Lok Sabha Question No. 528 (UNSTARRED), answered on 2024-07-25
Subject: Power Demand in India
Ministry: POWER
Asked by: Shri Pradyut Bordoloi, Shri Anto Antony, Shri K Sudhakaran, Ms. S Jothimani

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.528 ANSWERED ON 25.07.2024

## POWER DEMAND IN INDIA

528 SHRI PRADYUT BORDOLOI: SHRI ANTO ANTONY: SHRI K SUDHAKARAN: MS. S JOTHIMANI:

Will the Minister of POWER be pleased to state:

- (a) the total power generation capacity in the country since 2015, year-wise;
- (b) the steps taken/being taken by the Union Government to increase production capacity since 2014;
- (c) whether the cost per unit of power generation has raised due to the import of coal during the past few years and if so, the details thereof; and
- (d) the steps taken by the Government to reduce the production cost per unit of power generated?

## A N S W E R

## THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : The  year  wise  details  of  total  power  generation  capacity  from  2013-14  to 2024-25 (upto June, 2024) are given at Annexure.

- (b) : We have taken following steps to increase the production capacity between 2014-15 to 2023-24 in the country: -
- (i) The  installed  capacity  which  was  2,48,554  MW  in  March  2014  has  been increased  to  4,46,190  MW  in  June  2024.    Installed  capacity  of  Coal  based power has increased from 1,39,663 MW in March 2014 to 2,10,969 MW in June 2024. Installed capacity of Renewable sector has increased from 75,519 MW in March 2014 to 1,95,013 MW in June 2024.
- (ii) 1,95,181  circuit  kilometer  (ckm)  of  transmission  lines,  7,30,794  MVA  of Transformation capacity and 82,790 MW of Inter-Regional capacity has been added connecting the whole country into one grid running on one frequency with the capability of transferring 1,18,740 MW from one corner of the country

.........2.

to another. India's grid has emerged as one of the largest unified grids in the world.  Connecting  the  whole  country  into  one  grid  has  transformed  the country into one unified power market. Distribution Companies can buy power at cheapest available rates from any generator in any corner of the country thereby enabling cheaper electricity tariffs for consumers.

- (iii) India  has  committed  to  augment  non  fossil  fuel  based  installed  electricity generation capacity to over 5,00,000 MW by 2031-32. Transmission plan for integration  of  5,00,000  MW  RE  capacity  is  being  implemented  in  a  phased manner commensurate with RE capacity addition.
- (iv) Government  have  constructed  Green  Energy  Corridors  and  put  in  place  13 Renewable Energy Management Centres.
- (v) We have made efforts to make Power Sector viable. The AT&C losses have come  down  from  22.62%  in  2013-14  to  15.40%  in  2022-23.    All  current payment of Gencos are up-to-date and the legacy dues of Gencos have come down from Rs. 1,39,947 crore to Rs. 35,119 Crore.  The subsidy payment to DISCOMS on account of subsidies announced by State Government are up-todate.
- (vi) Further,  the  Government  of  India  has  implemented  Deen  Dayal  Upadhyaya Gram  Jyoti  Yojana  (DDUGJY)  and  Integrated  Power  Development  (IPDS) schemes to achieve the objective of providing uninterrupted power supply by strengthening the sub-transmission and distribution network. The Government of India has also implemented the Pradhan Mantri Sahaj Bijli Har Ghar Yojana- (SAUBHAGYA) with the objective to achieve universal household electrification for providing electricity connection to all willing un-electrified household in rural area and all willing poor household in urban areas in the country.  Under these schemes, 18,374 villages have been electrified and 2.86 crore  household  were  provided  electricity  connections.  As  a  result,  100% villages have been electrified. Besides this, 2927 new substations have been added, upgradation of 3965 existing sub stations has been carried out and 8.5 Lac circuit kms of HT and LT lines have been added/upgraded. As a result of these measures, the availability of power in rural areas has increased from 12.5 hours in 2015 to 21.9 hours in 2024.  The availability of power in urban areas is 23.4 hours.
- (vii) Waiver of ISTS charges on transmission of electricity generated from Solar, Wind, Pumped Storage Plants and Battery Energy Storage Systems.
- (viii) Renewable  Purchase  Obligations  (RPOs)  and  Energy  Storage  obligations Trajectory till 2029-30.
- (ix) In 2019, Government announced measures to promote Hydro Power Sector such  as  Declaring  Large  Hydro  Projects  (>25  MW)  as  Renewable Energy source, Tariff rationalization measures for bringing down hydropower tariff, Budgetary  Support  for  Flood  Moderation/  Storage Hydro  Electric Projects  (HEPs),  Budgetary  Support  to  Cost  of  Enabling  Infrastructure  i.e., roads/bridges, etc.

.......3.

- (x) Introduction  of  Real  Time  Market  (RTM),  Green  Day  Ahead  Market  (GDAM), Green Term Ahead Market (GTAM), High Price Day Ahead Market (HP-DAM) in Power Exchanges. Also, DEEP Portal (Discovery of Efficient Electricity Price) for e-Bidding and e-Reverse for procurement of short-term power by DISCOMs was introduced.
- (xi) Setting  up  of  Ultra  Mega  Renewable  Energy  Parks  to  provide  land  and transmission to RE developers for installation of RE projects at large scale.
- (xii) SHAKTI policy for transparent allocation of coal to Thermal Power plant was introduced,  which  enabled  efficient  domestic  coal  allocation  to  Thermal power  plants  and  also  ensured  revival  of  various  stressed  Thermal  Power projects.
- (xiii) Construction of the Inter-State transmission system ahead of the generation capacity.

(c): The  cost  of  generation  of  electricity  from  coal  based  power  plant  is dependent upon the price of coal and cost of freights and in case of blending also the price of the blended imported coal. The price of imported coal is linked with International Indices, source of origin and factors like ocean freight, insurance etc. which  vary  with  international  demand  supply  scenario.  Further,  every  generating company consumes imported coal as per its requirement.

Average Power purchase cost has increased by 71 Paisa only between FY 22 and  FY  23.  This  is  because  of  increase  in  various  costs  -  including  increase  in Transmission and Distribution cost.

(d) : Government of India have taken various steps to reduce the cost of power generation  and  resultant  reduction  in  cost  of  electricity  to  consumers  as  given below:

- (i) Power  Exchanges  have  been  set  up  in  the  country  with  the  objective  to ensure fair, neutral, efficient and robust electricity price discovery. Distribution Companies (DISCOMs) can procure the power from these Power Exchanges and thus help to reduce power purchase cost of DISCOMs.
- (ii) The  Government  in  May,  2016  allowed  flexibility  in  utilization  of  domestic coal by State/Central Generation Companies (GENCOs) amongst their generating  stations  to  reduce  the  cost  of  power  generation  by  allocating more coal to their most efficient plants as well as by saving in transportation cost. The States may also transfer their linkage coal to IPPs selected through bidding process and take equivalent power.

…….4.

- (iii) Rationalization  of  linkage  sources  of  State/Central  Generating  Companies (GENCOs) and Independent Power Producers (IPPs) with a view to optimize transportation cost has been allowed.
- (iv) To promote competitive procurement of electricity by distribution licensees, the Government issued various guidelines for tariff based bidding process for procurement of electricity under Section 63 of Electricity Act, 2003.
- (v) The  Government  has  introduced  the  SHAKTI  (Scheme  for  Harnessing  and Allocating Koyala (Coal) Transparently in India)-2017 Scheme to provide coal linkages  to  the  power  plants  which  do  not  have  linkage,  thus  helping  the generators to get cheaper coal and thereby reduction in cost of generation.
- (vi) The Government of India has also launched the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational efficiencies and financial  sustainability  by  providing  result-linked  financial  assistance  to DISCOMs to strengthen supply infrastructure. The main objectives of RDSS are  reduction  of  Aggregate  Technical  &  Commercial  (AT&C)  losses  to  panIndia levels of 12-15% by 2024-25 and reduction of average cost of supply per unit of power minus average revenue realized (ACS-ARR) gap to zero by 202425.  Reduction  in  AT&C  losses  improves  the  finances  of  the  utilities,  which will  enable  them  to  better  maintain  the  system  and  buy  power  as  per requirements; benefitting the consumers.
- (vii) With the objective of lowering the cost of electricity to consumers, National Merit Order Dispatch was made operational since April 2019, for Inter State Generating  Stations  under  which  electricity  from  more  efficient/lower  cost plant are dispatched  first, which  optimises  the  total  variable  cost  of generation pan-India, while meeting technical and grid security constraints. It has  resulted  in  reduction  of  variable  cost  on  pan-India  basis  and  these benefits are being shared with generators and their beneficiaries ultimately reducing the cost of electricity to consumers.

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ANNEXURE ANNEXURE REFERRED IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.

528 ANSWERED IN THE LOK SABHA ON 25.07.2024 ************* The year wise details of total power generation capacity from 2013-14 to 2024-25 (upto June, 2024)

| Year                    |   Installed Capacity (in MW) |
|-------------------------|------------------------------|
| 2013-14                 |                       248554 |
| 2014-15                 |                       275895 |
| 2015-16                 |                       306330 |
| 2016-17                 |                       328146 |
| 2017-18                 |                       345631 |
| 2018-19                 |                       357871 |
| 2019-20                 |                       371334 |
| 2020-21                 |                       383521 |
| 2021-22                 |                       399497 |
| 2022-23                 |                       416059 |
| 2023-24                 |                       441970 |
| 2024-25 (up to June 24) |                       446190 |

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