Domestic Energy on in Andhra Pradesh - Report 2

8/3/2019 Domestic Energy on in Andhra Pradesh - Report 2

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Report 2Oct. 30, 2011

V KRISHNAN ANIRUDH 2008A4PS284H

CH. SRIRAM KUMAR 2008A4PS263H

PUSHKAR KUMAR JAIN 2008A4PS228H

SAURABH BHATTACHARYA 2008A4PS248H

NIRBHAY KOTHARI 2008A4PS142H

Y V MAHESH KUMAR 2008A4PS204H

G RAVI KIRAN 2009A4PS239H

Domestic Energy Consumption

in Andhra Pradesh


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Executive Summary

To make the readers understand the domestic energy consumption patterns in Andhra Pradesh,

this report, which is the second of the three reports, starts off with the Indian Energy Policy, and

then gives the various statistics related to the energy consumption patterns and also looks into

the power generation and consumption statistics of Andhra Pradesh. This is followed by a short

note on Carbon foot prints and the appliance wise carbon emission details. Later, the report also

gives the plan of action for the last report.


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Contents

1. INTRODUCTION ................................................................................................................................... 1

2. INDIAS ENERGY POLICY ...................................................................................................................... 1

2.1 Planning and Policy ....................................................................................................................... 1

2.2 Power Sector ................................................................................................................................. 3

2.2.1 Structure of Indian power Sector ........................................................................................... 4

2.3 Petroleum and Natural Gas........................................................................................................... 5

2.3.1 Structure of Indian Petroleum and Natural Gas Sector ......................................................... 5

2.4 Renewable Energy......................................................................................................................... 6

2.4.1 Structure of Renewable energy in India ................................................................................ 7

2.5 Coal ............................................................................................................................................... 7

2.5.1 Structure of Indian Coal Sector .............................................................................................. 8

2.6 Nuclear Energy .............................................................................................................................. 8

2.6.1 Structure of Nuclear Sector in India ....................................................................................... 8

2.7 Summary of Energy Policy............................................................................................................. 8

3. ENERGY CONSUMPTION PATTERN ..................................................................................................... 8

3.1 Industrial Consumers .................................................................................................................... 9

3.2 Domestic Consumers .................................................................................................................. 10

3.3 Agricultural Consumers ............................................................................................................... 11

3.4 Commercial Consumers .............................................................................................................. 11

3.5 Demand Drivers for Electricity .................................................................................................... 12

3.5.1 Latent Demand..................................................................................................................... 12

3.5.2 Manufacturing Sector Growth ............................................................................................. 12

3.5.3 Domestic Sector ................................................................................................................... 12

3.5.4 Prices of Household Appliances ........................................................................................... 12

3.6 Region-wise Consumption Pattern ............................................................................................. 12

3.7 Demand and Supply Scenario ..................................................................................................... 13

3.8 Region-wise Power Demand and Supply Position ...................................................................... 14

3.8.1 Northern Region................................................................................................................... 14

3.8.2 Western region .................................................................................................................... 14

3.8.3 Eastern region ...................................................................................................................... 15

3.8.4 North-Eastern region ........................................................................................................... 16

3.8.5 Southern region ................................................................................................................... 16

3.9 Outlook ....................................................................................................................................... 17


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3.10 Index of Industrial Production .................................................................................................. 17

4. POWER GENERATION AND ENERGY CONSUMPTION STATISTICS IN ANDHRA PRADESH ................. 18

4.1 Andhra Pradesh Demographics .................................................................................................. 18

4.2 Monthly Electricity Generation statistics from Thermal Power Stations ................................... 18

4.3 Monthly Electricity Generation statistics from Hydel Power stations ........................................ 20

4.4 Pattern of Electricity consumption in Andhra Pradesh over the years ...................................... 20

4.5 Statistics on the Demand of Power in Andhra Pradesh .............................................................. 22

4.6 Electrification and Consumption in Andhra Pradesh .................................................................. 23

4.7 Solar Energy Production and Consumption patterns in Andhra Pradesh ................................... 23

4.8 Energy production through Bio-Mass ......................................................................................... 27

4.9 LPG, Kerosene and other petroleum products ........................................................................... 29

5. CARBON FOOT PRINT ........................................................................................................................ 30

5.1 KYOTO Protocol ........................................................................................................................... 30

5.2 Carbon footprints of various household appliances ................................................................... 31

6. FURTHER PLAN OF ACTION: .............................................................................................................. 32

List of FiguresFigure 1: OP Jindal Plant ......................................................................................................................... 2

Figure 2: Combined cycle plant ............................................................................................................... 2Figure 3: The Mangala development pipeline and a construction site for nuclear power plant ........... 6

Figure 4: Consumer profile for the financial year of 2007 ...................................................................... 9

Figure 5: Industrial Consumption growth versus electricity sale .......................................................... 10

Figure 6: Household income growth versus electricity sales growth (%) ............................................. 10

Figure 7: Agricultural Composition Growth versus electricity sale (%) ................................................ 11

Figure 8: Commercial consumption growth vs Electricity sale ............................................................. 11

Figure 9: Region-wise share of different customers ............................................................................. 13

Figure 10: Northern Region: Energy and Peak Deficit (FY09) ............................................................... 14

Figure 11: Western Region: Energy and Peak Deficit (FY09) ................................................................ 15

Figure 12: Eastern Region: Energy and Peak Deficit ............................................................................. 15

Figure 13: North-eastern Region: Energy and Peak Deficit .................................................................. 16

Figure 14: Southern Region: Energy and Peak Deficit .......................................................................... 16

Figure 15: Location of Thermal power plants in AP .............................................................................. 18

Figure 16: Statistical figure of electrical energy consumption ............................................................. 21

Figure 17: Statistical Representation of increase in Demand ............................................................... 22

Figure 18: Electricity consumers of APTRANSCO in AP ......................................................................... 23

Figure 19: Solar Irradiation in Andhra Pradesh ..................................................................................... 24

Figure 20: Sales of LPG .......................................................................................................................... 29
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List of tablesTable 1: Structure of Power sector in India ............................................................................................ 4

Table 2: Petroleum and Natural Gas sector structure in India ............................................................... 5

Table 3: Structure of Renewable Energy sector in India ......................................................................... 7

Table 4: Structure of coal industry in India ............................................................................................. 7

Table 5: Central Government's influence on Nuclear sector .................................................................. 8

Table 6: Region wise consumption for the financial year 2007 ............................................................ 13

Table 7: IIP case study with base year 1993-94 .................................................................................... 17

Table 8: Energy generated through Thermal power plants in 2010-2011 ............................................ 19

Table 9: Monthly generation in 2011-2012 .......................................................................................... 19

Table 11: Generation of Electricity in 2011-2012 ................................................................................. 20

Table 10: Monthly electricity generation from Hydro Electric power stations in 2010-2011 .............. 20Table 12: Electricity Consumption Patterns in AP ................................................................................ 21

Table 13: Change in demand pattern in AP .......................................................................................... 22

Table 14: Electrification carried out by APTRANSCO ............................................................................ 23

Table 15: Solar irradiation data for Andhra Pradesh cities ................................................................... 24

Table 16: Area of solar panels in use in 2008 ....................................................................................... 27

Table 17: Estimated Area to be put into use ........................................................................................ 27

Table 18: Optimistic and Pessimistic demand projections for 2013, 2017 and 2022 ........................... 27

Table 19: LPG Penetration in Domestic Sector ..................................................................................... 29

Table 20: Carbon Emissions of various home appliances ..................................................................... 31

Table 21: Carbon Emissions of various electrical appliances ................................................................ 32
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1. INTRODUCTIONEnergy has been universally recognized as one of the most important inputs for economic growth

and human development. There is a strong two-way relationship between economic development

and energy consumption. On one hand, growth of an economy, with its global competitiveness,

hinges on the availability of cost-effective and environmentally benign energy sources, and on the

other hand, the level of economic development has been observed to be reliant on the energy

demand.

Energy intensity is an indicator to show how efficiently energy is used in the economy. The energy

intensity of India is over twice that of the matured economies, which are represented by the OECD

(Organization of Economic Co-operation and Development) member countries. Indias energy

intensity is also much higher than the emerging economiesthe Asian countries, which include the

ASEAN member countries as well as China. However, since 1999, Indias energy intensity has been

decreasing and is expected to continue to decrease.

The indicator of energyGDP (gross domestic product) elasticity, that is, the ratio of growth rate of

energy to the growth rate GDP, captures both the structure of the economy as well as the efficiency.

The energyGDP elasticity during 19532001 has been above unity. However, the elasticity for

primary commercial energy consumption for 19912000 was less than unity (Planning Commission

2002). This could be attributed to several factors, some of them being demographic shifts from rural

to urban areas, structural economic changes towards lesser energy industry, impressive growth of

services, improvement in efficiency of energy use, and inter-fuel substitution. In this regard, the

energy sector in India has been receiving high priority in the planning process.

2. INDIAS ENERGY POLICYIndia, home to 1.2 billion people and over 17% of the worlds population, has a seemingly

unquenchable thirst for energy. One harsh result of its meteoric growth is the widening gap between

required energy and that which is produced. India is unable to keep up with demand and faces

growing pressure from the international community for climate change mitigation. A concerted

effort by the central and state governments, and the growing importance of private sector access

and investment, will drive India into the future. Foreign direct investment into India, at over $35

billion, ranked third globally, for the financial year of 2009. This number is expected to increase

greatly in the coming years because of a policy roadmap by the Government of India that is

increasing the liberalization of the nations economy, especially in the energy sector. Initiatives

include ambitious five-year plans for increasing installed electricity infrastructure, the New

Exploration and Licensing Policy for increasing the production of oil and gas, and the nuclear sectors

recent embrace of international companies to provide equipment and related services.

2.1 Planning and Policy

Indias four-decade-long experiment with a state-owned economy has evolved since a 1991 crisis

forced the country to liberalize its economy. It now allows greater individual initiative and,

importantly, foreign direct investment. Federal and state owned companies still dominate the


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energy industry, but the private sector is actively capturing market share and even investing in the

state-owned companies.

Figure 1: OP Jindal Plant

Energy policy and planning are largely controlled by the central government in Indias federal

political setup. While the central government alone controls planning and policy related to fossil

fuels such as coal, natural gas, and petroleum, the constitution outlines both the state and central

governments responsibility for electricity policy and planning. The Planning Commissi on of the

Government of India (GoI) is responsible for planning for power, energy, energy policy, and rural

energy within the framework of a succession of national five-year plans. States take responsibility forpower delivery.

Figure 2: Combined cycle plant


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The August 2006 Report of the Expert Committee on Integrated Energy Policy (IEP) for the first time

analyzed the resource options for Indias energy needs. It comprehensively examined all sources of

energy, including renewable. The IEP forecasted energy demand up to 2031-32 and made broad

recommendations to optimally meet the surging demand.

It concluded that coal, particularly domestic coal, would continue to fuel the power sector in the

country. Since then, the possibilities of exploring nuclear energy as well as the discoveries of natural

gas have somewhat tilted the balance. The energy sector is overseen by the following GoI ministries:

I. Ministry of Power (http://powermin.nic.in/)

II. Ministry of Petroleum and Natural Gas (http://petroleum.nic.in/)

III. Ministry of New and Renewable Energy (http://mnre.gov.in/)

IV. Ministry of Coal (http://coal.nic.in/welcome.html)

V. Department of Atomic Energy (http://www.dae.gov.in/)

The Planning Commission is the overall in charge of developing Indias five-year plans across the

ministries and sectors. Since the public sector continues to play a dominant role in the energy sector

in India, the ministries wield enormous power and influence in the way the sector develops and is

managed.

The framework for independent regulation has been established for the electricity and downstream

petroleum and natural-gas sectors. The Central Electricity Regulatory Commission (CERC) regulates

interstate transactions and business, and each state has a State Electricity Regulatory Commission

(SERC) for intrastate transactions. Much of the regulation covering electricity generation andtransmission stems from the CERC (and is by and large followed by the SERCs), while SERCs have

exclusive jurisdiction on electricity distribution in the respective states.

The Petroleum and Natural Gas Regulatory Board (PNGRB) regulates downstream activities in the

petroleum and natural gas sectors. The upstream activities continue to be regulated by the central

government through the Directorate General of Hydrocarbons.

2.2 Power Sector

Indias power sector continues to be a stumbling block for its infrastructure growth and overall

development. Energy and peak shortages abound and transmission and distribution losses continue

to be unreasonably high. The Government of India began liberalizing the power sector in India in

1991 by opening up the sector to private investments in generation. The key legislative and policy

interventions in India have been:

I. The Electricity Act 2003

II. National Action Plan on Climate Change

III. National Electricity Policy 2005

IV. National Tariff Policy 2006

V. Rural Electrification Policy 2006

The basic aim of the Electricity Act 2003, which consolidated the provisions of all previous

legislation, was to take measures conducive to the growth of the electricity sector in the country, to


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promote competition, to protect consumers interest, to rationalize tariffs, and to promote efficient

and environment-friendly policies. Its main features are:

I. De-licensing electricity generation

II. Mandating restructuring of state electricity boards to separate transmission (wires business)

and tradeIII. Allowing for open access on transmission and distribution networks

IV. Facilitating electricity trading

V. Mandating the establishment of SERCs in each state.

VI. Liberalizing captive or self-generation

VII. Setting up the Appellate Tribunal for Electricity (ATE)

In addition, the focus was widened to upgrade and improve the financial and operational efficiency

of the distribution companies. A massive funding scheme of the GoI called the Accelerated Power

Development and Reform Program (APDRP) was initiated to provide funds to State Electricity Boards

and distribution companies to improve system efficiency and provide incentives for better

performance. The National Electricity Policy 2005, which introduced the concept of universal service,

mandated that all villages should be electrified by 2007-2008 and all households by 2011-2012.

Table 1 given below outlines the structure of the Power sector in India.

Table 1: Structure of Power sector in India

2.2.1 Structure of Indian power Sector

The GoI Ministry of Power (MoP) is responsible for planning, formulating policies, processing of

projects for investment decision and monitoring of the implementation of power projects. The

Central Electricity Authority (CEA) is a statutory body constituted by the central government that

functions under the Electricity Act 2003. The CEA is responsible for formulating the National

Electricity Plan in accordance with the National Electricity Policy, once in five years.

The CEA is the main technical adviser to the government and regulatory commissions. It is also

required to specify technical standards and safety requirements for the construction, operation, and


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maintenance of electrical lines and setting up of electrical standards. Any generating company

intending to set up a hydropower generating station also requires the concurrence of the CEA.

The Electricity Act 2003 and the subsequent policies of the government, especially the Ultra Mega

Power Projects (UMPPs) under the competitive bidding route, are expected to add substantial

thermal capacity. In 2008, the GoI promulgated the Hydro Power Policy to encourage privateinvestments, improve resettlement and rehabilitation and enhance the financial viability of

hydropower development. Earlier in 2007, the MoP had issued the approach and guidelines for the

development of merchant power plants (MPPs).

Two main programs of the GoI are aimed at improving electricity distribution. The APDRP provides

loans and grants to augment investments in distribution system upgrades. The Rajiv Gandhi

Grameen Vidyutikiran Yojana (RGGVY), launched in 2005, aims at electrifying all villages and

providing access to electricity to all rural households over a period of four years.

2.3 Petroleum and Natural GasIndias petroleum and natural-gas sector relies heavily on government-run oil companies as seen in

Table 2 given below.

Table 2: Petroleum and Natural Gas sector structure in India

2.3.1 Structure of Indian Petroleum and Natural Gas Sector

India conducted nine rounds of exploration bidding between 1979 and 1995, but they were not

successful. The New Exploration and Licensing Policy (NELP) introduced by the government in 1997-

98 brought about major changes in the structure of the Indian oil industry as well as increased the

rate of exploration of the sedimentary basin area of the country from 11% to more than 44%.

NELP opened Indias oil and gas sector to private-sector participation through international

competitive bidding for blocks under a production-sharing contract with the GoI. National Oil

Companies (NOCs) continue to account for a major share of crude oil and natural gas production, but

there has been a significant increase in private participation. All 10 oil discoveries in 2007-08 were

made by private oil companies like Reliance Industries Ltd. (RIL), Cairn and Essar Oil Ltd. (EOL). The

GoI is examining the possibility of introducing the Open Acreage Licensing Policy (OALP) to allow

year-round bidding for blocks to explore rather than waiting for the government to identify blocks


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for exploration. Recently, there has been a thrust towards NOCs acquiring hydrocarbon assets

abroad to meet the countrys need for energy security and accelerating demand.

With the increasing presence of private players and the move towards increasing the extent of gas

distribution in the country, the Petroleum and Natural Gas Regulatory Board (PNGRB) was set up

under the PNGRB Act 2006. The PNGRB regulates the refining, processing, storage, transportation,distribution, marketing, and sale of crude oil, petroleum products, and natural gas. It also protects

the interests of consumers and entities engaged in specified activities in these areas and are

responsible to ensure uninterrupted and adequate supply of crude oil, petroleum products, and

natural gas to all parts of the country and to promote competitive markets.

The PNGRB issued guidelines relating to city gas distribution network and natural gas pipelines in

2007-08 and 2008-09. However the upstream oil and gas business continues to be regulated by the

Directorate of Hydrocarbons (DGH). The DGH operates under the Ministry of Petroleum & Natural

Gas (MOP&NG) as a regulator to advise the MOP&NG on exploration strategies and production

policies.

Oil and natural gas exploration and production, refining, and distribution, as well as the marketing,

import, export, and conservation of petroleum products and liquefied natural gas fall under the

responsibility of the MOP&NG.

Figure 3: The Mangala development pipeline and a construction site for nuclear power plant

The government continues to regulate prices for both petroleum and natural gas through the

Petroleum Planning & Analysis Cell (PPAC), attached to the MOP&NG.

2.4 Renewable Energy

The renewable-energy sector is administered by a separate line ministry, but it is regulated by the

CERC and SERCs along with the power sector. The Ministry of New and Renewable Energy (MNRE)

plans and promotes the development of all sources of renewable energy. By far the largest

renewable-energy source is hydropower, which in 2008 generated 113.85 billion kWh. Wind energy

was a distant second, with 14.8 billion kWh. Comparatively, energy from other renewable sources

was negligible or non-existent. Table 3 given below summarizes the structure of the renewable

sector in India.


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Table 3: Structure of Renewable Energy sector in India

2.4.1 Structure of Renewable energy in India

The Electricity Act 2003 provides the legislative impetus for the development of renewable energy in

part by directing the CERC and SERCs to fix renewable power purchase obligations (RPPOs) for all

distribution companies under their jurisdiction. The regulatory commissions can also determine

preferential tariffs for renewable power to make it more competitive with conventional sources on

cost of electricity.

Foreign direct investment up to 100% is allowed under the automatic route and can set up a wholly-

owned subsidiary. Foreign investors are allowed to set up renewable-energy-based power projects

on Build-Own-Operate (BOO) or a Build-Own-Transfer (BOT) basis. Investors are allowed to bring in

funds directly, incorporate an Indian company, or allot shares to foreign investors.

With the announcement of the National Action Plan on Climate Change (NAPCC), there is a marked

shift in policy to diversifying the energy mix to lower carbon intensity. The NAPCC calls for boosting

renewable energys share of the national generation from 2% to 5%, with specific emphasis on

significantly increasing solar energys share of the total energy mix. It envisions increased us e ofdistributed solar photovoltaic cells, but also, as technology permits, commercial-scale solar-reflector

generating stations.

2.5 Coal

The Ministry of Coal is the apex organization responsible for the development of coal and lignite in

the country. It has the overall responsibility for determining policies and strategies for exploring and

developing coal and lignite reserves, sanctioning important projects of high value and deciding all

related issues. The coal sector continues to be dominated by government-owned companies with no

significant private-sector presence, and foreign direct investment is restricted. Table 4 given below

outlines the framework of Indias coal industry.

Table 4: Structure of coal industry in India


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2.5.1 Structure of Indian Coal Sector

In December 2000, the GoI loosened the restrictions on state government companies to allow them

to mine coal and lignite reserves anywhere in the country, subject to certain conditions. Since 2004,

the GoI has engaged in allocating large areas/blocks to government companies (both central and

state). Preference is being given to government power utilities.

2.6 Nuclear Energy

The Department of Atomic Energy is mandated to increase the share of nuclear power using both

indigenous and other proven technologies, and also developing fast breeder reactors and thorium

reactors with associated fuel-cycle facilities. Table 5 given below illustrates the central governments

influence over the nuclear sector.

Table 5: Central Government's influence on Nuclear sector

2.6.1 Structure of Nuclear Sector in India

The signing of the Indo-U.S. nuclear deal in October 2008 has opened up opportunities for the

growth of nuclear power in the country. The Nuclear Power Corporation of India Ltd. (NPCIL), the

only nuclear power generating company in the country, aims to increase its installed capacity from

4,120 MW to 21,000 MW in the next five years, but GoI policy prohibits foreign direct investment innuclear power plants.

2.7 Summary of Energy Policy

In summary, Indias power, petroleum, and natural gas sectors have mostly opened up to the private

sector and market-based interventions even while government-owned entities continue to dominate

the sectors. Private-sector participation is much more limited in the coal sector, with captive mining

for industries as well as state government-owned organizations being the main exception. The

nuclear sector has only recently been opened to other government-owned entities and most likely

will proceed in the form of joint ventures with the incumbent corporation NPCIL.

3. ENERGY CONSUMPTION PATTERNElectricity is consumed by almost every sector in its day-to-day functioning but on the basis of end-

use, consumers of electricity can be categorised into the following seven categories:

Industrial

Domestic

Agricultural

Commercial

Public services Railways


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Others

Industrial consumers are the largest consumers of electricity in India. In FY07, industrial consumers

accounted for 38% of the total electricity sold by utilities; however, their share in actual

consumption was much higher as many industries met their power requirement through captive

generation. Domestic and agriculture sectors are the other major consumers who have respectiveshares of 24% and 22% in total power consumption. While the public services account for 4% of

sales, the Railways and other consumers account for a share of 2% each in overall sales.

Figure 4: Consumer profile for the financial year of 2007

Over the years there has been a significant shift in the sector-wise consumption patterns, as there

has been a decrease in the share of agriculture and industrial sectors and an increase in the share of

the domestic and commercial sectors.

In FY90, the industrial consumers accounted for 46.0% of total sales by utilities, while the domestic

and agriculture sectors accounted for 16.9% and 25.1%, respectively. The industrial segments share

in overall consumption has come down due to improved consumption norms after adoption of

energy-efficient technologies, and also due to the industrial sectors use of captive power. The

domestic segment has overtaken the agriculture sector and has emerged as the second-largest

consumer segment of power largely due to increased urbanisation, rise in disposable incomes, and

the consequent increase in use of domestic electrical appliances. Consumption of power by

commercial establishments has increased with the rise in the service sector in India.

3.1 Industrial Consumers

Industrial consumers, the largest consumer segment of electricity, are bulk consumers and electricity

is supplied to these consumers through three-phase small-scale 400 V, three-phase large-scale 11 KV

and three phase very large scale 33 KV.

Depending on the type of power consumed, industrial consumers can be further sub-divided into:

High-tension industries

Low and medium-tension industries

High-tension industries account for almost 79% of the total power consumed by industries, while the

low and medium tension industries account for the balance.

Cross subsidies, higher tariff, power outages, and inconsistent quality of power supplied by utilities

had adversely affected power availability of industries. The power shortages and the favourable


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policies for captive power made many high tension industrial consumers opt for captive power

generation. Likewise, many energy-intensive industries like iron and steel, aluminium, cement,

sugar, fertilisers, paper, and chemicals set up their own captive power plants.

Figure 5: Industrial Consumption growth versus electricity sale

3.2 Domestic Consumers

The domestic consumers constitute the second-largest user segment of power. Electricity is

primarily used in this sector for lighting and in domestic appliances like refrigerators, air-

conditioners, water-heaters, kitchen appliances, and consumer durables like television, music

system, etc. Higher degree of urbanisation and rural electrification has increased the domestic

sectors access to electricity and therefore, its consumption of electricity. Higher disposable income

and better access to finance for purchasing consumer durables have increased the usage of kitchen

appliances and home electronics. Increase in the purchasing power of consumers has also fostered

lifestyle changes in the Indian household, and has in turn, increased its electricity consumption.

Figure 6: Household income growth versus electricity sales growth (%)

The domestic power consumption grew at a CAGR of 9.76% from 3.9 bn kWh in FY71 to 111 bn kWh

in FY07. Going forward, the rise in household income is likely to continue to drive the demand for

power across consumer classes in India. The electricity demand of household sectors in the urban


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areas will increase in the future with increasing urbanisation and changing lifestyle due to rise in

disposable incomes. Similarly, better access to electricity in rural areas mainly due to the rural

electrification programme will increase the domestic sectors electricity consumption in these rural

areas.

Scheduled power cuts and load shedding has curtailed the domestic consumption of electricity and

has forced large residential complexes to opt for diesel-generated energy to meet their power

requirements. However, in future, such consumers will also be added to the overall consumer pool,

when the availability of power increases, which will increase the domestic power consumption.

3.3 Agricultural Consumers

Agriculture sector is the third-largest consumer of power in India. In FY07, it accounted for 22% of

the total power consumption. Its share in total consumption was almost half in the early seventies.

The governments emphasis on rural electrification and subsidised tariff structure for the agriculture

sector has increased power consumption of this sector. Electricity is largely consumed by this sector

for irrigation purposes, and for operation of electrical pump sets.

Figure 7: Agricultural Composition Growth versus electricity sale (%)

The agriculture sectors electricity consumption grew at a CAGR of 9% to 99 bn kWh in FY07.

Agricultural subsidies and government initiatives for rural development, which included programmes

like free electricity to farmers, emphasis on irrigation through pump sets, contributed to the higher

power consumption.

3.4 Commercial Consumers

Figure 8: Commercial consumption growth vs Electricity sale


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the concerned region. Table 6 clearly shows that the industrial sector is the largest consumer

segment in all regions, barring the North-Eastern region, where the domestic sector is the largest

consumer.

Table 6: Region wise consumption for the financial year 2007

The industrial sectors share in overall power consumption is highest at 53% in the eastern region

followed by the Western region, where the industrial sector has a 44% share in total electricity

consumption. The industrial sectors power consumption is higher in the East and West because of

the presence of large industries (steel) in the eastern region and in Gujarat and Maharashtra(Western region).

In the Northern region, the domestic sector and the industrial sectors, each have a 29% share in

total electricity consumption. Within the region, the largely-populated Uttar Pradesh, drives the

domestic consumption whereas states like Delhi drive the commercial demand. Delhis commercial

consumption was the highest in the region at around 4.6 bn kWh.

The share of the agriculture sector is the highest in the Southern regions total consumption,

especially in Andhra Pradesh, and the main drivers of agriculture consumption are the subsidies and

free electricity to farmers.

Figure 9: Region-wise share of different customers

3.7 Demand and Supply Scenario

Power shortage continues to be a major cause for concern. The overall energy deficit was 11.0% in

FY09, while the peak-hour power deficit touched 12.0% during FY09. During FY07 to FY09, the

energy requirement increased from 693.1 BU to 774.3 BU while the energy availability increased

from 624.7 BU to 689.0 BU. As a result, energy deficit increased from 68.3 BU kWh to 85.3 BU during


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the period under review. The deficit is largely due to T&D losses, poor transmission, and distribution

infrastructure, unaccountability in metering and billing, cross subsidies, etc. The peak demand for

electricity increased from 100.7 GW in FY07 to 109.8 GW in FY09 while the peak demand met

increased from 87.1 GW in FY07 to 96.7 GW in FY09. The peak shortage was mainly due to

unavailability of plants and load shedding during peak hours.

3.8 Region-wise Power Demand and Supply Position

3.8.1 Northern Region

Figure 10: Northern Region: Energy and Peak Deficit (FY09)

The Northern region has an energy deficit of around 24.3 BU and a peak deficit of around 3.5 GW.

The situation varies throughout the year and the worst situation is seen in the summer. UttarPradesh is the largest deficit state in the Northern region, and a large part of this deficit can be

attributed to the lack of political will and the demographic profile of the consumers. Uttar Pradesh

has the highest AT&C losses among all states of the Northern region, which explains the financial

sickness of the state electricity boards. A similar situation exists in Punjab and many other states of

the region but the intensity in these states is a tad lower whereas in J&K the turmoil has made the

situation more critical. Delhi, Rajasthan, and Haryana have largely benefited from the reform process

of their respective state governments; as a result, these states losses have also come down, and the

power deficit has decreased over the years. The region has states like Himachal Pradesh and

Uttarakhand, which have enormous hydro potential, and can be tapped to meet the regions

demand for power.

3.8.2 Western region

The Western region faces the worst shortage in both percentage terms as well as in units. The state

with the highest demand in the region is Maharashtra, which houses the financial capital of the

country and is home to a large number of industrial units. The region also witnesses high demand

from the agricultural sector. The demographic mix of consumers in the state makes the financial

viability of the power sector difficult. Different problems plague other states like Gujarat and

Madhya Pradesh; Gujarat has a lack of generating capacity and Madhya Pradesh faces AT&C losses

as high as 50%. However, there is a potential for change, and therefore, investment in Madhya

Pradesh state, though availability of fuel remains a problem. Maharashtra is getting an UMPP at a

coastal location so that it has easy access to imported coal. Rural electrification in Madhya Pradesh


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and huge capacity expansion and addition plans in Gujarat also make it an attractive investment

opportunity.

Figure 11: Western Region: Energy and Peak Deficit (FY09)

3.8.3 Eastern region

Figure 12: Eastern Region: Energy and Peak Deficit

In the Eastern region, the growth of installed capacity has been around 1.5% in the past 5 years;

however, industrial development and consumer demand have been gradually increasing in the

region. The region imports power from Bhutan to meet its power requirement. There are many

projects proposed in the area, which are expected to increase the demand for power. The capacity

expansion plans by various industries in the sector as well as regular growth in demand translates

into a healthy potential for investment. However, there are concerns that need to be addressed at

first, the least of which are monetary in nature. Besides, the area has had problems in acquiring

environmental clearances for its ambitious capacity expansion plans as well.


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3.8.4 North-Eastern region

Figure 13: North-eastern Region: Energy and Peak Deficit

The North-Eastern region has huge potential in terms of fuel availability (coal for thermal and water

systems for hydro power), as well as potential demand, as the region has the lowest per capita

power consumption. The major reasons for this are the terrain and climatic conditions that are not

suitable for power projects. The region also has abundant supply of gas that is as good as fuel for

thermal power generation as is coal, and is cleaner too. In terms of potential, the region is very

attractive. It has proven reserves of fuel, it has potential for growth in demand from residential and

small users; however, the demand and potential need to be assessed by keeping the geographical

constraints in mind.

3.8.5 Southern region

Figure 14: Southern Region: Energy and Peak Deficit

In the past many reforms have been undertaken in this region, such as the implementation of SERCs

(State Electricity Regulatory Commissions) and the rationalisation of tariff structures, which have

made capacity addition an easier task. The results of these reforms are visible from the peak load

deficit (that has come down) as well as the requirement and availability in the region. However, the

demand in the Southern region has been increasing as both Karnataka and Andhra are adding huge

capacities. Tamil Nadu too has signed MOUs with the Indian government for various projects to


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increase the transmission and distribution capacities. The demand from both industrial units as well

as residential consumers is driving the capacity addition potential in this region. Moreover, the real

estate expansion plans in the region will not only require an increase in the generation capacity but

also in the capacity to provide continuous supply of power at a reasonable voltage, which makes the

opportunity to invest in the region more attractive.

3.9 Outlook

In the domestic sector, the overall slowdown could affect the incremental demand for power from

the urban domestic sector, as consumers are likely to postpone their consumer electronics

purchases. Demand from the rural sector is expected to rise following waiver of farm loans, modest

agricultural income in FY09, and access to electricity for more villages under the governments rural

electrification programmes. Growth in the industrial sector remained subdued in the first half of

FY10. As the Indian economy is expected to revive in the second half of FY10, industrial activity will

also see an improvement. The service sector, on the other hand, is expected to see healthy growth,

which will keep the demand for power robust. Railways, public services are expected to report

higher demand for power, while in the commercial sector, entertainment complexes and the

hospitality sector are likely to report marginal decline in demand for power.

3.10 Index of Industrial Production

Index of Industrial Production (IIP) in simplest terms is an index which details out the growth of

various sectors in an economy. E.g. Indian IIP will focus on sectors like mining, electricity,

Manufacturing & General. Also base year needs to be decided on the basis of which all the index

figures would be arrived at. Table 7 presents a study with the base year being 1993-94:

Table 7: IIP case study with base year 1993-94

Year Mining Manufacturing Electricity General Index1994-95 111.2 108.3 107.4 108.31995-96 116.8 114.4 109.9 1141996-97 125.4 124.5 121.5 124.21997-98 131.9 124.4 135.5 1261998-99 123.8 123 142.8 124.3

1999-2000 162.7 129.8 159.8 134.72000-01 185.8 135.1 164.4 140.72001-02 228.1 138.2 161.4 145.12002-03 278 145.9 171.6 155.12003-04 293.5 154.8 179 164.22004-05 312.9 163.2 193.7 173.82005-06 353.2 178 198.8 188.72006-07 705.8 196.4 218.6 223.62007-08 772.1 213.2 228.4 2422008-09 571.4 214.5 240.6 234.72009-10 613.9 226.9 273.5 250.72010-11 690.8 248.5 283.9 273.8

The index is computed using the weighted arithmetic mean of quantity relatives with weights being

allotted to various items in proportion to value added by manufacture in the base year by using

Laspeyre's formula:

=


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Where i is the index, Ri is the production relative of the ith item for the month in question and W i is

the weight allotted to it. From the above study, we can clearly see that the mining industry has

developed 6 fold times when compared to that to 1993-94.

4. POWER GENERATION AND ENERGY CONSUMPTION STATISTICS INANDHRA PRADESH

4.1 Andhra Pradesh Demographics

Andhra Pradesh is the 3rd largest state in means of area (275,045 km2) with the population of

84,655,533. Andhra Pradesh is composed of most of the eastern half of the Deccan plateau and the

plains to the east of the Eastern Ghats. The climate of Andhra Pradesh varies considerably,

depending on the geographical region. Monsoons play a major role in determining the climate of the

state. Summers last from March to June. In the coastal plain, the summer temperatures are

generally higher than the rest of the state, with temperature ranging between 20 0C and 410C. Since

the state has a long coastal belt the winters are not very cold. The range of winter temperature is

generally 120C to 30

0C.

Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd., (NEDCAP) formerly

known as Agro Pumpsets& Implements Ltd., (APIL) is the Nodal Agency implementing non-

conventional energy programmes sponsored by both the State and Central Governments. The

corporation was incorporated on 21.10.1969 and was renamed as NEDCAP on 10-5-1986.Detailed

resource studies have been undertaken in the state by NEDCAP to assess the overall potential for

development of NCES based power projects. The State Government has announced policy based on

the guidelines of MNES with package of incentives for encouraging private investment in the NCESpower sector. The power tariff applicable for NCES power projects is Rs.2.25 per KWH with base year

94-95 with annual escalation of 5% for a period of 10 years. The tariff applicable for the year 2003-

04 is Rs.3.48 per KWH. The new tariff will be announced to be effective from 1st April, 2004 by the

APERC.

4.2 Monthly Electricity Generation statistics from Thermal Power Stations

Figure 15: Location of Thermal power plants in AP


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Andhra Pradesh has been vastly dependent on coal reserves to generate electricity through Thermal

power plants. The statistics for 2010-2011 of the same are presented in table 8 given here.

The monthly generation in 2011-2012 are as follows in table 9:

Station Unit Capacity Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Gen (MU) PLF (%)

(MW)Dr.NTTPS Unit 1 210 138.96 138.04 125.33 44.04 142.56 122.46 144.46 138.65 146.05 143.07 128.28 147.08 1558.98 84.7

Vijayawada Unit 2 210 147.24 143.57 138.46 129.69 63.4 128.46 149.9 133.24 144.04 152.22 140.57 153.4 1 624.19 88.3

Unit 3 210 147.54 153.18 1 47.32 150.54 146.29 136.37 151.38 140.19 146.79 146.74 140.77 153.42 1760.53 95.7

Unit 4 210 148.93 138.41 146.45 149.75 151.46 133.24 151.44 59.43 141.57 92.33 119.15 157.16 1589.32 86.4

Unit 5 210 151.91 152.76 142.69 142.85 145.55 64.14 153.27 140.07 149.14 156.72 143.55 159.18 1701.83 92.5

Unit 6 210 132.48 134.56 155.66 422.7 23

Unit 7 500 306.91 362.82 3 22.54 309.71 324.86 214.11 150.84 323.04 354.27 372.74 336.56 372.19 3750.59 85.6

Station 1760 1041.49 1088.78 1022.79 926.58 974.12 798.78 901.29 934.62 1081.86 1196.3 1143.44 1298.09 12408.14 80.5

Rayalaseema Unit 1 210 148.24 136.77 135.67 124.14 132.74 125.97 144.06 121.41 70.74 148.51 138.13 152.5 1578.88 85.8

Unit 2 210 147.06 141.23 136.88 121.97 95.62 31.42 109.38 135.53 147.73 137.74 150.59 1355.15 73.7

Unit 3 210 145.97 145.09 134.23 134.52 53.42 121.64 152.88 119.56 83.78 148.53 139.27 154.58 1533.47 83.4

Unit 4 210 149.34 137.88 142.98 134.59 129.25 126.45 135.13 62.4 131.29 140.54 137.8 155.5 1583.14 86.1

Unit 5 210 0.13 2.44 13.81 106.77 81.54 204.68 64.4

Station 1050 590.61 560.97 549.76 515.215 411.03 374.06 463.5 412.88 423.77 599.11 659.72 694.71 6255.32 81.6

Kothagudem Unit 1 60 39.49 40.99 34.04 38.41 39.3 36.82 39.81 37.18 40.85 42.5 37.75 39.1 466.23 88.7

ABC Unit 2 60 36.3 36.96 32.94 14.04 39.04 35.52 38.22 36.82 39.15 41.67 37.61 4.94 393.21 74.8Unit 3 60 37.41 39.6 35.76 37.04 37.8 17.79 40.33 36.88 39.82 39.69 35.72 40.54 438.38 83.4

Unit 4 60 38.26 37.01 36.38 32.22 21.24 37.55 39.63 35.36 35.05 40.95 36.78 38.91 429.35 81.7

Unit 5 120 67.98 72.46 69.02 17.09 76.45 76.65 79.46 74.32 77.53 82.38 74.27 80.63 848.25 80.7

Unit 6 120 74.35 72.47 67.34 71.63 72.12 69.18 35.69 67.9 75.4 81.45 68.58 78.11 834.21 79.4

Unit 7 120 74.71 73.67 67.12 72.13 71.93 27.85 81.61 75.63 79.46 81.6 70.9 71.47 848.08 80.7

Unit 8 120 72.25 71.61 63.97 65.91 28.15 68.32 75.96 68.56 75.05 73.21 66.97 69.46 799.39 76

Station 720 440.75 444.78 406.56 348.47 386.03 369.67 430.72 432.65 462.3 483.45 428.58 423.15 5057.09 80.2

Kothagudem V Unit 9 250 168.42 182.84 168.03 177.07 165.24 176.84 168.44 168.72 170.58 184.12 168.66 180.5 2079.46 95

Unit 10 250 174.31 176.6 31.8 116.76 154.96 153.48 178.96 167.84 183.8 1338.51 61.1

Station 500 342.73 359.44 199.83 1 77.07 165.24 176.84 285.2 323.68 324.06 363.08 336.5 364.3 3417.97 78

Kakatiya I 500 30.23 24.34 100.32 73.87 121.95 156.61 233.92 2 64.21 289.96 265.44 277.65 1838.51 65.1

Ramagundam B 62.5 22.61 26.03 41.8 40.74 43.58 40.42 44.78 40.97 40.16 45.82 39.72 43.28 469.91 85.8

APGENCO 4592.5 2438.19 2510.22 2245.08 2108.39 2053.87 1881.72 2282.09 2378.72 2596.36 2977.72 2873.4 3101.19 29447 79.46

Thermal

Unit Capacity Apr May Jun Jul Aug Sep Gen (MU) PLF (%)

Thermal (MW)

Dr.NTTPS Unit 1 210 141.8 145.59 142.55 89.19 128.84 132.18 780.15 84.6

Vijayawada Unit 2 210 141.49 146.84 139.95 143.1 90.02 112.9 774.3 84

Unit 3 210 150.89 142.88 80.17 139.86 154.01 139.38 807.18 87.5

Unit 4 210 150.57 150.31 143.01 150.72 73.7 146.31 814.62 88.3

Unit 5 210 151.15 152.19 148.86 153.85 149.5 9.47 765.02 82.9

Unit 6 210 143.12 149.66 150.65 153.86 132.91 126.82 857.02 92.9

Unit 7 500 359.7 360.78 354.5 360.92 340.13 307.2 2083.23 94.9

Station 1760 1238.72 1248.25 1159.69 1191.5 1069.11 974.26 6881.52 89

Rayalaseema Unit 1 210 142.22 138.93 142.65 145.35 137.67 87.08 793.9 86.1

Unit 2 210 142.49 138.64 143.1 138.66 68.85 131.36 763.1 82.7

Unit 3 210 145.3 144.38 71.18 151.2 141.41 135.92 789.39 85.6

Unit 4 210 145.01 143.45 145.4 152.54 142.04 61.79 790.23 85.7

Unit 5 210 108.85 126.93 128.98 143.31 89.03 100.58 697.67 75.6

Station 1050 683.86 692.34 631.31 731.053 579 516.73 3834.29 83.1

Kothagudem Unit 1 60 38.94 38.77 37.89 33.6 24.79 34.88 208.87 79.3

ABC Unit 2 60 39.94 37.83 38.62 37.75 37.35 33.19 224.66 85.3

Unit 3 60 37.28 37.73 35.13 37.62 36.2 17.55 201.5 76.5

Unit 4 60 35.85 36.38 35.87 34.95 33.31 13.16 189.52 71.9

Unit 5 120 72.71 76.18 74.61 71.8 46.73 49.6 391.62 74.3

Unit 6 120 72.54 75.4 71.26 76.04 72.08 64.41 431.74 81.9

Unit 7 120 77.15 79.22 72.8 73.69 70.07 5.72 378.64 71.8

Unit 8 120 59.16 65.22 63.48 29.96 63.36 62.47 343.64 65.2

Station 720 433.56 446.73 429.64 395.4 383.89 280.97 2370.2 75

Kothagudem Unit 9 250 166.66 170.86 119.28 56.5 155.28 668.58 60.9

V & VI Unit 10 250 176.2 172.08 175.74 182.62 174.76 142.92 1024.32 93.3

Unit 11 500 1.1 41.16 132.78 117.33 112.75 405.12 --

Station 1000 342.86 344.04 336.18 315.4 348.59 410.95 2098.02 77.1

Kakatiya I 500 289.53 275.03 296.71 105.44 206.88 238.21 1411.81 64.3

Ramagundam B 62.5 37.79 39.97 43.72 41.73 30.22 11.71 205.14 74.7

APGENCO Thermal 5092.5 3026.33 3046.37 2 897.25 2780.52 2617.68 2432.83 16800.98 81.3

Table 8: Energy generated through Thermal power plants in 2010-2011

Table 9: Monthly generation in 2011-2012


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4.3 Monthly Electricity Generation statistics from Hydel Power stations

Andhra Pradesh has also been generating electricity from hydro electric power stations, mainly due

to the presence of the Krishna and Tungabhadra rivers. Table 10 gives the statistics for 2010-2011.

The statistics for 2011-2012 are as follows in table 11:

Table 11: Generation of Electricity in 2011-2012

4.4 Pattern of Electricity consumption in Andhra Pradesh over the years

Consumption of electric energy is measured by Wh (Watt x Hour):1 Wh = 3600 joule = 859.8

calorie. One 100 watt light bulbs consume 876,000 Wh (876 kWh) of energy in one year. Table 12

gives the statistics on the consumption patterns of electricity in Andhra Pradesh over the last few

years. Figure 16 shows the same in a chart.

Capacity Apr May Jun Jul Aug Sep Gen (MU) PLF (%)

84 21.25 20.69 12.33 17.98 19.44 17.79 109.48

57.6 10.33 1.96 -0.61 6.21 25.88 25.63 69.4

240 55.79 41.46 36.28 42.58 30.61 18.11 224.84

25 14.36 11.87 10.28 15.49 11.48 12.23 75.71460 107.57 88.43 83.09 117.64 93.46 97.89 588.09

234 2.15 23.75 98.34 58.6 182.83

770 67.31 17.59 24.51 35.47 304.31 355.11 804.3

900 83.65 13.93 38.73 30.69 313.07 442.35 922.42

815.6 4.43 0.01 2.65 125.58 153.96 384.44 671.07

90 20.13 0.81 22.94 48.6 92.48

60 6.38 2.7 6.9 25.35 41.32

36 5.42 13.32 17.12 35.86

10 2.2 1.51 5.35 9.06

20 0.53 2.18 0.83 3.54

15 1.59 0.45 0.42 0.78 5 8.25

12.2 0.99 0.09 0.38 1.67 1.95 5.09

3829.4 401.4 196.39 209.51 420.23 1099.83 1516.37 3843.73

Unit

Machkund (AP Utilisation)

Tungabhadra (AP Utilisation)

Upper Sileru

DonkarayiLower Sileru

Priyadarshini Jurala

Srisailam Right

Srisailam Left

Nagarjunasagar

NS Right Canal

NS Left Canal

Pochampad

Nizamsagar

Penna Ahobilam

Singur

Mini Hydro

APGENCO Hydro

Capacity Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Gen (MU) PLF (%)

(MW)

84 23.97 25.49 23.66 24.11 24.66 27.46 29.37 23.76 23.53 24.47 16.77 24.41 291.68

57.6 4.46 -0.7 -0.81 0.02 17.05 22.26 22.53 20.72 14.78 21.67 18.35 15.99 156.3

240 23.9 47.44 25.66 33.29 16.16 32.45 30.14 11.82 36.52 45.6 45.56 70.9 419.45

25 6.36 6.5 4.78 7.11 12.15 9.98 11.13 7.79 10.71 13.74 13.1 16.48 119.82

460 80.98 72.49 49.27 69.5 108.16 99.36 91.44 64.67 85.68 106.63 110.85 125.87 1064.89

195 2.69 26.44 27.95 41.23 16.22 6.12 2.65 2.22 125.52

770 82.23 23.46 7.42 1.42 367.89 447.6 316.8 208.74 77.32 55.06 55.46 189.43 1832.82

900 33.34 26.12 7.25 1.16 382.37 517.26 364.58 190.98 69.51 81.07 93.39 227.4 1994.44

815.6 34.96 0.49 3.56 80.17 564.79 305.11 159.33 7.19 73.42 26.55 42.99 1298.56

90 9.84 44.83 47.85 45.27 34.91 40.08 30.26 29.41 282.44

60 3.68 26.45 29.88 26.74 14.19 20.65 10.39 5.16 137.12

36 7.58 17 11.18 3.99 5.62 13.33 11.14 12.57 82.4110 0.06 0.75 4.75 2.87 2.22 3.3 2.91 3.75 20.61

20 0.11 0.08 0.61 1.82 1.09 0.66 4.36

15 0.45 2.46 10.31 7.22 2.23 0.38 0.88 1.7 25.62

12.2 0.7 0.08 0.1 0.32 1.08 1.45 0.81 0.76 1.04 2.59 2.53 2.05 13.53

3790.4 290.9 201.5 117.9 140.5 1037.29 1854.19 1299.95 808.67 399.44 508.1 440.77 770.33 7869.55

Mini Hydro

APGENCO Hydro

Station

Machkund (AP Utilisation)

ungabhadra (AP Utilisation)

Upper Sileru

Donkarayi

Lower Sileru

Priyadarshini Jurala

Srisailam Right

Srisailam Left

Nagarjunasagar

NS Right Canal

NS Left Canal

PochampadNizamsagar

Penna Ahobilam

Singur

Table 10: Monthly electricity generation from Hydro Electric power stations in 2010-2011


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Table 12: Electricity Consumption Patterns in AP

Figure 16: Statistical figure of electrical energy consumption

Year Domestic Commerc Agricultu Industry Railway Others

1960-61 10.8 5.16 9.08 72.76 - 2.2

1961-62 11.41 4.77 9.47 72 - 2.35

1962-63 12.58 5.33 11.28 68.3 - 2.51

1963-64 8.04 8.81 13.12 68.78 - 1.25

1964-65 8.15 8.67 12.84 68.2 - 2.14

1965-66 8.15 8.22 16.05 65.6 - 1.981966-67 7.93 7.74 16.4 65.6 - 2.33

1967-68 7.95 7.22 17.69 65.42 - 1.72

1968-69 7.68 6.55 19.55 64.57 - 1.65

1969-70 7.37 5.95 16.76 68.24 - 1.68

1970-71 8.17 5.83 18.44 65.44 - 2.12

1980-81 10.7 4.23 18.44 63.07 0.98 2.59

1984-85 11.34 3.47 26.44 54.89 1.97 1.9

1985-86 11.59 3.3 25.28 54.78 2.03 3.03

1986-87 11.92 3.19 28.79 50.89 2.29 2.92

1987-88 13.13 3.38 34.43 43.25 2.01 3.8

1988-89 13.43 3.18 34.45 43.28 2.1 3.56

1989-90 13.36 3.09 36.83 41.08 2.22 3.42

1990-91 12.79 3.16 38.62 39.03 2.18 4.22

1991-92 14.05 3.18 40.37 38.95 2.17 1.28

1992-93 14.69 3.17 41.28 34.83 2.4 3.63

1993-94 15.04 3.18 42.8 32.41 2.59 3.98

1994-95 14.01 2.93 47.81 29.17 2.59 3.49

1995-96 14 3.01 48.85 27.55 2.7 3.89

1996-97 18.17 3.8 37.57 32.42 3.28 4.76

1997-98 19.1 3.9 39.46 26.41 3.58 7.55

1998-99 20.34 4.17 39.59 26.46 3.39 6.05

1999-2K 20.93 4.35 40.79 23.54 3.4 6.99

2000-01 21.71 4.54 40.78 22.84 3.39 6.74

2001-02 22.89 4.78 41.53 20.94 3.28 6.57

2002-03 22.06 4.85 39.42 21.39 3.38 8.43

2003-04 21.12 4.87 37.07 25.9 3.32 7.72

2004-05 20.7 4.87 36.18 27.86 3.12 7.27

0

10

20

30

40

50

60

70

80

90

100

1960-61

1961-62

1962-63

1963-64

1964-65

1965-66

1966-67

1967-68

1968-69

1969-70

1970-71

1980-81

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-2K

2000-01

2001-02

2002-03

2003-04

2004-05

Others

Railway Traction

Industry

Agricultural

Commercial

Domestic


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4.5 Statistics on the Demand of Power in Andhra Pradesh

Table 13 shows the pattern in increase of demand in power supply in Andhra Pradesh. Figure 17

shows the same in a chart.

Table 13: Change in demand pattern in AP

Year PowerDemand

MW1961 190

1962 190

1963 190

1964 204

1965 245

1966 258

1967 290

1968 356

1969 441

1970 524

1971 5621972 639

1973 608

1974 652

1975 706

1976 822

1977 871

1978 978

1979 1060

1980 1055

1981 1281

1982 1570

1983 1733

1984 1743

1985 2158

1986 2404

1987 2665

1988 2752

1989 3026

1990 3070

1991 3465

1992 3703

1993 3915

1994 4170

1995 4434

1996 45761997 5022

1998 5742

1999 6480

2000 6684

2001 7143

2002 7029

2003 6895

2004 7441

2005 7613

0

1000

2000

3000

4000

5000

6000

7000

8000

19611963196519671969197119731975197719791981198319851987198919911993199519971999200120032005

Figure 17: Statistical Representation of increase in Demand


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4.6 Electrification and Consumption in Andhra Pradesh

AP Trans Co has been doing significant amount of work in electrifying the urban and rural areas. The

table 14 gives statistics on the electrification carried out. Figure 18 gives the number of consumers

over the last few years.

Table 14: Electrification carried out by APTRANSCO

Figure 18: Electricity consumers of APTRANSCO in AP

4.7 Solar Energy Production and Consumption patterns in Andhra Pradesh

NEDCAPs main objectives are to generate electricity through renewable sources like wind and solar

on decentralized manner, to conserve energy in rural areas, to import and adopt viable technology

and machinery in the areas of non-conventional energy sources and ensures post installation

services and to impart training and to promote research and development in the field of non-

conventional energy sources.

1 2ndPlan 2680 685 - 17968

2 3rd

Plan 4353 1314 - 57225

3 4thPlan 10485 4890 8146 261989

4 5thPlan 14851 6000 10318 318357

5 6thPlan 23078 9956 22477 636003

6 7thPlan 27610 15904 29899 1111569

7 8th

Plan 26829 21036 39074 1821239

8 9thPlan 26829 27849 41466 2088759

10th

Plan

2002-03 26829 30302 42739 2257969

2003-04 26829 30560 46616 2309505

10 2004-05 26829 31253 49298 2374365

Sl. No Plan Period Towns &

Villages

Electrified

Hamlets

Electrified

Dalitwadas

Electrified

Agricultural

Pumpsets

Energised

9

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

1961 1966 1968 1974 1978 1980 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

Electricity Consumers in AP

Consumers


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Solar Policy - Andhra Pradesh solar policy is expected to take shape within the next few months. The

new policy will concentrate on both solar photovoltaic and solar thermal energy. Rooftop PV & small

solar power generation programme (RPSSGP) - Under the Rooftop PV & small solar power

generation programme, the project developer will be paid tariff as fixed by the A.P Electricity

Regulatory Commission (APERC) and a Generation Based Incentive (GBI). The GBI shall be equal to

the difference between the tariff determined by Central Electricity Regulatory Commission and the

tariff decided by the APERC. As per the proposed arrangement under the scheme, the GBI portion

will be reimbursed to the DISCOMs by Indian Renewable Energy Development Agency (IREDA). The

tariff will be paid for a period of 25 years.

The APERC has issued tariff orders for Rooftop and Small Solar Power Plants on 06.07.2010. The

tariff applicable for SPV power projects is Rs. 17.91 per KWh and the tariff is applicable for a period

of 25 years.

Figure 19: Solar Irradiation in Andhra Pradesh

Solar irradiation data for Andhra Pradesh cities month wise is given in table 15:

Table 15: Solar irradiation data for Andhra Pradesh cities

City Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec AvgAnantapur 5.22 6.05 6.5 6.44 6.07 5.02 4.57 4.62 4.93 4.6 4.56 4.71 5.27Gajuwaka 4.85 5.64 6.3 6.57 6.03 4.62 4.18 4.11 4.32 4.6 4.45 4.55 5.01Guntur 4.66 5.49 6.2 6.42 5.92 4.78 4.07 4.19 4.47 4.3 4.49 4.44 4.95

Hyderabad 5.02 5.77 6.3 6.4 6.14 4.81 4.24 4.1 4.46 4.7 4.81 4.7 5.12Kakinada 4.91 5.69 6.4 6.6 6.04 4.62 4.23 4.26 4.38 4.5 4.42 4.53 5.04Karimnagar 4.83 5.62 6.3 6.53 6.23 4.77 4.08 3.89 4.53 4.9 4.86 4.68 5.1Kukatpally 5.02 5.77 6.3 6.4 6.14 4.81 4.24 4.1 4.46 4.7 4.81 4.7 5.12LalBahadur 5.02 5.77 6.3 6.4 6.14 4.81 4.24 4.1 4.46 4.7 4.81 4.7 5.12

Nellore 4.78 5.71 6.5 6.61 6.11 5.11 4.74 4.81 4.97 4.3 4.07 4.19 5.15Nizamabad 4.94 5.73 6.3 6.54 6.39 4.81 4.17 3.97 4.6 5 4.87 4.68 5.16Quthbullapur 5.02 5.77 6.3 6.4 6.14 4.81 4.24 4.1 4.46 4.7 4.81 4.7 5.12Rajahmundry 4.77 5.53 6.1 6.41 5.97 4.5 3.79 3.7 4.23 4.5 4.68 4.57 4.89Warangal 4.83 5.62 6.3 6.53 6.23 4.77 4.08 3.89 4.53 4.9 4.86 4.68 5.1

Visakhapatnam 4.85 5.64 6.3 6.57 6.03 4.62 4.18 4.11 4.32 4.6 4.45 4.55 5.01Vijayawada 4.66 5.49 6.2 6.42 5.92 4.78 4.07 4.19 4.47 4.3 4.49 4.44 4.95Tirupati 4.9 5.79 6.3 6.35 5.82 4.99 4.49 4.64 4.82 4.3 4.02 4.2 4.69

Andhra Pradesh is one of the few states blessed with more number of sunny days. The estimated

potential is 5-7 KWh/m2 per day which remains un-tapped for various applications like heating,

lighting, power generation etc. Under solar energy programmes the following are beingimplemented:


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Solar Thermal Systems1. Solar Water Heating Systems2. Solar Cookers3. Solar Dryers

Solar Photovoltaic Systems1. SPV Lighting Systems viz. portable lanterns, home-lighting and street lightingsystems2. SPV pump-sets3. Mini Power Plants for village Electrification4. SPV Grid interactive Power Plants

With over 100 countries contributing to the promotion of solar energy, Andhra Pradesh is poised to

emerge as a solar capital. Though the companies in the sector are still researching on bringing down

the cost to step up the deployment of solar photo voltaic systems for power generation, the current

adoption supported by the center's policy measures is said to be providing the required impetus to

the growth. The state government initially started its efforts to attract several global players for

setting up their operations to manufacture semiconductor chips. A mega project called Fab City too

was readied on the outskirts of Hyderabad. However, owing to a variety of market reasons, the

semiconductor fabs took more time than expected to set up their units at Fab City. This gestation

was used positively by the government and entrepreneurs to set up solar PV units at the Fab City.

Solar energy projects in Andhra Pradesh:

With over 35 medium and large solar companies, Hyderabad is now emerging as a hub for several

global solar technology majors. The Ministry had sanctioned a project to Non-conventional Energy

Development Corporation of Andhra Pradesh Ltd., Hyderabad for installation of 50 solar dryers to

individual users in rural areas with a view to promote the technology and show its potential in

income generation and leading to development of entrepreneurship. The dryers were developed by

Society for Energy, Environment and Development (SEED), Hyderabad.

For now, several companies including Lanco, Solar Semiconductor, Sujana Energy and Surana

Ventures in addition to public sector majors like BHEL have kicked off their operations based on the

centre's national solar energy mission. While the solar PV companies in the state are already

witnessing a strong order pipeline from the companies that have bagged orders for setting up of

solar plants in various parts of the country, the companies are also making efforts to innovate to

take solar energy off the grid.

According to industry players, the off grid application of solar energy has already begun though in a

small way. The usage of solar PV modules to power traffic lights or recharge lanterns in rural areas

has already started showing the benefits to the masses. With the state governments getting a go-

ahead from the centre for setting up of 20 MW units in the states to begin with, several states have

sought bids from the solar companies for the setting up and operation of the projects.

The cost of the solar energy units is still considered to be a major roadblock for expanding the solar

footprint. In addition to the direct cost of the technology and modules, the companies also face

hurdles in the form of availability of land for setting up of solar energy units. Typically, a megawatt

of solar power costs about Rs 14 crore in capital as against about Rs 6-7 crore in thermal powerunits. Similarly, the solar units also need at least an acre for setting up of solar unit to generate one


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megawatt. The upfront cost of a solar unit is also making the power generated from these units

expensive for the utilities as compared to the power generated in units using other forms of fuel

including coal and gas. But, sources in the industry say that the costs would come down as the

volumes in the sector pick up pace.

Interestingly, the veterans in the solar energy sector see a major leapfrogging effect coming in theform of roof-top solar units. With abundant sunlight availability in the country, setting up of solar PV

modules on the rooftops of houses is expected to generate power required for most parts of the

country. However, with some regulatory issues still to be ironed out and the issues related to making

the power generated through these modules suitable for the grid being worked out, the rooftop

power generation using solar units would take few more years.

For now, the government is sorting out the issues related to commercial scale solar PV units. With a

target to achieve 20 GW solar power by 2022 and achieve grid parity by 2030, the state government

finds great promise in its Mission Solar.

Tata BP Solar commissioned its first plant in Andhra Pradesh under the National Solar Mission. The

project is owned and developed by Ramakrishna Industries at Shadnagar in Andhra. The project uses

4,400 crystalline silicon modules of 230 watts. The solar plant will generate 1.54 million units first

year. Ramakrishna Industries has signed a PPA with the Andhra Electricity Board for 25 years to

supply this power to them.

Solar PV initiatives by Andhra Pradesh Government:

Andhra Pradesh government is encouraging solar power projects by approving the recommended

tariff of the Central Electricity Regulatory Commission (CERC), government of India. It has also

recommended for 0.25 percent solar energy power purchase obligation. Besides, the Andhra

Pradesh Electricity Regulatory Commission (APERC) has also issued a tariff order.

At the inaugural Solarcon India 2009, the AP government unveiled the logo of the upcoming

SolarCity at Anantapur, and also awarded allotment letters to four companies in FabCity -

SunborneInc, Lanco Solar, AES Solar, and Titan Energy.

The AP government is aggressively encouraging the setting up of manufacturing plants at Fabcity in

Hyderabad. 21 units are coming up at FabCity - at an investment of Rs, 20,000 crores. Once up and

running, these projects will have the capacity to provide employment to 25,000 people.

AP state government has selected 22 companies under the rooftop and other small solar power

projects schemes in the state for total capacity of 20 megawatts.

Kadiri area in Anantapur district is known as solar city of Andhra Pradesh. Ten companies will be

investing nearly Rs. 10,000 crore to produce more than 50 mega watts of solar power. The solar

power projects will be held in 2,000 acres. SunborneInc, Lanco solar, AES solar and Titan Energy have

signed MoU with the State government for setting up units in Kadiri. Andhra Pradesh Industrial

Infrastructure Corporation has allotted 2,000 acres of land in Kadiri for setting up solar units.


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Titan Energy Systems has formed a special purpose vehicle in collaboration with Enfinity of Belgium

for setting up 1,000 MW of photovoltaic installations on 3,000 acres of land in the district over a

period of five years. The APIIC has allocated the land to the firm on a long lease.

Statistics of the area of solar panels in use till Dec 2009 are given in table 16.

Table 16: Area of solar panels in use in 2008

Estimated area (in million m2) of solar panels to be put into use over the next few years is given in

table 17.

Table 17: Estimated Area to be put into use

The demand projections (in million m2) in optimistic and pessimistic conditions are mentioned in

table 18.

Table 18: Optimistic and Pessimistic demand projections for 2013, 2017 and 2022

4.8 Energy production through Bio-Mass

The power is generated through these projects by using agricultural and forestry residues like rice

husk, cotton stalks, chilli stalks, groundnut shells, saw-dust, woody biomass from energy plantations

etc. It is estimated that there is a potential of 627 MW and out of which 170.75 MW have been

commissioned by 33 developers. These projects have created employment in the rural areas and

also generated income to the farmers by sale of agricultural wastes.


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As part of the rural energy programmes in Andhra Pradesh, bio-gas plants would be supplied

extending subsidy to all sections. As against Rs.6,400 total cost of the biogas plant, a subsidy of Rs.

2,800 would be extended to the SC's and ST's and Rs.2,300 to other sections. The National Bio-gas

Manure Management Programme (NBMMP) was aimed at providing cooking energy to the rural

population by providing incentives in the form of subsidies and to reduce dependence on fossil fuels

like coal, oil and thereby reduce the deforestation and develop greenery. So far 2.54 lakh biogas

plants were installed all over the State. Even for deployment of solar water heaters in domestic and

commercial sectors, incentives were being extended through the Indian Renewable Energy

Development Agency (IREDA) and Banks in form of soft loans. The NEDCAP could construct 1530

biogas plants in last financial year ending March last. Some 1746 plants were constructed in 2004-

2005, 1233 in 2005-2006 and 2790 in 2006-2007.

VSPCA Andhra Pradesh

This bio-gas plant holds 85-cubic meters. A minimum of 200 cows giving fresh cow dung is needed

to run it. The dung is put into a tank, mixed with water and pushed inside the plant, which has two

major chambers. We do in this every evening so that by the next morning the gas is formed, ready

to be used for the day accordingly. For cooking, we can use it directly, but to run or convert to

electricity from the gas, we need to pass through a generator. Presently, 10% diesel and 90% bio-

gas can be used. The finished bio-gas product can supply electricity or cooking gas to 50 average

families or 500 individual members.

National Project on Biogas Development

Based on the studies conducted and on the success of the plants already installed in Andhra

Pradesh, there is huge demand/potential for the establishment of Biogas Plants in Andhra Pradesh.The estimated potential of family size biogas plants is 10.90 lakhs. So far 2.84 lakh family-size biogas

plants have been installed in the state.

Bagasse-based Cogeneration

These projects are mainly established in the sugar mills of private, public and co-operative sector.

The developers have established these projects by utilizing the available infrastructure and

machinery so that the power can be utilized for the sugar industry and excess power can be

exported to the state grid. This has created employment, improved the financial position of the

sugar mills besides exporting of power. It is estimated that there is a potential of 350 MW out of

which 130.50 MW projects have been commissioned by 13 sugar mills.

Municipal and industrial wastes

These projects utilize the municipal and industrial wastes which has problem for their disposal. The

cleanliness of urban and industrial areas is achieved by utilizing these wastes as raw material to

generate power. It is estimated that there is a potential of 40 MW from municipal solid waste of

Hyderabad, Vijayawada, Visakhapatnam, Guntur etc. Two projects aggregating to a capacity of 12.6

MW are under implementation at Hyderabad and Vijayawada. It is estimated that there is a

potential of 135 MW from industrial wastes including poultry, distilleries and others. Out of which,

1.50 MW projects have been commissioned.


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4.9 LPG, Kerosene and other petroleum products

Kerosene and LPG are the two principal clean household fuels in India that have substituted biomass

for cooking. Two other alternatives, natural gas and electricity, are not commonly used because of a

lack of general availability for household use, in the case of natural gas, and much higher cost, in the

case of electricity. Biomass-based clean fuels, such as biogas, have not yet been commercialized,

although there is significant interest in India in exploring the potential of non-hydrocarbon

alternatives.

Kerosene oil is also supplied through Public Distribution System and is intended for the poor.

However, there is large-scale diversion of this commodity and subsidised kerosene is used for

adulteration with diesel. The subsidy on kerosene is thus cornered by the non-poor. A study of four

states carried out by Indira Gandhi Institute for Development Research (IGIDR), Mumbai shows that

there is huge leakage of kerosene meant for PDS. It is irrational, therefore, to continue to subsidise

kerosene at such high rates and continue its distribution through the PDS. The subsidy on kerosene

might be phased out by raising its supply price under PDS while eliminating all domestic central and

state (e.g. sales tax) taxes on it so as to encourage private supply through petroleum retail outlets

and small dealers rather than FPS. Alternately, if kerosene is to be retained under PDS, the extent of

subsidy given will be reduced so that there is less incentive for diversion. Kerosene now costs Rs. 15

per litre under subsidies.

India is the fourth largest consumer of LPG in the world and the third largest consumer in the

domestic sector. India undertakes home delivery of 3 million LPG Cylinders per day i.e., up to 900

million a month. The demand of LPG in 2009-10 stands at 12746 TMT whereas the indigenous

production was only 10323 TMT. A domestic growth of 8-9% is expected every year due to

increasing population and due to increase in commercial and industrial consumption. Whileindustrial sector consumes 11% of the produced LPG, the transport sector consumes 9%.

LPG Penetration in Domestic Sector is given in table 19 and commercial and Industrial LPG Sales are

shown in figure 20:

Table 19: LPG Penetration in Domestic Sector

Urban Rural Total

Population in Million 326.2 838.8 1165

Households in millions 95 159 254

LPG Connections in million 83.8 31.2 115

Penetration of LPG 88% 19.6% 45%

Figure 20: Sales of LPG


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The commercial and Industrial segment has been growing at 27% CAGR for the last 5 years as many

of them are converting from traditional fuels to LPG as LPG is a cleaner fuel. Similarly sales of

AutoLPG have increased by 30% CAGR between 2005-06 and 2009-10. Nearly, half a million vehicles

are running on Auto GAS in India with a per vehicle consumption of 451kg per annum against the

world average of 1428kg per annum.

5. CARBON FOOT PRINTIt is defined as "the total set of greenhouse gas (GHG) emissions caused by an organization, event,

product or person." As it is impractical to calculate the greenhouse gas emissions due to enormous

statistics and cumbersome calculations involved, we normally define it to be "A measure of the total

amount of carbon dioxide (CO2) and methane (CH4) emissions of a defined population, system or

activity, considering all relevant sources, sinks and storage." This is done within the spatial and

temporal boundary of the population, system or activity of interest.

5.1 KYOTO Protocol

Carbon dioxide emissions into the

Documents

Domestic Energy on in Andhra Pradesh - Report 2