Report: Fossil Fuels Contribute 64.3% of India's Power Generation

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Researched by Industrial Info Resources (Sugar Land, Texas)--The June 2010 report released by India's Central Electricity Authority (CEA) (New Delhi) reveals that about 64.3% of India's total electricity generation capacity operates on coal, diesel or gas. Other sources, such as nuclear, hydropower and renewable energy, contribute 2.8%, 22.8% and 10.1%, respectively.

At the end of June 30, 2010, India's total installed power generating capacity was 162,366 megawatts (MW):

• Fossil fuels (coal, diesel, gas) - 104,424 MW
• Nuclear - 4,560 MW
• Hydropower - 16,428 MW
• Other renewables (small hydro, biomass, wind, energy from waste) - 36,953 MW

India's 11th Five-Year Plan (2007-12) set the target of adding 78,700 of generating capacity by 2012, consisting of 15,627 MW from hydropower, 3,380 MW from nuclear sources, and 59,693 MW from thermal (fossil) sources. For this fiscal, the break-up of targets and achievements is as follows:

In fiscal year 2010-2011, India aims to construct 21,441 MW of new capacity, but has so far, achieved only 2,065 MW (9%) of this target. As of June 30, 2010, the country had constructed the following in relation to its targets:

• Thermal (fossil) - target of 18,775.2 MW
• 1,975 MW (10.5%) constructed
• Nuclear - target of 1,200 MW
• none constructed to date this year
• Hydro - target of 1,466 MW
• 90.1 MW (6.1%) constructed

In June 2010, against a combined capacity addition target of 2749.7 MW, India installed only 1,015 MW. While there has been no record of contribution from renewable and nuclear energy sources, thermal and hydropower accounted for 975 MW and 40 MW, respectively.

The CEA has indicated that the targeted power generation capacity will be achieved with participation from state and private-sector power producers. Nuclear power will continue to be controlled exclusively by the federal government. The 11th Five-Year Plan aims for the following breakdown for fossil and hydroelectric power:

• Thermal (fossil) -
• Central government - 41.6%
• State governments - 39%
• Private projects - 19.4%
• Hydro -
• Central government - 55.4%
• State governments - 22.3%
• Private projects - 22.3%

The report states that as of June 30, 2010, the CEA had received six applications for hydropower projects and had carried forward 25 proposals from last year. During the 11th Five-Year Plan, the rural electrification scheme proposes to provide power to 15,216 villages. At the end of the plan period, the total number of villages with electricity is expected to be 498,080.

According the report titled "Powering India: Road to 2017," released by global consulting firm, McKinsey & Company (New York, New York), in 2007-17, if India records an annual economic growth of 8%, India's power demand is estimated to reach 335,000 MW by 2017. During this period, to meet the exponential growth in demand, investments in power generating capacity could entail investments of up to $600 billion.

According to projections released by the CEA and the Ministry of Power, during 2007-2017, about $4.3 billion is likely to be spent on the refurbishment and modernization of existing power plants. About $1.5 billion of the proposed investment will be spent during the 11th Five-Year Plan, and the remainder will be utilized in the 12th Five-Year Plan (2012-17). Power ministry officials said that the investment would be in addition to the proposed $214 billion and $235 billion for capacity additions targeted in the plans. As part of the Union Budget, the Indian government has increased power sector allocation to $1.2 billion from $501.3 million in 2009-10. India has also launched an ambitious solar energy program, which proposes to develop 20,000 MW of solar power by 2022.

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