a) Speaking at the inaugural, Mr. M Sahoo, IAS, Principal Secretary for Energy, Government of Andhra Pradesh, called for a sustainable approach in managing the demand and supply gaps in the power sector, as there are lot of ups and downs in the supply of electricity to its customers. “There are periods when power supply was extremely good and was as per the demands of the increasing consumers. However, it was never stable and is in a regular flux”, he said.
Mr. Sahoo suggested that a part of the problem could be due to the free supply of power to agriculture. “The Government of India encouraged free supply of power to the needs of agriculture since 1990s, which probably let to the shortage to other stakeholders, especially the industry. In this situation, I think, there is a need for segmentation of subsidized and non-subsidized sectors”, he said.
Talking about the capacity, Mr. Sahoo pointed out that Andhra Pradesh has immense capacity to produce power but are short of fuel through which power can be produced. “Electricity through RLNG is normally not affordable to the general industry and hence cannot be a long term solution. Hence affordability is an issue”, he said.
The Principal Secretary also talked about the issues with connecting the National Grid to the Southern Grid. “The Southern Grid earlier opted out of getting connected to the National Grid, as the Western Grid was worse during that time. There are islands of bottlenecks, which need to be worked out while connecting it to the National Grid”, he said.
b) Mr. S Chandrasekhar, Chairman, Energy & Power Sub Committee, CII Southern Region & Managing Director, Bhoruka Power Corporation Ltd., in his theme address, opined that in the present power scenario the theme reliable and affordable power for all is ambitious but achievable. “There is a need to address all the issues related to quality power supply to the industry with sufficient quantity”, he said.
Mr. Chandrasekhar pointed out that most of the new players in the power generation sector are the private players and a proper distribution mechanism must be in place to sustain private participation in power generation sector.
Talking about various challenges, Mr. Chandrasekhar talked about – non-availability of natural gas, coal shortages, Port & Railways bottlenecks, Gas shortages, Pool prices issues, Peak load demand, besides others.
c) Earlier, Ms. Suchitra Ella, Chairperson, CII Andhra Pradesh & Joint Managing Director, Bharat Biotech International Ltd, in her welcome address, pointed out that the investment in the power sector has not been able to keep pace with growing demand for electricity. “Although with the restructuring of the Indian power sector greater investments have come into India. Bulk of power generation is hydel and is, therefore, linked to monsoons”, she said.
Ms. Ella emphasised that in spite of the massive addition in generation, transmission and distribution capacity over the last sixty years, growth in demand for power has always exceeded the generation capacity augmentation. “Although the country has achieved capacity addition of about 1,81,500 MW over the last six decades, peak and energy shortages of varying magnitude are being experienced. During the year 2010-2011, the country faced an energy shortage of 73,236 MU (8.5%) and a peak shortage of 12,031 MW (9.8%)”, she said.
Ms. Ella also pointed out that CII is presently working on the option of expensive power purchase scheme with APTRANSCO, where the requirement of additional power will be met through the scheme.
d) In his concluding remarks, Mr. Krishna Ram Bhupal, Co-Chairman, Energy & Power Sub-Committee, CII Southern Region & Managing Director, GVK Power (Goindwal Sahib) Ltd, emphasised the need to engage and align all the stake holders of the power sector in order to work out a plan of action for reliable and affordable power for all.
CII organized the 4th edition of the two day Regional Power Conference & Exposition on ‘Reliable & Affordable power for All – Managing the Next Decade’ on 5 December, 2012 at Hyderabad.
Contributing over 25.92 percent to the national economy, the Southern Region, comprising of Andhra Pradesh, Karnataka, Kerala, Pondicherry, and Tamil Nadu jointly have been growing at a Compounded Annual Growth Rate (CAGR) of 9.11 percent since 2004-05. However, in the past four years, the growth momentum has witnessed considerable reduction with the annual growth rate recording below the 8 percent mark for three of the four years. Though much has been blamed to the global crisis of 2008-09, infrastructure bottlenecks, especially in the power sector is one area of concern that has and is expected to have a ripple effect on the Southern Region growth story.
For the region to sustain its growth momentum of over 8 percent per annum for the 12th Plan Period, meeting its energy requirement is of the utmost importance. The total energy requirement for the region is expected to increase by over 100 billion units (BU) to 364.4 BU in 2016-17 form 260.3 BU in 2011-12. Similarly the increase in peak load is expected to increase to 56.38 GW in 2016-17 from a peak load of 37.59 GW in 2011-12.
To meet the energy requirements and sustain the growth momentum of the country, the planned targets for the 12th Five Year Plan has been set by the Planning Commission. The generation targets include a 100 GW capacity addition, the transmission target includes increasing the inter regional transmission capacity by over 40,500 MW (6400 MW for the WR-SR corridor) by adding over 1,11,700 cktm of transmission lines and an additional sub-station capacity of 2,70,000 of MVA.
However, analysing the performance of this sector over the years, the capacity creation, the state of upcoming power projects in the country, financial health of distribution companies, rising power tariff, unreliable power supply both in terms of power cuts and the quality of power and growing energy deficits, it sets a perfect a setting for the ‘coming of the dark ages ‘in the Southern Region. For the region to overcome such a crisis, considerable effort both in terms of investment and policy intervention from all stake holders are required to meet the planned targets. Interventions in clearances, fuel availability, transmission bottlenecks and financial health and management of distribution companies are some of the crucial areas that need immediate attention.
Given this background, the Southern Region of Confederation of Indian Industry (CII-SR) organized the Reliable & Affordable Power for All - Managing 2012-2017 Crisis as an interactive one-day conference to highlight key issues and challenges in the power sector. The conference discussed the various issues, challenges and options for various stake holders to help the region manage this looming crisis.
The forum provided a platform for one-on-one interaction between the government, power sector experts and policy makers to help chart out a road map to avoid such a crisis.
Conference Theme and Objective
CII- Southern Region aimed to bring together stake holders across the value chain in the power sector onto a common platform to discuss opportunities, challenges, issues and policy imperatives that exist in the current scenario. With the conference titled “Reliable& Affordable Power for All - Managing the Next Decade “, it was focused on providing possible solutions and alternatives in managing the crisis.
The key focus areas covered during the event included:
a) Providing Reliable Power: Supply Side Issues
· Capacity Creation to meet the 12th Plan target
· Issues related to delays in project completion
· Availability of fuel for upcoming power plants
· Role of the State Governments in removing bottlenecks during project inception and delays in fuel allotment
· Improving inter and intra region transmission connectivity of the Southern Region
Demand Side Issues
· Improving distribution network and modernization of equipments
· Improving load management at the feeders
· Incorporating Demand Side Management Measures, Need Based Management Systems
b) Providing Affordable Power
· Reforms in management models for distribution utilities.
· Tariff rationalisation and moving towards a cost to serve framework
· Strengthening financials of distribution companies
· Efficiency measures to reduce distribution losses and improving collection efficiencies
· Connecting and improving the viability of renewable sources
· Role of market traded power
The day-long event was also provided an opportunity for B2B meetings and promotional activities with various stake holders.
You will get access to following Knowledge Resources by subscribing to the Digital
Library of this event.