1. Sectorial presentation
on
power/energy sector
Submitted by:-
Ashish kulshreshtha
PRN-- 020
Symbiosis Institute Of Operations Management

2. Global scenario
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3. Primary energy
It counters the major
part of energy
demand includes
 Energy through coal 53%.
 Fossil fuel 28-31%
 Nuclear power 8-10%
 Renewable energy 16%.
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4. Sector wise Distribution of
energy
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5. Symbiosis Institute Of Operations Management 5

6. Working of the power industries
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7. As per CEA total
installed capacity is
173626.40MW.
 Public sector share is
79%
 State sector 48%
 Central sector 31%
 Rest 21% is of private
sector
 Tata power
 Reliance power
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8. I. Demand-Supply Gap.
II. Government policies.
III. Transmission and
Distribution.
IV. FDI Equity Flows in
Power Sector.
V. Private participation in
this industry.
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9. ISSUES AND CHALLENGES
 Availability of Coal.
 Dependence on Equipment Suppliers.
 Aggregate Commercial and Technical Losses.
Other Roadblocks leading to Demand Supply Gap.
• Lack of skilled labor.
• Pollution.
• Political factor.
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10. Regulatory bodies
• The Ministry of Power is primarily responsible for the
development of the Indian power sector.
 It is concerned with perspective planning and policy
formulation in the sector.
• The State Electricity Boards (SEBs).
 It generate, transmit and distribute electricity in
coordination with private/centrally owned generating
companies or any other relevant agency.
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11. Regulatory bodies (cont..)
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12. Regulatory bodies (cont..)
• Central Electricity Regulatory Commission (CERC)
 It has been set up for rationalization of bulk and
retail tariff for generation and transmission
utilities involved in interstate operations.
 It also regulates at intra-state level. Each state
has set up a State Electricity Regulatory
Commission.
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13. Government policies
• The Electricity Act 2003
Key feature of this act
I. Removal of a number of restrictive barriers to the flow
of power in a competitive market scenario by opening
access to transmission (from the outset) and
distribution.
II. Freeing up of generation and captive power plants
from licenses and techno economic approvals.
III. Transferring the full range of regulatory and licensing
functions to the Central and State Regulatory
Commissions.
IV. Deregulating tariffs in certain situations e.g. in case of
agreements between consumers and generating
companies.
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14. Guidelines for procurement of
electricity
In compliance with section 63 of the Electricity Act, 2003, the Central
Government had notified guidelines for procurement of power by
Distribution Licensees through competitive bidding.
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15. Tariff Policy
The Tariff Policy has been notified by Government of India on6
January, 2006 under the provisions of section 3 of the Electricity
Act, 2003.
 Ensure availability of electricity to consumers at
reasonable and Competitive rates.
 Ensure financial viability of the sector and attract
investments.
 Promote transparency, consistency and
predictability in regulatory approaches across
jurisdictions and minimize perceptions of
regulatory risks.
 Promote competition, efficiency in operations
and improvement in quality of supply.Symbiosis Institute Of Operations Management 15

16. Some other policies
• Rural Electrification Policy
Rural Electrification Policy, in compliance with section 4
and 5 of the Electricity Act 2003, was notified on 23
August, 2006.
• Section 63 of the Electricity Act New Hydro-Policy.
• Hydro policies.
• Non-conventional Energy Generation.
• The Accelerated Power Development and Reform
Programme (APDRP) programme is being implemented
so that the desired level of 15 per cent AT&C (Aggregate
Technical and Commercial) loss can be achieved
(Currently it is 30%).
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17. Future/Undergoing projects
• The Government of India is planning nine Ultra Mega
Power Projects (UMPP) of 4 GW each with an estimated
individual investment of US$ 4 billion (Rs. 192 billion).
Four of these projects are expected to be commissioned
between 2011 and 2017. The UMPP is an initiative by
the government to collaborate with power generation
companies to set up 4,000 MW projects to ease the
country’s power deficit situation.
• Private investment has been allowed in power
transmission either through 100per cent equity or joint
venture with PGCIL. In case of latter, the PGCIL will hold
only 26per cent stake and private party would hold the
rest.
• 18 State Electricity Regulatory Commissions have
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18. Competitive analysis of
market
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