Power Scenario in India

2016 – State Wise Track

Holistic Compilation of Facts & Analysis of State Wise Power

Situation in India broadly covering thermal power generation

facet, renewable power segment, power transmission segment,

power distribution sector, likely Benefits from UDAY for DISCOMs

and power trading scenario

December 2016

Why enincon’s report upon “Power Scenario in

India 2016 – State Wise Track”

CAPACITY ADDITION TRENDS IN POWER GENERATION, IN ITSELF SPEAKS VOLUME ABOUT THE

VISION,GROWTH & STONG BUSINESS CASE THAT INDIA HOLDS FOR POWER SECTOR

The Indian Power Sector has evolved to “Stable from Negative” in rating terms over the past two years and

seems to have gained strength from institutionalized effort of the Government. With the dedicated and

concerted efforts of the government at centre , the power industry in India has been able to surpass many of the

impediments hampering its growth in the past. With the positive intent being displayed in terms of reducing the

cycle time of clearances and panning out single window clearance, pushing for more domestic sourcing of coal,

securing finances by liberalizing policies for investments and enthusing “Make in India initiative” the situation of

power in the country is certainly going to seek improvements across the facets of generation, transmission,

distribution and trading. In addition, implementing the UDAY scheme is not only likely to give a breather in terms

of financial pendencies of the Indian discoms but shall also improve their purchasing parity. Further, the recent

developments on the front of power tariff rationalization would be an icing on the cake for discoms to improve its

operational efficiencies as well.

In such a scenario to find out opportunities corridor in terms of the sub-segments of the power sector

preferably on a state level basis which would be a boon to the value chain business participants is of utmost

importance. Hence, enincon consulting llp attempts to come up with an exhaustive guide of power scenario in

the states and benchmarks the sector which emerges out as most promising for harnessing business

opportunities. The objective of this report is to present the as-is and anticipated power sector dynamics of the

key states which have been tracked in terms of existing and upcoming MWs for generation, ct. Kms for

transmission and network of power distribution. One of the key opportunity segments tracked in this report

would be new sub-stations, number of new transformers and a track of upcoming metering projects in India.

Also, the status of power market is tapped with minute details providing for all unique opportunity aligned for

business participants.

FOR MATCHING THE CHANGING URBAN LIFESTYLE , INDIA WILL REQUIRE LARGE AMOUNT OF BASELOAD POWER IN COMING

YEARS

Exhibit 01: Performance Evaluation Index of Indian States for Examining the Level of Power Infrastructure, on the Scale

of (0-100)

0 100

Below 33 45-65 Above 70

Performance Scale

0

25

50

75

100

0 25 50 75 100

Le

ve

l o

f P

ow

er

Infr

a i

n I

nd

ian

Sta

tes

Evaluating Performance

J&K

PU

HR UP

CH

GJ MP

AP MH

TL

KA

JH BR

OD WB

TN

RJ

High Scope of Improvements Showing Improvements Low Scope of Improvements

Promising Business Potential Till 2022

Good Business Potential Till 2022

Growing Business Potential Till 2022

Source: enincon research and analysis

Scale Rating 33

Scale Rating 65

Weak Average Strong

1. The recent additions made in the power generation capacity of renewable sources holds strong grounds for

optimistic business case

2. Two-fold growth seen in the renewable power capacity addition from 3.6 GW in FY’2013-14 to 7 GW in

FY’2015-16

3. Matching the pace of urban living standard and the infrastructure needs, India will require large amount of

base load power at least till 2030-35, that shall be coal driven

4. Open Access is fast gaining ground as the ease of business involved for developers and buyers are extremely

favorable cutting down on risks involved for long-term transactions with discoms

5. USD 100 Billion of investment pool for upcoming renewable energy projects in India till 2022

6. Benefits widely available to state transmission utilities and private transmission utilities to felicitate the open

access mechanism

7. INR 1184.45 crores of funds on platter for power transmission projects in India till 2020

8. Since solar and wind generation is erratic, the utility can source power from them as per availability and

supply to consumers as per their needs 24x7.

9. Reduction in green energy tariff by a quantum of 15-20% through this mechanism with respect to distribution

utilities tariff

BUSINESS CASE FOR POWER GENERATION, TRANSMISSION , DISTRIBUTION AND POWER TRADING FACET

• Coal fired power generation capacity addition plans of Indian states till 2022

• Technology (Supercritical/ sub critical ) wise break of upcoming thermal capacity

• Scope for gas fired power projects- Realistic quantum at exposure till 2022

• Likely growth trajectory of Indian states for power availability scenario till 2022

• Regulatory and Policy Landscape of Indian States and the Incentives Offered

• State Wise Business Opportunity Case for Power Developers, BTG-BoP Manufacturers, Other Electrical Equipment

Suppliers, EPC Service Providers, Power Traders etc

• Power

• State wise tracking of upcoming power transmission projects in India

REPORT INSIGHTS

• Gauging the power demand-supply scenario in Indian states

• Holding a track of anticipated financial & operational opportunity for Indian Discoms under the UDAY scheme

• Catch holding the progressive trends and shortfalls in power transmission infrastructure of Indian states

• Source wise power supply augmentation capacity for each state

• Analysing the player wise break up of thermal power capacity addition in Indian states

• Analysing the player wise break up of renewable power capacity addition in Indian states

• Unwrapping the futuristic business case in Indian states for power developers - Giving a track of underlying power

generation capacities

• Technology Innovations to improve the power generation efficiency in the country

KEY HIGHLIGHTS

Power generation will be 100 percent of the envisaged capacity addition target of 88,537 MW by the end of the Twelfth Five Year Plan. “ With capacity addition of 9800 MW during the current plan till date , NTPC is all geared up to achieve the target of 11, 920 MW for the Twelfth Plan, ending 2016-17, an NTPC executive said. The company’s annual report said it planned to add 4500 MW in 2016-17” Economic Times, India

Tata Power to invest in renewable energy sector in India. The company will increase its renewable energy footprint to 30-40 percent of the total 20,000 MW capacity it aims to build and operate by 2025, its chief executive and managing director Anil Sardana said here. “ The aim is to have 8000 MW out of 20,000 MW by 2025” , he said while addressing the Singapore International Energy Week .”

The Hindu, India

PRESS EXCERPTS

• What would be the region wise market potential for power value chain players ?

• What shall be the state wise attractive indices for coal fired power generation in India ?

• Which all states shall be suited most for thermal power generation business?

• Which all states have more potential in providing apt business case for solar power, wind power generations?

• What shall be the state wise underlying / proposed and Underconstruction capacity for the thermal power projects ?

• What shall be the state wise underlying / proposed and Underconstruction capacity for renewable power projects ?

• Which regions have highest potential in terms of expanding the power transmission and distribution infra ?

• What would be the distinctive opportunity tune for investing in Indian states in power generation , distribution and

transmission business ?

• What would be the player wise distinctive opportunity tune for investing in Indian states into the power business?

• What shall be the likely benefits (in INR) to Discoms in Indian States under the UDAY scheme?

KEY QUERIES ADDRESSED

• Independent Power Producers

• Solar Power Producers

• Wind Power Producers

• OEM Suppliers/Manufacturers

• Power Transmission Utilities

• Power Distribution Companies (DISCOMs)

• Power Traders

• Banks/ Financial Institutes/ Project Financing Agencies

• EPC Service Providers

• Consultants

• Research Firms/ Research Institutes

• Government Agencies

MUST BUY FOR

• Holistic Picture of Power Scenario in India- Covering Power Generation, Distribution and Transmission

• Analysing Historic Trends in the Thermal Power Capacity Additions and Futuristic Estimations Till 2022 in Indian States

• Analysing Historic Trends in the Renewable Power Capacity Additions and Futuristic Estimations Till 2022 in Indian

States

• State Wise Business Opportunity Case for Power Developers, BTG-BoP Manufacturers, Other Electrical Equipment

Suppliers, EPC Service Providers, Power Traders etc

• State Wise Opportunity Tune for Private Players

• Analysing Historic Trends in the Power Transmission Infra of Indian States and the Scope for Capacity Additions Till

2022

• Taking a Note of Power Demand- Supply Scenario in India States

• Scenario Wise Future Movements in the Demand-Supply Trends of Power in India: Coming Out with the Best States to

Emulate and the Ones Need Improvements

• Region wise Track of Power Trading Opportunity

• Regulatory and Policy Landscape of Indian States and the Incentives Offered

WHAT YOU CAN LEARN ? A SNAPSHOT