Power Sector - India - Sample


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India is the 5th largest power producer in the world with the total power capacity of more than 145,000MW. Despite growth in power generation capacity over various 5-Year Plans, India is facing huge power deficit with peak power deficit of about 16%.

The report provides a snapshot of the power sector in India, including the installed capacity and growth and value chain analysis. It provides overview of the various components of value chain – Generation, Trading, Transmission and Distribution.

The report includes an analysis of the government policies and incentives to boost the total installed capacity and also highlights the key trends and challenges in the power sector.

Competitive landscape identifies the public sector undertakings, domestic and international private players in power sector market. It highlights the presence of each player across the value chain, their installed capacity and key financials.

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Power Sector - India - Sample

  1. 1. Power Sector - India March 2009
  2. 2. Executive Summary SAMPLE <ul><ul><li>Key Trends: I ncrease in per capita consumption of electricity, Increase in corporate investments, Increase in FDI, increasing interest shown by PE/VC firms in power sector and surge in captive production </li></ul></ul><ul><ul><li>Challenges: Shortage of coal, power loss in transmission and distribution, ageing and improperly maintained infrastructure </li></ul></ul>Market Overview & Value Chain Government Policies & Incentives Key Trends & Challenges Competition <ul><ul><li>India has 5 th largest electricity generation capacity in the world </li></ul></ul><ul><ul><li>The installed capacity of India as of July 2008 was X MW </li></ul></ul><ul><ul><li>India is facing acute power deficit with p eak power deficit of about x% </li></ul></ul><ul><ul><li>Power trading is still at nascent stage with merely y% of the power generated traded in 2007-08 </li></ul></ul><ul><ul><li>Distribution is primarily controlled by state electricity boards (SEBs) </li></ul></ul><ul><ul><li>Public sector undertakings like AA Ltd , BB Ltd hold the majority of the total installed capacity </li></ul></ul><ul><ul><li>Private players including ABC, XYZ have presence across value chain and making significant investments in power sector </li></ul></ul><ul><ul><li>Foreign players like XY, ZY, AY have entered/planning to enter Indian power market </li></ul></ul><ul><ul><li>Government policies are aimed at encouraging investment in the sector and increasing the competition </li></ul></ul><ul><ul><li>Government allows 100% FDI under the automatic approval route in all segments of the industry (except atomic energy) </li></ul></ul><ul><ul><li>5-year tax holiday is given for power generating projects </li></ul></ul><ul><ul><li>Import duty at the confessional rate of x% has been set for import of equipment </li></ul></ul>
  3. 3. <ul><li>Introduction </li></ul><ul><li>Power Sector – Overview </li></ul><ul><li>Value Chain Analysis </li></ul><ul><li>Government Policies and Initiatives </li></ul><ul><li>Key Trends & Challenges </li></ul><ul><li>Competitive Landscape </li></ul><ul><li>Key Developments </li></ul><ul><li>Appendix </li></ul>
  4. 4. Installed capacity has been increasing continuously to meet the need of growing economy.. <ul><li>Demand for power is growing at x% per annum </li></ul><ul><li>Demand has five key components: </li></ul><ul><ul><li>Industry, commercial, residential, agriculture, and others </li></ul></ul><ul><li>Key drivers of increasing demand are growth in: </li></ul><ul><ul><li>Household consumption </li></ul></ul><ul><ul><li>Electrification of rural areas </li></ul></ul><ul><ul><li>Manufacturing growing faster </li></ul></ul><ul><ul><li>Realization of suppressed demand due to load-shedding </li></ul></ul><ul><li>Required investment of ~USD X bn by 2017 </li></ul>SAMPLE Source: X MW 120,000 140,000 60,000 Plan 100,000 80,000 W VII X VIII Y IX Z Supply Side Demand Side <ul><li>India has 5 th largest electricity generation capacity in the world </li></ul><ul><li>Installed capacity of X MW as of July 2008 </li></ul>Y X XI Z XII Energy Required Planned Demand X MW bn units Plan-wise Installed Capacity Current and projected demand w% Thermal x% Hydel power y% Gas-based z% Nuclear v% Renewable
  5. 5. Public sector companies or State Electricity Boards (SEB) have presence across the value chain Source: Generators Traders Transmission Distribution End user Raw materials <ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul><ul><li>------ </li></ul>SAMPLE
  6. 6. Public Private Partnership (PPP) model is not witnessing much activity compared to other sector in infrastructure SAMPLE Source: Road v% w% Ports x% z% Urban Development Energy Railways Airports y% u% <ul><li>India has around x projects under the public private partnerships in infrastructure </li></ul><ul><li>The power sector in India has not witness much PPP activity as compared to other sectors </li></ul><ul><ul><li>Power sector witnessed investments worth USD XX bn </li></ul></ul><ul><li>Government is encouraging PPP model to meet the capacity addition target of XY MW in XIth Plan </li></ul><ul><ul><li>Government plans to promote PPP model in ash utilization, augmentation of transmission lines and distribution </li></ul></ul>PPP Model - Overview Distribution Franchisee Ultra Mega Power Projects (UMPP) Types of public private partnerships in India 1%
  7. 7. Key Trends 17.6 Trends PE firms showing interest in power sector Increase in captive power production Increase in FDI Increase in domestic investments Increase in per capita consumption
  8. 8. Challenges 31,000 Challenges Huge power loss in transmission and distribution Ageing and improperly-maintained infrastructure Shortage of coal Inability to meet the capacity addition targets
  9. 9. Majority of the installed power capacity in India with public sector undertakings SAMPLE Source:   Public Sector Players <ul><li>AA Ltd is the sixth largest thermal power producer in the world and India’s largest power producer. It accounts for x% of the country’s installed capacity. It plans to invest up to USD XX bn by 2012 to transform itself into an integrated regional energy player and have an installed capacity of over X MW </li></ul><ul><li>BB Ltd p lans to increase the power generation capacity to over X MW by 2011–12 </li></ul><ul><li>CC Ltd has 5 plants under construction adding X MW by 2012 </li></ul><ul><li>DD Ltd is responsible for inter-state transmission of electricity. The company reported revenue of USD X bn in FY2007-08 </li></ul><ul><li>EE Ltd is the Government of India initiated public private partnership, formed for the purpose of trading of power </li></ul>   USD – mn USD – bn DD Ltd -- MW USD – mn USD – bn CC Ltd USD – mn USD – mn EE Ltd USD – mn USD – bn EBITDA (FY2007-8) USD – mn USD – bn Revenues (FY2007-8) -- MW BB Ltd -- MW AA Ltd Generation Transmission Distribution Total Capacity Company Name
  10. 10. Thank you for the attention About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Power Sector report is a part of Research on India’s Power Industry Series. For more detailed information or customized research requirements please contact: Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. Natasha Mehta, CFA Phone: +65 8448 0449 E-Mail: [email_address] Gagan Uppal Phone: +91 98364 71499 E-Mail: [email_address] Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on