Electricity sector in India
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India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
is the third largest producer of electricity in the world. During the
fiscal year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
(FY) 2019–20, the total electricity generation in the country was 1,598 TWh, of which 1,383.5 TWh generated by utilities. The gross electricity consumption per capita in FY2019 was 1,208 kWh. In FY2015,
electric energy consumption Electric energy consumption is the form of energy consumption that uses electrical energy. Electric energy consumption is the actual energy demand made on existing electricity supply for transportation, residential, industrial, commercial, and ot ...
in agriculture was recorded as being the highest (17.89%) worldwide. The per capita electricity consumption is low compared to most other countries despite India having a low electricity tariff. The national electric grid in India has an installed capacity of 409.1 GW as of 30 November 2022. Renewable power plants, which also include large hydroelectric power plants, constitute 40.7% of the total installed capacity. India has a surplus power generation capacity but lacks adequate fuel supply and power distribution infrastructure. The average
capacity factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of a given installation is def ...
of thermal power plants is below 60% against the norm of 85%. India's electricity sector is dominated by fossil fuels, in particular coal, which produced about three-quarters of the country's electricity. The government is making efforts to increase investment in
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
. The government's draft National Electricity Plan of 2022 states that the country does not need anymore
fossil fuel A fossil fuel is a hydrocarbon-containing material formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. The main fossil fuels are coal, oil, and natural gas. Fossil fuels ma ...
power plants in the utility sector until 2027 besides those currently under construction. It is expected that non-fossil fuel generation contribution is likely to be around 44.7% of the total gross electricity generation by 2029–30.


History

The first demonstration of
electric light An electric light, lamp, or light bulb is an electrical component that produces light. It is the most common form of artificial lighting. Lamps usually have a base made of ceramic, metal, glass, or plastic, which secures the lamp in the soc ...
in Calcutta (now
Kolkata Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, comme ...
) was conducted on 24 July 1879 by P.W. Fleury & Co. On 7 January 1897, Kilburn & Co secured the Calcutta electric lighting license as agents of the Indian Electric Co, which was registered in
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
on 15 January 1897. A month later, the company was renamed the Calcutta Electric Supply Corporation. The control of the company was transferred from London to Calcutta only in 1970. The introduction of electricity in Calcutta was a success, and power was next introduced in Bombay (now
Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the secon ...
). The first electric lighting demonstration in Mumbai was in 1882 at
Crawford Market Crawford Market (officially Mahatma Jyotiba Phule Mandai) is one of South Mumbai's most famous markets. The building was completed in 1869, and donated to the city by Cowasji Jehangir. Originally named after Arthur Crawford, the first Munici ...
and the
Bombay Electric Supply & Tramways Company The Brihanmumbai Electricity Supply and Transport Undertaking (BEST) is a civic transport and electricity provider public body based in Mumbai, Maharashtra, India. It was originally set up in 1873 as a tramway company called "Bombay Tramway ...
(BEST) set up a generating station in 1905 to provide electricity for the tramway. The first hydroelectric installation in India was installed near a tea estate at Sidrapong for the
Darjeeling Municipality Darjeeling Municipality is responsible for the civic administration of the town of Darjeeling Darjeeling (, , ) is a town and municipality in the northernmost region of the Indian state of West Bengal. Located in the Eastern Himalayas, ...
in 1897. The first electric
street light A street light, light pole, lamp pole, lamppost, street lamp, light standard, or lamp standard is a raised source of light on the edge of a road or path. Similar lights may be found on a railway platform. When urban electric power distribution ...
in
Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
was lit on 5 August 1905 in
Bangalore Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
. The first electric train in the country ran on the
Harbour Line The Harbour line is a branch line of the Mumbai Suburban Railway operated by Central Railway. It was named so because it catered to the eastern neighbourhoods along the city's natural harbour. Its termini are Chhatrapati Shivaji Maharaj Termin ...
between Bombay's Victoria Terminus and
Kurla Kurla (Pronunciation: uɾlaː is a neighbourhood of East Mumbai, India. It is the headquarters of the Kurla taluka of Mumbai Suburban district. The neighbourhood is named after the eponymous East Indian village that it grew out of. It falls ...
on 3 February 1925. The first high-voltage laboratory of India was established at the
Government Engineering College, Jabalpur Jabalpur Engineering College (JEC) is an institute located in Jabalpur, Madhya Pradesh, India. It is the oldest technical institution in central India and the 15th-oldest in India. It is the first institute of India to have started the Electron ...
in 1947. On 18 August 2015,
Cochin International Airport Cochin International Airport is an International airport serving the city of Kochi, in the state of Kerala, India. Located at Nedumbassery, about northeast of the city centre, Cochin International Airport is first of its kind which is develo ...
became the world's first fully
solar power Solar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Photovoltaic cells convert light into an electric current using the photovolta ...
ed airport with the inauguration of a dedicated
solar plant Solar may refer to: Astronomy * Of or relating to the Sun ** Solar telescope, a special purpose telescope used to observe the Sun ** A device that utilizes solar energy (e.g. "solar panels") ** Solar calendar, a calendar whose dates indicate t ...
. India began using grid management on a regional basis in the 1960s. Individual State grids were interconnected to form 5 regional grids covering mainland India, the Northern, Eastern, Western, North Eastern and Southern Grids. These regional links were established to enable transmission of surplus electricity between states in each region. In the 1990s, the Indian government began planning for a national grid. Regional grids were initially interconnected by asynchronous
high-voltage direct current A high-voltage direct current (HVDC) electric power transmission system (also called a power superhighway or an electrical superhighway) uses direct current (DC) for electric power transmission, in contrast with the more common alternating cur ...
(HVDC)
back-to-back Back to Back or back-to-back may refer to: Music Songs * "Back to Back" (Drake song), 2015 * "Back to Back" (Jeanne Pruett song), 1979 *"Back to Back", a song by Pretty Maids from the 1984 album ''Red Hot and Heavy'' *"Back to Back", a song by ...
links facilitating the limited exchange of regulated power. The links were subsequently upgraded to high capacity synchronous links. The first interconnection of regional grids was established in October 1991 when the North Eastern and Eastern grids were interconnected. The Western Grid was interconnected with these grids in March 2003. The Northern grid was also interconnected in August 2006, forming a Central Grid that was synchronously connected and operating at one frequency. The sole remaining regional grid, the Southern Grid, was synchronously interconnected to the Central Grid on 31 December 2013 with the commissioning of the 765 kV Raichur-Solapur transmission line, establishing the National Grid. By the end of the calendar year 2015, despite poor hydroelectricity generation, India had become a power surplus nation with huge power generation capacity idling for want of demand. The calendar year 2016 started with steep falls in the international price of energy commodities such as coal, diesel oil,
naphtha Naphtha ( or ) is a flammable liquid hydrocarbon mixture. Mixtures labelled ''naphtha'' have been produced from natural gas condensates, petroleum distillates, and the distillation of coal tar and peat. In different industries and regions ' ...
,
bunker fuel Fuel oil is any of various fractions obtained from the distillation of petroleum (crude oil). Such oils include distillates (the lighter fractions) and residues (the heavier fractions). Fuel oils include heavy fuel oil, marine fuel oil (MFO), ...
, and
liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the vol ...
(LNG), which are used in electricity generation in India. As a result of the global glut in petroleum products, these fuels became cheap enough to compete with pit head coal-based power generators. Coal prices have also fallen. Low demand for coal has led to coal stocks building up at power stations as well as coal mines. New installations of
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
in India surpassed installations of fossil fuel for the first time in 2016–17. On 29 March 2017, the Central Electricity Authority (CEA) stated that for the first time India has become a net exporter of electricity. India exported 5,798 GWh to neighboring countries, against a total import of 5,585 GWh. The
Government of India The Government of India ( ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...
launched a program called "Power for All" in 2016. The program was accomplished by December 2018 in providing the necessary infrastructure to ensure uninterrupted electricity supply to all households, industries, and commercial establishments. Funding was made through a collaboration between the Government of India and its constituent states.


Installed capacity

The total installed power generation capacity is the sum of utility capacity, captive power capacity, and other non-utilities.


Utility power

Nearly 32,285 MW coal and gas based thermal power projects are under construction as on 1 April 2021. The total installed utility power generation capacity as on 30 September 2022 by type is given below. Hydroelectric power plants with ≤ 25 MW generation capacity are included in Renewable category (classified as SHP – Small Hydro Project)


Captive power

The installed captive power generation capacity (above 1 MW capacity) associated with industry-owned plants is 70,000 MW as of 31 March 2021. In fiscal year 2020–21, captive power generation was 200,000 GWh. Diesel power generation sets of 75,000 MW capacity (excluding sets of size above 1 MW and below 100 kVA) are also installed in the country. In addition, there are a large number of diesel generators of capacity less than 100 kVA to cater to emergency power needs during
power outage A power outage (also called a powercut, a power out, a power failure, a power blackout, a power loss, or a blackout) is the loss of the electrical power network supply to an end user. There are many causes of power failures in an electricity ...
s in all sectors.


Installed capacity by state or territory

This is a list of states and territories of India by installed power generation capacity. Other Renewable Energy sources include SHP (Small Hydro Power – hydel plants ≤ 25 MW), Biomass Power, Urban & Industrial waste, Solar and Wind Energy


Demand


Demand trend

During the fiscal year 2019–20, the utility energy availability was 1,284.44 billion KWh, a shortfall relative to requirements by 6.5 billion KWh (−0.5%). Peak load met was 182,533 MW, 1,229 MW (−0.6%) below requirements. In the 2020 Load Generation Balance report, India's
Central Electricity Authority The Central Electricity Authority (CEA) was a body that managed and operated the electricity supply industry in England and Wales between 1 April 1955 and 31 December 1957. The CEA replaced the earlier British Electricity Authority (BEA) as a r ...
anticipated energy surplus and peak surplus to be 2.7% and 9.1%, respectively, for the 2020–21
fiscal year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
. Power would be made available to few states expected to face shortages from states with a surplus, through regional transmission links. From the calendar year 2015 onwards, power generation in India has been less of a problem than power distribution.


Demand drivers

Nearly 0.07% of Indian households (0.2 million) have no access to electricity. The
International Energy Agency The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the entire global energy sector, with a recent focus on curbing car ...
estimates India will add between 600 GW to 1,200 GW of additional new power generation capacity before 2050. This added new capacity is similar in scale to the 740 GW total power generation capacity of the European Union (EU-27) in 2005. The technologies and fuel sources India adopts as it adds this electricity generation capacity may have a significant impact on global resource usage and environmental issues. The demand for electricity for cooling (
HVAC Heating, ventilation, and air conditioning (HVAC) is the use of various technologies to control the temperature, humidity, and purity of the air in an enclosed space. Its goal is to provide thermal comfort and acceptable indoor air quality. ...
) is projected to grow rapidly. According to the analysis presented in the India Cooling Action Plan (ICAP) released by the Ministry of Environment, Forests and Climate Change, only 8 percent of Indian households own air-conditioning units. The cooling demand across India is projected to rise at a rate of 15-20 percent annually and aggregated cooling demand will grow to around eight times by 2037-38, as compared to the 2017-18 baseline. In India, 45 percent of the country’s peak electricity demand in 2050 is expected to come from space cooling alone. About 136 million Indians (11%) use traditional fuels –
firewood Firewood is any wooden material that is gathered and used for fuel. Generally, firewood is not highly processed and is in some sort of recognizable log or branch form, compared to other forms of wood fuel like pellets or chips. Firewood ca ...
, agricultural waste and
dry animal dung fuel Dry dung fuel (or dry manure fuel) is animal feces that has been dried in order to be used as a fuel source. It is used in many countries. Using dry manure as a fuel source is an example of reuse of excreta. A disadvantage of using this kind of f ...
– for cooking and general heating needs. These traditional fuels are burnt in cook stoves, sometimes known as ''chulah'' or ''chulha''.The Partnership for Clean Indoor Air – Sierra Club
Pciaonline.org. Retrieved on 13 January 2012.
Traditional fuel is an inefficient source of energy, and its burning releases high levels of smoke, PM10 particulate matter, , , PAHs, polyaromatics, formaldehyde, carbon monoxide and other
air pollutants Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different types ...
, affecting outdoor air quality, haze and smog, chronic health problems, damage to forests, ecosystems and global climate. The
World Health Organization The World Health Organization (WHO) is a specialized agency of the United Nations responsible for international public health. The WHO Constitution states its main objective as "the attainment by all peoples of the highest possible level o ...
estimates that 300,000 to 400,000 people in India die of
indoor air pollution Indoor air quality (IAQ) is the air quality within and around buildings and structures. IAQ is known to affect the health, comfort, and well-being of building occupants. Poor indoor air quality has been linked to sick building syndrome, reduce ...
and carbon monoxide poisoning every year because of biomass burning and use of chulahs. Burning traditional fuel in conventional cook stoves is estimated to release 5–15x more pollutants than industrial combustion of coal, and is unlikely to be replaced until electricity or clean-burning fuel and combustion technologies become reliably available and widely adopted in rural and urban India. The growth of the electricity sector in India may help find a sustainable alternative to traditional fuel burning. In addition to air pollution problems, a 2007 study finds that discharge of untreated sewage is the single most important cause for pollution of surface and groundwater in India. The majority of government-owned sewage treatment plants remain closed most of the time in part because of the lack of a reliable electricity supply to operate the plants. Uncollected waste accumulates in urban areas, causing unhygienic conditions, and release heavy metals and pollutants that leaches to surface and groundwater. A reliable supply of electricity is required to address India's water pollution and associated environmental issues. Other drivers for India's electricity sector are its rapidly growing economy, rising exports, improving infrastructure and increasing household incomes. Adding to it, the recent coal crisis has raised an alarm as over 60 per cent of the electricity produced in the country is derived from thermal power plants, and thus, depend on coal. * Data from fiscal year ending on 31 March of each year.
** Refers to fiscal year ending on 31 December. Note: Per Capita Consumption=(gross electricity generation by all sources plus net import) / mid year population. 'Consumption' is 'gross electricity generation by all sources plus net import' after subtracting transmission loses and auxiliary consumption in electricity generation. The per capita annual domestic electricity consumption in India during the year 2009 was 96 kWh in rural areas and 288 kWh in urban areas for those with access to electricity. Globally the per capita annual average is 2,600 kWh and in the European Union it is 6,200 kWh.


Rural and Urban electrification

India's Ministry of Power launched ''Deen Dayal Upadhyaya Gram Jyoti Yojana'' (DDUGJY) as one of its flagship programmes in July 2015 with the objective of providing round the clock power to rural areas. The programe focused on reforms in the rural power sector by separating feeder lines for rural households from those for agricultural applications, and strengthening transmission and distribution infrastructure. A previous scheme for rural electrification, ''Rajiv Gandhi Grameen Vidyutikaran Yojana'' (RGGVY) was subsumed into the new scheme. As of 28 April 2018, 12 days ahead of the target date, all Indian villages (a total of 597,464 census villages) were electrified. India has also achieved close to 100% electrification of all rural and urban households. As of 4 January 2019, 211.88 million rural households were provided with electricity, close to 100% of the 212.65 million total rural households. As of 4 January 2019, 42.937 million urban households are provided with electricity, close to 100% of the 42.941 million total urban households.


Per-Capita consumption

Notes: Per capita consumption = (gross electricity generation + net import) / mid-year population. Nearly a 24% difference between sales and gross generation due to auxiliary power consumption of thermal power plants and transmission and distribution (T&D) losses, etc.


Electricity generation

India has recorded rapid growth in electricity generation since 1985, increasing from 179 TW-hr in 1985 to 1,057 TW-hr in 2012. The majority of the increase came from coal-fired plants and non-conventional
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
sources (RES), with the contribution from natural gas, oil, and hydro plants decreasing in 2012–2017. The gross utility electricity generation (excluding imports from Bhutan) was 1,384 billion kWh in 2019–20, representing 1.0% annual growth compared to 2018–2019. The contribution from renewable energy sources was nearly 20% of the total. In 2019–20, all the incremental electricity generation is contributed by renewable energy sources as the power generation from fossil fuels decreased. During the year 2020–2021, the utility power generation has decreased by 0.8% (11.3 billion kWh) with a reduction in power generation from fossil fuels by 1% and power generation from non-fossil sources is more or less same of the previous year. In 2020–21, India exported more electricity than it imported from neighboring countries. Solar power generation in 2020–21, occupied third place after coal and hydropower generations surpassing wind, gas and nuclear power generations. Notes: Coal includes lignite; Misc: includes contributions from emergency diesel generator sets, roof top solar, captive power generation from below 1 MW capacity plants, etc.; *Hydro includes pumped storage generation; na = data not available.


Thermal power


Pollution from coal-based power plants

In India the Commercial Energy makes 74% of total energy, of which coal based energy production is around 72–75%, as per 2020 data. For utility power generation, India consumed 622.22 million tons of coal during 2019–20 which is less by 1% compared to 628.94 million tons during 2018–19. However coal imports for utility power generation increased by 12.3% during year 2019–20 at 69.22 million tons from 61.66 million tons during 2018–19. A large part of the Indian coal reserve is similar to Gondwana coal: it is of low calorific value and high ash content, with poor fuel value. On average, Indian coal has a gross calorific value (GCV) of about 4500 Kcal/kg, whereas in Australia, for example, the GCV is about 6500 Kcal/kg . The result is that Indian power plants using India's coal supply consume about 0.7 kg of coal per kWh of power generation, whereas in the United States thermal power plants consume about 0.45 kg of coal per kWh. In 2017, India imported nearly 130 Mtoe (nearly 200 million tons) of steam coal and coking coal, 29% of total consumption, to meet the demand in electricity, cement and steel production. The
Centre for Science and Environment Centre for Science and Environment (CSE) is a not-for-profit public interest research and advocacy organisation based in New Delhi, India. Established in 1980, CSE works as a think tank on environment-development issues in India, poor planning, ...
has assessed the Indian coal-based power sector as one of the most resource-wasteful and polluting sectors in the world, in part due to the high ash content in India's coal. India's
Ministry of Environment and Forests The Ministry of Environment, Forest and Climate Change (MoEFCC) is an Indian government ministry. This ministry is headed by Secretary Rank senior most IAS officer. The ministry portfolio is currently held by Bhupender Yadav, Union Minister ...
has therefore mandated the use of coals whose ash content has been reduced to 34% (or lower) in power plants in urban, ecologically sensitive and other critically polluted areas. The coal ash reduction industry has grown rapidly in India, with current capacity topping 90 megatonnes. Before a thermal power plant is approved for construction and commissioning in India it must undergo an extensive review process that includes environmental impact assessment. The
Ministry of Environment and Forests The Ministry of Environment, Forest and Climate Change (MoEFCC) is an Indian government ministry. This ministry is headed by Secretary Rank senior most IAS officer. The ministry portfolio is currently held by Bhupender Yadav, Union Minister ...
has produced a technical guidance manual to help project proposers avoid environmental pollution from thermal power plants. As of 2016, the existing coal-fired power stations in the utility and captive power sectors were estimated to require nearly 12.5 million INR per MW capacity to install pollution control equipment to comply with the latest emission norms set out by the Ministry of Environment and Forests. Most of the coal fired stations have not complied installation of flue gas de-sulphurisation units for reducing the pollution. In April 2020,
CPCB The Central Pollution Control Board (CPCB) of India is a statutory organization under the Ministry of Environment, Forest and Climate Change (Mo.E.F.C.C.). It was established in 1974 under the Water (Prevention and Control of pollution) Act, ...
declared that over 42,000 MW thermal power plants have outlived their lives. India has also banned imports of
pet coke Petroleum coke, abbreviated coke or petcoke, is a final carbon-rich solid material that derives from oil refining, and is one type of the group of fuels referred to as cokes. Petcoke is the coke that, in particular, derives from a final crackin ...
for use as fuel. As a signatory to the
Paris Agreement The Paris Agreement (french: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, adaptation, and ...
, India is also reducing power generation from coal to control the emission of
greenhouse gas A greenhouse gas (GHG or GhG) is a gas that absorbs and emits radiant energy within the thermal infrared range, causing the greenhouse effect. The primary greenhouse gases in Earth's atmosphere are water vapor (), carbon dioxide (), methane ...
es. The state and central power generation companies are permitted by the Government of India to minimize the cost of coal transportation using flexible coal linkage swaps from inefficient plants to efficient plants, and from plants situated far from coal mines to plants close to the pit head, leading to a reduction in the cost of power. Although coal imports for consumption in the utility sector are declining, the overall imports of steam coal are increasing as the local coal production is unable to meet the requirements of coal-fired captive power plants. India is introducing single spot auctions/exchanges for all type of coal consumers.


Retirement of old thermal power plants

India's coal-fired, oil-fired and natural gas-fired thermal power plants are inefficient and replacing them with cheaper renewable technologies offers significant potential for greenhouse gas (CO2) emission reduction. India's thermal power plants emit 50% to 120% more CO2 per kWh produced compared to average emissions from their European Union (EU-27) counterparts. The
central government A central government is the government that is a controlling power over a unitary state. Another distinct but sovereign political entity is a federal government, which may have distinct powers at various levels of government, authorized or del ...
plans to retire coal-based plants that are at least 25 years old and contributing excessive pollution, totalling 11,000 MW of capacity. As of 2018 there is no similar retirement plan for the captive power sector. In 2020
Carbon Tracker Carbon Tracker is a London-based not-for-profit think tank researching the impact of climate change on financial markets. Carbon Tracker popularized the notion of a carbon bubble, which describes the incompatibility between the continued devel ...
estimated that phasing out 20 years or more old coal-fired plants and the coal fired plants under construction with electricity sale price exceeding INR 4/kWh with new renewables is more economical as these coal fired plants are imposing heavy financial burden on Discoms. Some diesel generator plants and gas turbine plants were also decommissioned in 2016 though they are best suitable for catering ancillary services.


Integration of renewable power

India has committed to install 275,000 MW renewable energy capacity by 2027. The existing base load coal and gas based power plants need to be flexible enough to accommodate the variable renewable energy. Also ramping up, ramping down, warm start up, hot start up capabilities of existing coal based power stations are critical to accommodate the frequent variations in renewable power generation. It is also examined to use the retired coal based electric generators as synchronous condensers for improving the grid inertia when it is dominated by static power generation sources like solar and wind power. As the solar power plants remain idle during the night hours, reactive power capability of the inverters installed as part of the solar power plant can also be used during the night time for solving the problem of very high voltage which occurs due to low loads on the transmission lines.


Natural gas supply constraints

The installed capacity of natural gas-based power plants (including the plants ready to be commissioned with the commencement of natural gas supply) was nearly 26,765 MW at the end of the financial year 2014–15. These plants were operating at an overall
plant load factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of a given installation is def ...
(PLF) of 22% due to a severe shortage of natural gas in the country, and the fact that imported
liquid natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the vol ...
(LNG) was too expensive for power generation. Many power stations were shut down throughout the year for a lack of natural gas supply. The natural gas shortage for power sector alone was nearly 100 million cubic metre per day at
standard conditions Standard temperature and pressure (STP) are standard sets of conditions for experimental measurements to be established to allow comparisons to be made between different sets of data. The most used standards are those of the International Union ...
. The break-even price for switching from imported coal to LNG in electricity generation was estimated to be approximately US (thermal energy). The Indian government has taken steps to enhance power generation from gas-based power plants by waiving import duties and taxes.
Gasification Gasification is a process that converts biomass- or fossil fuel-based carbonaceous materials into gases, including as the largest fractions: nitrogen (N2), carbon monoxide (CO), hydrogen (H2), and carbon dioxide (). This is achieved by reacting ...
of coal or lignite or
pet coke Petroleum coke, abbreviated coke or petcoke, is a final carbon-rich solid material that derives from oil refining, and is one type of the group of fuels referred to as cokes. Petcoke is the coke that, in particular, derives from a final crackin ...
or
biomass Biomass is plant-based material used as a fuel for heat or electricity production. It can be in the form of wood, wood residues, energy crops, agricultural residues, and waste from industry, farms, and households. Some people use the terms bio ...
produces synthetic natural gas or
syngas Syngas, or synthesis gas, is a mixture of hydrogen and carbon monoxide, in various ratios. The gas often contains some carbon dioxide and methane. It is principly used for producing ammonia or methanol. Syngas is combustible and can be used as ...
(also known as
coal gas Coal gas is a flammable gaseous fuel made from coal and supplied to the user via a piped distribution system. It is produced when coal is heated strongly in the absence of air. Town gas is a more general term referring to manufactured gaseous ...
or
wood gas Wood gas is a fuel gas that can be used for furnaces, stoves, and vehicles. During the production process, biomass or related carbon-containing materials are gasified within the oxygen-limited environment of a wood gas generator to produce a c ...
) which is a mixture of hydrogen, carbon monoxide and carbon dioxide gases. Coal gas can be converted into synthetic natural gas by using the Fischer–Tropsch process at low pressure and high temperature. Coal gas can also be produced by underground
coal gasification Coal gasification is the process of producing syngas—a mixture consisting primarily of carbon monoxide (CO), hydrogen (H2), carbon dioxide (CO2), methane (CH4), and water vapour (H2O)—from coal and water, air and/or oxygen. Historically, coal ...
if the coal deposits are located deep in the ground or it is uneconomical to mine the coal. Synthetic natural gas production technologies promise to dramatically improve India's supply of natural gas. The
Dankuni Dankuni is a city and a municipality of Hooghly district in the Indian state of West Bengal. It is now part of the area covered by Kolkata Metropolitan Development Authority (KMDA). It is considered posh area in Hooghly. Geography Location ...
coal complex produces syngas that is piped to industrial users in Calcutta. Many coal-based fertiliser plants can also be economically retrofitted to produce synthetic natural gas. It is estimated that the production cost for syngas could be below US. Earlier, natural gas use in power generation was thought to be a bridge fuel as it emits far less CO2 (below 50%) when compared to coal use in power generation until renewable power generation without CO2 emissions become economical. Renewable power generation is already cheaper than coal and gas fueled power generation in India. Now the bridge fuel concept is no more valid and existing gas-based generation needs to compete with the coal-based generation when there is no adequate renewable power generation (including storage and peaking type hydropower). The problem of stranded assets/capacity is more deep-rooted for gas-based power plants than that of the coal-based power plants as coal is far cheaper than natural gas in India.


Nuclear power

As of 31 March 2022, India had 6.78 GW of installed nuclear power generation capacity or nearly 1.7% of the total installed utility power generation capacity. Nuclear plants generated 47,063 million kWh at 79.24% PLF in 2021–22. India's nuclear power plant development began in 1964. India signed an agreement with
General Electric General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable ene ...
(United States) for the construction and commissioning of two boiling water reactors at Tarapur. In 1967, this effort was placed under India's
Department of Atomic Energy The Department of Atomic Energy (DAE) (IAST: ''Paramāṇu Ūrjā Vibhāga'') is a department with headquarters in Mumbai, Maharashtra, India. DAE was established in 1954 by a Presidential Order. DAE has been engaged in the development of nuc ...
. In 1971, India set up its first pressurized heavy water reactors with Canadian collaboration in
Rajasthan Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern ...
. In 1987, India created the
Nuclear Power Corporation of India Limited The Nuclear Power Corporation of India Limited (NPCIL) is an Indian public sector undertaking based in Mumbai, Maharashtra. It is wholly owned by the Government of India and is responsible for the generation of electricity from nuclear power. N ...
to commercialize nuclear power. The Nuclear Power Corporation of India is a public sector enterprise, wholly owned by the Government of India, under the administrative control of the Department of Atomic Energy. The state-owned company has ambitious plans to establish plants totalling to 63 GW generation capacity by 2032. India's nuclear power generation effort is subject to many safeguards and oversights. Its environmental management system is ISO-14001 certified, and it undergoes peer review by the
World Association of Nuclear Operators The World Association of Nuclear Operators (WANO) is a not for profit, International organization, international organisation with a mission to maximize the safety and reliability of the world’s commercial nuclear power plants. The organization ...
, including a pre-start-up peer review. The Nuclear Power Corporation of India Limited commented in its annual report for 2011 that its biggest challenge is to address public and policymaker perceptions about the safety of nuclear power, particularly after the
Fukushima Daiichi nuclear disaster The was a nuclear accident in 2011 at the Fukushima Daiichi Nuclear Power Plant in Ōkuma, Fukushima, Japan. The proximate cause of the disaster was the 2011 Tōhoku earthquake and tsunami, which occurred on the afternoon of 11 March 2011 ...
in Japan. In 2011, India had 18 pressurized heavy water reactors in operation, with another four projects launched totaling 2.8 GW capacity. India is in the process of launching its first prototype
fast breeder A breeder reactor is a nuclear reactor that generates more fissile material than it consumes. Breeder reactors achieve this because their neutron economy is high enough to create more fissile fuel than they use, by irradiation of a fertile mat ...
reactor using
plutonium Plutonium is a radioactive chemical element with the symbol Pu and atomic number 94. It is an actinide metal of silvery-gray appearance that tarnishes when exposed to air, and forms a dull coating when oxidized. The element normally exh ...
-based fuel obtained by reprocessing the spent fuel of first-stage reactors. The prototype reactor is located in
Tamil Nadu Tamil Nadu (; , TN) is a state in southern India. It is the tenth largest Indian state by area and the sixth largest by population. Its capital and largest city is Chennai. Tamil Nadu is the home of the Tamil people, whose Tamil language ...
and has a capacity of 500 MW. India has nuclear power plants operating in the following states:
Maharashtra Maharashtra (; , abbr. MH or Maha) is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the second-most populous state in India and the second-most populous country subdi ...
,
Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...
,
Rajasthan Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern ...
,
Uttar Pradesh Uttar Pradesh (; , 'Northern Province') is a state in northern India. With over 200 million inhabitants, it is the most populated state in India as well as the most populous country subdivision in the world. It was established in 195 ...
,
Tamil Nadu Tamil Nadu (; , TN) is a state in southern India. It is the tenth largest Indian state by area and the sixth largest by population. Its capital and largest city is Chennai. Tamil Nadu is the home of the Tamil people, whose Tamil language ...
and
Karnataka Karnataka (; ISO 15919, ISO: , , also known as Karunāḍu) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed on 1 November 1956, with the passage of the States Reor ...
. These reactors have an installed electricity generation capacity of between 100 MW and 1000 MW each. The
Kudankulam nuclear power plant Kudankulam Nuclear Power Plant (or Kudankulam NPP or KKNPP) is the largest nuclear power station in India, situated in Kudankulam in the Tirunelveli district of the southern Indian state of Tamil Nadu. Construction on the plant began on 31 Ma ...
(KNPP) is the single largest nuclear power station in India. KNPP Unit 1 with a capacity of 1000 MWe was commissioned in July 2013, while Unit 2, also with a capacity of 1000 MWe, attained criticality in 2016. Two additional units are under construction. The plant has suffered multiple shutdowns, leading to calls for an expert panel to investigate. First 700 MWe PHWR unit under phase II of
Kakrapar Atomic Power Station Kakrapar Atomic Power Station is a nuclear power station in India, which lies in the proximity of Mandvi, Surat and Tapi river in the state of Gujarat. Phase I Phase I consist two 220 MW pressurised water reactor with heavy water as mod ...
achieved first criticality in July 2020 and expected to begin commercial operation by December 2022. In 2011, uranium was discovered in the Tummalapalle uranium mine, the country's largest uranium mine and possibly one of the world's largest. The reserves were estimated at 64,000 tonnes, and could be as large as 150,000 tonnes. The mine began operation in 2012. India's share of nuclear power plant generation capacity is 1.2% of worldwide nuclear power production capacity, making it the 15th largest nuclear power producer. India aims to supply 9% of its electricity needs with nuclear power by 2032 and 25% by 2050. Jaitapur Nuclear Power Project, India's largest nuclear power plant project, is planned to be implemented in partnership with
Électricité de France Électricité de France S.A. (literally ''Electricity of France''), commonly known as EDF, is a French multinational electric utility company, largely owned by the French state. Headquartered in Paris, with €71.2 billion in revenues in 2 ...
under an agreement signed on 10 March 2018. India's government is developing up to 62 additional nuclear reactors, mostly using
thorium Thorium is a weakly radioactive metallic chemical element with the symbol Th and atomic number 90. Thorium is silvery and tarnishes black when it is exposed to air, forming thorium dioxide; it is moderately soft and malleable and has a high ...
fuel, which it expects to be operational by 2025. It is the "only country in the world with a detailed, funded, government-approved plan" to focus on
thorium Thorium is a weakly radioactive metallic chemical element with the symbol Th and atomic number 90. Thorium is silvery and tarnishes black when it is exposed to air, forming thorium dioxide; it is moderately soft and malleable and has a high ...
-based nuclear power.


Renewable energy

On 12 August 2021, India's grid-connected electricity generation capacity reached 100 GW from non-conventional renewable technologies and 46.21 GW from conventional renewable power or major hydroelectric power plants.As of 12 August 2021, there are about 50 GW of projects under development, and 27 GW that are tendered and yet to be auctioned.


Hydro power

The
hydro-electric power Hydroelectricity, or hydroelectric power, is electricity generated from hydropower (water power). Hydropower supplies one sixth of the world's electricity, almost 4500 TWh in 2020, which is more than all other renewable sources combined an ...
plants at
Darjeeling Darjeeling (, , ) is a town and municipality in the northernmost region of the Indian state of West Bengal. Located in the Eastern Himalayas, it has an average elevation of . To the west of Darjeeling lies the easternmost province of Nep ...
and
Shivanasamudra Shivanasamudra Falls is a waterfall on the border of Malavalli taluk, Mandya district and Kollegala taluk, Chamarajanagara district of the state of Karnataka, India. It is situated along the river Kaveri, which forms here the boundary to the ...
were among the first in Asia, and were established in 1898 and 1902 respectively. India's potential for hydropower has been assessed to be about 125,570 MW at a 60% load factor. India is ranked fourth globally by underutilized hydropower potential. The estimated amount of viable hydropower varies with improved technology and the cost of electricity generation from other sources. In addition, there is an estimated 6,740 MW of potential for small, mini, and micro-hydro generators and 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. In 2020, the power tariff from Solar PV clubbed with pumped storage hydro have fallen below the coal-based power plant tariffs in offering base load and peak load power supply. The installed hydropower capacity as of 31 March 2018 was approximately 45,293 MW, 13.17% of the total installed utility capacity at the time. Small, mini, and micro-hydro generators add another 4,486 MW capacity. The share of this sector operated by public companies is 97%. Companies engaged in the development of hydroelectric power in India include the National Hydroelectric Power Corporation (NHPC), Northeast Electric Power Company (NEEPCO), Satluj Jal Vidyut Nigam (SJVNL), Tehri Hydro Development Corporation, and NTPC-Hydro.
Pumped storage Pumping may refer to: * The operation of a pump, for moving a liquid from one location to another **The use of a breast pump for extraction of milk * Pumping (audio), a creative misuse of dynamic range compression * Pumping (computer systems), ...
schemes offer the potential for centralized peak power stations for load management in the electricity grid. They also produce secondary /seasonal power at no additional cost when rivers are flooding with excess water. Storing electricity by alternative systems such as
batteries Battery most often refers to: * Electric battery, a device that provides electrical power * Battery (crime), a crime involving unlawful physical contact Battery may also refer to: Energy source *Automotive battery, a device to provide power t ...
, compressed air storage systems, etc. is more costly than electricity production by
standby generator Standby generators A standby generator is a back-up electrical system that operates automatically.Robert B. Hickey ''Electrical Construction Databook'', McGraw Hill, 2002 , Chapter 14 Within seconds of a utility outage an automatic transfer swi ...
. India has already established nearly 4,785 MW pumped storage capacity as part of its installed hydro power plants.


Solar power

The
solar energy Solar energy is radiant light and heat from the Sun that is harnessed using a range of technologies such as solar power to generate electricity, solar thermal energy (including solar water heating), and solar architecture. It is an essen ...
sector in India offers potentially enormous capacity, though little of this potential has so far been exploited. Solar radiation of about 5,000 trillion kWh per year is incident over India's land mass, with average daily
solar power Solar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power. Photovoltaic cells convert light into an electric current using the photovolta ...
potential of 0.25 kWh/m2 of used land area with available commercially proven technologies. As of 31 December 2019, the installed capacity was 33.73 GW, or 2% of utility electricity generation. Solar power plants require nearly land per MW capacity, which is similar to coal-fired power plants when life cycle coal mining, consumptive water storage and ash disposal areas are taken into account, and hydropower plants when the submergence area of the water reservoir is included. Solar plants with 1.33 million MW capacity could be installed in India on 1% of its land (32,000 square km). Large tracts of land that are unproductive, barren and devoid of vegetation exist in all parts of India, exceeding 8% of its total area. These are potentially suitable for solar power. It has been estimated that if 32,000 square km of these wastelands were used for solar power generation,2,000 billion kWh of electricity could be produced, twice the total power generated in 2013–14. At a price of 4 Rs/kWh, this would result in a land annual productivity/yield of per acre, which compares favorably with many industrial areas and is many times more than the best productive irrigated agriculture lands. Building solar power plants on marginally productive lands offers the potential for solar electricity to replace all of India's fossil fuel energy requirements (natural gas, coal, lignite, and crude oil), and could offer per capita
energy consumption Energy consumption is the amount of energy used. Biology In the body, energy consumption is part of energy homeostasis. It derived from food energy. Energy consumption in the body is a product of the basal metabolic rate and the physical activit ...
at par with USA/Japan for the peak population expected during its
demographic transition In demography, demographic transition is a phenomenon and theory which refers to the historical shift from high birth rates and high death rates in societies with minimal technology, education (especially of women) and economic development, to l ...
. The sale price of power generated by solar
photovoltaics Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commercially ...
fell to per
kWh A kilowatt-hour (unit symbol: kW⋅h or kW h; commonly written as kWh) is a unit of energy: one kilowatt of power for one hour. In terms of SI derived units with special names, it equals 3.6 megajoules (MJ). Kilowatt-hours are a common bill ...
in November 2020 which is lower than any other type of power generation in India. In the same year, the levelised tariff in US$ for solar electricity fell to 1.31 cents/kWh, far below the solar PV sale tariff in India. In 2020, the power tariff from Solar PV clubbed with pumped storage hydro or battery storage have fallen below the coal based power plant tariffs in offering base load and peak load power supply. Land acquisition is a challenge for solar farm projects in India. Some state governments are exploring innovative ways to address land availability, for example, by deploying solar capacity above irrigation canals. This allows solar energy to be harvested while simultaneously reducing the loss of irrigation water by solar evaporation. The state of Gujarat was first to implement the
Canal Solar Power Project The Canal Solar Power Project is a solar canal project launched in Gujarat, India, to use the long network of Narmada canals across the state for setting up solar panels to generate electricity. It was the first ever such project in India. ...
, using solar panels on a long network of Narmada canals across the state to generate electricity. It was the first such project in India. Synergy with other types of power generation A major disadvantage of solar power is that it produces electricity only in daylight, and not during nighttime or cloudy daytime. This disadvantage can be overcome by installing grid storage, such as
pumped-storage hydroelectricity Pumped-storage hydroelectricity (PSH), or pumped hydroelectric energy storage (PHES), is a type of hydroelectric energy storage used by electric power systems for load balancing. The method stores energy in the form of gravitational potent ...
. A proposed large-scale engineering project to interlink Indian rivers envisages
coastal reservoir Coastal reservoir is a type of reservoir to store fresh water on sea coast area near a river delta. Saemanguem in South Korea, Marina Barrage in Singapore, Qingcaosha and Plover Cove in China, Delta Works in Netherlands, Thanneermukkom Bund in I ...
s for harnessing river waters that would also create pumped-storage hydropower capacity for use on daily basis by consuming the surplus solar power available during the day time. Existing and future hydropower stations can also be expanded with additional pumped-storage hydroelectricity units to cater for nighttime electricity consumption. Most of the groundwater pumping power required can be met directly by solar power during the daytime.
Concentrated solar power Concentrated solar power (CSP, also known as concentrating solar power, concentrated solar thermal) systems generate solar power by using mirrors or lenses to concentrate a large area of sunlight into a receiver. Electricity is generated when ...
plants with thermal storage are also emerging as cheaper (US 5¢/kWh) and cleaner
Load following power plant A load-following power plant, regarded as producing mid-merit or mid-priced electricity, is a power plant that adjusts its power output as demand for electricity fluctuates throughout the day. Load-following plants are typically in between base lo ...
s than fossil fuel power plants. They can respond to demand round the clock, and work as
base load The base load (also baseload) is the minimum level of demand on an electrical grid over a span of time, for example, one week. This demand can be met by unvarying power plants, dispatchable generation, or by a collection of smaller intermittent e ...
power plants when there is excess solar energy. A mix of solar thermal and solar photovoltaic plants offers the potential to match load fluctuations without requiring costly battery storage.


Wind power

India has the fourth largest installed wind power capacity in the world. The development of wind power in India began in the 1990s in
Tamil Nadu Tamil Nadu (; , TN) is a state in southern India. It is the tenth largest Indian state by area and the sixth largest by population. Its capital and largest city is Chennai. Tamil Nadu is the home of the Tamil people, whose Tamil language ...
and significantly increased in the last decade. As of 31 August 2022, the installed capacity of wind power was 41.205 GW, spread across many states of India. The largest wind power generating state is
Tamil Nadu Tamil Nadu (; , TN) is a state in southern India. It is the tenth largest Indian state by area and the sixth largest by population. Its capital and largest city is Chennai. Tamil Nadu is the home of the Tamil people, whose Tamil language ...
, accounting for nearly 23% of installed capacity, followed in decreasing order by
Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...
,
Maharashtra Maharashtra (; , abbr. MH or Maha) is a state in the western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the second-most populous state in India and the second-most populous country subdi ...
,
Rajasthan Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern ...
and
Karnataka Karnataka (; ISO 15919, ISO: , , also known as Karunāḍu) is a States and union territories of India, state in the southwestern region of India. It was Unification of Karnataka, formed on 1 November 1956, with the passage of the States Reor ...
. In 2015–16, wind power accounted for 8.5% of India's total installed power capacity, and 2.5% of the country's power output. India aims to install a total 60 GW of
wind power Wind power or wind energy is mostly the use of wind turbines to generate electricity. Wind power is a popular, sustainable, renewable energy source that has a much smaller impact on the environment than burning fossil fuels. Historically ...
capacity by 2022. The wind power tariff of around 2.5 INR/kWh is the cheapest of all power generation sources in India. The offshore wind power potential of India is nearly 112 GW up to 50 metres water depth and nearly 195 GW up to 1000 metres water depth. As of August 2022, no offshore wind power installation is under construction or in operation. The levelised cost of electricity (LCOE) has fallen to US$ 50 per MWh for offshore wind power plants.


Biomass power

Biomass Biomass is plant-based material used as a fuel for heat or electricity production. It can be in the form of wood, wood residues, energy crops, agricultural residues, and waste from industry, farms, and households. Some people use the terms bio ...
is
organic matter Organic matter, organic material, or natural organic matter refers to the large source of carbon-based compounds found within natural and engineered, terrestrial, and aquatic environments. It is matter composed of organic compounds that have c ...
from living organisms. As a
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
source, biomass can either be used directly via combustion to produce heat, or indirectly after converting it to various forms of
biofuel Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. According to the United States Energy Information Administration ...
using a range of methods which are broadly classified into thermal, chemical, and biochemical methods. Biomass,
bagasse Bagasse ( ) is the dry pulpy fibrous material that remains after crushing sugarcane or sorghum stalks to extract their juice. It is used as a biofuel for the production of heat, energy, and electricity, and in the manufacture of pulp and building ...
, forestry, domestic organic wastes, industrial organic wastes, organic residue from biogas plants, and agricultural residue and waste can all be used as fuel to produce electricity. Nearly 750 million tons of biomass that is not edible by cattle is available annually in India. The total use of biomass to produce heat in India was nearly 177 Mtoe in 2013. 20% of households in India use biomass and charcoal for cooking purposes. This traditional use of biomass is being replaced by
liquefied petroleum gas Liquefied petroleum gas (LPG or LP gas) is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, propylene, butylene, isobutane and n-butane. LPG is used as a fuel gas in heating appliances, cookin ...
in rural areas, resulting in increased burning of biomass in fields, This has become a major source of air pollution in nearby towns and cities. ;Torrefied biomass Large quantities of imported coal are being used in pulverised coal-fired power stations. Raw biomass cannot be used directly in the pulverised coal mills as it is difficult to
grind A blade's grind is its cross-sectional shape in a plane normal to the edge. Grind differs from blade profile, which is the blade's cross-sectional shape in the plane containing the blade's edge and the centre contour of the blade's back ( ...
into fine powder due to caking. However,
torrefaction Torrefaction of biomass, e.g., wood or grain, is a mild form of pyrolysis at temperatures typically between 200 and 320 °C. Torrefaction changes biomass properties to provide a better fuel quality for combustion and gasification applications. ...
makes it possible for biomass to replace coal. The hot flue gas of existing coal-fired power stations can be used as a heat source for torrefaction, so that biomass can be cofired with coal. Surplus agriculture/crop residue biomass is beginning to be used for this purpose. Instead of shutting down/ retirement of coal-fired power plants due to concerns over pollution, it has been argued that these units can be retrofitted economically to produce electricity from biomass. Biomass contains substantial oxygen and lesser ash to make retrofitting of old units less capital intensive. Biomass power plants can also sell Renewable Energy Certificates, increasing their profitability. Cofiring of biomass up to 10% with coal in existing pulverised coal-fired power stations is successfully implemented in India. Central Government has made cofiring (minimum 5%) of biomass mandatary from October 2022 in all coal fired plants. ;Biogas In 2011, India started a new initiative to demonstrate the utility of medium-size mixed feed
biogas Biogas is a mixture of gases, primarily consisting of methane, carbon dioxide and hydrogen sulphide, produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste and food waste. It is a ...
-fertiliser pilot plants. The government approved 21 projects with an aggregate capacity of 37,016 cubic metres per day, of which 2 projects were successfully commissioned by December 2011. India commissioned a further 158 projects under its Biogas-based Distributed/Grid Power Generation programme, with a total installed capacity of about 2 MW. In 2018, India has set a target of producing 15 million tons of biogas/bio-CNG by installing 5,000 large scale commercial type biogas plants which can produce daily 12.5 tons of bio-CNG by each plant. Rejected organic solids from biogas plants can be used in coal plants after
torrefaction Torrefaction of biomass, e.g., wood or grain, is a mild form of pyrolysis at temperatures typically between 200 and 320 °C. Torrefaction changes biomass properties to provide a better fuel quality for combustion and gasification applications. ...
. Biogas is primarily methane, and can also be used to generate protein rich feed for cattle, poultry and fish by growing ''
Methylococcus capsulatus ''Methylococcus capsulatus'' is an obligately methanotrophic gram-negative, non-motile coccoid bacterium. ''M. capsulatus'' are thermotolerant; their cells are encapsulated and tend to have a diplococcoid shape. In addition to methane, ' ...
'', a bacterium that grows directly on methane. This can be done economically in villages with low requirements for land and water. The carbon dioxide gas produced as a by-product from these units can be used in cheaper production of algae oil or spirulina from algae cultivation, which may eventually substitute for crude oil. Using biogas for protein-rich feed production is also eligible for carbon credits as this sequesters carbon from the atmosphere. There is significant potential to extract useful biomass from breweries, textile mills, fertiliser plants, the paper and pulp industry, solvent extraction units, rice mills, petrochemical plants and other industries. The government is exploring several ways to use agro waste or biomass in rural areas to improve the rural economy. For example, biomass gasifier technologies are being explored to produce power from surplus biomass resources such as rice husk, crop stalks, small wood chips and other agro-residues in rural areas. The largest biomass-based power plant in India at Sirohi, Rajasthan has a capacity of 20 MW. During 2011, India installed 25 rice husk based gasifier systems for distributed power generation in 70 remote villages of
Bihar Bihar (; ) is a state in eastern India. It is the 2nd largest state by population in 2019, 12th largest by area of , and 14th largest by GDP in 2021. Bihar borders Uttar Pradesh to its west, Nepal to the north, the northern part of West ...
, including a total of 1.20 MW in Gujarat and 0.5 MW in Tamil Nadu. In addition, gasifier systems were installed at 60 rice mills in India.


Geothermal energy

India's
geothermal energy Geothermal energy is the thermal energy in the Earth's crust which originates from the formation of the planet and from radioactive decay of materials in currently uncertain but possibly roughly equal proportions. The high temperature and pr ...
installed capacity is experimental, and commercial use is insignificant. According to some estimates, India has 10,600 MW of geothermal energy available. The resource map for India has been grouped into six geothermal provinces: * Himalayan Province
Tertiary Tertiary ( ) is a widely used but obsolete term for the geologic period from 66 million to 2.6 million years ago. The period began with the demise of the non-avian dinosaurs in the Cretaceous–Paleogene extinction event, at the start ...
orogenic Orogeny is a mountain building process. An orogeny is an event that takes place at a convergent plate margin when plate motion compresses the margin. An ''orogenic belt'' or ''orogen'' develops as the compressed plate crumples and is uplifted t ...
belt with tertiary
magmatism Magmatism is the emplacement of magma within and at the surface of the outer layers of a terrestrial planet, which solidifies as igneous rocks. It does so through magmatic activity or igneous activity, the production, intrusion and extrusion of ...
*Faulted blocks province – the
Aravalli range The Aravalli Range (also spelled ''Aravali'') is a mountain range in Northern- Western India, running approximately in a south-west direction, starting near Delhi, passing through southern Haryana, Rajasthan, and ending in Ahmedabad Gujarat. ...
, Naga-Lushi, the west coast regions, and the Narmada-
Son A son is a male offspring; a boy or a man in relation to his parents. The female counterpart is a daughter. From a biological perspective, a son constitutes a first degree relative. Social issues In pre-industrial societies and some curren ...
lineament ''See also Line (geometry)'' A lineament is a linear feature in a landscape which is an expression of an underlying geological structure such as a fault. Typically a lineament will appear as a fault-aligned valley, a series of fault or fold-alig ...
. *Volcanic arc province – the
Andaman and Nicobar The Andaman and Nicobar Islands is a union territory of India consisting of 572 islands, of which 37 are inhabited, at the junction of the Bay of Bengal and the Andaman Sea. The territory is about north of Aceh in Indonesia and separated fro ...
arc. *Deep sedimentary basins of Tertiary age such as the
Cambay Cambay, Kambay or Khambhat was a princely state in India during the British Raj. The City of Khambat (Cambay) in present-day Gujarat was its capital. The state was bounded in the north by the Kaira district and in the south by the Gulf of C ...
basin. *Radioactive province –
Surajkund Surajkund is an ancient reservoir of the 10th century located on Southern Delhi Ridge of Aravalli range in Faridabad city of Haryana state about 8 km (5mi) from South Delhi. Surajkund (literally 'Lake of the Sun') is an artificial Kund (' ...
,
Hazaribagh Hazaribagh is a city and a municipal corporation in Hazaribagh district in the Indian state of Jharkhand. It is the divisional headquarters of North Chotanagpur division. It is considered as a health resort and is also popular for Hazaribag ...
and
Jharkhand Jharkhand (; ; ) is a state in eastern India. The state shares its border with the states of West Bengal to the east, Chhattisgarh to the west, Uttar Pradesh to the northwest, Bihar to the north and Odisha to the south. It has an area of . I ...
. * Cratonic province – Peninsular India India has about 340 hot springs spread over the country. Of these, 62 are distributed along the northwest Himalaya, in the states of
Jammu and Kashmir Jammu and Kashmir may refer to: * Kashmir, the northernmost geographical region of the Indian subcontinent * Jammu and Kashmir (union territory), a region administered by India as a union territory * Jammu and Kashmir (state), a region administered ...
,
Himachal Pradesh Himachal Pradesh (; ; "Snow-laden Mountain Province") is a state in the northern part of India. Situated in the Western Himalayas, it is one of the thirteen mountain states and is characterized by an extreme landscape featuring several pea ...
and
Uttarakhand Uttarakhand ( , or ; , ), also known as Uttaranchal ( ; the official name until 2007), is a state in the northern part of India. It is often referred to as the "Devbhumi" (literally 'Land of the Gods') due to its religious significance and ...
. They are found concentrated in a 30-50-km wide thermal band mostly along the river valleys. The Naga-Lusai and West Coast Provinces also manifest a series of thermal springs. The Andaman and Nicobar arc is the only place in India where volcanic activity continues, potentially a good site for geothermal energy. The Cambay geothermal belt is 200 km long and 50 km wide, with Tertiary sediments. Thermal springs have been reported from the belt although they are not of very high temperature or flow levels. High subsurface temperature and thermal fluid have been reported in deep drill wells in depth ranges of 1.7 to 1.9  km during drilling in this area. Steam blowout has also been reported in drill holes in a depth range of 1.5 to 3.4  km. The thermal springs in India's peninsular region are more related to the faults, which allow water to circulate to considerable depths. The circulating water acquires heat from the normal thermal gradient in the area, and can emerge at a high temperature. In a December 2011 report, India identified six promising geothermal sites for the development of geothermal energy. In decreasing order of potential, these are: *Tattapani (Chhattisgarh) *Puga (Jammu & Kashmir) *Cambay Graben (Gujarat) *Manikaran (Himachal Pradesh) *Surajkund (Haryana) *Chhumathang (Jammu & Kashmir) Puga and Chumathang area in Ladakh are deemed as the most promising geothermal fields in India. These areas were discovered in 1970s and initial exploratory efforts were made in the 1980s by
Geological Survey of India The Geological Survey of India (GSI) is a scientific agency of India. It was founded in 1851, as a Government of India organization under the Ministry of Mines, one of the oldest of such organisations in the world and the second oldest survey ...
(GSI). On 6 February 2021, the
ONGC The Oil and Natural Gas Corporation (ONGC) is a central public sector undertaking under the ownership of Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. ONGC was founded on 14 August 1956 by the ...
Energy Center (OEC) signed a Memorandum of Understanding (MoU) with Ladakh and the Ladakh Autonomous Hill Development Council, Leh in the presence of current Lieutenant governor Radha Krishna Mathur.


Tidal power

Tidal power Tidal power or tidal energy is harnessed by converting energy from tides into useful forms of power, mainly electricity using various methods. Although not yet widely used, tidal energy has the potential for future electricity generation. ...
, also called tidal energy, is a form of hydropower that converts energy obtained from
tide Tides are the rise and fall of sea levels caused by the combined effects of the gravitational forces exerted by the Moon (and to a much lesser extent, the Sun) and are also caused by the Earth and Moon orbiting one another. Tide tables ...
s into useful forms of power, mainly electricity. Local effects such as shelving, funneling, reflection and
resonance Resonance describes the phenomenon of increased amplitude that occurs when the frequency of an applied periodic force (or a Fourier component of it) is equal or close to a natural frequency of the system on which it acts. When an oscil ...
can increase the potential of tidal energy in certain regions. India's potential to harness tidal energy is significant. Energy can be extracted from tides in several ways. In one method, a reservoir is created behind a barrier, or barrage, and tidal waters are allowed to pass through turbines in the barrier to generate electricity. This method requires mean tidal differences greater than 4 metres and favourable topographical conditions to keep installation costs low. The
Gulf of Khambhat The Gulf of Khambhat, historically known as the Gulf of Cambay, is a bay on the Arabian Sea coast of India, bordering the state of Gujarat just north of Mumbai and Diu Island. The Gulf of Khambhat is about long, about wide in the north and ...
and the
Gulf of Kutch The Gulf of Kutch is located between the peninsula regions of Kutch and Saurashtra, bounded in the state of Gujarat that borders Pakistan. It opens towards the Arabian Sea facing the Osman Gulf. It is about 50 km wide at the entrance bef ...
on India's west coast, with maximum tidal ranges of 11 m and 8 m, respectively, and an average tidal range of 6.77 m and 5.23 m, are promising sites for this type of technology. The
Ganges The Ganges ( ) (in India: Ganga ( ); in Bangladesh: Padma ( )). "The Ganges Basin, known in India as the Ganga and in Bangladesh as the Padma, is an international river to which India, Bangladesh, Nepal and China are the riparian states." is ...
Delta in the
Sundarbans Sundarbans (pronounced ) is a mangrove area in the delta formed by the confluence of the Padma, Brahmaputra and Meghna Rivers in the Bay of Bengal. It spans the area from the Baleswar River in Bangladesh's division of Khulna to the Hooghly R ...
,
West Bengal West Bengal (, Bengali: ''Poshchim Bongo'', , abbr. WB) is a state in the eastern portion of India. It is situated along the Bay of Bengal, along with a population of over 91 million inhabitants within an area of . West Bengal is the fou ...
is another possibility, although it offers significantly less recoverable energy; the maximum tidal range in Sunderbans is approximately 5 m with an average tidal range of 2.97 m. It is estimated that barrage technology could harvest about 8 GW from tidal energy in India, primarily in
Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...
. The barrage approach has several disadvantages, however, one being that a badly engineered barrage can have significant negative effects on migratory fishes, marine ecosystems and aquatic life. Integrated barrage technology plants can also be expensive to build. In December 2011, the Ministry of New & Renewable Energy, Government of India and the Renewable Energy Development Agency of West Bengal jointly approved and agreed to implement India's first 3.75 MW Durgaduani mini tidal power project. Another tidal wave technology harvests energy from surface waves or from pressure fluctuations below the sea surface. A report from the Ocean Engineering Centre, at the
Indian Institute of Technology Madras Indian Institute of Technology Madras (IIT Madras) is a public technical university located in Chennai, Tamil Nadu, India. As one of the Indian Institutes of Technology (IITs), it is recognized as an Institute of National Importance and has b ...
estimated the annual wave energy potential along the Indian coast is 5 to 15 MW/metre, suggesting a theoretical maximum potential for electricity harvesting along India's 7500-kilometer coastline of about 40 GW. However, the realistic economical potential is likely to be considerably less than this. A significant barrier to surface energy harvesting is that its equipment may interfere with fishing and other sea-bound vessels, particularly in unsettled weather. India built its first surface energy harvesting technology demonstration plant in
Vizhinjam Vizhinjam is a region located in the city of Thiruvananthapuram, the capital of the state of Kerala in India. It is located 16 km south west from the city centre and 17 km south of Trivandrum International Airport along NH66. Adani Por ...
, near Thiruvananthapuram. The third approach to harvesting tidal energy is ocean thermal energy technology. This approach harvests the solar energy trapped in ocean waters. Oceans have a thermal gradient, the surface being much warmer than the deeper levels of the ocean. This thermal gradient may be harvested using the modified
Rankine cycle The Rankine cycle is an idealized thermodynamic cycle describing the process by which certain heat engines, such as steam turbines or reciprocating steam engines, allow mechanical work to be extracted from a fluid as it moves between a heat sourc ...
. India's
National Institute of Ocean Technology The National Institute of Ocean Technology (NIOT) was established in November 1993 as an autonomous society under the Ministry of Earth Sciences in India. NIOT is managed by a Governing Council and is headed by a director. The institute is bas ...
(NIOT) has attempted this approach without success. In 2003, NIOT attempted to build and deploy a 1 MW demonstration plant with Saga University of Japan, but mechanical problems prevented success. After initial tests near Kerala, the unit was scheduled for redeployment and further development in the Lakshadweep Islands in 2005.


Electricity transmission and distribution

As of 2013, India has a single
wide area synchronous grid A wide area synchronous grid (also called an "interconnection" in North America) is a three-phase electric power grid that has regional scale or greater that operates at a synchronized utility frequency and is electrically tied together durin ...
that covers the entire country except distant islands. The total length of high voltage (HV) transmission lines (220kV and above) would be enough to form a square matrix of area 266 km2 (i.e. a square grid 16.3 km on a side, so that on average there is at least one HV line within a distance of 8.15 km) over the entire area of the country. This represents a total of almost 20% more HV transmission lines than that of the United States ( of 230 kV and above). However the Indian grid transmits far less electricity. The installed length of transmission lines of 66 kV and above is (on average, there is at least one ≥66 kV transmission line within 4.95 km across the country). The length of secondary transmission lines (400 V and above) is as of 31 March 2018. The spread of total transmission lines (≥400 V) would be sufficient to form a square matrix of area 0.36 km2 (i.e. on average, at least one transmission line within 0.31 km distance) over the entire area of the country. In a future grid dominated by decentralized power generation like solar and wind power, unscientific expansion of the electrical grid would yield negative results due to
braess paradox Braess's paradox is the observation that adding one or more roads to a road network can slow down overall traffic flow through it. The paradox was discovered by the German mathematician Dietrich Braess in 1968. The paradox may have analogies in ...
. The all-time maximum peak load met was 182,610 MW on 30 May 2019. The maximum achieved
demand factor In telecommunication, electronics and the electrical power industry, the term demand factor is used to refer to the fractional amount of some quantity being used relative to the maximum amount that could be used by the same system. The demand facto ...
of substations is nearly 60% at the 220 kV level. However, the operational performance of the system is not satisfactory in meeting peak electricity loads. This has led to the initiation of detailed
forensic engineering Forensic engineering has been defined as ''"the investigation of failures - ranging from serviceability to catastrophic - which may lead to legal activity, including both civil and criminal".'' It includes the investigation of materials, produc ...
studies, with a plan to make capital investments in a
smart grid A smart grid is an electrical grid which includes a variety of operation and energy measures including: *Advanced metering infrastructure (of which smart meters are a generic name for any utility side device even if it is more capable e.g. a f ...
that maximises the utility of the existing transmission infrastructure. The introduction of an
availability based tariff Availability Based Tariff (ABT) is a frequency based pricing mechanism applicable in India for unscheduled electric power transactions. The ABT falls under electricity market mechanisms to charge and regulate power to achieve short term and long ...
(ABT) originally helped to stabilize the Indian transmission grids. However, as the grid transitions to power surplus the ABT has become less useful. The July 2012 blackout, affecting the north of the country, was the largest power grid failure in history as measured by the number of people affected. India's aggregate transmission and commercial (ATC) losses were nearly 21.35% in 2017–18. This compares unfavorably to the total ATC loss in the
electricity sector of the United States There is a large array of stakeholders that provide services through electricity generation, transmission, distribution and marketing for industrial, commercial, public and residential customers in the United States. It also includes many publ ...
, which was only 6.6% out of 4,404 billion kWh electricity supplied during the year 2018. The Indian government set a target of reducing losses to 17.1% by 2017 and to 14.1% by 2022. A high proportion of non-technical losses are caused by illegal tapping of lines, faulty electric meters and fictitious power generation that underestimates actual consumption and also contributes to reduced payment collection. A case study in Kerala estimated that replacing faulty meters could reduce distribution losses from 34% to 29%.


Foreign electricity trade

India's National Grid is synchronously interconnected to Bhutan, and asynchronously linked with
Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mo ...
,
Myanmar Myanmar, ; UK pronunciations: US pronunciations incl. . Note: Wikipedia's IPA conventions require indicating /r/ even in British English although only some British English speakers pronounce r at the end of syllables. As John Wells explai ...
and
Nepal Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne, सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is ma ...
. An undersea interconnector to
Sri Lanka Sri Lanka (, ; si, ශ්‍රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
( India–Sri Lanka HVDC Interconnection) have been proposed. India has been exporting electricity to
Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mo ...
, Myanmar and Nepal and importing excess electricity from Bhutan. In 2015, Nepal imported 224.21 MW of electric power from India, and Bangladesh imported 500MW. In 2018 Bangladesh proposed importing 10,000 MW power from India. To encourage the carbon neutral solar power generation, plans are made to transform the Indian national grid into a transnational grid expanding up to
Vietnam Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making ...
towards east and
Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq ...
towards west spanning nearly 7,000 km wide. Being at the central location of the widened grid, India will be able to import the excess solar power available outside its territory at cheaper prices to meet the morning and evening peak load power demands without much costly energy storage.


Regulation and administration

The Ministry of Power is India's top union government body regulating the electrical energy sector in India. The ministry was created on 2 July 1992. It is responsible for planning, policy formulation, processing of projects for investment decisions, monitoring project implementation, training and manpower development, and the administration and enactment of legislation in regard to power generation, transmission and distribution. It is also responsible for the administration of India's
Electricity Act (2003) The Electricity Act, 2003 is an Act of the Parliament of India enacted to transform the power sector in India. The act covers major issues involving generation, distribution, transmission and trading in power. While some of the sections have ...
, the Energy Conservation Act (2001) and has the responsibility of undertaking amendments to these Acts when necessary to meet the union government's policy objectives. Electricity is a concurrent list subject at Entry 38 in List III of the Seventh Schedule of the
Constitution of India The Constitution of India ( IAST: ) is the supreme law of India. The document lays down the framework that demarcates fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental ...
. In India's federal governance structure, this means that both the union government and India's state governments are involved in establishing policies and laws for the electricity sector. This requires the union government and individual state governments to enter into memoranda of understanding to help expedite projects in the individual states. To disseminate information to the public on power purchases by the distribution companies (discoms), the government of India recently started posting data on its website on a daily basis.


Trading

Bulk power purchasers can buy electricity on a daily basis for short, medium, and long-term durations from a reverse e-auction facility. The electricity prices transacted by the reverse e-auction facility are far less than the prices agreed under bilateral agreements. The commodity derivative exchange Multi Commodity Exchange has sought permission to offer electricity futures markets in India. The union government of India is also planning reverse procurement process in which generators and discoms with surplus power can seek e-bids for power supply for up to a one-year period, to put an end to bilateral contracts and determine the market-based price for electricity. Energy saving certificates (PAT), various renewable purchase obligations (RPO), and renewable energy certificates (REC) are also traded on the power exchanges regularly.


Government-owned power companies

India's Ministry of Power administers central government-owned companies involved in the generation of electricity in India. These include the
National Thermal Power Corporation NTPC Limited, formerly known as National Thermal Power Corporation Limited, is an Indian central public sector undertaking under the ownership of the Ministry of Power, Government of India which is engaged in generation of electricity and ...
, Neyveli Lignite Corporation,the SJVN, the Damodar Valley Corporation, the
National Hydroelectric Power Corporation NHPC Limited (erstwhile National Hydroelectric Power Corporation ) is an Indian government hydropower board under the ownership of Ministry of Power, Government of India that was incorporated in the year 1975 with an authorised capital o ...
and the Nuclear Power Corporation of India. The
Power Grid Corporation of India Power Grid Corporation of India Limited is an Indian central public sector undertaking under the ownership of Ministry of Power, Government of India. It is engaged mainly in transmission of bulk power across different states of India. It is ...
is also administered by the Ministry; it is responsible for the inter-state transmission of electricity and the development of the national grid. The Ministry works with state governments on matters related to state government-owned corporations in India's electricity sector. Examples of state corporations include the Telangana Power Generation Corporation, the
Andhra Pradesh Power Generation Corporation Limited Andhra Pradesh Power Generation Corporation Limited is power generating organization in Andhra Pradesh. It undertakes operation and maintenance of the power plants and also setting up new power projects alongside upgrading the project's capacity ...
, the Assam Power Generation Corporation Limited, the
Tamil Nadu Electricity Board Tamil Nadu Electricity Board (abbreviated as TNEB) is a power generation and distribution company owned by Government of Tamil Nadu, India. It was created as a regulated monopoly under section 131 of the Electricity Act (2003) as a successor o ...
, the
Maharashtra State Electricity Board Maharashtra State Electricity Board (or MSEB) ( Marathi:महाराष्ट्र राज्य विद्युत मंडळ) is a state government electricity regulation board operating within the state of Maharashtra in India. Th ...
, the
Kerala State Electricity Board Kerala State Electricity Board (KSEB) is an Indian public sector undertaking under the Government of Kerala that generates, transmits and distributes electricity in the state under government monopoly. Established in 1957, the agency comes und ...
, the
West Bengal State Electricity Distribution Company West Bengal State Electricity Distribution Company Limited (WBSEDCL) is a wholly owned company, enterprise of Government of West Bengal, established in 2007 as one of the two successors of West Bengal State Electricity Board, and is responsibl ...
and Gujarat Urja Vikas Nigam Limited.


Funding of power infrastructure

India's Ministry of Power administers the Rural Electrification Corporation Limited and the
Power Finance Corporation Power Finance Corporation Ltd. (P. F. C.) is an Indian central public sector undertaking under the ownership of the Ministry of Power, Government of India. Established in 1986, it is the financial backbone of Indian power sector. PFC's net ...
Limited. These central-government-owned public sector enterprises provide loans and guarantees for public and private electricity sector infrastructure projects in India. Excessive plant construction loans at 75% of overestimated costs on overrated plant capacities have led to
stranded asset Stranded assets are "assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities". Stranded assets can be caused by a variety of factors and are a phenomenon inherent in the 'creative destructi ...
s of US$40 to 60 billion. The central and state-owned power generators escaped this crisis as they had entered PPAs with state-owned monopolistic discoms on a cost-plus basis at higher than prevailing market power tariffs, without undergoing competitive bidding process. Many direct and indirect subsidies are given to various sectors.


Budgetary support

After the enactment of Electricity Act 2003 budgetary support to the power sector is negligible. Many State Electricity Boards were separated into their component parts after the act came into force, creating separate entities for generating, transmitting and distributing power.


Human resource development

The rapid growth of the electricity sector in India has generated high demand for trained personnel. India is making efforts to expand energy education and to enable existing educational institutions to introduce courses related to energy capacity addition, production, operations and maintenance. This initiative includes conventional and
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
. The
Ministry of New and Renewable Energy The Ministry of New and Renewable Energy (MNRE) is a ministry of the Government of India, headed by current Union Cabinet Minister Raj Kumar Singh, that is mainly responsible for research and development, intellectual property protection, and ...
announced that State Renewable Energy Agencies are being supported to organize short-term training programs for installation, operation and maintenance, and repair of
renewable energy Renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale. It includes sources such as sunlight, wind, the movement of water, and geothermal heat. Although most renewable energy ...
systems in locations where intensive renewable energy programs are being implemented. Renewable Energy Chairs have been established at the
Indian Institute of Technology Roorkee Indian Institute of Technology Roorkee (abbreviated IIT Roorkee) is a technical university located in Roorkee, Uttarakhand, India. It is the oldest engineering institution in India, and was founded as the College of Civil Engineering in B ...
and the
Indian Institute of Technology Kharagpur Indian Institute of Technology Kharagpur (IIT Kharagpur) is a public institute of technology established by the Government of India in Kharagpur, West Bengal, India. Established in 1951, the institute is the first of the IITs to be established ...
. The Central Training Institute Jabalpur is a training institute for power distribution engineering and management. The NTPC School of Business Noida has initiated an energy-centered two-year post-graduate diploma in the management program and a one-year post-graduate diploma in management (executive) program, to cater to the growing need for management professionals in this area. Education and availability of skilled workers are expected to be a key challenge in India's effort to expand its electricity sector.


Problems with India's power sector

India's electricity sector faces many issues, including: #Inadequate last mile connectivity. The country already has adequate generation and transmission capacity to meet the full consumer demand, both temporally and spatially. However, due to the lack of last-mile link-up between all electricity consumers and a reliable power supply (to exceed 99%), many consumers depend on
diesel generator A diesel generator (DG) (also known as a diesel Genset) is the combination of a diesel engine with an electric generator (often an alternator) to generate electrical energy. This is a specific case of engine generator. A diesel compression-ig ...
s. Nearly 80 billion kWh of electricity is generated annually in India by diesel generator sets that consume nearly 15 million tons of diesel oil. Over 10 million households use battery storage UPS as back-ups in case of load shedding. India imports nearly US$2 billion worth of battery storage UPS every year. As overhead lines cause distribution problems during rain and wind storms, there is a plan to lay buried cables from low voltage substations to supply cheaper emergency power in cities and towns and thus reduce diesel oil consumption by diesel generator sets and the installation of UPS systems. #Demand build up measures. Electricity-intensive industries consume the cheaper electricity (average price Rs 2.5 per
kWhr A kilowatt-hour (unit symbol: kW⋅h or kW h; commonly written as kWh) is a unit of energy: one kilowatt of power for one hour. In terms of SI derived units with special names, it equals 3.6 megajoules (MJ). Kilowatt-hours are a common b ...
) available from the grid instead of running their own coal/gas/oil fired captive power plants. The captive power generation capacity by such plants is nearly 53,000 MW, and they are mainly established in steel, fertilizer, aluminium, cement, etc. industries. These plants can draw cheaper electricity from the grid on short term open access (STOA) basis, avoiding their own higher cost of electricity generation and diverting power from other consumers. Some of these idling captive power plants can be used for ancillary services or grid reserve service and earn extra revenue. #Unequal electricity distribution. Almost all households have access to electricity. However, most households find the electricity supply intermittent and unreliable. At the same time, many power stations are idling for lack of electricity demand and the idling generation capacity is sufficient to supply the needs of households lacking electricity three times over. #Erratic power pricing. In general, industrial and commercial consumers subsidize domestic and agricultural consumers. Government giveaways such as free electricity for farmers, created partly to curry political favor, have depleted the cash reserves of state-run electricity-distribution system and led to debts of . This has financially crippled the distribution network, and its ability to pay to purchase power in the absence of subsidies from state governments. This situation has been worsened by state government departments that do not pay their electricity bills. #Over-rated capacity. Many coal-fired plants are overrated above the actual
maximum continuous rating In electrical engineering and mechanical engineering, the power rating of equipment is the highest power input allowed to flow through particular equipment. According to the particular discipline, the term ''power'' may refer to electrical or me ...
(MCR) capacity. to allow the plant cost to be inflated. These plants operate 15 to 10% below their declared capacity on a daily basis and rarely operate at declared capacity, undermining grid stability. #Lack of timely information on load and demand. Intraday graphs at 15-minute or more frequent intervals are required to understand the shortcomings of the power grid with respect to grid frequency, including comprehensive data collected from
SCADA Supervisory control and data acquisition (SCADA) is a control system architecture comprising computers, networked data communications and graphical user interfaces for high-level supervision of machines and processes. It also covers sensors and o ...
for all grid-connected generating stations (≥ 100 KW) and load data from all substations. #Lack of adequate coal supply: Despite abundant reserves of coal, power plants are frequently under-supplied. India's monopoly coal producer, state-controlled
Coal India Coal India Limited (CIL) is an Indian central public sector undertaking under the ownership of the Ministry of Coal, Government of India. It is headquartered at Kolkata. It is the ''largest government-owned-coal-producer'' in the world. It is ...
, is constrained by primitive mining techniques and is rife with theft and corruption. Poor coal transport infrastructure has worsened these problems. Most of India's coal lies under protected forests or designated tribal lands and efforts to mine additional deposits have been resisted. #Poor gas pipeline connectivity and infrastructure. India has abundant coal bed methane and natural gas potential. However a giant new offshore natural gas field has delivered far less gas than claimed, causing a shortage of natural gas. #Transmission, distribution and consumer-level losses. Losses exceed 30%, including the auxiliary power consumption of thermal power stations and fictitious electricity generation by wind generators, solar power plants & independent power producers (IPPs), etc. #Resistance to energy efficiency in the residential building sector. Continuous urbanization and the growth of population result in increased power consumption in buildings. The belief still predominates among stakeholders that energy-efficient buildings are more expensive than conventional buildings, adversely affecting the "greening" of the building sector. #Resistance to hydroelectric power projects. Hydroelectric power projects in India's mountainous north and northeast regions have been slowed down by ecological, environmental and rehabilitation controversies, coupled with public interest litigation. #Resistance to nuclear power generation. Political activism since the Fukushima disaster has reduced progress in this sector. The track record of executing nuclear power plants is also very poor in India. #Theft of power. The financial loss due to
theft of electricity Electricity theft is the criminal practice of stealing electrical power. The practice of stealing electricity is nearly as old as electricity distribution. Electricity theft is accomplished via a variety of means, from methods as rudimentary a ...
is estimated at $16 billion yearly. Key implementation challenges for India's electricity sector include efficient performance of new project management and execution, ensuring availability and appropriate quality of fuel, developing the large coal and natural gas resources available in India, land acquisition, obtaining environmental clearances at state and central government level, and training skilled manpower.


Electricity as a substitute to imported LPG and kerosene

India's net import of
liquefied petroleum gas Liquefied petroleum gas (LPG or LP gas) is a fuel gas which contains a flammable mixture of hydrocarbon gases, specifically propane, propylene, butylene, isobutane and n-butane. LPG is used as a fuel gas in heating appliances, cookin ...
(LPG) is 6.093 million tons and the domestic consumption is 13.568 million tons with Rs. 41,546 crores subsidy to domestic consumers in 2012–13. The LPG import content is nearly 40% of total consumption in India. The affordable electricity retail tariff (860 Kcal/Kwh at 74% heating efficiency) to replace LPG (net calorific value 11,000 Kcal/Kg at 40% heating efficiency) in domestic cooking is up to 10.2 Rs/Kwh, when the retail price of LPG cylinder is Rs 1000 (without subsidy) with 14.2 kg LPG content. Replacing LPG consumption with electricity would reduce imports substantially. The domestic consumption of
kerosene Kerosene, paraffin, or lamp oil is a combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in aviation as well as households. Its name derives from el, κηρός (''keros'') meaning " wax", and was re ...
is 7.349 million tons with Rs. 30,151 crores subsidy to the domestic consumers in 2012–13. The subsidized retail price of kerosene is 13.69 Rs/liter whereas the export/import price is 48.00 Rs/liter. The affordable electricity retail tariff (860 Kcal/Kwh at 74% heating efficiency) to replace kerosene (net calorific value 8240 Kcal/liter at 40% heating efficiency) in domestic cooking is up to 9.27 Rs/kWh when the kerosene retail price is 48 Rs/liter. In 2014–15, the
plant load factor The net capacity factor is the unitless ratio of actual electrical energy output over a given period of time to the theoretical maximum electrical energy output over that period. The theoretical maximum energy output of a given installation is def ...
(PLF) of coal-fired thermal power stations was only 64.46%. These stations can run above 85% PLF if there is adequate electricity demand. The additional electricity generation at 85% PLF is nearly 240 billion units, enough to replace all the LPG and kerosene consumption in domestic sector. The incremental cost of generating additional electricity is only the coal fuel cost, less than 3 Rs/Kwh. Enhancing the PLF of coal-fired stations and encouraging domestic electricity consumers to substitute electricity in place of LPG and kerosene in household cooking would reduce government subsidies. It has been proposed that domestic consumers who are willing to surrender subsidized LPG/kerosene permits should be given a free electricity connection and a subsidized electricity tariff. Substantial scope is also present in micro, small, and medium enterprises (
MSME Small and medium-sized enterprises (SMEs) or small and medium-sized businesses (SMBs) are businesses whose personnel and revenue numbers fall below certain limits. The abbreviation "SME" is used by international organizations such as the World Bank ...
) to switch over to electricity from fossil fuels to reduce cost of production provided uninterrupted power supply is ensured. Since 2017, IPPs have offered to sell solar and wind power below 3.00 Rs/Kwh to feed into the high voltage grid. After considering distribution costs and losses, solar power appears to be a viable economic option for replacing the LPG and kerosene used in the domestic sector.


Electric vehicles

The retail prices of
petrol Gasoline (; ) or petrol (; ) (see ) is a transparent, petroleum-derived flammable liquid that is used primarily as a fuel in most spark-ignited internal combustion engines (also known as petrol engines). It consists mostly of organic c ...
and
diesel Diesel may refer to: * Diesel engine, an internal combustion engine where ignition is caused by compression * Diesel fuel, a liquid fuel used in diesel engines * Diesel locomotive, a railway locomotive in which the prime mover is a diesel engi ...
are high enough in India to make electricity driven vehicles relatively economical. The retail price of diesel was 101.00 Rs/litre in 2021–22, and the retail price of petrol was 110.00 Rs/litre. The affordable retail electricity price to replace diesel would be up to 19 Rs/Kwh (860 Kcal/Kwh at 75% input electricity to shaft power efficiency versus diesel's net calorific value of 8572 Kcal/liter at 40% fuel energy to crankshaft power efficiency), and the comparable number to replace petrol would be up to 28 Rs/Kwh (860 Kcal/Kwh at 75% input electricity to shaft power efficiency versus petrol's net calorific value at 7693 Kcal/litre at 33% fuel energy to crankshaft power efficiency). In 2012–13, India consumed 15.744 million tons of petrol and 69.179 million tons of diesel, both mainly produced from imported crude oil. Electricity driven vehicles are expected to become popular in India when energy storage/
battery Battery most often refers to: * Electric battery, a device that provides electrical power * Battery (crime), a crime involving unlawful physical contact Battery may also refer to: Energy source *Automotive battery, a device to provide power t ...
technology offers improved range, longer life and lower maintenance. Vehicle to grid options are also attractive, potentially allowing electric vehicles to help to mitigate peak loads in the electricity grid. The potential for continuous charging of electric vehicles through wireless electricity transmission technology is being explored by Indian companies and others.


Energy reserves

India has abundant solar, wind, hydro (including pumped storage) and biomass power potential. In addition, as of January 2011 India had approximately 38 trillion cubic feet (Tcf) of proven natural gas reserves, the world's 26th largest reserve. The United States
Energy Information Administration The U.S. Energy Information Administration (EIA) is a principal agency of the U.S. Federal Statistical System responsible for collecting, analyzing, and disseminating energy information to promote sound policymaking, efficient markets, and publ ...
estimates that India produced approximately 1.8 Tcf of natural gas in 2010 while consuming roughly 2.3 Tcf of natural gas. India already produces
coalbed methane Coalbed methane (CBM or coal-bed methane), coalbed gas, coal seam gas (CSG), or coal-mine methane (CMM) is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, Au ...
.


See also

* Energy in India * Energy policy of India *
Oil and gas industry in India The petroleum industry in India dates back to 1889 when the first oil deposits in the country were discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the 1960s with the discovery of gas fields in ...
* Climate change in India * East West Gas Pipeline (India) *
List of electricity organisations in India This is a list of electricity-industry related organisations based in India. Under Central Government Regulatory Bodies * Central Electricity Authority (India) , Central Electricity Authority *Central Electricity Regulatory Commission *B ...
*
Central Electricity Authority (India) The Central Electricity Authority of India (CEA) advises the government on policy matters and formulates plans for the development of electricity systems. It is a statutory organisation constituted under section 3(1) of Electricity Supply Act 194 ...
*
List of power stations in India The total installed power generation capacity in India as on July 31, 2022 is 404,132.95 MW with sector wise & type wise break up as given below. For the state wise installed power generation capacity, refer to States of India by installed power ...
*
Indian Rivers Inter-link The Indian Rivers Inter-link is a proposed large-scale civil engineering project that aims to effectively manage water resources in India by linking Indian rivers by a network of reservoirs and canals to enhance irrigation and groundwater r ...
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List of countries by electricity production This is a list of countries by annual electricity production. China is the world's largest electricity producing country, followed by the United States and India. __TOC__ Total production If possible, country links link to articles about the ele ...


Notes


References


External links


National electricity Plan – 2012, CEA, Government of India



India's Energy Policy and Electricity Production
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