Link]

 GENERATION CAPACITY HAS INCREASED AT A
HEALTHY PACE

▪ Installed capacity have increased steadily over the years, posting a Installed
Visakhapatnam
electricity
port
generation
traffic (million
capacity
tonnes)
(GW)
CAGR of 7.19 per cent in FY16–FY20.

▪ Energy generation from conventional sources stood at 97.70 billion @CAGR 7.19%
units (BU) in March 2020. Between 2017 and 2022, conventional 400
sources are expected to witness capacity addition of 58.38 GW.

371.97
370.11
▪ Coal-based power installed capacity in India, which currently stands 350

356.10
at 198.52 GW, is expected to reach 330-441 GW by 2040. It is

344.00
326.84
expected to grow at a CAGR of 6.5 per cent during FY18-FY23.
300

280.33
250

200

150

100

50

0 FY16

FY17

FY18

FY19

FY20

FY21*
Note: GW - Gigawatt, ^ - Tentative, @ CAGR till FY20, *- till July 2020
Source: CEA (Central Electricity Authority

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 MAJOR PLAYERS IN THE POWER SECTOR

Company Indian company

▪ NTPC is the largest power producer in India and is also the sixth largest thermal power producer in the world.
▪ It has also diversified into hydro power, coal mining, power equipment manufacturing, oil and gas exploration,
power trading and distribution. NTPC group reported a 5,290 MW commercial capacity addition plan for FY20.
▪ NTPC Ltd achieved 100 per cent plant load factor (PLF) on May 9, 2020 in three of its thermal power stations.
▪ In June 2020, Republic of Mali awarded Project Management Consultancy contract to NTPC for development of
500 MW solar park.
▪ It achieved highest daily gross generation of 977.07 million unit (MU) on July 28, 2020.

▪ Tata Power is India’s largest integrated power company with significant presence in solar, hydro, wind and
geothermal energy space. The company accounts for 52 per cent of the total generation capacity in the private
sector. The company has an installed capacity of 10,957 MW. By 2022, the company plans to increase the
generating capacity to 18 GW, distribution networks to 4 GW and energy resources to 25 million tonnes per
annum.

▪ Adani Power is one of India’s largest private thermal power producers, with total capacity at 12.45 GW in 2019; the
company aims to generate 20 GW of power by 2020.
▪ In June 2020, Adani Green Energy won a major tender to set up 8 GW of manufacturing-linked solar energy project
with an investment of Rs 45,000 crore (US$ 6.38 billion).

▪ CESC Limited is a vertically integrated player engaged in coal mining and generation and distribution of power. As
of January 2020, it owns and operates three thermal power plants generating 1125 MW of power. These are Budge
Budge Generating Station (750 MW), Southern Generating Station (135 MW) and Titagarh Generating Station (240
MW).

▪ NHPC is the largest hydro power utility in India. In FY19, the company achieved the highest ever generation of
24.19 BU. It is engaged in construction of two hydro-electric project with aggregate installed capacity of 2,800 MW.
▪ It has drawn an extensive plan to add about 6 GW of hydropower capacity by 2022.
Source: Company websBPM, News articles, Industry sources
Note: * - including its Joint Ventures and Subsidiaries, GW-Gigawatt

13 Power For updated information, please visit [Link]

 MAJOR PLAYERS IN THE POWER SECTOR … (2/2)

Company Indian company

▪ Power Finance Corporation Limited (PFC) is an NBFC, engaged in financing and development activities within the
Indian power sector.
▪ Major products and services include project term loans, lease financing, direct discounting of bills, short-term loans
and consultancy services.

▪ Power Grid Corporation of India Limited (PGCIL) is the single largest transmission utility in India. It is responsible
for planning, co-ordination, supervision and control over inter-state transmission systems.
▪ As of January 2020, the company managed 162,489 km of transmission lines and 248 sub-stations.

▪ Damodar Valley Corporation is engaged in power generation, distribution and transmission of electric power,
irrigation and flood control.

▪ SJVN Limited is the second largest hydro power company in India.

▪ The company plans to diversify into wind power projects soon.
▪ For FY19, SJVN’s capital expenditure (CAPEX) target was Rs 900 crore (US$ 139.64 million) and turnover target
was Rs 2,175 crore (US$ 337.47 million).

Note: NBFC - Non-Banking Financial Company

Source: Company websBPM, News articles

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 Power

STRATEGIES
ADOPTED
 STRATEGIES ADOPTED

▪ Companies are developing captive coal fields to reduce price volatility and ensure uninterrupted supply of
fuel to control generation cost.
Control generation costs
▪ Most of the power companies are now located near energy source. This helps minimise costs of fuel
transport.

▪ Power companies are now looking at securing adequate supplies of fuel by targeting not only domestic but
also overseas resources.
Acquiring sources of ▪ Reliance Power already has coal reserves in Indonesia.
fuel supply ▪ Essar Power have captive coal mines in Indonesia from which it extracts coal for power plants in India.
▪ Government has enabled power utilities for swapping their coal supplies with the nearest source so as to
save miscellaneous costs and decongest the rail network.

▪ Companies are using multiple-generation technologies based on a project’s requirement.

Diversifying generation
▪ Companies such as NTPC and Reliance Power already have coal-fired, gas-fired and hydroelectric
technologies capacity. This helps them diversify and reduce dependence on a single source.

Additional revenue ▪ Most of the companies are now looking to sell their carbon credits to generate additional revenue by
streams employing supercritical technology.

▪ Launch of smart grid mission with 14 DISCOMS as a pilot.

Digital India ▪ Smart metering for high-end users of electricity.
▪ In June 2020, Government launched pan-India Real Time Market in electricity.

Source: News Sources

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 Power

GROWTH DRIVERS
 GROWTH DRIVERS IN POWER SECTOR OF INDIA

Growing demand Policy support Increasing investment

Growing demand

India’s power
Supports
sector is forecast to
commissioned
Electricity attract investment
power plants to sell
generation in India worth Rs 9-9.5
electricity in the
stood at 1,252.61 trillion (US$
absence of valid
BU in FY20 128.24-135.37
Power Purchase
billion) between
Agreement (PPA) Resulting
Inviting FY19-FY23
in

PE Investments in
Electricity Relaxed
February 2019 were
generation FDI Norms
US$ 350 million.
recorded a growth
of 0.26 per cent y-
o-y in FY20
Economic Survey
predicts an
investment of US$
330 billion in
renewable sector by
2030

Note: FDI - Foreign Direct Investment

Source: Central Electricity Authority of India

18 Power For updated information, please visit [Link]

 INDUSTRIAL EXPANSION AND STRONG GDP
GROWTH DRIVING POWER DEMAND … (1/2)

▪ Multiple drivers (industrial expansion, growing per-capita incomes) Share

Visakhapatnam
of electricity consumption
port traffic (million
in industrial
tonnes)sector
are leading to growth in power demand. This is set to continue in the
coming years. 45%
India is set to become a global manufacturing hub with investment
across the value chain. 44% 44%
▪ India’s power demand is expected to rise to 1,905 TWh by FY22.
44%
▪ Industrial sector had a share of 41 per cent of the total electricity
consumption in FY17 and FY18P.
43%

43%

42%
42%

42%
41% 41%

41%

41%

40%
FY15 FY16 FY17 FY18P

Note: TWh - Terawatt Hours, P – Provisional

Source: Ministry of Statistics and Program Implementation, CEA

19 Power For updated information, please visit [Link]

 INDUSTRIAL EXPANSION AND STRONG GDP
GROWTH DRIVING POWER DEMAND … (2/2)

▪ Future investment will benefit from strong demand fundamentals, Visakhapatnam

Per-capita electricity
port traffic
consumption
(million tonnes)
(KWh)
policy support and increasing Government focus on infrastructure.

▪ Per capita electricity consumption in the country grew at a CAGR of CAGR 2.38%
2.38 per cent during FY16-FY19, reaching 1,181 KWh in FY19P. 1,200

1,180

1,181
1,160

1,149
1,140

1,120

1,122
1,100

1,080

1,075
1,060

1,040

1,020
FY16 FY17 FY18 FY19(P)

Note: P : Provisional, data as per latest available figures, BU – Billion Units

Source: CEA

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 POLICY SUPPORT AND INITIATIVES…(1/4)

• In May 2018, the Government of India approved National Policy on Biofuels 2018.
National Policy on Biofuels
▪ Benefits of this policy were related to health, clean environment, employment generation, reduced import
- 2018
dependency, and boost to infrastructural investment in rural areas.

Ultra Mega Power Projects ▪ Launch of UMPP scheme through tariff-based competitive bidding.
(UMPPs) ▪ Ease of land possession, provision of fuel, water and necessary clearances for enhancing investor confidence.

▪ Linking disbursement of central Government funds (to states), with actual reduction in transmission and
distribution losses. Sanctioned projects of more than US$ 5.8 billion.
R-APDRP ▪ In June 2019, the state administrative council sanctioned Rs 173 crore (US$24.3 million) for Supervisory
Control and Data Acquisition (SCADA) and Distribution Management System (DMS) under R-APDRP Scheme
for Jammu and Srinagar cities.

▪ The Pradhan Mantri Sahaj Bijli Har Ghar Yojana, “Saubhagya”, was launched by the Government of India with
an aim of achieving universal household electrification by March 2019. By 2018, a total of 25 states achieved
Saubhagya Scheme 100 per cent household electrification, which included 23.1 million rural and 844,670 urban households.

▪ Amount of 1,463.95 crore (US$ 209.45 million) was spent in 2017-18 for Saubhagya scheme, however, no
additional budget allocation was made in 2019-20 for this scheme.

▪ Over 36.10 crore LED bulbs, 71.61 lakh LED tube lights and 23.10 lakh energy efficient fans have been
UJALA Scheme distributed across the country, saving around 47 billion kWh per year. Around Rs 18,935 crore (US$ 2.71
billion) per year in electricity bills of consumer was saved.

Notes: R-APDRP - Restructured Accelerated Power Development and Reform Programme , AT&T - American Telephone and Telegraph Systems
Source: Ministry of Power

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 POLICY SUPPORT AND INITIATIVES…(2/3)

▪ Replacing nationwide street lights with LED lights.

Energy Conservation
▪ Plan to save 10 per cent energy that would light up 11 crore lives.
Campaign
▪ Replacing 1 crore bulbs in Delhi within one year.

▪ The Union Budget 2020-21 has allocated Rs 15,875 crore (US$ 2.27 billion) to the Ministry of Power and Rs
Power to the people
5,500 crore (US$ 786.95 million) towards the Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY).

▪ It was launched by the Government of India to encourage operational and financial turnaround of state-owned
Power Distribution Companies (DISCOMS), with an aim to reduce Aggregate Technical & Commercial (AT&C)
losses to 15 per cent by FY19.
Ujwal Discoms Assurance
▪ The Government of India has signed four memorandum of understanding (MoU) with the state of Nagaland
Yojana (UDAY)
and Union Territories (UTs) of Andaman & Nicobar Islands, Dadra & Nagar Haveli & Daman & Diu under the
Ujwal DISCOM Assurance Yojana (UDAY) to improve operational efficiency of electricity departments in these
places.

▪ To create potential for domestic manufacturers and developers, Government will auction 40 GW of renewable
Boost to manufacturing
energy projects including 30 GW solar and 10 GW wind every year till 2028.

Source: Ministry of Power, News articles

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 POLICY SUPPORT AND INITIATIVES…(3/3)

Direct Benefit Transfer ▪ Union and state Governments have agreed to implement Direct Benefit Transfer (DBT) scheme in the
(DBT) Scheme electricity sector for better targeting of subsidies.

▪ All the states and union territories of India was on board to fulfil Government’s vision of ensuring 24x7
Vision ‘24x7’ Power for All’ affordable and quality power for all as per the Ministry of Power and New & Renewable Energy, Government
of India.

▪ The Ministry of Environment, Forest and Climate Change, Government of India has clarified that solar PV
No environment clearance
(photovoltaic) power, solar thermal power projects, and solar parks will not require the environment clearance
required for solar projects which was mandatory under the provisions of Environment Impact Assessment (EIA) notification, 2006.

▪ Under Union Budget 2019-20, the Government has allocated Rs 5 billion (US$ 73 million) to increase capacity
Green Energy Corridor
of Green Energy Corridor Project along with Rs 9.20 billion (US$ 130 million) for wind and Rs 30.05 billion
Project (US$ 440 million) for solar power projects.

▪ Feed-in Tariff scheme is used for promoting generation of electricity from renewable energy sources. It allows
power producers to sell renewable energy generated electricity to an off-taker at a pre-determined tariff for a
Tariff given period.

▪ Ministry of New and Renewable Energy set solar power tariff caps at Rs 2.50 (US$ 0.04) and Rs 2.68 (US$
0.04) unit for developers using domestic, and imported solar cells and modules, respectively, in August 2018.

▪ Indian Government is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power
Rent a roof policy
through solar rooftop projects by 2022.

Source: Ministry of Power, News articles

23 Power For updated information, please visit [Link]

 INCREASING INVESTMENTS: FDI INFLOWS AND KEY
DEALS … (1/2)

▪ Power is one of the key sectors attracting FDI inflows into India. FDI
Visakhapatnam
inflow into the
port
power
traffic
sector
(million
(US$tonnes)
billion)
▪ From April 2000 to March 2020, India recorded FDI of US$ 9.22
billion in non-conventional energy sector. New and renewable energy
16 14.99
sector witnessed maximum power generation capacity addition, 1.11 0.67
since 2000. 1.62
14
▪ Power sector accounted for 3 per cent of total inflows till December
1.11
2019. 12
0.92
▪ Cumulative FDI inflow in the power sector stood at US$ 14.99 billion 0.66
10
between April 2000 and March 2020 . 1.07
0.53
8 1.40
4.63
6

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19
FY01-11

FY01-20
FY20
Source: DPIIT

24 Power For updated information, please visit [Link]

 INCREASING INVESTMENTS: FDI INFLOWS AND KEY
DEALS … (3/3)
Important deals
Acquirer Target Date Value (US$ mn)
TOTAL Gas & Power Business Services Adani Green Energy Limited (AGEL) April 2020 530.40
IndiGrid Sterlite Power January 2020 145.94

Bharti Airtel Limited AMPSolar Evolution October 2019 1.20 (26 per cent)

Bikaner-Khetri Transmission Limited

Adani Transmission September 2019 -
(BKTL)
SunEdison Infrastructure Megamic Electronics July 2019 10 million
Rural Electrification Corporation (REC) 52.63 per cent of
Power Finance Corporation (PFC) Ltd December 2018
Ltd holding
Prayagraj Power Generation Company 854.94 (75.01 per cent
Renascent Power Ventures Pte Ltd November 2018
Limited (PPGCL) stake)
Ramky Enviro Engineers
Kohlberg Kravis Roberts & Co (KKR) August 2018 530
Limited
ReNew Power Ostro Energy April 2018 1,668.21
Canada Pension Plan Investment Board (CPPIB) ReNEW Power Ventures Ltd January 2018 144 (6.3 per cent stake)
Wind power assets of KC Thapar
ReNew Power 21 November 2017 155.55
Group
Reliance Infrastructure Limited
Adani Transmission Limited October 2017 2,932
(Mumbai)
India Power Corp. Ltd Meenakshi Energy Pvt Ltd 16 November 2016 -
Greenko Energy Holdings (GEH) SunEdison 4 October 2016 392

Note: FDI - Foreign Direct Investment, PE - Private Equity, Thomson One Banker
Source: Thomson One Banker, Industry News, VC Circle

25 Power For updated information, please visit [Link]

 Power

OPPORTUNITIES
 POWER GENERATION: OVERALL FUNDAMENTALS
WILL REMAIN STRONG

▪ Demand for electricity is expected to increase – per capita Visakhapatnam

Electricity demand
port traffic
forecast
(million
(TWh)
tonnes)
consumption of electricity is estimated to be at 1,894.70 TWh by
FY22.
CAGR 7.00%
▪ Current production levels are not enough to meet demand – annual 2,000
demand outstrips supply by about 7.5 per cent.
1,800 1,894.70
▪ Various reforms being undertaken by the Government are positively
impacting India's power sector. In wake of the surging domestic coal 1,600
production, the country’s power sector is becoming increasingly
stable. 1,400
1,348.40
▪ Non-coking coal consumption is forecast to grow at a CAGR of 5.4 1,200
per cent to reach 1,076 MT in FY23 from 826 MT in FY18. Domestic 1,174.07
supply is forecast to reach 931 MT in FY23 from 664 MT in FY19, 1,000
growing at a CAGR of 7 per cent.
800
▪ In order to decarbonise the energy consumption, India needs a 30-
fold increase in renewable energy, 30-fold increase in nuclear energy 600 690.59
and doubling of thermal energy, which would make 70 per cent of
energy consumed carbon free. 400

200

0
2007 2015 2017 2022

Notes: TWh - Terawatt Hour

Source: International Energy Agency (IEA), CEA, Demand estimates based on IEA forecasts

27 Power For updated information, please visit [Link]

 INDIAN POWER SECTOR: MARKET WITH ENORMOUS
GROWTH POTENTIAL

▪ India is forecast to be a power surplus country by FY19 with peak Power Supply
Visakhapatnam Position
port traffic (GW) tonnes)
(million
power surplus at 2.5 per cent.
200 2
▪ The peak power demand in the country stood at 183.80 GW in FY20.

180 1.6

183.80

182.53
177.41

176.81
160 2

158.52

156.72
151.82

151.09
140

144.08

141.59
120 1
1.1
0.7
100

80 1
0.5

60

40 0
-0.3
20

0 -1
FY16

FY17

FY18

FY19P

FY20
Peak Demand Peak Met Deficit %

Note: GW - Gigawatt , P – Provisional

Source: NTPC presentation, CEA

28 Power For updated information, please visit [Link]

 RENEWABLE ENERGY IS FAST EMERGING AS A
MAJOR SOURCE OF POWER

▪ Wind energy is the largest source of renewable energy in India. It

Hydro power
Visakhapatnam
generationport
capacity
trafficat
(million
the end
tonnes)
of 2018 (GW)
accounts for 47.44 per cent (37.75 GW)* of the total installed
renewable capacity (87.38 GW)*. There are plans to double wind 500
power generation capacity to 60 GW by 2022.
450
▪ Ministry of New and Renewable Energy commissioned India’s first 453
inter state transmission system (ISTS) auction with wind power
400
capacity of 126 MW in August 2018.

▪ Solar Power is the second largest source of renewable energy. It 350

accounts for 34.03 per cent (34.91 GW)* of total the renewal energy
300 322
installed capacity. The Government has set a target of achieving 100
GW by 2022.
250
▪ Ministry of Power aims to achieve 225 GW of installed renewable
energy capacity by 2022. 200

▪ Government plans to establish renewable energy capacity of 500

150
GW by 2030.

▪ Around 15 GW of wind-solar hybrid capacity is expected to be 100

104
installed between 2020-2025. 81 80
50
47 45
0
China Brazil Canada United Russia India Rest of
States world

Notes: GW – Gigawatt , Figures mentioned in the graph is as per latest data available, * - as of May 2020, SEIC – Solar Energy Corporation of India
Source: Renewables 2019 Global Status Report (REN21), CEA

29 Power For updated information, please visit [Link]

 STRONG UPWARD MOMENTUM IN NUCLEAR ENERGY
LIKELY IN MEDIUM TO LONG TERM

▪ India has a net installed capacity of 6.78 GW as of May 2020. It has Nuclear
Visakhapatnam
energy installed
port traffic
capacity
(million
in India
tonnes)
(GW)
been using nuclear fuels across 20 reactors, and of these, 18 are
Pressurised Heavy Water Reactors (PHWR) and 2 are Boiling Water
Reactors (BWR).
25
▪ Nuclear Power Corporation of India Limited (NPCIL) plans to
construct 5 nuclear energy parks with a capacity of 10,000 MW.

▪ The Government of India will set up 21 new nuclear power reactors 20

with a total installed capacity of 15,700 megawatt (MW) by 2031. 20

▪ On July 23, 2020, NPCIL achieved criticality of a third unit of 700

MWe (Megawatt electric) at its plant in Tapi district based completely 15
on indigenous technology.

10

6.78
5

0
FY20 2025E

Note: GW – Gigawatt, E – Estimates

Source: Ministry of New and Renewable Energy, Business Monitor International, CEA

30 Power For updated information, please visit [Link]

 Power

KEY INDUSTRY
ASSOCIATIONS
 INDUSTRY ASSOCIATIONS

Council of Power Utilities Bureau of Energy Efficiency (BEE)

Address: A-2/158, Janakpuri, New Delhi-110058, India Address: Ministry of Power, 4th Floor, SEWA Bhawan, R. K. Puram,
Tel: 91 11 25618472, 45652708 New Delhi – 110066, India
Fax: 25611622 Tel: 91 11 26179699
E-mail: cvjvarma@[Link], cvjv1933@[Link] Fax: 91 11 26178352
Website: [Link] E-mail: webmanager-bee@[Link]
Website: [Link]

Hydro Power Association (India) Indian Wind Energy Association (INWEA)

Address: Flat no 6, Green Park Apartment, Shriram Society, Warje, Address: PHD House, 3rd Floor, Opp. Asian Games Village, August
Pune - 411058, Maharashtra, India Kranti Marg, New Delhi-110016, India
Tel: 91 20 25233338 Tel: 91 11 26523042
E-mail: hypaindia@[Link], president@[Link], E-mail: manish@[Link]
secretary@[Link] Website: [Link]
Website: [Link]

32 Power For updated information, please visit [Link]

 Power

USEFUL
INFORMATION
 GLOSSARY

▪ CAGR: Compound Annual Growth Rate

▪ FDI: Foreign Direct Investment

▪ FY: Indian Financial Year (April to March)

• So FY10 implies April 2009 to March 2010

▪ GW: Gigawatt

▪ M&A: Merger and Acquisition

▪ MW: Megawatt

▪ NBFC: Non-Banking Financial Company

▪ PE: Private Equity

▪ PLF: Plant Load Factor

▪ Rand D: Research and Development

▪ R-APDRP: Restructured Accelerated Power Development and Reform Programme

▪ TandD: Transmission and Distribution

▪ TWh: Terawatt-Hour

▪ RGGVY: Rajiv Gandhi Grameen Vidyutikaran Yojana

▪ US$ : US Dollar

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

34 Power For updated information, please visit [Link]

 EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR INR Equivalent of one US$ Year INR Equivalent of one US$

2004–05 44.95 2005 44.11

2005–06 44.28 2006 45.33
2006–07 45.29 2007 41.29
2007–08 40.24 2008 43.42
2008–09 45.91
2009 48.35
2009–10 47.42
2010 45.74
2010–11 45.58
2011 46.67
2011–12 47.95
2012 53.49
2012–13 54.45
2013 58.63
2013–14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

2018-19 69.89 2018 68.36

2019-20 70.49 2019 69.89

Source: Reserve Bank of India, Average for the year

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