A midst various challenging scenarios, the government is aiming to create huge power generation and transmission capacities to meet the ever rising demand from the industrial and household sector. The total power capacity addition achieved in the 11th Plan period (2007-12) was 54,964 MW across the country against the revised target of 62,374 MW. In 2012-13, India generated about 911.65 billion unit (bu) of power or 98 per cent of the targeted 930 bu. According to the 18th Electric Power Survey (EPS) report, the projected all-India peak demand and energy requirement at power stations by 2016-17 would be 199,540 MW and 1,354.87 bu respectively. To meet this projected demand, the government plans to add 88,537 MW of power capacity in the conventional segment, including thermal and hydel power during 12th Plan. Of this, 5,300 MW is planned in nuclear power, 10,897 MW in hydro and 72,340 MW in thermal power.

In addition, it plans to add about 54,000 MWE capacity in the grid-interactive renewable energy sector during this period. This capacity is expected to be adequate to generate power to meet the stipulated energy requirement at the end of the 12th Five Year Plan period. The draft 12th Five Year Plan document of Planning Commission pegs the total investment requirement for the power sector during 2012-17 at Rs 18.2 trillion. The contribution of private sector in capacity addition rose from 10 per cent in the 10th Plan to 42 per cent in the 11th Plan. In the 12th Plan, it is expected to rise to over 50 per cent.

Thermal
According to the Planning Commission, capacity addition of 88,537 MW is planned from conventional sources for the 12th Plan across India. Of this, 72,339.6 MW is expected from thermal power projects. The thermal capacity addition target comprises 14,877.6 MW in the central sector, 13,922 MW in the state sector and 43,540 MW in the private sector. In 2013-14, the government aims to add 15,234 MW of thermal power capacity. Of this, 1,720 MW has already been set up during April-May 2013.

During the 11th Five Year Plan, the total installed capacity of thermal power, which includes coal-fired, gas-fired and diesel-fired plants, rose from 86,014 MW to 131,603 MW.

Hydro
Government data shows that during the 11th Plan, the country added 15,627 MW of hydel power. The government expects to start 45 hydro projects (of 25 MW and above) with an installed capacity of 10,897 MW during the 12th Plan period; 534 MW has already been commissioned.

Hydro power projects with installed capacity less than or equal to 25 MW are included in renewable energy. The reduction in the capacity addition target for 12th Plan can attributed to the following reasons:

Hydro power execution faces environment and forest clearance issues. According to government data, 136 hydro power projects with a combined capacity of 40,991.5 MW allotted to private developers by the state government are yet to be taken up for construction.

Development of hydel projects is an intricate and long-drawn process, spanning 3-5 years. Survey and investigation, preparation of detailed project report (DPR), obtaining statutory and non-statutory clearances including environment and forest clearances will take long. Once the projects achieve financial closure, implementation takes another 5-8 years. Thus, hydro projects usually have long gestation period. Therefore, Union Power Ministry expects that the hydel projects which are under development are likely to come up during the 13th Plan period and beyond.

In 2013-14, the government aims to add 1,198 MW of capacity in the segment, and of this, 132 MW has been commissioned by May.

Nuclear
As of end of May 2013, India had a nuclear power capacity of 4,780 MW. Of this, between March 2007 and March 2012 (during the 11th Plan), nuclear power capacity grew from 3,900 MW to 4,780 MW.

In the 12th Five Year Plan, the government aims to add another 5,300 MW of nuclear power capacity. Notably, the entire 5,300 MW capacity is planned by the Centre. In 2013-14, the government aims to add 2,000 MW of nuclear power capacity.

Renewable
During the 11th Plan, India has added 14,660 MW of grid-interactive renewable energy (RE) capacity against a target of 14,000 MW. Cumulative RE installed at the end of 11th Plan was 24,914 MW.

The Union Ministry for New and Renewable Energy has set a target of adding 29,800 MW from RE sources during 12th Plan. The government is attracting private sector investment through generation-based incentive, viability gap funding and accelerated depreciation for renewable energy sources. The target of 29,800 MW comprises of 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and 2,700 MW from bio-power, including waste to energy.

CAPACITY ADDITION & FUND REQUIREMENT FOR 12TH PLAN PROJECTS

STATE-WISE LIKELY CAPACITY ADDITION DURING 12TH PLAN