Top five states in India with highest installed electricity generation capacity

DECEMBER 23, 2013 11:00 PM

India is the worlds fifth largest electricity generator with total installed capacity of 2,28,722 MW. Out of
this, 90,062 MW is from state owned utilities, 72,927 MW is from privately owned utilities and 65,733
MW is from central owned utilities. The pace of investment from private players is considerable which
shows an encouraging environment for the electricity sector.
Indias energy demand has been growing rapidly in the last two decades. This demand has been boosted
by industrial growth as well as a rise in household consumption. On the other hand, supply of energy too
has grown but has been outstripped by demand. India derives most of its electricity from fossil fuels;
primarily from coal (India has 20,381 MW of capacity on coal which is 59% of total capacity). India also
derives considerable amount of electricity from hydro power sources.
Currently, India has total 1,55,969 MW of installed capacity on thermal, 39,788 MW of installed capacity
on hydro, 28,184 MW of installed capacity on Renewable Energy Sources (RES) and 4,780 MW of
installed capacity on nuclear. Thermal sources contribute 68% in the total capacity. Read more on Top
five states in India with highest renewable energy capacity.
The top five states with highest installed electricity generation capacity are given below;

The state of Maharashtra is at the top position in installed electricity generation capacity in India. By Sep
2013, Maharashtra has 31,934 MW of installed capacity. The state of Gujarat is on second position with
26,126 MW of installed electricity generation capacity followed by Tamil Nadu, Andhra Pradesh and Uttar
Pradesh.

The detailed breakup of the total installed capacity is given below;

Capacity in MW (As on Sep 2013);

Type

Maharashtra Gujarat

Tamil
Nadu

Andhra
Pradesh

Uttar
Pradesh

Coal

19,939

15,738

8,476

8,573

10,523

Gas

3,476

4,979

1,026

3,370

550

Diesel

17

412

37

Total
Thermal

23,415

20,735

9,914

11,981

11,073

Nuclear

690

559

524

276

336

Hydro

3,332

790

2,182

3,735

1,847

RES*

4,497

4,042

7,491

1,184

824

Grand
Total

31,934

26,126

20,112

17,175

14,079

Tamil
Nadu

Andhra
Pradesh

Uttar
Pradesh

Sector wise breakup is given below (Capacity in MW);

Sectors

Maharashtra Gujarat

State

12,269

6,887

7,594

9,050

5,472

Private

13,038

15,590

8,687

4,968

3,649

Central

6,627

3,650

3,830

3,157

4,958

Total

31,934

26,126

20,112

17,175

14,079

The state of Maharashtra, Gujarat and Tamil Nadu are highly industrialized. Therefore, their electricity
demand is also higher than other states. If we compare total installed electricity generation capacity with
the population of respective states, then following results are arrived at;

Source for population data: Census 2011

The state of Gujarat is at the top position in per capita installed electricity generation capacity followed by
Maharashtra, Tamil Nadu, Andhra Pradesh and Uttar Pradesh.
All these five states contribute towards 48% of installed electricity generation capacity of the entire
country.
Reference: Central Electricity Authority (Sep 2013)

Electricity Scenario of the state of Andhra

Pradesh
FEBRUARY 5, 2013 10:36 PM

The state of Andhra Pradesh (AP) is located in the southern part of India and forms a major constituent of
the southern grid. Major electricity generation happens through the thermal and the hydro power plants.
These power plants are being operated by Andhra Pradesh Power Generation Company (APGENCO). By
Feb 2013, Andhra Pradesh is the fourth largest power generating state in the country and also has the
largest hydro power generation capacity in India (Andhra Pradesh is on first position for installed
hydro power generation capacity). At present, Andhra Pradesh has a total installed power generation
capacity of 16,817 MW from all the sources. Out of it, 11771 MW is from thermal, 3737 MW is from Hydro,
1036 MW is from Renewable energy sources and 276 MW is from Nuclear (CEA- Dec 2012).
Apart from the state sector, private players have considerable presence in Andhra Pradesh. Private power
plants operating in the state use transmission lines of Andhra Pradesh Transmission Company (AP
Transco) that looks after the trans-mission of electricity in the state. Due to its geographical location, the
power generated by all power plants is being fed to the Southern Grid, which is accessible to all states
which are a part of the southern grid.
Central sector owned power plants operated by National Thermal Power Corporation (NTPC), National
Hydro Power Corporation (NHPC), etc transmit power through transmission lines of AP Transco.
However, the power generated by them is shared between other states as a part of the southern grid of
India.
Institutional structure of Electricity sector in AP
Basically, institutional structure of the electricity sector can be categorized into four main domains i.e.
Regulation, Generation, Transmission and Distribution. In Andhra Pradesh, APERC look after regulation
related matters, APGENCO is engaged in power generation, APTRANCO is mainly responsible for
transmission and there are four electricity distribution companies as mentioned in the following figure;
Power-Supply position of Andhra Pradesh
Andhra Pradesh has experienced increasing capacity addition in the last few years. To meet the expanding
energy requirement in the state, additions to generating capacity were made, expected to leading in
reducing deficits. However, the state of Andhra Pradesh has been experiencing increasing energy deficits
since 2004-05.

In spite of additional installed capacity, peak demand deficit in the state has increased from 2% in 200506 to15% in 2011-12. Between 2005-06 and 2011-12, Peak electricity demand grew at a compound annual
growth rate (CAGR) of 8%, while peak demand met at CAGR of 6% over the period of 8 years.

Electricity deficit in the state has increased from a negligible 1% in 2005-06 to 7% in 2011-12. The reason
for the increasing deficits can be mainly traced to the inability of the state to increase electricity
generation. Between 2005-06 and 2011-12, electricity requirement grew at a compound annual growth
rate (CAGR) of 8%, while availability only grew at around 7% leading to increasing electricity deficits.

The above data shows that the electricity availability against the demand is low and the deficit is
increasing in each year. It is expected that the power deficit post 2012 will continue to increase as the
demand for power is continuously surpassing supply.

Power shortage is getting worse in the state

Despite the discovery of natural gas in Krishna Godavari basin (KG-Basin), natural gas based power
plants established near costal part of Andhra Pradesh are running on minimum plant load factors due to
lower gas production. Generation in hydro power units has also come down due to low water levels in the
reservoirs resulted by seasonal variability of monsoon.
Under these circumstances, power utilities are forced to impose power supply rationing. Major and
medium industries in Andhra Pradesh experience increasing number of power holidays as the state
power distribution companies are unable to meet the growing demand for electricity.
The prolonged electricity shortage is unfavorable for the overall development of the state. Industries are
adversely affected and have started relying on expensive power from the DG sets. The increasing price of
diesel is also a big concern for them.
Any development requires electricity to support it. Capacity addition in the existing conventional power
generation plants might not be the solution. We need fuel to run them. The Government of India has
started promoting increasing use of renewable energy in the total energy mix. Renewable energy cannot
solve this issue completely but can surely help to overcome it.
Lets hope for a better policy from the government to promote renewable energy.
References: Central Electricity Authority (CEA), APGENCO, APERC

Top Five States in India with Highest Renewable Energy Capacity

DECEMBER 21, 2013 11:24 PM

Indias energy demand has been growing rapidly. This demand has been boosted by industrial growth as
well as a rise in household consumption. On the other hand, supply of energy too has grown but has been
outstripped by demand. India has severe power demand supply gap, especially from past two decades.
India derives most of its energy from fossil fuels such as coal, natural gas and oil where coal is dominant
fuel. Fossil fuel based energy sources are not good for the environment. Burning of coal releases huge
amount of greenhouse gases (GHGs) into the atmosphere and contributes towards adverse effects of
climate change. Having major share of fossil fuels in energy generation is not a good strategy for any
country where the entire world is concerned about the climate change. In addition, availability of
conventional energy sources is limited and rapidly declining. Therefore the requirement to find new
energy sources has become a necessity.
Considering the importance of renewable energy in Indias total energy mix, Government of India came
up with National Action Plan on Climate Change (NAPCC) in year 2008 under the prime ministers office.
Under this plan, the Government of India has set a target of reducing countrys carbon emissions intensity
of GDP by 20% to 25% between 2005 and 2020. Since there is no GHG emissions during renewable
energy generation, NAPCC encourages addition of renewable energy based capacity in the country.
All this triggered the development of renewable energy sector in India. India is geographically, a very
diverse country. Therefore, renewable energy sources are not equally well distributed. For example, India
has wind energy potential in only six states i.e. Tamil Nadu, Karnataka, Maharashtra, Gujarat, Rajasthan
and Andhra Pradesh. Other states have no or very less wind energy potential. For other sources like
geothermal and biomass, the same scenario can be observed. Only solar energy source can be said to be
equally distributed.
Therefore, the distribution of installed capacity for renewable energy in India across all the states is not
uniform. Following graphs shows the top five states in India with highest renewable energy installed
capacity;
Note- Renewable Energy Sources (RES) include Small Hydro Project (SHP, below 25 MW),
Biomass Power (BP), Urban & Industrial Waste Power, Solar and Wind Energy.
1. Tamil Nadu
Total renewable energy capacity in the state of Tamil Nadu is 7,491 MW. Wind energy is dominant in all
form of renewable energy in the state (7,154 MW, Reference: C-WET, Feb 2013). The state has

conventional electricity capacity of 10,438 MW. Renewable energy has around 37% share in total
electricity generation capacity of the state.

2. Maharashtra
Total renewable in the state of Maharashtra is 4,497 MW. Wind energy dominant in all form of renewable
energy in the state followed by bagasse and small hydel. Maharashtra has 2,976 MW of wind energy
installed capacity (Reference: C-WET, Feb 2013).The state has conventional electricity capacity of 24,105
MW. Renewable energy has 14% share in total electricity generation capacity of the state.

3. Gujarat
Total renewable energy capacity in the state of Gujarat is 4,042 MW. Wind and Solar sectors are
dominant in total renewable energy generation. Gujarat has total 3,114 MW of installed capacity for Wind
energy (GEDA, As on April 2013) and 852 MW of installed capacity for Solar (GEDA, As on March 2013).
The state has conventional electricity capacity of 21,294 MW. Renewable energy has 15% share in total
electricity generation capacity of the state.

4. Karnataka
Total renewable energy capacity in the state of Karnataka is 3,571 MW. Wind (2,113 MW, Reference: CWET, Feb 2013) and bagasse based electricity generation is dominant in all form of renewable energy in
the state. The state has conventional electricity capacity of 6,648 MW. Renewable energy has 26% share in
total electricity generation capacity of the state.

5. Rajasthan
Total renewable energy capacity in the state of Rajasthan is 3,360 MW. Wind (2,355 MW, Reference: CWET, Feb 2013) and Solar based electricity generation is dominant in the state. The state has
conventional electricity capacity of 8,310 MW. Renewable energy has about 25% share in total electricity
generation capacity of the state.

References: Central Electricity Authority (Sep 2013), Renewable Energy Development Agencies of
various states

Coal and its impact on Indian Power Sector

SEPTEMBER 30, 2014 11:09 AM

The crucial role played by coal in Indias industrial and economic fortunes was recently emphasized by the
Supreme Courts observation Coal is king and paramount Lord of industry Industrial greatness has
been built up on coal In India, coal is the most important indigenous energy resource and remains the
dominant fuel for power generation A quick look at where the Coal and Power sectors stand today in
India.
Captive coal mining: SC Judgment
The Central Government allocated 218 coal mines to PSUs and private companies between 1993 and 2010.
These mines contribute about 9% of Indias coal production. In a landmark judgement on 24th September
2014, the Supreme Court cancelled allocation of 214 out of these 218 captive coal blocks terming them
illegal.
The Government of India plans to reallocate the 42 operational mines to Coal India Limited or other
public sector enterprise. Other non-operational coal mines that have already acquired land as well as
regulatory clearances would be auctioned off.

Going ahead, it is expected that the Government will amend the Coal Mines Nationalization Act, 1973 and
Mine Minerals (Development and Regulation) Act, 1957 to promote private participation in Coal Mining.
However, these steps are expected to show results only in the long term.
Coal (in) India
Similar to the rest of the world, India depends on coal for most of its electricity production. India has
about 300 billion tonnes (Source: Ministry of Coal) of proven coal reserves but the real challenge is to be
able to realize this mineral wealth in an economically sustainable way.
At the time of independence, most coal mines were privately owned. However, the Government of India
acquired all privately held coal mines and brought them under Coal India Limited (CIL) in 1973. Today,
CIL is the predominant producer of coal in the country, while some coal is also produced by Singareni
Collieries and Coalfields Ltd. (SCCL), a few privately owned mines and captive mines. The Government of
India holds 90% stake in CIL.

Poor performance of power companies and a high valuation for Coal India simultaneously have been a
norm of late. The new Government has taken progressive steps, starting with combining coal and power
ministries. Growth in coal production however faces immediate challenges.
Logistical constraints
About 50% coal in India is transported by rail. However, key links to mines remain incomplete and
several years behind schedule. The Government is focusing on three rail links, one each in Bihar,
Chhattisgarh and Odisha. However, the earliest link is expected to be commissioned only by 2016.
Land acquisition and Environmental clearance
90% of CIL production comes from open-cast mines. Large land parcels are required to be procured
which results in large scale displacement of local population. Pollution by mines makes environmental
clearance a lengthy process. Starting a coal mine in India requires about 5 years to 7 years.
Privatization and Restructuring
The Government has recently proposed offloading another 10% in CIL. It is debatable whether
privatization should precede break up into smaller, more efficient entities or the other way round.
With a larger stake going to private investors, the Government will need to convince them of safeguarding
their rights before restructuring CIL.
Availability

Coal based projects face regular situations of low stocks. Many power plants run at below normal capacity
even as more capacity is added.

The Coal ministry is in the process of formulating a policy for swapping of coal linkages between State and
Central Power utilities. This will help link power plants to the nearest coal mine. The Government has also
allowed automatic transfer of linkages from old inefficient plants to ultra-modern supercritical plants in
order to maximise generation.
Cost
Coal imports have more than doubled in last five years increasing the cost of power generation. While
power generators expect that this cost will be passed on to Discoms, they have faced stiff opposition. With
large projects like those by Tata and Adani making recurring losses, the country is faced with a choice
between higher cost of power and no power.

The Government is also evaluating price pooling of domestic and imported coal. This will help reduce fuel
cost for plants running on imported coal. However, this is expected to increase power generation cost in
the short term.
Investor confidence
Investor confidence in coal-based power projects has taken a hit due to these challenges. NTPC has
received proposals for sale of assets from 34 private project developers which constitute 55,000 MW
capacity. This includes both operational and under-construction projects (Source: LiveMint). With
cancellation of coal blocks, lenders financial health is under greater scrutiny.
Need for Adjustments
Given the precarious power situation, the Government needs to show results quickly. In the process, many
stakeholders, including investors, lenders and consumers will need to make compromises.
Managing the transition from a resource rich power starving economy to a balanced energy economy
will entail painful adjustments. The only uncertainty is who bears how much and when