1. HOW can we have
affordable, 24 hrs
Power for All ?
!
!
The
Analysis
2. Power for All
Where we are?
The
Analysis
With more than 290 million people without access to electricity,!
India has the largest unelectrified population in the world.!
!
Source: International Energy Agency, 2012 paper on World Energy Outlook
3. Power for All
Where do we want to be?
The
Analysis
The Rural household electrification numbers:!
!
!
43%!
2001 Census
66%!
2010 NSSO
!
!
!
!
!
!
!
100% only in 2023!!
HOW can we connect our villages faster?
If we can progress at this growth rate we will reach
4. Power for All
The 3 Steps required
1 REACH!
While cities and towns connect to the grid,!
large parts of the hinterland still do not!
!
!
!
!
!
!
!
!
!
The
Analysis
5. Power for All
Examining REACH
The
Analysis
THOSE NOT REACHED!
are opting to pay Rs 150 - Rs 200 per month to!
entrepreneurial ‘Off Grid’(like solar) providers …!
!
!
!
!
!
… this is between Rs 8 to 12/unit because they!
value the ability to work or study in the evening!
! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
!
!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !
… and because kerosene and diesel!
cost almost twice as much!
!
How long can rural India wait for Power?!
!
Source: 2 October, 2013 Economic Times article by Biswarup Gooptu
6. Power for All
The 3 Steps required
2 SUPPLY!
While some cities have 24 hours of power, !
12 - 18 hours per day is normal !
for most parts of India!
!
!
!
!
!
!
!
!
!
The
Analysis
7. Power for All
Examining SUPPLY
The
Analysis
WHY UNDERSUPPLY?!
Insufficient Capacity Addition!
!
!
+
!
!
!
Capacity doubled from 100 to 200 GW,
between 2002 to 2012, but there is still
10% to 20% deficit even in major states.
International norm: 30% surplus!!
How can we add Power Plants? !
Source: Ministry of Power and CEA
8. Power for All
Examining SUPPLY
The
Analysis
WHY UNDERSUPPLY?!
Generation Capacity Usage at 60-70%!
!
!
!
!
!
Because of Fuel shortage - even though
India has 3rd largest coal reserves India is expected be largest coal importer
which will increase cost.!
How can we supply more Coal to
Power Plants?
9. Power for All
Examining SUPPLY
The
Analysis
What about the promise of Alternative Power sources?!
!
!
!
!
!
!
Lignite
Gas/ Diesel
Hydro
Nuclear
Others
Coal
2010
3
13
13
2
5
64
2012
3
12
10
3
5
66
2017 projected
3
9
10
2
6
69
!
!
!
!
… is the current and expected reality.!
!
Source: Analysis based on CEA data
10. Power for All
The 3 Steps required
The
Analysis
3 EFFICIENCY!
Since Power is a Natural Monopoly, there is little motivation to be efficient, then!
How can we ensure efficiency in a Monopoly environment? !
!
!
!
!
!
!
Raw material!
Coal
Generation!
!
Cost
!
Transmission!
Cost & Losses
Let us examine all the 3 major components of Power
11. Power for All
Examining EFFICIENCY
The
Analysis
Raw Material Coal
Monopoly squeeze!
!
!
!
!
!
!
!
!
!
Monopoly Transporter, Indian
Railways already subsidises coal
transport - can it continue to do
so as volumes increase?
Monopoly Supplier: Coal India,
but its costs are half of imported
coal - and with imports, costs
will rise.!
How can we get required volume of coal to plants cheaper?
12. Power for All
Examining EFFICIENCY
The
Analysis
Generation Cost
Inefficient Old Plants!
!
!
!
!
Over 25% capacity in major states comes from plants over 30
years old (international end-of-life norm). These plants require
high maintenance and more fuel, to produce lesser power.!
How can we ensure lower costs as old plants are phased out
and new capacity is added?
13. Power for All
Examining EFFICIENCY
The
Analysis
Transmission Cost and Losses
Decrease Engineering Losses!
Decrease Theft!
!
!
!
!
!
!
!
!
!
!
Basic physics suggests that as
Power for All is rolled out, rural
connectivity will mean increase in
engineering losses
Loss reduction possible with
stricter monitoring of compliance
and punitive measures against
offenders.
How can we reduce engineering losses and eliminate
power theft?
14. Power for All
Examining Tariffs
The
Analysis
TARIFF
Will Industry absorb?!
!
!
!
!
Agricultural power almost free, Domestic tariff below cost for
most, only Industry pays 30% above cost!
If Industry pays more, then cost of goods will rise OR!
Industry will move to use of diesel gensets, which makes the
distribution companies poorer.
15. Power for All
Examining Tariffs
The
Analysis
TARIFF
Unpaid subsidies!
!
!
!
!
Subsidy: 20,000 cr paid: 15,000 cr unpaid!
When charges to consumers are cut, government has to pay
subsidy to Power companies. And when subsidies are unpaid,
Power company cannot invest in wires, towers and meters.
16. Power for All
Understanding Tariffs
The
Analysis
All 3 major cost components go up !
as we implement Power for All, so …!
!
!
!
!
Raw material!
Coal
Generation!
Cost
Transmission!
Cost & Losses
How can Tariffs for !
Consumers be kept low?!
!
!
!
17. IN CONCLUSION!
Please Ask your Lok Sabha candidate
!
Ho
H
ow w
w
w
An
w.
In
As d aly
kH ia” sis
ple
ow o
as
In n F
di
ac e s
a.
eb
ea
or
g ook rch
HOW can we reduce
engineering losses and !
eliminate theft?
for
sk
m
or
eA
sk
HOW can we reduce!
tariffs without lowering!
investments in education!
and health care?
“A
HOW can we provide !
Power to the villages of !
India at a faster pace?
HOW can we supply!
more coal cheaply to !
Power plants?