Power Sector India Sample


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Power Sector India Sample

  1. 1. Power Sector - India March 2009
  2. 2. Executive Summary India has 5th largest electricity generation capacity in the world Market The installed capacity of India as of July 2008 was X MW Overview & India is facing acute power deficit with peak power deficit of about x% Value Chain Power trading is still at nascent stage with merely y% of the power generated traded in 2007-08 Distribution is primarily controlled by state electricity boards (SEBs) LE Government policies are aimed at encouraging investment in the sector and increasing the competition Government Policies & Incentives MP Government allows 100% FDI under the automatic approval route in all segments of the industry (except atomic energy) A 5-year tax holiday is given for power generating projects S Import duty at the confessional rate of x% has been set for import of equipment Key Trends: Increase 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 Key Trends & production Challenges Challenges: Shortage of coal, power loss in transmission and distribution, ageing and improperly maintained infrastructure Public sector undertakings like AA Ltd , BB Ltd hold the majority of the total installed capacity Private players including ABC, XYZ have presence across value chain and making significant Competition investments in power sector Foreign players like XY, ZY, AY have entered/planning to enter Indian power market POWER SECTOR - INDIA.PPT 2
  3. 3. • Introduction • Power Sector – Overview • Value Chain Analysis • Government Policies and Initiatives • Key Trends & Challenges • Competitive Landscape • Key Developments • Appendix POWER SECTOR - INDIA.PPT 3
  4. 4. Installed capacity has been increasing continuously to meet the need of growing economy.. Supply Side Plan-wise Installed Capacity • India has 5th largest electricity generation capacity in MW the world 140,000 Z • Installed capacity of X MW as of July 2008 120,000 Nuclear Renewable Y 100,000 LE Gas-based X y% v% 80,000 W P z% Hydel power x% 60,000 w% M Plan Thermal VII VIII IX X Demand Side • Demand for power is growing at x% per annum • Demand has five key components: SA Current and projected demand 250,000 MW Energy Required bn units 1,500 Planned Demand Z Industry, commercial, residential, agriculture, and others 200,000 • Key drivers of increasing demand are growth in: Y 1,000 Household consumption 150,000 X Electrification of rural areas 100,000 500 Manufacturing growing faster 50,000 Realization of suppressed demand due to load-shedding • Required investment of ~USD X bn by 2017 0 0 X XI XII Source: POWER SECTOR - INDIA.PPT 4
  5. 5. Public sector companies or State Electricity Boards (SEB) have presence across the value chain Raw materials Generators • ------ • ------ Traders PLE • ------ Transmission S M • ------ A • ------ • ------ Distribution • ------ • ------ End user Source: POWER SECTOR - INDIA.PPT 5
  6. 6. Public Private Partnership (PPP) model is not witnessing much activity compared to other sector in infrastructure PPP Model - Overview • India has around x projects under the public private Airports Railways partnerships in infrastructure Energy z% • The power sector in India has not witness much PPP y% u% activity as compared to other sectors Urban Development x% LE Power sector witnessed investments worth USD XX bn • Government is encouraging PPP model to meet the P w% v% capacity addition target of XY MW in XIth Plan Road Ports M Government plans to promote PPP model in ash utilization, augmentation of transmission lines and distribution SATypes of public private partnerships in India Ultra Mega Power Distribution Franchisee Projects (UMPP) Source: POWER SECTOR - INDIA.PPT 6
  7. 7. Key Trends Increase in per capita consumption Increase in captive Increase in domestic power production investments Trends PE firms showing Increase in FDI interest in power sector POWER SECTOR - INDIA.PPT 7
  8. 8. Challenges Inability to meet the capacity Shortage of coal addition targets Challenges Ageing and improperly- Huge power loss in transmission maintained infrastructure and distribution POWER SECTOR - INDIA.PPT 8
  9. 9. Majority of the installed power capacity in India with public sector undertakings Public Sector Players Company Name Generation Transmission Distribution Revenues EBITDA Total Capacity (FY2007-8) (FY2007-8) AA Ltd USD – bn USD – bn -- MW LE BB Ltd USD – mn USD – mn -- MW P CC Ltd USD – bn USD – mn -- MW M DD Ltd USD – bn USD – mn EE Ltd SA USD – mn USD – mn • 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 • BB Ltd plans to increase the power generation capacity to over X MW by 2011–12 • CC Ltd has 5 plants under construction adding X MW by 2012 • DD Ltd is responsible for inter-state transmission of electricity. The company reported revenue of USD X bn in FY2007- 08 • EE Ltd is the Government of India initiated public private partnership, formed for the purpose of trading of power Source: POWER SECTOR - INDIA.PPT 9
  10. 10. Thank you for the attention The Power Market report is a part of Netscribes’ Power Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Subhash Chennuri Phone: +65 9651 6382 Phone: +91 98190 59664 E-Mail: natasham@netscribes.com E-Mail: subhashr@netscribes.com 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. This report is published for general information only. Although high standards have been used in preparing this report, 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 no part may be reproduced without prior written permission. www.netscribes.com POWER SECTOR - INDIA.PPT 10