SUMMER INTERNSHIP REPORT ON
POWER
PROCUREMENT, SALES & ALIGNED BUSINESS
OPPORTUNITIES
DISCOM’s & DEVLOPERS PERSPECTIVE
Under Guidance of
Mr. Ravi Shekhar
SNP Infra Solutions
&
Ms Karishma Verma
Fellow-CAMPS
AT
SNP Infra Research Solutions
Submitted By:
Shashank Kumar Singh
Roll No : 111
MBA (Power Management)
NATIONAL POWER TRAINING INSTITUTE
राष्ट्रीय विघत
ु प्रशिक्षण प्रततष्ट्ठान
(Under Ministry of Power, Government of India)
Affiliated to
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
DECLARATION
I, Shashank Kumar Singh, Roll No 111/Semester 3rd/Class of 2012-2014 of MBA (Power
Management) of National Power Training Institute, Faridabad hereby declare that the
summer training report entitled POWER PROCUREMENT, SALES & ALIGNED BUSINESS
OPPORTUNITIES : DISCOM’s & DEVLOPERS PERSPECTIVE is an original work and the
same has not been submitted to any other institute for the award of any other degree.
A seminar presentation of the training report was made on Sep 2013 and the suggestions
are approved by faculty duly incorporated.
Presentation In Charge
Candidate
(Faculty)
Signature of
Countersigned
Director/Principal of the Institute
Acknowledgement
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.”
On the very outset of this report, I would like to extend my sincere &
heartfelt obligation towards all the personages who have helped me in this
endeavor. Without their active guidance, help, cooperation & encouragement,
I would not have made headway in the project.
I am ineffably indebted to Mr. Ravi Shekhar for conscientious guidance
and encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to my faculty Miss karishma
Verma for his valuable guidance and support on completion of this project in
its presently.
I extend my gratitude to SNP Infra Solution for giving me this opportunity.
I would also like to thank Rachita Jolly and Nikita Sharma for guiding me
at every step and helping me to make the work easier.
I also acknowledge with a deep sense of reverence, my gratitude towards
my parents and member of my family, who has always supported me morally
as well as economically.
At last but not least gratitude goes to all of my friends who directly or
indirectly helped me to complete this project report.
Thanking You
Shashank Kumar Singh
EXECUTIVE SUMMARY
This report consists of Introduction about Power Procurement, dynamics involved in
Power procurement, analysis of how tariff affects power procurement and Analysis of
power sales by developers. State identification study has been done on Parametric
Analysis based on Peak demand, Energy requirement, AT&C Losses, Consumer
Category Mix and State economy of individual state to analyse for Distribution utilities
Power Procurement. Opportunities in 12th plan capacity addition and growth under
different scenario, EPC Opportunities in 12th plan. Power Sale Opportunities for
developers and Merits & Demerits of sale through various routes. State Attractiveness
Index (Based on Techno-Commercial Parameters) and Ranking of identified states.
Opportunities for Power Distribution in Power Procurement, Tariff Analysis of Thermal
power plants with different fuel and effect of tariff under Case 1 & Case 2 Bidding, Short
term transaction analysis based on past data, Power distribution to end consumers and
opportunities for revenue generation by Industrial consumer having highest share of
45%, Trends in Surplus Power sale by Discoms and issues related to it, Private
participation in Electricity Distribution. Power Procurement Opportunities from Private
Players within State by discoms of identified States in 12 th Plan and Categorisation of
Private developers in High, Medium & Low (Based on Past Operational experience and
Installed capacity). Power Procurement Attractiveness analysis of discoms from UMPP,
CSGS, State Gencos and IPPs with benefits, preferred orders of generators for discoms
to sign PPA in line with their demand. Cost reduction opportunity analysis in Power
Procurement by Discoms: By Source of Generation, By Category of Consumer Served.
Power Sale Attractiveness analysis by discoms: Share of different segments and Price
Analysis of power sale via Exchange and Traders. Aligned business opportunities for
Developers and Discoms.
LIST OF ABBREVIATION
PPA
Power Purchase Agreement
ARR
Aggregate Revenue Requirement
UR
Unscheduled Interchange
SLDC
State Load Despatch Centre
NLDC
National Load Despatch Centre
SERC
State Electricity Regulatory Commission
CERC
Central Electricity Regulatory Commission
E&C
Engineering & Construction
T&D
Transmission & Distribution
AT&C
Aggregate Technical & Commercial
UMPP
Ultra Mega Power Project
EPC
Engineering Procurement and Construction
RFQ
Request for Qualification
LOI
Letter of Intent
ACS
Average Cost of Supply
KWH
Kilo Watt Hour
CAGR
Compound Annual Growth Rate
MU
Million Units
PPP
Public Private Partnership
PLF
Plant Load Factor
IPP
CSGS
Independent Power Producers
Central Sector Generating Stations
MPP
Mega Power Project
CKM
Circuit Kilometres
MVA
Mega Volt Ampere
Table of Contents
Introduction .............................................................................................................. 11
Power Procurement: ............................................................................................. 12
Power Sale: .......................................................................................................... 13
State Identification Study.......................................................................................... 15
State Parametric Analisis ...................................................................................... 16
Overview of States on Techno Commercial Basis ................................................ 18
Opportunities for Power Developers in India ............................................................ 19
Original Targets for Capacity Addition in 11th Plan: .............................................. 20
Slippage in the 11th Five Year Plan:...................................................................... 20
Opportunity in 12th Five Year Plan ........................................................................ 21
Expected Scenario in the 12th Five Year Plan: ..................................................... 23
Scenario1: Business as Usual:.......................................................................... 23
Scenario 2: Business at High Gas Production .................................................. 24
Scenario 3: Business at High Gas & High Renewable ...................................... 26
List of UMPP’s in India: ......................................................................................... 27
Proposed UMPPS’s: ............................................................................................. 28
EPC Opportunity in 12th Five Year Plan:............................................................... 29
List of Companies Involved in EPC:...................................................................... 29
Turnkey Contracts vs Packaged Based Contracts: .............................................. 30
Opportunities in Power sales: ............................................................................... 31
Opportunities in Power Procurement: ................................................................... 31
Opportunities in Power Consulting:....................................................................... 32
Specialisation Wise Opportunity: .......................................................................... 32
Power Sale Opportunities for Developers ................................................................ 33
Power Sale Opportunity: ....................................................................................... 35
Bidding Process: ................................................................................................... 36
Long Term PPA at a Glance: ................................................................................ 36
Medium Term PPA at a Glance: ........................................................................... 37
Open Access at a Glance: .................................................................................... 37
Through Traders: .................................................................................................. 38
Industry Cluster:.................................................................................................... 38
Group, Societies or Association: ........................................................................... 38
Merchant Basis: .................................................................................................... 39
Opportunities for Power Distribution: .................................................................... 39
Opportunities for Power Distribution in India ............................................................ 39
Key Reforms in Distribution Sector: ...................................................................... 40
Power Procurement Method: ................................................................................ 41
Procurement Priorities: ......................................................................................... 41
Bidding Mechanism: ............................................................................................. 43
Bidding Process: ................................................................................................... 43
Short Term Transaction: ....................................................................................... 44
Opportunity in Power Distribution: ........................................................................ 46
Surplus Power Sale: ............................................................................................. 46
Minimising Cost of Power Procurement: ............................................................... 47
Long Term Power Procurement: ........................................................................... 48
Short-Term Power Procurement: .......................................................................... 48
Private Participation in Electricity Distribution: ...................................................... 49
Type of PPP Model: .............................................................................................. 50
Types of Distribution Franchisee: ......................................................................... 51
Opportunities in Power Procurement for DISCOMs ................................................. 52
Open Access: ....................................................................................................... 53
Through Traders: .................................................................................................. 53
Through Captive Power Plant: .............................................................................. 53
State Overview: .................................................................................................... 54
Andhra Pradesh: ............................................................................................... 54
Gujarat: ............................................................................................................. 55
Haryana: ........................................................................................................... 55
Karnataka: ......................................................................................................... 56
Maharashtra: ..................................................................................................... 57
Rajasthan: ......................................................................................................... 57
Tamil Nadu: ....................................................................................................... 58
Uttar Pradesh: ................................................................................................... 59
Power Procurement on the basis of Companies: .................................................. 61
Power Procurement Attractiveness Analysis ............................................................ 61
Public Sector Undertakings: .............................................................................. 62
B.
Private IPPS/Joint ventures: ...................................................................... 62
Power Procurement on the basis of Generating Stations: .................................... 62
By Ultra Mega Power Projects: ......................................................................... 62
By Mega Power Plants: ..................................................................................... 63
Power Procurement Attractive Analysis: ............................................................... 64
Andhra Pradesh ................................................................................................ 64
Gujarat .............................................................................................................. 65
Haryana ............................................................................................................ 66
Karnataka .......................................................................................................... 67
Madhya Pradesh ............................................................................................... 68
Maharashtra ...................................................................................................... 69
Tamil Nadu ........................................................................................................ 70
Uttar Pradesh .................................................................................................... 71
West Bengal ...................................................................................................... 72
Cost Reduction Opportunity Analysis in Power Procurement by DISCOMs ............. 73
Cost Reduction by Source of Generation: ............................................................ 74
Share of Coal based Capacity Addition ................................................................ 75
Order based on Cost of delivered Energy ............................................................. 75
Aligned Business Opportunities for Developers ....................................................... 77
Project Management Opportunities: ..................................................................... 78
Phases of Project Life Cycle: ........................................................................... 78
Main Buckets of Power Management:............................................................... 78
Key Areas of Assistant: ..................................................................................... 79
Transmission Companies at a Glance: ................................................................. 80
Share in Transmission Network: ....................................................................... 80
Transmission Opportunities: ............................................................................. 81
Transmission Network in India: ......................................................................... 81
Distribution Network in India:............................................................................. 82
Opportunities in Coal Business: ............................................................................ 82
Coal Recoverable Reserves by Region ............................................................ 83
Top Coal Producing Countries: ......................................................................... 83
Sector Wise Coal Consumption ........................................................................ 84
Coal Availability in India .................................................................................... 84
Demand Estimates by Expert Committees in 12th Plan .................................... 84
Sector Wise Coal Consumption: ....................................................................... 85
Whole Sale Price Index: .................................................................................... 85
Best Practices in Reducing Technical Losses ................................................... 87
Distribution Infrastructure Development: ........................................................... 87
Opportunities in Metering: ..................................................................................... 88
Market Share by Revenue 2012-13 .................................................................. 89
Opportunities in Billing and Collection: ................................................................. 90
Opportunity in IT Implementation: ......................................................................... 90
Conclusion ............................................................................................................... 91
List of Tables
Table 1: Power Procurement Overview .................................................................... 13
Table 2:Original Targets for Capacity Addition in 11th Plan: .................................... 20
Table 3: Slippage in the 11th Five Year Plan ........................................................... 21
Table 4:Opportunity in 12th Five Year Plan .............................................................. 21
Table 5 : Proposed UMPPs ...................................................................................... 29
Table 6 : Companies Involved in EPC ...................................................................... 29
Table 7 : turn Key vs Packaged Based Contracts .................................................... 30
Table 8 : Private Participation in Distribution ............................................................ 50
Table 9 : Type of PPP Model ................................................................................... 51
Table 10 : Types of Distribution Franchisee ............................................................. 51
Table 11 : Transmission Network in India ................................................................ 82
Table 12 : Top Coal Producing Companies.............................................................. 83
Table 13 : Sector by Coal Opportunities................................................................... 84
Table 14 : Coal Overview in India: ........................................................................... 86
List of Figures
Figure 1:Overview of State on Techno Commercial Basis ....................................... 18
Figure 2:11th Plan Actual & Target Gap................................................................... 22
Figure 3:12th Plan Capacity Addition ....................................................................... 22
Figure 4:Scenario1 ................................................................................................... 24
Figure 5 : Scenario 2 ................................................................................................ 25
Figure 6 : Scenario 3 ................................................................................................ 27
Figure 7: EPC Opportunity ....................................................................................... 29
Figure 8: Period of Procurement .............................................................................. 35
Figure 9: Procurement Applicability .......................................................................... 35
Figure 10 : Bidding Process ..................................................................................... 36
Figure 11 : Sector Wise Power Consumption ........................................................... 45
Figure 12 : Estimated Power Consumption .............................................................. 46
Figure 13 : Power Sale Statics ................................................................................. 47
Figure 14 : Share of Coal based Capacity Addition .................................................. 75
Figure 15 : Peak Demad in India .............................................................................. 76
Figure 16 : Maharashtra Hourly Limit ....................................................................... 76
Figure 17 : Share of Different Segments in Transmission ........................................ 77
Figure 18 : Price of Electricity Through Trading Liscencees and Power Exchanges 77
LIST OF ABBREVIATION
PPA
Power Purchase Agreement
ARR
Aggregate Revenue Requirement
UR
Unscheduled Interchange
SLDC
State Load Despatch Centre
NLDC
National Load Despatch Centre
SERC
State Electricity Regulatory Commission
CERC
Central Electricity Regulatory Commission
E&C
Engineering & Construction
T&D
Transmission & Distribution
AT&C
Aggregate Technical & Commercial
UMPP
Ultra Mega Power Project
EPC
Engineering Procurement and Construction
RFQ
Request for Qualification
LOI
Letter of Intent
ACS
Average Cost of Supply
KWH
Kilo Watt Hour
CAGR
Compound Annual Growth Rate
MU
Million Units
PPP
Public Private Partnership
PLF
Plant Load Factor
IPP
Independent Power Producers
CSGS
Central Sector Generating Stations
MPP
Mega Power Project
CKM
Circuit Kilometres
MVA
Mega Volt Ampere
Chapter No 1
Introduction
Power Procurement:
Power Purchase cost constitute the largest cost element for Distribution elements, a
Distribution utility receives power from CSGS, State Gencos, IPPs through Long term PPAs
and Short term Purchases.
Power Purchase cost accounts for about 80% of ARR of distribution licensees and includes
cost paid for Procurement of Power, transmission charges, UI charges, SLDC/RLDC
charges and is netted off with revenue earned from sale of surplus power.
Cost of Long term power being procured is being fixed by CERC for plant supplying power to
more than one state and by SERCs for plants located within the state. The short term
purchase is through traders, bilateral contracts, banking and Power exchanges at market
determined price.
Power purchase cost is highly dependent upon following factors:
1. Price of fuel (Coal/Gas) which is highly unpredictable.
2. Weather conditions have direct impact on demand and hence price.
3. Demand Supply gap of power within country.
Indian Electricity Act 2003
Sec 62(4): No tariff or any part of tariff may ordinarily be amended more frequently than
once in any financial year, except in respect of any changes expressly permitted under the
terms of any fuel surcharge formula as may be specified.
National tariff Policy
Clause-5(h-4): Multi Year Tariff
Uncontrollable costs should be recovered speedily to ensure that future consumers are not
burdened with past costs.
Uncontrollable costs would include:
1. Fuel costs
2. Costs on account of Inflation.
3. Taxes and cess charges
4. Variation in power purchase unit costs including on account of hydro-thermal mix in
case of adverse natural events.
State
Power Purchase
Cost Adjustment
Fuel Price Adjustment
Frequency of
Adjustment
Kerala
Yes
Yes
Quarterly
Bihar
Yes
Yes
Half Yearly
Chhattisgarh
No
Variable Cost
Adjustment
Time to Time
Gujarat
Yes
Yes
Quarterly
Haryana
Yes
Yes
Quarterly
Andhra
Pradesh
No
Yes
Quarterly
Madhya
Pradesh
Yes
Yes
Half Yearly
West Bengal
Yes
Yes
Yearly
Maharashtra
Yes
Yes
Quarterly
Uttar Pradesh
Yes
Yes
Quarterly
Table 1: Power Procurement Overview
Power Sale:
Increasing manufacturing activities and a growing population are also causing a surge in
power usage. India has the 5th largest grid in the world with 135 GW capacities, and the
words third largest transmission and distribution network.
Large investments are required to meet the growing demand and provide universal access.
An investment of USD167 billion is projected for electricity projects in the 5 year period from
FY07-FY12. The massive number and scope of potential projects has attracted a number of
new investors, lenders and operators. All new award are through open competitive bidding.
A rush is on to develop new assets, harness natural resources, and attract global finance –
but an industry focus and strategy is necessary to properly tap into this opportunity.
E&C companies may want to consider involvement in the construction of power stations, and
T&D networks, particularly if sustainable building and generation technologies can be
leveraged. The Indian Government is also looking to encourage the generation of wind and
solar power by providing generation-based incentives to those companies who do not claim
accelerated depreciation, so E&C companies with experience in building these types of
alternative energy projects may find excellent opportunities.
Chapter No 2
State Identification Study
Parametric Analysis
Haryana
Jharkhand
Karnataka
Kerala
6
7
8
9
Low
High
Low
Medium
Low
Very High
MW
11000-18000
above
High
High
50000-11000
MW
MW
Medium
Medium
3000-5000
MW
MW
1000-3000
Medium
High
Low
High
Very High
Low
Medium
Medium
High
High
Low
Low
High
5000 MW &
1000-5000
up to 1000
Low
Gujarat
5
High
Low
High
Low
Delhi
4
Medium
Medium
Low
Losses
AT&C
Energy Requirement:
Chhattisgarh
3
Low
High
Requirement
Demand
Very High
Energy
Peak
Peak Demand:
Bihar
Pradesh
Andhra
Name of State
2
1
Sl No.
High
Medium
Low
61
38
34
34
24
54
29
48
35
Domestic
30%-50%
20%-30%
up to 20%
AT&C Losses:
Good
Average
Poor
Good
Good
Very Good
Average
Poor
Average
Economy
State
State Parametric Analisis
Very Good
Good
Average
Poor
21
51
48
48
72
16
65
40
55
Industrial
2000 & above
1200-2000
800-1200
up to 800
State Economy:
18
11
18
18
04
30
06
12
10
Commercial
Major Consumer
Very High
Low
High
Uttar Pradesh
Uttarakhand
West Bengal
MW
above
Very High
11000-18000
High
MW
MW
High
50000-11000
Medium
MW
MW
3000-5000
Medium
5000 MW &
1000-5000
up to 1000
Low
1000-3000
Low
Medium
Medium
High
Low
Medium
Low
High
Medium
High
Energy Requirement:
Low
Low
High
High
Medium
Medium
Low
Medium
Medium
Losses
AT&C
Peak Demand:
MW
Very High
Tamil Nadu
Very High
Punjab
High
Medium
Odisha
Rajasthan
Very High
High
Requirement
Demand
Maharashtra
Madhya Pradesh
Name of State
Energy
Peak
High
Medium
Low
52
22
56
33
39
39
56
29
48
Domestic
30%-50%
20%-30%
up to 20%
AT&C Losses:
Average
Good
Poor
Good
Poor
Good
Average
Good
Poor
Economy
State
Very Good
Good
Average
Poor
33
64
26
53
47
48
26
29
39
Industrial
2000 & above
1200-2000
800-1200
up to 800
State Economy:
15
14
18
14
14
12
18
42
12
Commercial
Major Consumer
18
17
16
15
14
13
12
11
10
Sl No.
Overview of States on Techno Commercial Basis
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Peak Demand(MW)
Surplus/Deficit
AT&C Losses
State Economy
Figure 1:Overview of State on Techno Commercial Basis
Chapter No 3
Opportunities for Power
Developers in India
Original Targets for Capacity Addition in 11th Plan:
Original Targets for Capacity Addition during 11th Plan
Sector
Hydro
Thermal
Nuclear
Total
Central
5632
11426
2800
19858
State
1456
12340
0
13796
Private
2116
40015
0
42131
Total
9204
63781
2800
75785
Table 2:Original Targets for Capacity Addition in 11th Plan:
Slippage in the 11th Five Year Plan:
Slippage
Hydro
Thermal
Nuclear
Total
Central
5732
9920
0
15652
State
628
4800
0
5428
Private
1030
-5784
0
-4754
Total
7390
8936
0
Table 3: Slippage in the 11th Five Year Plan
Opportunity in 12th Five Year Plan
Opportunity
Sector
Hydro
Thermal
Nuclear
Total
Central
11364
21346
2800
35510
State
2084
17140
0
19224
Private
3146
40015
0
43161
Total
16594
78501
2800
Table 4:Opportunity in 12th Five Year Plan
11th Plan Actual & Target Gap:
Figure 2:11th Plan Actual & Target Gap
12th Plan Capacity Addition:
Figure 3:12th Plan Capacity Addition
Expected Scenario in the 12th Five Year Plan:
Scenario1: Business as Usual:
2015
Renewable
9%
Hydro
22%
Nuclear
3%
Thermal
66%
Coal
55%
Gas
10%
Other
1%
Renewable
13%
Hydro
17%
Nuclear
2%
Coal
56%
Thermal
68%
Gas
8%
Other
4%
Figure 4:Scenario1
Scenario 2: Business at High Gas Production
2020
Renewable
22%
Coal
34%
Thermal
53%
Hydro
22%
Gas
12%
Nuclear
3%
Other
7%
2015
Coal
18%
Renewable
35%
Thermal
49%
Hydro
14% Nuclear
2%
2020
Figure 5 : Scenario 2
Gas
11%
Others
20%
Scenario 3: Business at High Gas & High Renewable
2015
Renewable
20%
Coal
35%
Other
55%
Hydro
22%
Gas
12%
Nuclear
3%
Others
8%
Coal
20%
2020
Renewable
29%
Thermal
54%
Hydro
15%
Nuclear
2%
Gas
12%
Others
22%
Jharkhand
Limited,
Integrated Power
Jharkhand
Andhra Pradesh
Power Limited,
Coastal Andhra
Gujarat
Power Limited,
Costal Gujarat
Madhya Pradesh
3960
3960
4000
24000
17450
20000
19400
1.77
2.33
2.26
1.29
Coal
Head
2009
August
2008
d Coal
Pit
29 January,
2006
December,
28
2007
1st August.
Date
Announced
Importe
d Coal
Importe
Coal
Head
3960
Limited,
(Rs./kWh)
Type
Fuel
Pit
(Cr. INR)
(MW)
Tariff
Levelised
Sasan Power
Name of Project
Project Cost
Capacity
List of UMPP’s in India:
May 2015
January 2013
March 2012
June 2014
Date
Completion
to begin.
construction yet
currently on
Clearance
hold.
obtained
Construction
progress taken.
clearance
& 5 is in
representative
Work
All
theon Unit 3,4
completed.
800x2 MW
two Units of
Construction of
Completed
Work Position
Figure 6 : Scenario 3
4
3
2
1
No
Sl
Proposed UMPPS’s:
Sl. No
Name of Project
Capacity
1
Surguja Power Limited, Chhattisgarh
Approximately 4000 MW
2
Orissa Integrated Power Limited, Odisha
Approximately 4000 MW
3
4
5
6
7
8
Coastal Tamil Nadu Power Limited, Tamil
Nadu
Tatiya Andhra Mega Power Limited, Tamil
Nadu
Deoghar Mega Power Limited, Jharkhand
Sakhigopal Integrated Power Company
Limited, Odisha
Ghogarpalli Integrated Power Company
Limited, Odisha
Coastal Maharashtra Mega Power Limited,
Maharashtra
Approximately 4000 MW
Approximately 4000 MW
Approximately 4000 MW
Approximately 4000 MW
Approximately 4000 MW
Approximately 4000 MW
9
Coastal Karnataka Power Limited
Approximately 4000 MW
10
Bihar UMPP
Approximately 4000 MW
11
2nd UMPP in Tamil Nadu
Approximately 4000 MW
12
2nd UMPP in Gujrat
Approximately 4000 MW
Status
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Propose
d
Table 5 : Proposed UMPPs
EPC Opportunity in 12th Five Year Plan:
Water Supply
4%
Storage 1%
Irrigation
9%
Telecom
24%
Oil & Gas
6%
Airports
Railways
2%
11%
Ports 2%
Power
29%
Non EPC
18%
E…
Road &
Bridges
12%
Figure 7: EPC Opportunity
List of Companies Involved in EPC:
Sl. No.
Domestic Player
Foreign player
1
Bharat Heavy Electricals Limited
Doosan
2
Thermax
Dongfang
3
Larsen & Toubro
Siemens
4
Tata Projects
Bechtel
5
KEC International
Hitachi
6
Kalpatru-JMC
Ansaldo
7
BGR Energy
8
Lanco Infratech
Table 6 : Companies Involved in EPC
 The EPC in power sector is basically in equipment manufacturer.
 Investor prefers to enter market in joint venture with domestic companies.
 There are certain companies which are developers as well as EPC contractors.
Turnkey Contracts vs Packaged Based Contracts:
Criteria
Turnkey Contract
Packaged Based Contract
Price
Guaranteed price for execution
No guarantee on the price
Time
Guaranteed timeline for completion
No guarantee on the timeline
Procurement
Undertaken solely by the contractor
As per agreement between the
two parties
Engineering/Design
Responsibility of the contractor
Responsibility of the owner or
developer
Responsibility
Contractor takes single point of
responsibility
Contractor has defined
responsibility
Point of Contract
Contractor is a single point of contact
for all matters for the power developer
Owner developer has to
coordinate with several
participants along with the
contractors
Level of Involvement
Contractor is free to work with limited
supervision/delivery as per agreed
milestones and specification
Owner/Developer to undertake a
day to day supervision of most of
the activities
Risk
Significant risks are transferred to the
contractor
Significant risks retained with the
owner/developer
Table 7 : turn Key vs Packaged Based Contracts
Conventional
Non Conventional
Opportunities in Power sales:
• Open Access
• Trading
• Group Captive
• Merchant Basis
• Group Societies
• Voluntary Time of Use rates
• Residential Societies
• Multiplex
• To Conventional Generators
• Co Generation
• Long Term PPA
• Medium Term PPA
Opportunities in Power Procurement:
Power
Procurement
Non Power
Trading
Power Trading
Via Exchange
Bilateral Trading
REC
PAT
Other Sources
Residential
Societies
Pumped Storage
System
Shopping Malls
Bunch of Captive
Plants
Cluster of Roof
Tops
Solar PV
Opportunities in Power Consulting:
Loan Syndication
Approval Services
Grant & Duty
Exemption
Specifications &
Drawings
Assistance in
signing EPC
Manpower
Planning
Project Developer
Interface Services
Others
Plant Layouts
Inspection &
Validation
Site Supervision
Monitoring of
Erection/Commi
ssioning
Post Commissioning
Detailed Project
Report
PERT/CPM
Networks
Trouble
Shooting
Infrastructure
Fuel Survey
Basic/Detailed
Design
Engineering
Post Contract Engineering
Feasibility Study
Pre Contract Engineering
Pre Investment
Stage Wise Opportunity:
Optimise Investment
Plant MIS
Compliance
Reports
Plant Stabilisation
MIS Development
Policy Studies
Providing Expertise
Providing Technical Help
Training and
Development
Discover Growth
Opportunities
Sourcing Strategy
Market Assessment
Financial Feasibility
Studies
Performance and
Efficiency Improvement
Operational
Improvements
Efficiency Improvement
Regulatory Issues
Outsourcing
Research
Manpower Solution
Specialisation Wise Opportunity:
Statutory Clearance
Project Approval
Power Purchase
Agreements
Asset Management
Mergers & Acquisition
Repair and Maintenance
Technology and
Automation
Evaluation
Renovation &
Modernisation
Co-Development
Soil and water Testing
Operation
Chapter No 4
Power Sale Opportunities for
Developers
Power Sale Opportunity:
Period of Procurement
Long Term
Short Term
For 7 or more than
7 Years
From 1 to 7
Years
Figure 8: Period of Procurement
Procurement Applicable for:
Peak Load
Seasonal Load
Figure 9: Procurement Applicability
Bidding Process:
•
Step 1: Preparation of Bid Documents and Technical Analysis done by Procurer.
•
Step 2: RFQ Invited and Qualified Bidders Selected
•
Step 3: Creates a Common Platform and removes conditionality. Doubt Clearance
and Feedback
•
Step 4: Technical and Financial Bids Evaluated.
•
Step 5: LOI Issued and PPA Signed.
Preparation of Bid Documents and
Technical Analysis done by Procurer
RFQ Invited and Qualified Bidders
Selected
Creates a Common Platform and
removes conditionality. Doubt
Clearance and Feedback
Technical and Financial Bids
Evaluated
LOI Issued
PPA Signed
Figure 10 : Bidding Process
Long Term PPA at a Glance:
•
Benefits
o
Reduced Financial Risk
•
o
Stable Revenue Stream
o
Low Cost Financing for Utility Based Projects
o
Low Fuel Insecurity
o
Government Support and Regulations
Demerits
o
Stable Price
o
Less Margin of Profit
o
Less Flexibility to Choose Purchasers
o
High Lock in Power Period
Medium Term PPA at a Glance:
•
•
Benefits
•
High Profit Margin
•
Capacity dint lay idle
•
Scope of Price Revision
•
High Flexibility
Demerits
•
No Assurance of Sale
•
Insecure Market
•
Problem in Financial Funding
•
Less Stable Revenue Scheme
Open Access at a Glance:
Merits

DISCOMS can attract consumers outside their distribution network by offering better
services and competitive rates

DISCOMS shall be benefited by collecting wheeling charges as an additional source
of income over and above the income from retail sale of power to consumers below 1
MW.

Sufficient power can be available to DISCOMS from Generators at a cheaper rate to
supply power to consumers.
Demerits

Loss of major source of revenue: Industrial Consumer

Effect on Power Procurement cost if consumers migrate to Open Access as Long
term PPA been signed by DISCOMS to serve Industrial and Commercial consumers
of 1Mw above.
Through Traders:

Immune from Quantum of Electricity and Price Fluctuation in Short Term Market.

Liability of assured Supply of Electricity to DISCOMs will be on Trading agencies.

DISCOM can opt for Long term Business solutions via traders provided cost of
supply is lower.

Avoidance of daily bidding and preference in corridor booking.

Price is comparatively higher than short term procurement through power exchange.
Industry Cluster:
Merits:

Competitive Tariff

Good Business Opportunity as Reliable Power is Available
Demerits:
•
State Government Hindrances.
•
Non Availability of Transmission Corridor
•
Competition at Location can effect business prospect
•
High Transmission and Wheeling Charges
Group, Societies or Association:


Merits:
o
Premium Cost of Supply
o
Ensured Payment
Demerits
o
State Government Hindrances
o
Non Availability of Transmission Corridor
o
Competition at Location can effect business prospect
o
High Transmission and Wheeling Charges
Merchant Basis:


Merits:
o
No tie up for Long Term Power Purchase Agreements
o
Delivery of Power at Competitive rates.
o
Large demand and supply gap in country
Demerits
o
No Risk Sharing
o
Financial Institutions may not be comfortable as there will be no PPA.
o
No Pre Identified customers
o
Un Even and High Transmission and wheeling charges
Chapter No 7
Opportunities for Power
Distribution in India
Opportunities for Power Distribution:
Power distribution is the final and most crucial link in the electricity supply chain. It assumes
great significance as the segment has a direct impact on the sector’s commercial viability
and ultimately on the consumers.
Distribution companies have not been able to undertake corresponding investments in
infrastructure augmentation which is plagued by:
1. Gap between ARR and ACS resulting Revenue Loss
2. Mounting Debts on Utilities
3. High AT&C Losses
4. Cross Subsidy
The Government has made heavy investments in distribution sector through RGGVY and RAPDRP with an aim to provide electricity to all in compliance with National Electricity Policy
2005 and bring down AT&C losses to 15%.
State Electricity Utilities
04
DISCOMS
41
Private Distribution Companies
17
Key Reforms in Distribution Sector:
1192-95: Mega Power Policy; Reforms in the state of Odisha; Setting up of Odisha
Electricity Commission.
1997-98: Reforms in Haryana; Setting up of Haryana Electricity Regulatory Commission
1998-99: Reforms in state of Andhra Pradesh; Setting up of APERC; Act to set up CERC &
SERCs, Act to allow private participation in transmission.
1999-01: Availability Based Tariff introduced in Western Region
2001-02: Accelerated Power Development & Reform Programme Launched
2002-03: Restructuring & Privatisation of Delhi Vidyut Board; Open Access of Distribution
Network to all Bulk Consumers.
2008: RAPRDP Launched. IEX commenced its operations and 27th June 2008.
2012: Financial Restructuring Plan Introduced.
Power Procurement Method:
Long Term Procurement
• For More Than 7 years
Medium Term Procurement
• Between 1 to 7 years
Short Term Procurement
Competitive
Long
bidding is done for
and
• Based on Short Term Market Sales
Medium Term Power
Purchase and Short Term Procurement is based on Market.
Procurement Priorities:
Depending upon the load ( Base, Peak & Seasonal Load) Mix Of Procurement Methodology
is adopted by DISCOMS.
Base Load
(Usually by PPA)
Peak Load
(Short Term Market)
Seasonal Load
(Short Term Market)
Long Term and Medium Term PPA:
Tariff (Paise/Kwh)
1400
1200
1000
800
600
400
200
0
Coal based
Natural
Gas
LNG
Naptha/HS
D
Lignite
The prices paid by distribution companies to procure power from central government owned
generating companies in 2011-12 (under long-term Power Purchase Agreements) are shown
in Annexure 2. It can be seen that, on an average, the distribution companies paid between
1.19 and 4.28 per kWh for procuring power from coal and lignite based stations, between
2.72 and 6.99 per kWh from gas/RLNG based power stations, between 8.49 and 12.01 per
kWh from liquid fuel based power stations and between 0.77 per kWh and 5.90 per kWh
from hydro stations (Annexure 3).
Annexure 4 indicates medium term and long-term levellised tariff for power available from
power projects bid in the year 2010-11 and 2011-12 under Case-I and Case-II (State
specific) respectively. The price of the power projects under Case-I for long-term varied in
the range of 2.345 per kWh to 3.324 per kWh and for medium term varied in the range of
4.10 per kWh to 4.85 per kWh. The price of the power projects under Case-II (State specific)
for long-term varied in the range of 2.89 per kWh to 3.223 per kWh. The price in the medium
term was relatively high when compared with the price in the long-term.
Bidding Mechanism:
Case 1
Case 2
• Location, Technology, Fuel
: Not Specified
• Bidder Responsible for
Clearance, Approvals, etc.
• Lower Risks of States
• Higher Risk of Developers
• Location, Technology, Fuel
: Specified
• Bidder Not Responsible for
Clearance, Approvals, etc.
• Higher Risks of States
• Lower Risk of Developers
Tariff Expected to be
Comparatively High
Tariff Expected to be
Comparatively Low
Bidding Process:
•
Preparatory Stage: Preparation of Bid Documents and Technical Analysis
done by Procurer
•
Bidder Evaluation: Request for Qualification (RFQ) invited
•
Interaction with Qualified Bidders: Created a Common Platform and
Removes Conditionality, Doubt Clearance and Feedback
•
Commercial Bid Evaluation: Technical and Financial Bid Evaluated
•
Signing of Contract: LOI issued and PPA signed
* Medium Term Procurer has an option to adopt Single Stage Tender Process
combining the RFQ & RFP.
Short Term Transaction:
1000
764.03
809.45
874.17
500
65.9
81.56
94.51
0
2009-10
2010-11
2011-12
Total Volume of short term Transaction of Electrcity(BU)
Total electricity Generation
A short- term power market can help electricity providers procure unplanned and
fluctuating power requirements, and on the sellers' side, enable power producers as well
as procurers to sell their surplus power. In India, the short-term power market, which
covers contracts of less than a year through bilateral agreements and power exchanges
is well developed, constituting approximately 11 % (close to 95 billion
units) of the total electricity market in 2011-12, though this includes power transactions
through unscheduled interchange (UI) as well.
India at present has two power exchanges.
1. Power Exchange India Limited (PXIL)
2. Indian Energy Exchange Limited (IEX)
Short-term transactions of electricity” refers to contracts of less than one year period for
electricity transacted under bilateral transactions through Inter-State Trading Licensees
(only inter-state part) and directly by the Distribution Licensees (also referred as
Distribution Companies or DISCOMs), Power Exchanges (Indian Energy Exchange Ltd
(IEX) and Power Exchange India Ltd (PXIL)), and Unscheduled Interchange (UI).
Total volume of short-term transactions of electricity increased from 65.90 billion kWh
(BU) in 2009-10 to 94.51 BU in 2011-12. The annual growth in volume was 24% from
2009-10 to 2010-11 and 16% from 2010-11 to 2011-12. Total volume of short-term
transactions of electricity as percentage of total electricity generation has increased from
9% in 2009-10 to 11% in 2011-12.
Power Distribution to End Consumer:
The estimated electricity consumption increased from 43,724 GWh during 1970-71 to
7,72,603 Gwh during 2011-12, showing a CAGR of 7.08% (Annexure 1). The increase in
electricity consumption is 11.26% from 2011-12 to 2011-12.
The electricity consumption in domestic sector and agriculture sector has increased at a
much faster pace compared to other sectors during 1970-71 to 2011-12, with CAGR of
9.44% and 8.43% respectively.
Of the total electricity sales in 2011-12, industry sector accounted for the largest share
(44.84%), followed by domestic (22.01%), agriculture (17.30%) and commercial sector
(8.97%).
Commercial
9%
Others
5%
Domestic
22%
Agriculture
17%
Industry
45%
Traction &
Railways
2%
Figure 11 : Sector Wise Power Consumption
Opportunity in Power Distribution:
As per the 18th Electric Power Survey (EPS), the estimated power consumption in the
country during each year of 12th Five Year Plan period is estimated as:
1800
1600
1400
1200
1000
800
600
400
200
0
2012-13
2013-14
2014-15
Electricity Consumption (BU)
2015-16
2016-17
Industrial Consumer (BU)
Figure 12 : Estimated Power Consumption
Tariffs for industrial consumers are considerably higher than other consumers
and the great potential of revenue generation for discoms. Considering average of Rs
6/kwh, average revenue generation is close to 2,20,704 Crores INR for 2013-14 which is
expected to grow year on year to meet economic growth of country industrial setups are
expected to increase in coming years.
Issue:
Due to unreliable and interrupted power supply Industrial consumer is migrating
to open access and resulting in revenue loss for DISCOMS.
Though industrial open access consumers are taking advantage of cheaper
power, the same is not being availed by the DISCOMS due to financial crunch.
Surplus Power Sale:
A short- term power market can help electricity providers procure unplanned and fluctuating
power requirements, and on the sellers' side, enable power producers as well as procurers
to sell their surplus power. In India, the short-term power market, which covers contracts of
less than a year through bilateral agreements and power exchanges is well developed,
constituting approximately 11 % (close to 95 billion units) of the total electricity market in
2011-12.
Volume of electricity transacted directly between DISCOMs increased significantly from 6.19
BU in 2009-10 to 15.37 BU in 2011-12. It can be observed that, the share of electricity
transacted between DISCOMs as percentage to total volume of short-term transaction of
electricity has also been increased from 9% to 16% in the same period.
120
100
80
60
40
20
0
2008-09
2009-10
2010-11
2011-12
Total Volume in Short Term
Electricity Transacted between DISCOM
Figure 13 : Power Sale Statics
Issues:
The average price for selling surplus power during night lean periods or off peak periods
varies around Rs.2.50 per unit. This means that the power which the discoms buy for an
average price of around Rs.3.9 is sold by them at a discount of Rs.1.4 per unit. This pushes
the price of the power upwards. With planning and forecasting, discoms attempt to sell
‘surplus' power at above the average price of Rs.3.9 per unit. This is increasingly becoming
challenging with grid codes and Central Electricity Regulatory Commission regulations
ensuring grid discipline.
Minimising Cost of Power Procurement:
Power procurement by Discoms is generally divided into 2 parts:
1. Long Term Power Procurement through PPA (Usually for Base Load)
2. Short Term Power Procurement in Short term market (To meet peak and seasonal
demand)
Long Term Power Procurement:
Competitive Procurement through Case-1 and Case-2 bidding reduces the cost of power
procurement for the
DISCOMS. DISCOMS prefer Long term Power Procurement to meet the base load. Around
89 % power requirement of the distribution companies is met from power procured under
long-term contracts with state and central government owned power generating companies
and independent power producers, and also intra-state power purchases from traders under
bilateral transactions.
Short-Term Power Procurement:
Power Procured in short-term market, which includes UI, power transacted through licensed
traders (inter-state part), bilateral power transactions directly between DISCOMs and power
transacted through power exchanges, met about 11 % of the power requirement of the
distribution companies.
Trade off between Reliability of power supply and Cost of Power Procurement is a major
Challenge for Distribution Utilities.
Short Term Trend:
8000
6000
4000
2000
Bilateral + Collective
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
May-12
Apr-12
0
5
4
3
2
1
0
2008-2009 2009-2010 2010-2011 2011-2012
Trading Licencees
Power Traders
From the graph it can be observed that there is a cyclical trend in the total volume of shortterm transactions of electricity. It can also be observed from the figure that there is no
constant increase/decrease in the volume of all segments of the short-term transactions of
electricity. This trend may have emerged due to change in demand and supply of electricity
from season to season.
Following the trend DISCOMS can make arrangement in advance to reduce their cost of
supply.
The weighted average price of electricity transacted through trading licensees and power
exchanges declined from 7.29/kWh and 7.49/kWh respectively in 2008-09 to 4.18/kWh and
3.57/kWh respectively in 2011-12. It is thus seen that the price of electricity in the short-term
market in the year 2011-12 was on the lower side as compared to price prevalent in the
previous three years.
Private Participation in Electricity Distribution:
Franchisees
Licensees
Area
Operator
Area
Operator
Bhiwandi
Torrent Power
Mumbai
BSES, Tata Power
Jalgaon
Crompton Greaves
Surat
Torrent
WESCO,
Aurangabad
GTL
NESCO,
BSES
SOUTHCO
Nagpur
Spanco
Delhi
BSES, Tata Power
Essel Utilities
Kolkata
CESC
Agra
Torrent Power
Ahmedabad
Torrent Power
Ranchi
CESC
Licensees Under Planning:
Jamshedpur
Tata Power
Ujjain, Sagar,
Gwalior
Jammu, Srinagar, Ghaziabad, Meerut,
Region
Puri, Balugaon,
Khurda,
Kanpur, Varanasi, Upper Assam
FEDCO
Franchisees Under Planning:
Dhanbad, Patna, Gaya
Nayagarh
Nimapara
Shyam Indus
Paradeep
Enzen Global
Muzaffarpur
Essel Utilities
Bhagalpur
SPML
Table 8 : Private Participation in Distribution
Type of PPP Model:
Major models identified in distribution sector under private sector participation or PPP model
are Management Contract Model, Franchise Model and Licensee Model. The allocation of
responsibility in the three models is as under:
Responsibilities
Operation &
Management
Franchisee
Private Licensee
Control Model
Model
Model
Private
Private
Private
Public
Private
Private
Maintenance
Capital Investment
Commercial Risk
Public
Private
Private
Asset ownership
Public
Public
Private
Duration
3-5 years
10-15 years
Indefinite
Reform Process
Slowest
Balanced
Fastest
Political Acceptance
Most
Balanced
Lowest
Table 9 : Type of PPP Model
It is also apparent that distribution franchisee model is a trade-off between privatization
benefits and SEB driven reforms which is also politically accepted and yields good result at
moderate pace. The franchisee model is thus a right mix of progress, legislature and
Acceptability.
Types of Distribution Franchisee:
Table 10 : Types of Distribution Franchisee
Chapter No 9
Opportunities in Power Procurement for
DISCOMs
Open Access:

Merits
o
DISCOMS can attract consumers outside their distribution network by offering
better services and competitive rates
o
DISCOMS shall be benefited by collecting wheeling charges as an additional
source of income over and above the income from retail sale of power to
consumers below 1 MW.
o
Sufficient power can be available to DISCOMS from Generators at a cheaper
rate to supply power to consumers.

Demerits
o
Loss of major source of revenue: Industrial Consumer
o
Effect on Power Procurement cost if consumers migrate to Open Access as
Long term PPA been signed by DISCOMS to serve Industrial and
Commercial consumers of 1Mw above.
Through Traders:

Merits
o
Immune from Quantum of Electricity and Price Fluctuation in Short Term
Market.
o
Liability of assured Supply of Electricity to DISCOMs will be on Trading
agencies.
o
DISCOM can opt for Long term Business solutions via traders provided cost
of supply is lower.
o

Avoidance of daily bidding and preference in corridor booking.
Demerits
o
Price is comparatively higher than short term procurement through power
exchange.
Through Captive Power Plant:

Merits:
o
Options for State Utilities/Discoms to buy surplus power from Captive
Plants.
o

Lower Price and Quantum Risk.
Demerits:
o
Higher cost of power in comparison to collective transaction through
Exchange.
o
Higher Priorities for self-consumption.
State Overview:
Andhra Pradesh:
Energy Requirement
Peak Load Demand
129767 MU
22445 MW
Peak Shortage
1970 MW(12.4%)
Required Capacity Addition 8770 MW
Yearly Requirement:
2013-2014
17044 MW
2014-2015
18681 MW
2015-2016
20476 MW
2016-2017
22445 MW
DISCOMS need to rely
on Private Power
developers to meet
their Demand
Electricity deficit in the state has increased
from a negligible 1% in 2005-06 to 7% in
2011-12. The reason for the increasing
deficits can be mainly traced to the
inability of the state to increase electricity
generation.
State Owned Upcoming Project
1. Kalkatia TPP ST-II 600MW
2. Sri Damodaram
Sanjeevaiah TPP
2x800 MW
Gujarat:
Energy Requirement
Peak Load Demand
108704 MU
1909 MW
Peak Shortage
39 MW(0.30%)
Required Capacity Addition 4252 MW
Yearly Requirement:
2013-2014
14350 MW
2014-2015
15782 MW
2015-2016
17358 MW
2016-2017
19091 MW
Successful in securing
its overall energy requirements with capa
city of 23927 MW +.
Actual power supply position of the state
of Gujarat has improved in the last seven
years
considerably.
The
power
requirement and availability deficit in the
state has been decreased by CAGR of 38%.
Year 2012 shows nearly zero percent
deficit made Gujarat power sufficient..
State Owned Upcoming Project
1. Sikka TPP (Unit-3) 250 MW
2. Sikka TPP (Unit-4) 250 MW
Haryana:
Energy Requirement
Peak Load Demand
56681 MU
10273 MW
Peak Shortage
707 MW(9.5%)
Required Capacity Addition 1160 MW
Yearly Requirement:
2013-2014
7944 MW
2014-2015
8655 MW
2015-2016
9429 MW
2016-2017
10273 MW
Haryana DISCOMS will be
more dependent on Short
Term Market to meet
their future demand.
500 MW Capacity addition proposed
during 12th Plan from Central generating
Stations with no addition in State
Generating companies is a major issue
with Haryana and to meet proposed
demand of 1,160, Haryana has to be
dependent on Private Power Producers.
State Owned Upcoming Project
Nil
Karnataka:
Energy Requirement
Peak Load Demand
78637 MU
13010 MW
Peak Shortage
1363 MW(13.5%)
Required Capacity Addition 2886 MW
Yearly Requirement:
2013-2014
10473 MW
2014-2015
11258 MW
2015-2016
12102 MW
2016-2017
13010 MW
Karnataka will rely on
Private Developers to
meet its future needs
State Owned Upcoming Project
1. Edlapur TPP
800MW
2. Bellary Unit-3
700MW
3. YermaruS TPP
1600MW
Madhya Pradesh:
Energy Requirement
Peak Load Demand
77953 MU
13904 MW
Peak Shortage
615 MW(6.1%)
Required Capacity Addition 6980 MW
Yearly Requirement:
2013-2014
61448 MW
2014-2015
66519 MW
2015-2016
72010 MW
2016-2017
77953 MW
MP has to rely on
Private Developers to
meet its added req uirement of 6980MW
State Owned Upcoming Project
1. SSTP, Stage-I
2x600 MW
2. STPS (Unit-10&12) 2x500 MW
3. Dada Dhuniwale
2x800 MW
4. SSTP, Stage-II
2x600 MW
Maharashtra:
Energy Requirement
Peak Load Demand
169353 MU
28645 MW
Peak Shortage
1169 MW(6.5%)
Required Capacity Addition 10300 MW
Yearly Requirement:
2013-2014
23795 MW
2014-2015
25313 MW
2015-2016
26928 MW
2016-2017
28645 MW
In spite of state capacity
addition of 2980 MW
Maharashtra has to rely
on Private Player.
State Owned Upcoming Project
1. Chandrapur (U-8&9)
2x500
MW
2. Koradi (U-8,9&10)
2x500 MW
Rajasthan:
Energy Requirement
Peak Load Demand
77907 MU
13886 MW
Peak Shortage
425 MW(4.8%)
Required Capacity Addition 2930 MW
Yearly Requirement:
2013-2014
10360 MW
2014-2015
11422 MW
2015-2016
12594 MW
2016-2017
13886 MW
Capacity Addition by state
GENCO’s is expected to be
1360 MW, this will result to
rely DISCOMs on Private
Player for 1670 MW.
State Owned Upcoming Project
1. Kalisindh TPS (U-1&2) 2x600 MW
2. Chhabra TPS (U-3&4) 2x250 MW
3. Ramgarh CCGT
160 MW
Tamil Nadu:
Energy Requirement
Peak Load Demand
119251 MU
20816 MW
Peak Shortage
1553 MW(12.3%)
Required Capacity Addition 7270 MW
Yearly Requirement:
2013-2014
15736 MW
2014-2015
17497 MW
2015-2016
19489 MW
2016-2017
20816 MW
Capacity addition is required
and due to high wind energy
potential DISCOMs can rely
on renewable source of
energy.
State Owned Upcoming Project
1. Kalisindh TPS (U-1&2) 2x600 MW
2. Chhabra TPS (U-3&4) 2x250 MW
3. Ramgarh CCGT
160 MW
Uttar Pradesh:
Energy Requirement
Peak Load Demand
138854 MU
23081 MW
Peak Shortage
1892 MW(13.6%)
Required Capacity Addition 4730 MW
Yearly Requirement:
2013-2014
15993 MW
2014-2015
18073 MW
2015-2016
20424 MW
2016-2017
23081 MW
DISCOMs need to rely on
Private Power Generators as
there is no expected capacity
addition
by
state
government.
State Owned Upcoming Project
1. Anpara-D Unit-1
500 MW
2. Anpara-D Unit-1
500 MW
West Bengal:
Energy Requirement
Peak Load Demand
70352 MU
11793 MW
Peak Shortage
Yearly Requirement:
2013-2014
9052 MW
73 MW(1%)
2014-2015
9887 MW
Required Capacity Addition 2092 MW
2015-2016
10798 MW
2016-2017
11793 MW
DISCOMs have to rely
on Private Developers
for 600 MW to meet the
increasing demand.
State Owned Upcoming Project
Durgapur TPP U-8
250 MW
Chapter No 10
Power Procurement
Attractiveness Analysis
From Other Generator : From DISCOMS
Power Procurement on the basis of Companies:
Public Sector Undertakings:
Benefits:
•
Low Cost of power Procurement as comparison to Private Companies and other
unconventional power source.
•
Low risk involved.
•
High PLF of PSU’s makes availability of Power more reliable.
Disadvantages:
•
B.
Capacity to not enough to meet demand.
Private IPPS/Joint ventures:
Benefits:
•
To match demand-supply gap which PSU’s cannot meet.
Disadvantages:
•
Higher cost of Power procurement as comparison to Long term PPA’s with CSGS &
State Gencos.
•
Less reliable power source as comparison to PSU’s.
Power Procurement on the basis of Generating Stations:
By Ultra Mega Power Projects:
Benefits:
•
Low cost and Bulk power supply from a single source.
•
Reliability of Power Supply as PLF of UMPP’s is expected to be high.
Disadvantages:
•
To rely on short term market if supply from UMPP halts resulting in high cost of
Power Procurement.
By Mega Power Plants:
Benefits:
•
Low cost and Bulk power supply from single source.
•
More Reliable source of power than IPP’s
Disadvantages:
•
Supply interruption can increase power purchase cost of Discoms.
Power Procurement Attractive Analysis:
Andhra Pradesh
25000
Central
20000
State
15000
Private
10000
5000
0
IPP
MPP
UMPP
Projects in the Pipe Line
Preferred Order of Generators for DISCOM to sign PPA
Coastal Andhra Power
UMPP (Krishnapatinam,
Nellore)
National Thermal Power
Corporation (Simahadri,
Visakhapatnam)
• 4000 MW (Coal Based)
• 1000 MW (Coal Based)
Singareni Collieries
Corporation (Adilabad)
Srikakulam TPS (Palasa,
Srikakulam)
• 600 MW (Coal Based)
• 2400 MW (Coal Based)
With Captive Capacity addition prospects of 137 MW and no Merchant Power plant capacity
addition, DISCOM’s required to Sign PPA to meet of their demand as Short term Power
procurement cost will be high.
Gujarat
8000
Central
6000
State
4000
Private
2000
0
IPP
MPP
UMPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Neyveli Lignite
Corporation, Surat
GSECL, Kheda
• 800 MW (Coal Based)
• 1000 MW (Coal Based)
GSECL, Sikka, Jamnagar
GSECL, Utran, Surat
• 500 MW (Coal Based)
• 374.57 MW (Coal Based)
With no involvement of Central & State in Mega projects and no addition of UMPP in near
future, DISCOMs need to rely on Mega projects by private players for bulk supply to meet
their demand.
Haryana
3000
Central
2000
State
1000
0
IPP
MPP
UMPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Haryana Power Generation
Corporation Ltd, Hissar
Haryana Power Generation
Corporation Ltd, Faridabad
1200 MW (Coal Based)
1500 MW (Gas Based)
Haryana Power Generation
Corp. Ltd, Yamuna Nagar
Haryana Aban Power Co
Ballabgarh, Faridabad
660 MW (Gas Based)
1065 MW (Gas Based)
Expected 3300 MW capacity addition by State Utility and no addition in CSGS and low
investment by Private Players making DISCOM to rely on State Utilities.
Karnataka
5000
Central
4000
State
3000
Private
2000
1000
0
IPP
Mega Project
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
National Thermal Power
Corporation, Kudgi-Bijapur
Karnataka Power
Corporation, Yermarus
2400 MW (Coal Based)
1600 MW (Gas Based)
Power Company of
Karnataka Ltd., Jewargi
Karnataka Power
Corporation, Edalpura
1320 MW (Coal Based)
600 MW (Gas Based)
No upcoming UMPP and only 29 MW of Captive addition in the State lets DISCOMs to tie
Long term PPA with Central and State Utility to meet their demand.
Madhya Pradesh
8000
Central
State
IPP
MPP
Private
6000
4000
2000
0
IPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Sasan Power Limited,
Sasan-Sidhi
National Thermal Power
Corporation, Singrauli
4000 MW (Coal Based)
1000 MW (Gas Based)
Vindhyachal STTP (Stage-v)
Singrauli
Karnataka Power
Corporation, Edalpura
500 MW (Coal Based)
3960 MW (Gas Based)
DISCOMs can tie up Long term PPA with UMPP and Mega Power Projects by State Utilities
and CSGS coming into state, Captive Generation addition is only 7.5 MW
Maharashtra
20000
Central
State
Private
15000
10000
5000
0
IPP
MPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Nabinagar STPS,
MAHAGENCO,
Aurangabad
Shahapur-Raigad
2640 MW (Coal Based)
4000 MW (Coal Based)
MAHAGENCO,
Chandrapur
JSW (Ratnagiri) Limited,
Jaigad-Ratnagiri
1000 MW (Coal Based)
3200 MW (Coal Based)
Major share in capacity addition is by Mega project mainly by Private Players giving
DISCOMs multiple options to tie long term PPA along with large capacity addition by State
and 643 MW captive projects.
Tamil Nadu
15000
Central
State
Private
UMPP
MPP
IPP
10000
5000
0
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Coastal Tamilnadu Power,
Theyyur-Kancheepuram
Neyveli Lignite Corp,
Udayarpalayam
4000 MW (Coal Based)
1600 MW (Coal Based)
Neyveli Lignite Corp,
Neyyeli - Cuddalore
Tamil Nadu Energy
Company, Vallur
1000 MW (Coal Based)
500 MW (Gas Based)
22470 MW projects in pipeline including 1050 MW of captive addition in the state brings
great opportunity and options for DISCOMs to tie long term PPA.
Uttar Pradesh
4000
Central
State
Private
3000
2000
1000
0
UMPP
MPP
IPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Rihand Stage – III,
Sonebhadra
National Thermal Power
Corporation,Sonebhadra
1000 MW (Coal Based)
1000 MW (Coal Based)
UP Power Corporation,
Bara -Allahabad
UP Rajya Vidyut Nigam
Limited, Obra-Sonabhadra
1980 MW (Coal Based)
1000 MW (Gas Based)
9619 MW projects in pipeline including 999.7 MW of captive addition in the state brings great
opportunity and options for DISCOMs to tie long term PPA.
West Bengal
4000
Central
State
Private
3000
2000
1000
0
MPP
IPP
Projects in Pipeline & Shares of Ownership
Preferred Order of Generators for DISCOM to sign PPA
Damodar Valley Corp. (U5&6), Durlavpur-Bankura
CESC Limited,
500 MW (Coal Based)
1980 MW (Coal Based)
WBPDCL,
Murshidabad
West Bengal Power
Development, Sagardighri
1320 MW (Coal Based)
1000 MW (Coal Based)
Balagarh
8440 MW Thermal projects in pipeline in the state brings great opportunity and options for
Discoms to tie long term PPA.
Chapter No 11
Cost Reduction Opportunity Analysis in
Power Procurement by DISCOMs
Tariff (Paise/Kwh)
1400
1200
1000
800
600
400
200
0
Coal based
Natural Gas
LNG
Naptha/HSD
Lignite
Cost Reduction by Source of Generation:
The prices paid by distribution companies to procure power from central government owned
generating companies in 2011-12 (under long-term Power Purchase Agreements) are shown
in Annexure 2. It can be seen that, on an average, the distribution companies paid between
1.19 and 4.28 per kWh for procuring power from coal and lignite based stations, between
2.72 and 6.99 per kWh from gas/RLNG based power stations, between 8.49 and 12.01 per
kWh from liquid fuel based power stations and between 0.77 per kWh and 5.90 per kWh
from hydro stations (Annexure 3).
Annexure 4 indicates medium term and long-term levellised tariff for power available from
power projects bid in the year 2010-11 and 2011-12 under Case-I and Case-II (State
specific) respectively. The price of the power projects under Case-I for long-term varied in
the range of 2.345 per kWh to 3.324 per kWh and for medium term varied in the range of
4.10 per kWh to 4.85 per kWh. The price of the power projects under Case-II
(State specific) for long-term varied in the range of 2.89 per kWh to 3.223 per kWh. The
price in the medium term was relatively high when compared with the price in the long-term.
Share of Coal based Capacity Addition
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Total
Capacity(MW)
Coal Based +
Lignite (MW)
:
Figure 14 : Share of Coal based Capacity Addition
Order based on Cost of delivered Energy
Domestic Coal at Pit Head.
Domestic Coal at Load
Lignite at Pit Head.
Imported Coal at Port
Imported Coal at Load Centre
In case of Blending, plant with higher ratio of domestic coal than imported will have a lower
cost of delivered Energy
By category of Consumer Served:
Out of the total demand, 44% is Industrial consumers which follows no such pattern and
consumption is similar throughout the year. Variation is mainly due to commercial and
residential consumers.
Load curve for all the states is very similar, flattening of Load curve can reduce power
procurement cost of discoms or by proper Load Forecasting discoms can reduce their power
purchase cost as, discoms trade in short term market to meet peak demand which is
available at higher cost.
Peak Demand Variation in India in Year 2012-13
140000
135000
130000
125000
120000
Figure 15 : Peak Demad in India
Out of the total demand, 44% is Industrial consumers which follows no such pattern and
consumption is similar throughout the year. Variation is mainly due to commercial and
residential consumers.
Maharashtra Hourly Load Limit:
16000
14000
12000
10000
8000
6000
4000
2000
0
Demand (MU)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Figure 16 : Maharashtra Hourly Limit
Load curve for all the states is very similar, flattening of Load curve can reduce power
procurement cost of discoms or by proper Load Forecasting discoms can reduce their power
purchase cost as, discoms trade in short term market to meet peak demand which is
available at higher cost.
Share of Different Segments in Short Term Transactions in 2011-12:
Share of Different Segments in Short Term
Transactions
in 2011-12
3%
Bilateral Transaction
through traders
16%
Bilateral transaction
between discoms
38%
Power exchange
transactions
UI transactions
16%
Figure 17 : Share of Different Segments in Transmission
8
7
6
5
4
3
2
1
0
Price of Electricity
transacted through
Trading Licensees
(Rs/Kwh)
Price of Electricity
transacted through
Power Exchanges
(DAM+TAM) (Rs/Kwh)
2008-09 2009-10 2010-11 2011-12
Figure 18 : Price of Electricity Through Trading Liscencees and Power Exchanges
Project Management Opportunities:
Phases of Project Life Cycle:
Set Up
Planning
Execution
Close Out
Main Buckets of Power Management:
Schedule
Management
Project Strategy,
Organisation &
Administration
Cost and Financial
Management
Project Controls,
Quality and Risk
Management
Procurement
Management
Key Areas of Assistant:
Transmission Companies at a Glance:
Joint Ventures Subsidaries
Power Links
Transmission Limited
Torrent Power Grid
Limited
Jaypee Powergrid
Limited
Parbati Koldam
Transmission Company
Teesta Valley Power
Transmission Limited
North Eastern
Transmission Company
National High Power Test
Laboratory
Energy Efficiency
Services Limited
Cross Border Power
Trading Company limited
Power Transmission
Company Nepal Limited
Bihar grid Company
Limited
Kalinga Bidyut Prasaran
Nigam Private Limited
POSOCO
Investment
PTC India Limited
Powergrid NM
Transmission Limited
Powergri Vemagiri
Transmission System
Limited
Share in Transmission Network:
Government
of India
Non
Institutions
Institutions
Transmission Opportunities:
Increase in Voltage
Level
Up gradation of
Transmission Line
Up gradation of
HVDC Terminal
800kV, 6000MW
High Capacity
HVDC system
High Surge
Impedance Loading
Lines
High Capacity 400
kV multi circuit /
bundle conductor
lines
Compact Tower
Increase in Current
: HTLS Conductor
Line
Fixed & Thyristor
Controlled Series
Compensation
Transmission Network in India:
Transmission Lines
Unit
As on March 2012
765 kV
cKm
5730
HVDC+/- 500 kV
cKm
9432
400 kV
cKm
113367
220 kV
cKm
140164
Total Transmission Lines
cKm
268693
Distribution Network in India:
Parameter
At the End of
th
10 Plan
At the End
th
of 11 Plan
Addition
Growth in
th
During 11
11th Plan
Plan
Transmission Network
59461
92981
33520
56.37%
Sub Station (Nos.)
104
150
46
44.23%
Transformation Capacity
59415
124525
65110
109.59%
14100
28000
13900
98.58%
(MVA)
Inter Regional Capacity
(MW)
Table 11 : Transmission Network in India
Opportunities in Coal Business:
Reserves
860Gt
Resources
17167Gt
Coal Recoverable Reserves by Region
Middle East
North America
Latin America & The
Caribbean
South & Central Asia
Africa
South East Asia & Pacific
East Asia
Europe
Top Coal Producing Countries:
Kazakhstan
Poland
Germany
Indonasia
South Africa
Russia
Australia
India
US of A
China
0
1000
2000
Table 12 : Top Coal Producing Companies
3000
Sector Wise Coal Consumption
Name of Country
Reserve
Reserve to Production Ratio
(Billion Tonnes)
(Yrs.)
Australia
76
190
USA
238
224
Columbia
6.8
92
South Africa
30
121
Russia
157
481
China
114
41
Indonesia
4.3
19
Mozambique
6.7
Production Just Started
Table 13 : Sector by Coal Opportunities
Coal Availability in India
The gap between the projected demand of 980.50 Mt and the projected domestic availability
of 715.0 Mt works out to 265.5 Mt in 2016-17. This comprises of 35.50 Mt of coking coal and
230.0 Mt of thermal coal. If the production is enhanced to the level visualized in the
optimistic scenario, the demand-availability gap would reduce to 185.50 Mt (Coking: 35.50
Mt & Non-coking 150.0Mt). This requirement would need to be met from imports.
Demand Estimates by Expert Committees in 12th Plan
Source
Estimate
11th Plan Working Group
731.10
Coal vision 2025 @ 9% GDP
900.62
Vision 2020 CIL Corporate Plan at 9% Growth
971.00
Plan @ 10% prepared by KPMG
966.00
Sector Wise Coal Consumption:
200
Low Production
100
Normal
Production
0
2015
2018
2021
2024
High Production
Whole Sale Price Index:
Wholesale Price Index
Year
Coal
Coking
Non Coking
Coal
Coal
Coke
Lignite
2005-06
117.60
106.70
102.58
152.70
85.70
2006-07
117.71
106.70
102.52
152.70
88.47
2007-08
121.69
111.37
106.53
155.43
99.13
2008-09
151.26
119.00
112.70
234.40
140.04
2009-10
156.45
126.80
121.16
234.40
134.85
2010-11
184.60
178.70
166.50
219.30
168.90
State Name
Availibility M Ton
State Name Availibility M Ton
Jharkhand
80356
Uttar Pradesh
1062
Orissa
71447
Meghalya
576
Chattisgarh
50846
Assam
511
West Bengal
30616
Nagaland
315
Madhya Pradesh
24376
Bihar
160
Andhra Pradesh
22155
Sikkim
101
Arunachal
Maharashtra
10882
Pradesh
90
Table 14 : Coal Overview in India:
Year
Production
Imports
Exports
Consumption
2011
580256994
78768592
4568976
654456609
2010
554939125
58081699
4562976
601083886
2009
556466117
75609608
2631986
612235828
2008
515684328
60883658
2992984
581070990
Best Practices in Reducing Technical Losses
High Voltage Distribution
System
Network
Re-configuration
Network
Re-Conductoring
Reactive Power
Compensation
Aerial Bunched Cables
•Prevention of theft
•Improved Voltage Profile
•Better Customer Service
•Improvement in Power Supply Reliability
•Reduction in Loss without sacrificing Load
•Optimal Operation of Distribution network and substantial savings
•Increases the feeder’s capacity to handle Load Growth
•Fruitful to minimise loss
•Improves Voltage Profile
•Improves Voltage Profile
•Increases Security of System
•Reduces number of Outages
•Lower Voltage drops, Higher current capacities
•Easy Maintenance
•Reduces electricity theft as it is covered by insulated material
Distribution Infrastructure Development:
12th Plan Investment requirement in Distribution Sector is approx 3.06 Lakh Crores and the
breakup of the same is displayed in table
FINANCIAL
S.NO NAME OF SEGMENT
UNITS
PHYSICAL (RS Cr)
1
New Lines
i
33 KV O/H Line
Ckt Kms 121500
9720
33 KV U/G Cable (30%)
Ckt Kms 13500
4050
Total 33 kV Lines
Ckt Kms 135000
11 kV O/H Line
Ckt Kms 448000
22400
11 KV U/G Cable
Ckt Kms 112000
22400
Total 11 KV Line
Ckt Kms 560000
LV O/H
Ckt Kms 488000
24400
LV ABC
Ckt Kms 122000
9760
Total LV
Ckt Kms 610000
ii
iii
2
Installation of New S/S
33/11 KV (2X10 MVA)
No
4400
No of 10 MVA Transformers
No
8800
Transformation Capacity
MVA
88000
22000
3
Installation of DTs Including all Accessories MVA
105000
1000 KVA
No
10500
1260
630 KVA
No
33500
3350
315 KVA
No
67000
4020
200 KVA
No
105000
5250
100 KVA
No
210000
8400
25 KVA
No
424000
8480
Total Nos of DTs
No
850000
33/11 KV
MVA
50000
10000
11/.4 KV
MVA
50000
10000
5
Capacitors
MVAR
16000
1280
6
Service Connections
50000000
25000
7
Re-Conductoring of Lines
i
33 KV
Ckt Kms 100000
3000
ii
11 KV
Ckt Kms 500000
10000
iii
LV
Ckt Kms 1000000
20000
4
Augmentation of S/S
SUB TOTAL
224770
Productive Load Scheme
61940
Smart Grid
9500
IT Facilities & SCADA including HRD
10000
R&D
25
TOTAL
306235
Opportunities in Metering:
100% metering of power supply connections insisted by many state regulatory commissions
and support by Ministry of Power through various reform programmes, particularly RGGVY &
RAPDRP has provided impetus to demand for meters.
CEA guidelines, which have mandated use of static meters, have seen the Indian energy
meter market shift largely to Static Meters.
Market Share of Type of
Meter
Tariff
Meters
10%
Panel
Meters
90%
T&D Utilities dominates demand for tariff meters, whereas Industrial end users mainly
demand Panel Meters
Market Share by Revenue 2012-13
Tariff Meters
30.10%
Top 4
Participants
69.90%
29.3
0%
Other
Participants
Top 4 Participants in business
Tariff Meters
Panel Meters
HPL
Schneider Electric
Secure Meters
HPL
Genus Power
EI Measure
L&T
Rishabh Instruments
Panel Meters
70.7
0%
Opportunities in Billing and Collection:
Outsourcing could be considered in areas where the external agency would be able to
perform the functions in a more effective and profitable manner on account of various factors
such as technology, skill base, economies of scale etc.
Franchisee Model
Compensation
Area
Outsourcing
Fixed Fee
Best for Rural
Area
Outsourcing of one or more functions of
operations such as meter reading, Bill
distribution or Revenue Collection
Revenue & Collection based
Franchisees’s responsibilty: Meter Reading,
Bill distribution & Revenue Collection
Percentage of
Best for Rural
collection on
Area
achievement of
target; Penalty and
incentives based on
target achievement
High total losses and poor collection rates, due to weak metering, billing, and payment
collection accounted for the companies’ financial distress.
Opportunity in IT Implementation:
A number of utilities have now started focusing on IT based applications to bring about
efficiency in distribution. Moreover, the Restructured APDRP encourages IT enabled
applications and automation for reduction of energy losses as well as energy accounting and
auditing. Some of the automation and IT enablement in the Power Distribution Sector and
their role in improving the commercial viability and service standards are:
1. Customer indexing & GIS based Database
2. Energy Accounting and Auditing
3. Reliability Monitoring of Power Distribution Systems
4. Supervisory Control and Data Acquisition (SCADA)
5. Distribution and Grid Station Automation
6. Outage Management Systems
7. Distribution Network Planning
8. Automated Meter Reading/ Advanced Metering Infrastructure
9. Smart Grid
Chapter No 14
Conclusion
CONCLUSION
About 60-70% of the total cost for SEBs is on procurement of power and there is room for
optimization. There is marked difference in tariffs between Long-term (LT)/Medium-term
(MT) and ST procurement. Therefore, procurement must be planned properly with advance
tie-ups. Utilities should rely on ST/Power Exchanges (PXs) only to take care of short term
mismatches.
Developers Perspective:
Increasing manufacturing activities and a growing population are also causing a surge in
power usage. India has the 5th largest grid in the world with 135 GW capacity, and the words
third largest transmission and distribution network. Large investments are required to meet
the growing demand and provide universal access. An investment of USD167 billion is
projected for electricity projects in the 5 year period from FY07-FY12.
Power sale opportunities for developers is high as the country is still facing huge shortage in
electricity supply
Discoms Perspective:
Tariff for coal based plants under case 2 bid is lowest for long term & medium term
PPA.45% of total consumption is by Industrial consumers, average revenue generation is
close to 2,20704 Cr for 2013-14. Short term transaction follows a cyclic trend throughout
year, with proper planning discoms can lower their cost of procurement. Cost of Power
Procurement by discoms from generators installed within state and of high capacity is lower.
Preference for power procurement should be given to UMPP, CSGS, State Utilities and
lastly to IPPs. Gencos with domestic coal at Pit head is most preferred and Imported coal at
Load centre is least preferred for power procurement. Power sale by discoms via traders is
preferable as compared to Exchange. Investment of approx. 3.06 Lac Cr is required in
Distribution sectors for 12th plan giving ample opportunities for private players for business.
Aligned business in Metering, IT implementation and in Billing & Collection for Private
players under RGGVY and RAPDRP Programme.
Bibliography & References
Planning Commission of India
Ministry of Power
Ministry of New & Renewable Energy
Ministry of Statics
Ministry of Coal
National Hydro Power Corporation
National Thermal Power Corporation Limited
American Society for civil Engineers
world coal association
Geological survey of india
Rating Report of ICRA
IIM Ahemedabad Report
Indian Infrastructure
Price Water House Cooper
Ernest & Young
Infraline Energy
Indian Power Sector . Com
The report of the Working Group for Coal and Lignite for Twelfth Five Year Plan
The Economic Times
http://www.eefi.org/plugins/p2_news/printarticle.php?p2_articleid=431
http://www.power-eng.com/business/project-management.html
http://www.worldenergy.org/data/resources/resource/coal