Presentation on Knowledge Report

Report
MANAGING POWER
Smart Governance through Technology
Tushar Pandey
Senior President and Country Head
Public and Social Policies Management Group
February 12,2013
1
Power Sector in India
Power Sector in India, is
the fourth largest in the
world
Per-capita
consumption
of
electricity in India is only about
one-fourth of the world average
and 404 million people in India
do not have access to electricity
Existing grids are constrained and
under pressure to deliver the
growing demands for power,
along with providing stable and
sustainable supply of electricity.
India loses $68 billion, or about Rs 4,14,800 crore of its Gross Domestic Product due to
electricity shortage.
India requires a Robust transmission and distribution (T&D)
network to increase evacuation capacity and coverage , prevent
cascading failures and transmission losses.
2
Power Sector in India
FUEL
GENERATION
GENERATION
CAPACITY - 2,36,387MW,
India’s energy
basket indicates
heavy
dependence on
thermal power
for production
of electricity.
•India accounts for 4.4% of
global energy
consumption.
•Energy and peak
availability shortage is
8.7% and 9%, respectively
Energy Generation MW
(AT&C) LOSSES were 26.1
which is HIGHEST when
compared against largest
power producing countries
such as China, Japan , US
and Russian Federation
WEAKEST LINK IN THE
INDIAN POWER SECTOR
DISTRIBUTION
& SUPPLY
•Only 67% of households
in India have electricity
connection
•45% of rural households
do not have electricity
connection
DEMAND - 89 GW (12TH
FYP)
Electric power transmission and distribution losses
Thermal Power
Hydro (Renewable)
Nuclear
RES** (MNRE)
2%
TRANSMISSION
12%
18%
1%
68%
Source: Ministry of Power, GOI
59%
9%
Source: World Bank data
3
Smart Grid: Catalyst for Change
A smart grid is an electrical grid with automation, communication and IT systems that can monitor power
flows from points of generation to points of consumption (even down to the appliances level) and control
the power flow or curtail the load to match generation in real time or near real-time.
CAPACITY
Meeting the growing
demands for electricityDemand response
management system
Real time
Operation
Management
Facilitate
evacuation
Grid
and
power
RELIABLE
NETWORK
Monitor grid stability
Energy accounting
and settlements
EFFICIENCY
SUSTAINABILITY
Augmenting electricity
supply on both new as
well as existing systems
Integration of
renewable power
sources
 Smart Meters
 Demand
Management
Side
 Green Buildings
 Administering green
energy
certificates
mechanisms
Improving the country’s
energy security by
reducing reliance on
imported fossil fuels
Bring in economies of
scale to support large
projects as compared to
smaller stand-alone
renewable energy projects
IMPACT
Meet fast-growing energy needs in a sustainable manner
•Increase capacity of
• Emergency Capacity
Defer capital
existing infra
• Prevent load Shedding
expenditures
•Leverages SMART GRID’s
and grid failure
nationwide transmission
•Infrastructure for telecom
•Reduced impact on
environment
•Balance renewable –
integrating VRE
4
Smart Grid Implementation
Greenfield Cities DMIC
 24 new SMART CITIES
 Industrial Parks
•11 investment
regions
•13 industrial areas
Agro-Processing Zones
Supporting Infra – Rail,
Airports, Logistics
Facilities, Road
Generate• Economic activity,
Employment
• Demand for Power - Total
Power Requirement for DMIC
corridor is1,700 MW. The
composition is as follows:
• Industrial: 1000MW
• Social: 600MW
• Mixed: 100MW
Implement
SMART GRID INFRA to provide
reliable supply of power, thereby,
improving
the
economics
of
operation,
encouraging
investment
and
fostering economic growth.
GoI Initiative:
SMART GRID - 14 pilot projects
have been approved by the
government.
Implemented National Grid
Restructured-Accelerated Power
Development and Reform
Program (R-APDRP)
Green Corridor
Various missions aimed at
promoting growth of RE
Brown-field Implementations
Implement through PPP mechanism tailored to each setup
BOOT , Concession, VGF etc.
5
Current Policy Framework
Ministry of Power
formulates the policy structure and takes decisions
pertaining to investments in power projects.
•Electricity Act, 2003 governs the sector
•National Smart Grid Mission
•Restructured-Accelerated Power Development
and Reform Program (R-APDRP)
State Electricity Boards
own and operate state grid and distribution network
Power Grid Corporation of India Limited
(PGCIL)
owns and operates inter-regional and inter-state
transmission lines, facilitating transfer of power from
surplus to deficit regions.
Private Sector
generation
–
distribution
and
power
6
Challenges faced by the Power Sector
Timely implementation of projects
•Difficulty in obtaining clearance s
•Difficulty in acquiring land
Power Tariff regulation
Regulatory Disputes between center and state
•Poor grid discipline
Poor infrastructure – poor evacuation and
transmission of power
Pilferage and high AT&C losses
More investment in transmission sector is
required
7
Suggestions
 Standardization of the process for award of projects,
within specific time-frame.
 Single window clearance for Power projects
 Frame Antitheft legislation to minimize AT&C losses
 Set up regulatory body to minimize project delays due
to disputes
 Rationalize power tariff to facilitate ‘open access’ and
approvals for the same
 Establish Demand Response Management
 Clear policy framework defining roles and
responsibility of both Center and State
8
Financing
• The Twelfth Plan (2012 - 2017)
estimates a total investment of
INR 95 BN in developing Smart
Grid infrastructure.
50 bn
Grants through
government
• Foster
private
participation:
45 bn
Private Sector
sector
operational
efficiencies
construction
and
commercial
risk sharing
innovative
technologies
access to
additional
finances
managerial
effectiveness
Spectrum of Public Private Partnership Options
Public
Investment
Private
Provider
Government
Enabler
Service
Contract
Management
Contract
Leases
Concession
BOT
BOO
divestiture
9
Way Forward
Fostering PPP
 Removing entry barriers for smart grid solution
providers
 Encourage private sector to set up power
projects of any size to increase investments and
incentive for renovation of existing power
plants
 Ease out legal process by setting up arbitration
cell
 Formulate
standard
agreement
for
commissioning power projects
 Un-bundling or SEBs to bring in transparency,
accountability and better management
 VGF for promoting private sector to take up
projects.
 Bring PPP approvals under the RTI
Smart Grid Investment
Market
Estimated
Investment
(US$ million)
2015
Software and
Hardware
339
Smart Meters
446
Sensors
2236
Comm
&wireless
289
Smart and T&D
equip
392
Source: ZPRYME
10
Way Forward
 Coordination between various states and center on
policy issues and implementation is required to
ensure seamless integration of Smart Grid
technologies across the country and facilitate
stakeholder participation.
 Private sector participation would bring efficiency
in operations and minimize losses.
 Suitable measures to augment financial resources
facilitating integration of smart and micro grid
needs to be established. Framing and enforcing antitheft legislation and legal system for speedy
resolution of disputes would foster private sector
participation in the distribution sector
11
Way Forward
Stakeholder collaboration
 India has a large pool of professionals and
experts in the IT and telecom sector which can
be leveraged for development of smart and
micro grids.
 Establishing collaborative community models
and fostering empowered consumer base
would make way for sustainable power
infrastructure.
Human Resource Development
 Smart Grids enable the more sophisticated use
of the electricity system requiring development
of
Skill
development
and
Training
infrastructure.
12th FYP envisages a capacity
addition of about 1,00,000 MW
(including
renewable)
requiring a work force of the
order of 4 lakh out of which
nearly 3 lakh will be technical.
12
Social Equity
1. Social Equity
• Transmission projects face delay due to inability to acquire land
• Social Equity Model can facilitate timely implementation of
projects by partnering with local community , ensuring their
support and equity in project.
Facilitating
Land
Acquisition
Facilitating
synergetic
partnerships
NGO
Government
Structure Social
Equity
Advisory and
PPP
implementation
Knowledge Bank
Local Community
Contribute
Land
2.
Community
Energy
Partnership Program (Ontario,
Canada)
Ontario’s FIT (Feed In Tariff )
program
provides
guaranteed
purchase of all of the power
supplied by renewable energy
projects for 20 years (40 years for
waterpower) at a fixed price that is
high enough to generate a
reasonable rate of return.
3.
Transmission lines
Equity in Project
Employment
Empowerment
Industries and commercial
establishments in Tamil Nadu are
letting out their lands or rooftops in
return for cheaper solar power.
Promoter (Entrepreneur/s or
Company)
Private Sector Efficiency
13
Alternate Financing Mechanism Plan
Frame plan to study towards establishing financial viability of smart grid
Increase coverage and Consumer Base
Installing Renewable Energy sources should qualify as PSL
Utilize M-commerce industry for power sector
Branch Correspondents to provide due diligence of co-operative for implementing
micro-grid projects
Study Incremental Benefit- understanding Smart Grid Value Chain
POWER FOR ALL
Emissions
Offset cost –
Govt. Subsidy
Kerosene /other fuel sources
404 million people in India
do not have access to
electricity
SMART GRID
Meet energy need
Reduce AT & C losses
Integrate Renewable Sources and hence
reduce environment impact
Reduce dependence on fossil fuels
and their imports
14
Contacts
YES BANK Limited
Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021
Tel: + 91 11 6656 9000; Fax: +91 11 4168 0144
Public and Social Policies Management (PSPM)Group
Tushar Pandey, Senior President & Country Head
Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021
Tel: + 91 11 6656 9056; [email protected]
About YES BANK
YES BANK, India’s new age private sector Bank, is the outcome of the professional commitment of top management team, to
establish a high quality, customer centric, service driven, private Indian Bank catering to the “Future Industries of India”. YES
BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers
comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES
BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail and wealth
management clients.
YES BANK is steadily building Corporate and Institutional Banking, Financial Markets, Investment Banking, Corporate
Finance, Business (SME) and Transactional Banking, Retail Banking and Wealth Management business lines across the
country. YES BANK has institutionalized YES International Banking that offers a complete suite of international banking
products and services, driven by state-of-the-art technology, which includes Debt, Trade Finance, Corporate Finance,
Investment Banking and Business Advisory Services, Treasury and Global Indian Banking. The Bank’s constant endeavor is to
provide a delightful banking experience expressed with simplicity, empathy and totality.
15
Disclaimer
YES BANK Limited
Registered & Corporate Office: Nehru Centre, 9th Floor, Discovery of India, Worli, Mumbai 400018
Tel: + 91 22 6669 9000; Fax: + 91 22 6669 9018
Northern Regional Corporate Office: 48 Nyaya Marg, Chanakyapuri, New Delhi 110 021
Tel: + 91 11 6656 9000; Fax: +91 11 4168 0144
Disclaimer
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy,
completeness or correctness of such information or opinions contained herein. The information contained in this presentation
is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts
and may be “forward looking statements", and future developments and the competitive and regulatory environment. Actual
results may differ materially from these forward-looking statements due to a number of factors, including future changes or
developments in the Company’s business, its competitive environment and political, economic, legal and social conditions in
India. This communication is for general information purpose only, without regard to specific objectives, financial situations
and needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for
any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract
or commitment whatsoever. The Company may alter, modify or otherwise change in any manner the content of this
presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or
disseminated in any manner.
16

similar documents