POWER GENERATION

SECTOR OF INDIA
SUBMITTED BY:
ARSHDEEP SINGLA
(12104053)
ANKIT GOYAL (12104055)
JATIN (12104056)
KARAN GOYAL (12104063)
SUKHMANI KAUR

CONTENTS
Worlds

leading electricity producers

Evolution of Indian power sector
PESTEL analysis of power sector
Policy support aiding growth in the sector
Torrent Power Limited
Adani Power Limited
Reliance Power Limited
Summary

World's leading Electricity producers in 2014 (TWh)

6000

5649.6

5000

4297.3
4000

3000

2000

1208.4

1064.1

1061.2

1000

615.4

614

Canada

Germany

China

US

India

Russia

Japan

EVOLUTION OF INDIAN POWER SECTOR

Electricity production in India (BU)

6.3%
CAGR:
1048.7

967.2
876.9
771.6

FY10

912.1

811.1

FY11

FY12

FY13

FY14

FY15

Addition to Generation capacity under Five-Year Plans (GW)

120

100

100

88.54
80

60

52.96

40

20

16.42

19.01

21.13

9th

10th

8th

11th

12th

13th

Installed capacity(GW) for different sources of power-2015

189.3

41.6

Thermal

Hydro

35.8

Renewables

5.8
Nuclear

Per-capita Electricity Consumption (KWh)

1200

1000

883.6
800

671.9

717

733.5

FY08

FY09

778.6

914.41

957

1010

818.7

600

428.6
400

200

FY06

FY07

FY10

FY11

FY12

FY13

FY14

FY15

Electricity demand forecast (TWh)

2000

1894.7

1800

1600

1348.4

1400

1174.07

1200

1000

800

690.59

600

400

200

FY07

FY15

FY17E

FY22E

PESTEL analysis
1. POLITICAL
Subsidies provided by the government for capacity expansion, network extension,
regular maintenance and system improvement.
The Government also owns financing institutions devoted solely to power sector
lending such as the Power Finance Corporation Limited (PFCL) and the Rural
Electrification Corporation.
Recently, the Government established the Power Trading Corporation (PTC), to be
responsible for power trading among states and between states and central power
utilities.
2 . SOCIAL
The power plants create the following problem i.e. resettlement and rehabilitation,
effect on local civic amenities and work related hazards to employees of the power
plants.
3. ENVIRONMENTAL
The coal used for power generation is not of very high quality which causes many
environmental effects.

4. TECHNOLOGICAL
Due to technological advancement new and efficient ways of power
production are being devised using renewable sources of energy.
For example: hydro power, solar power

5. LEGAL
Legal framework can restrict the other organization to enter into this
business.
There is a legal frame work for laying down wires and other works. Also
there is regulation regarding the tariff, power generation, and
infrastructure development.
There is also regulation for efficiency of power plant, tariff,
environmental issues, and infrastructure development.

POLICY SUPPORT AIDING GROWTH IN THE

SECTOR
Electricity

Act, 2003
National tariff policy, 2006
Ultra Mega Power Projects (UMPPs)
Fuel supply agreement
National electricity policy
Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGYY)

TORRENT
POWER
LIMITED

PROJECTS UNDERTAKEN
422

MW Coal based AMGEN Power Plant at Ahmedabad

1147.5 MW Gas based SUGEN Mega Power Plant near
Surat
49.6 MW Wind Power Plant at Lalpur, District Jamnagar
382.5 MW Gas based Power Plant near Surat
1200 MW Gas based DGEN Mega Power Plant at Dahej
SEZ
51 MW Solar Power Plant at Charanka Solar Park,
District Patan

Generation Capacity (MW)

3500

3250
3000

2500

2102
2000

1648

1697

1697

FY2010-11

FY2011-12

FY2012-13

1500

1000

500

FY2013-14

FY2014-15

Revenue Rs. in crore

12000

.66
1
1
R=
G
A
C
%

10000

10762

8932
8063

8000

8365

6923
6000

4000

2000

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Market % share in Total Electricity Generation in India

2.71

1.78

2010-11

1.69

2011-12

1.9
1.63

2012-13

2013-14

2014-15

SWOT Analysis
Strengths
No reliance on Chinese equipment
Stellar operational efficiency

Opportunities
Private distribution franchisees
T&D segment

Weaknesses
Kanpur, Agra franchisee not started
Weak Fuel tie ups

Threats
Private sector generation players
Opposition from local SEBs
Delays in transportation of imported
LNG

Technology improved
State

of the art SCADA system installed to replace obsolete

analogue control panels, for effective control and monitoring
of 132 kV Switchyard Bays.
Usage of super conductor technology for transmission line
up-gradation in AHMEDABAD AND SURAT DISTRIBUTION
AREAS.
Commissioning of PLC based scheme for 132 kV and 66 kV
electrical systems at AMGEN plant.
Use of LED lighting system in place of conventional lighting
for energy conservation

ADANI
POWER
LIMITED

PROJECTS
Mundra,

Gujarat 4620 MW (5 X 660 MW + 4 X 330 MW)

Tiroda, Maharashtra 3300 MW (5 X 660 MW)
Kawai, Rajasthan1320 MW (2 X 660 MW)
Udupi, Karnataka1200 MW
Pench Thermal Power Project (Upcoming)
Dahej Thermal Power Project (Upcoming)

Journey of Adani Power

Market %share in total electricity production in India

8.72
7.78

5.7
4.62

2.13

0.68
2009-10

2010-11

2011-12

2012-13
Column2

2013-14

2014-15

Generation Capacity (MW)

12000

10440
10000

8580
8000

R=
G
CA .71 %
73

6000

5940

4620
4000

1980

2000

660
0

FY 2009-10

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Total income Rs. in crore

25000

20000

19065.4

15000

R
G
CA

00
.
0
11

15954.4

10000

6868
4240

5000

2125
466.79
0

FY 2009-10

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

SWOT Analysis
Strengths
Diversified nature
Coal mines
Port & shipping facility
Largest private power producer

Weakness
Presence in few states

Opportunities
To establish in rest of India
Enter into renewables

Threats
Coal import policies
More private players

Strategies & Acquisitions

IPO

in 2009
Mundra port as co-developer for SEZ
Tiroda project under MPPP
Demerger of Transmission business
Acquisition of Udupi power plant
Acquisition of Korba West Power Company Ltd

R&D Activities
Supercritical

technology and CDM

Commissioned FGD system at Mundra
HVDC system
Auxiliary power reduction using LED
Reduction in specific coal and oil
consumption
Automatic coal sampler

RELIANCE
POWER
LIMITED

PROJECTS
Sasan

Ultra Mega Power Project, a 3,960 MW pithead coal-based Project

in Madhya Pradesh
Rosa, a 1,200 MW coal-based power project in Uttar Pradesh
Butibori, a 600 MW coal-based power project in Maharashtra
Vashpet, 45 MW wind farm in Maharashtra
Dhursar, a 40 MW Solar Photovoltaic (PV) power project in Rajasthan
100 MW Solar CSP in Rajasthan
Krishnapatnam Ultra Mega Power Project, a 3,960 MW imported coalbased Project in Andhra Pradesh
3,960 MW coal-based power project in Madhya Pradesh
Samalkot Power Project, a 2,400 MW gas based project, in Andhra
Pradesh
Tilaiya Ultra Mega Power Project, a 3,960 MW Pithead Coal based project
in Jharkhand
Hydroelectric Power Projects

STRATEGY
Reduction

of Cost of Power Generation

Ensuring Fuel Supply
Focusing on Power Deficit Regions
Establishing an Optimal Mix of Off-take
Arrangements

Innovative Initiatives
Renewable

energy
Carbon Offset Project Portfolio

STP
Segment
Rural

areas, Industrial hubs, Urban areas

Target Group
Agricultural farmers, Industries, commercial
complexes
Positioning
Having large power generation capability

SWOT ANALYSIS
Largest

Portfolio
Diversified Fuel Sources and Technologies
Strategically Located Power Projects
Fuel Access Security
Diversified Power Off-take Arrangements
Huge Capacity generation in pipeline
Advanced technology to reduce emissions has led to
acquiring of Carbon Credits for 3 of its Ultra Mega
Power Projects (UMPP)
Diversified Power Off-take Arrangements

WEAKNESS
Incomplete

projects lead to rise in costs

which include interest costs
Income obtained currently is Other income
which is due to sale of assets and not due to
Operations. Increasing Other Income leads to
decline of the share holder trust and decrease
in share price

Opportunities
Setting

up huge power plants in Jharkhand

and Orissa which have huge reserves of coal
Huge scope in power sector once the projects
become operational
Investing in Non-conventional energy projects
International tie-ups and collaborations

THREATS
Fluctuating

International prices of coal and

oil.
Changes in International policies regarding
import of coal and oil.
Government policies and regulations affects
operations

MICHAEL PORTERS ANALYSIS

Threat

of new entrants MODERATE

Threat

of substitute products LOW

Bargaining

power of buyers LOW

Bargaining

power of supplier MODERATE

Rivalry

among existing firms MODERATE - HIGH

Market %share in total electricity generation in India

4.96
4.1

2.44
1.17

1.29

2009-10

2010-11

1.54

2011-12

2012-13

Reliance Power Ltd

2013-14

2014-15

Total income in Crores

8000

7202
7000

6000

5284
5000

R=
G
CA
%

4000

5546

. 87
6
7

2767

3000

1918.03

2000

843.38

1000

133

334.72

FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15

Generation capacity (MW)

7000

5945

6000

5000

=
R
G
CA

4000

7%
9
.
36

4525

3000

2545
2000

1540
1000

900

1033

1200

FY 2008-09

FY 2009-10

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15

Summary
Electricity

production in India stood at 1,208.4 TWh in FY15, a 8.4

percent growth over the previous fiscal year.
Over FY10-15, electricity production expanded at a CAGR of 6.3
percent
The Planning Commissions 12th Plan projects that total domestic
energy production would reach 669.6 million tonnes of oil
equivalent (MTOE) by 201617 and 844 MTOE by202122
Demand for electricity is expected to increase at a CAGR of 7
percent to 1,894.7 TWh over FY0722
Current production levels are not enough to meet demand; annual
demand out strips supply by about 7.5percent

THANK
YOU