Power demand, supply in India: A background note

A detailed background on the demand and supply scenario of power that exists in India. 

• The energy deficit has been in the range of 9.6% to 11.1% during the first three years of the current five year plan with an increasing trend. However, the peak deficit has been in the range of 11.9% to 16.6% with a decreasing trend.
• Structural reforms like de-licensing of thermal generation, enhancing availability of skilled and trained manpower, introduction of ultra-mega power projects (UMPP) and liberalization of mega power policy have been undertaken to improve the power situation in the country.
• Despite these initiatives, a capacity addition of only 32,762 MW has taken place in the 11th Plan till date. As on January 31, 2011, the installed generation capacity, including capacity from renewable energy sources (RES), stands at 1,70,228 MW. The capacity addition in the next five-year plan is targeted as 106,470 MW . 
• Further, the CAGR of electricity generation in the country during the first three years of the 11th Plan has been 5.21%, as compared to 6.35% during the same period of the previous plan. In addition, 96.7% of the target for generation of power has been achieved during the current fiscal. 
• Steps, such as renovation and modernization, are being taken by the government to improve the PLF performance of existing thermal power stations. Additionally, the Ministry of Power (MoP) has adopted a robust monitoring system for the capacity addition program so that the projects are executed in time. 
• During the last few years, the supply of coal by Coal India Limited (CIL) to various power utilities has stagnated. Consequently, import of coal has risen tremendously from 4.5 MT in 2004-05 to around 23.2 MT in 2009-10.
• In order to improve capacity addition further, development of national power grid and reorganization of APDRP is being undertaken. 
• Additionally, under the  Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme, 573 projects have been sanctioned at an estimated cost of Rs. 26,353,51 crore. These projects cover electrification of 1.18 lakh un-electrified villages, intensive electrification of 3.55 lakh electrified villages and free electricity connections to 246 lakh BPL households. As on 15 February 2011, 92,689 un-electrified villages have been electrified, 1.76 lakh already electrified villages have been intensively electrified and free electricity connections have been released to 148.81 lakh BPL households.