Balancing capacity is the need of the hour
India's concentration was on thermal capacity addition, which suddenly shifted to RE. Give us an overview of what is happening in the power sector as a whole.
The recent draft amendments by the Ministry of Power for group captive power has not gone well with the captive power players. The amendments are blessings in disguise for state distribution companies (DISCOMs), as it was on their complaints that the government has acted upon.
Enabling Tariffs & Policies Called for
Renewable energy contributes over 22 per cent to India's installed power generation capacity. Although conventional fuels still dominate this segment, the share of renewable energy sources has been steadily increasing from about 8 per cent in 2009.
Reverse AuctioN for Short Term Power Procurement | Impact on Sector
Distribution networks have been one of the major bottlenecks in the entire value chain of the electricity sector reforms. It is estimated that distribution companies (discoms) have accumulated losses in the range of Rs.3.8 lakh crore and outstanding debt of around Rs.4.3 lakh crore.
Only Collective Growth is Sustainable
Let us start with the economic reform of India. After a big bang economic reform of Indian economy, Indian power sector was opened for private investment in generation, but with a license to generate. Indian power generation capacity addition growth rate was in between 24-26 per cent during 8th-10th five-year plans, with installed capacity as on March 31, 2002, 85,795 MW to 132,329 MW as on March 31, 2007 respectively.
State governments need to focus on supplying quality power
Our sector is one where you have long gestation periods and one can´t see results overnight. The last year has been a mixed bag; as they say, ´you win some, you lose some!´ Clearly, there have been positive initiatives from the new government, such as improvement in coal production, efforts to partially mitigate the problem of stranded gas-based generation, proposed changes in the Electricity Act, etc.
India´s sunshine states can be major investment destinations
Globally, the success of solar energy deployment has been completely dependent on certain external factors. India is no different. With an encouraging 2013, the industry was more confident about the next couple of years. However, with issues like key administrative changes and anti-dumping concerns, the investment decision was stalled by some international players.