NATIONAL ELECTRICITY PLAN

(Draft)
Generation Vol- I
[In fulfilment of CEA's obligation under section (4) of the Electricity Act 2003]

Government of India
Ministry of Power
Central Electricity Authority
September, 2022
 (Volume I)
Generation
[In fulfilment of CEA's obligation under
Section 3(4) of the Electricity Act 2003]

Government of India
Ministry of Power
Central Electricity Authority

September, 2022
Central Electricity Authority Draft National Electricity Plan

CONTENTS

CHAPTER SUBJECT PAGE

NO.
i CONTENTS i-iv
ii ACRONYMS v-xiii
iii PREAMBLE xiv – xix
iv MAJOR HIGHLIGHTS xx- xxii
1 INTRODUCTION
1.0 Background 1.1
1.1 Stipulation Regarding National Electricity Plan 1.1
1.2 Power Scenario in Country 1.3
1.3 Various Initiatives of The Government 1.8
2 REVIEW OF CAPACITY ADDITION DURING PERIOD 2017-22
2.0 Introduction 2.1
2.1 Scheduled Generation Capacity Addition from Conventional Sources 2.1
2.2 Generation Capacity Addition Achieved from Conventional Sources During 2017-22 2.3

2.3 Capacity Considered for Retirement During Period 2017-22 2.5

2.4 Capacity Addition from Renewable Energy Sources During 2017-22 2.6
2.5 Major Reasons for Slippage of Projects During 2017-22 2.8
2.6 Conclusions 2.10
ANNEXURES
2.1
Sta State-wise sector-wise capacity from conventional sources commissioned during 2.11
2017-22
2.2 List of conventional sources projects commissioned which were envisaged during 2.13
2017-22
2.3 List of projects slipped during 2017-22 2.16

2.4 List of projects retired during period 2017-22 2.18

2.5 List of projects which do not retired as envisaged during the period 2017-22due to old age
2.19
criteria

3 DEMAND SIDE MANAGEMENT, ENERGY EFFIICIENCY AND

CONSERVATION
3.0 Background 3.1
3.1 Energy Conservation Act and Formation of Bureau of Energy Efficiency 3.1
3.2 Assessment Of Energy Efficiency Measures and Achievements 3.2
3.3 Energy Efficiency Initiatives 3.3
3.4 Impact Of Various EE Measures on The Energy Consumption of The Country 3.12
3.5 Details Of Energy Savings and CO2 Emission Reduction (2017-21) Through Key 3.14
Energy Efficiency Initiatives by BEE
3.6 Projections Of Energy Savings 3.15
3.7 Measures To Be Adopted to Achieve the Target 3.17
3.8 Initiatives Of Government for Enhancing Energy Efficiency and For Decarbonisation 3.20
of The Power Sector
3.9 Conclusion And Recommendations 3.21
ANNEXURES
3.1 State energy-saving target (in Mtoe) by 2032 3.23

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Central Electricity Authority Draft National Electricity Plan

4 DEMAND PROJECTIONS
4.0 Introduction 4.1
4.1 Demand assessment by central electricity authority- electric power survey committee 4.1

4.2 Demand assessment 4.1

4.3 Conclusions 4.3
5 GENERATION PLANNING
5.0 Introduction 5.1
5.1 Resources for power generation in INDIA 5.1
5.2 Generation sources in INDIA 5.1
5.3 Principles of generation planning 5.4
5.4 Planning tools - details of planning model 5.6
5.5 Planning norms 5.7
5.6 Planning approach for generation expansion planning during the period 2022-27 and 5.8
2027-32
5.7 Results of generation expansion planning studies for the period 2022- 27 and 2027- 5.15
32
5.8 Additional scenarios considered for generation expansion planning during the year 5.20
2026-27
5.9 Short term studies - (hourly generation dispatch) 5.22
5.10 Conclusions 5.29
ANNEXURES
5.1 Technical parameters 5.31
5.2 List of Coal based plants for likely retirement during 2022-23 to 2026-27 5.33
5.3 List of under construction Thermal, Hydro, Nuclear, PSP for likely benefits during 5.34
2022-27 & 2027-32
5.4 List of Hydro based imports for Neighbouring Countries during 2022-27 5.38
6 RENEWABLE ENERGY SOURCES
6.0 Introduction 6.1
6.1 Present status of renewable energy in the country 6.1
6.2 Overview of renewable energy technologies 6.3
6.3 New areas in renewable energy: 6.13
6.4 Estimated renewable energy Installed Capacity by 2026-27 and 2031-32 6.16
6.5 Projection of renewable energy generation 6.17
6.6 Major ongoing schemes and policies related to renewable energy sources 6.18
6.7 Special measures to promote growth of renewable energy 6.23
6.8 Challenges with integration of solar and wind power with the grid 6.25
6.9 Ways to address the challenges of integration of solar and wind power with grid 6.25
6.10 Conclusions 6.27
ANNEXURES
6.1 State-wise installed capacity of grid interactive renewable power 6.28
6.2 State-wise estimated Solar, Wind, Small Hydro power potential in the country 6.30

7 FUEL REQUIREMENT
7.0 Introduction 7.1
7.1 Coal supply scenario 7.1
7.2 Coal demand and supply 7.9
7.3 Issues/constraints in making coal available to power stations 7.15
7.4 New initiatives taken by the Government for addressing issues related to coal supply 7.15
to the power plants
7.5 Lignite 7.19

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Central Electricity Authority Draft National Electricity Plan

7.6 Gas-based power plants 7.20

7.7 Conclusions 7.26
ANNEXURES
7.1 Fuel supply/consumption for gas-based power stations in the country for the period 7.27
2021-22

8 FUND REQUIREMENT
8.0 Introduction 8.1
8.1 Fund requirement for the period 2022-2027 8.1
8.2 Fund requirement for the period 2027-32 8.3
8.3 Sources of funds 8.4
ANNEXURES
8.1 Assumptions for estimating capital cost of power projects-part(a) 8.5

8.2 Assumptions for estimating capital cost of power projects-part(b) 8.6

9 KEY INPUTS
9.0 Introduction 9.1
9.1 Capacity Addition Plan for the period 2022-27 and 2027-32 9.1
9.2 Requirement of Equipment 9.2
9.3 Requirement of Key Materials 9.8
9.4 Transportation 9.12
9.5 Land and Water requirement 9.22
9.6 Conclusions & Recommendations 9.25
ANNEXURES

10 EMISSIONS FROM POWER SECTOR

10.0 Introduction 10.1
10.1 Emission from thermal power stations 10.1
10.2 Steps taken by thermal power stations to reduce emissions from power plants 10.5
10.3 New emission standards for thermal power plants 10.6
10.4 Implications of new emission standards on power sector 10.7
10.5 Carbon emissions from power sector 10.10
10.6 Projections of carbon emissions in 2026-27 and 2031-32 10.13
10.7 Initiative of government of INDIA to reduce carbon emissions 10.15
10.8 Country’s stand on climate change- INDCs 10.15
10.9 Conclusions 10.16
11 RESEARCH AND DEVELOPMENT IN POWER SECTOR
11.0 Introduction 11.1
11.1 Review of existing R&D facilities and programmes in power sector 11.2
11.2 Technological advancement 11.4
11.3 Research and Development 11.11
11.4 Initiatives Proposed for improving R&D in the Power sector 11.36
11.5 Recommendations 11.39
12 HUMAN RESOURCES DEVELOPMENT IN POWER SECTOR
12.0 Introduction 12.1
12.1 Manpower Assessment 12.1
12.2 Training Need Assessment 12.3
12.3 Recommendation 12.7
13 ENERGY STORAGE SYSTEM
13.0 Introduction 13.1
13.1 Energy Storage Overview 13.1
13.2 Energy Storage Technologies 13.3
13.3 Battery Energy Storage System Modelling 13.10

CONTENTS III
Central Electricity Authority Draft National Electricity Plan

13.4 Energy Storage Requirement 13.11

13.5 Conclusion 13.13
ANNEXURES
13.1 List of pumped storage plant considered for the generation expansion planning 13.14
studies for the period 2022-27 and 2031-32

---++---

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 Central Electricity Authority Draft National Electricity Plan

ACRONYMS

ACRONYMS EXPANSION
AC Alternating Current
ACC Air Cooled Condensers
ACQ Annual Contracted Quantity
AGDSM Agricultural Demand Side Management
AHEC Alternate Hydro Energy Centre
AHP Ash Handling Plant
APC Auxiliary Power Consumption
APDRP Accelerated Power Development and Reforms Programme
APM Administered Price Mechanism
AT&C Aggregate Technical and Commercial
BAU Business As Usual
BCD Basic Custom Duty
Bcum, BCM,Bm3 Billion cubic metre
BEE Bureau of Energy Efficiency
BHEL Bharat Heavy Electricals Ltd.
BIS Bureau of Indian Standards
BLY Bachat Lamp Yojna
BoP Balance of Payment/Balance of Plant
BESS Battery Energy Storage System
BPL Below Poverty Line
BT Billion Tonnes
BTG Boiler Turbine Generator
BU Billion Units
BWR Boiling Water Reactor
CAD Computer-Aided Design
CAES Compressed Air Energy Storage
CAGR Compounded Annual Growth Rate
CBIP Central Board of Irrigation & Power
CBM Coal Bed Methane
CCEA Cabinet Committee on Economic Affairs
CCGT Combined Cycle Gas Turbine
CDM Clean Development Mechanism
CEA Central Electricity Authority
CED Chandigarh Electricity Department
CERC Central Electricity Regulatory Commission
CFBC Circulating Fluidized Bed Combustion
CFD Computational Fluid Dynamics
CFL Compact Fluorescent Lamp
CFFP Central Forge & Foundry Plant
CHP Combined heat and power
CIL Coal India Limited

ACRONYMS v
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ACRONYMS EXPANSION
CIMFR Central Institute of Mining and Fuel Research
CII Confederation of Indian Industry
CIL Coal India Ltd.
CLA Central Loan Assistance
COD Date of Commercial Operation
CO Carbon mono oxide
CO2 Carbon di oxide
COP 26 Conference of the Parties 26
CPP Captive Power Plant
CPRI Central Power Research Institute
CPSU Central Public Sector Undertaking
Crs Crores
CRGO Cold Rolled Grain Oriented
CRNGO Cold Rolled Non Grain Oriented
CS Central Sector
CSIR Council for Scientific and Industrial Research
CSP Concentrated solar power
CST Central Sales Tax
CT Cooling Tower
CTO Consent To Operate
CUF Capacity Utilization Factor
DAE Department of Atomic Energy
DBFOT Design-Build-Finance-Operate-Transfer
DBFOO Design, Build, Finance, Own, and Operate
DC Designated Consumers
DDG Decentralised Distributed Generation
DDUGJY Deen Dayal Upadhyaya Gram Jyoti Yojana
DEEP Discovery of Efficient Electricity Price
DELP Domestic Efficient Lighting Programme
DFC Dedicated Freight Corridor
DGH Director General Hydro Carbon
DG Diesel Generating
DISCOM Distribution Company
DPR Detailed Project Report
DR Demand Response
DSM Demand Side Management
DST Department of Science & Technology
DVC Damodar Valley Corporation
DVR Dynamic Voltage Restorer
EA 2003 Electricity Act 2003
EC Energy Conservation
EC Act Energy Conservation Act
ECBC Energy Conservation Building Code

ACRONYMS vi
 Central Electricity Authority Draft National Electricity Plan

ACRONYMS EXPANSION
EE Energy Efficiency
EEFP Energy Efficiency Financing Platform
EESL Energy Efficiency Services Limited
EEZ Exclusive Economic Zone
EGoM Empowered Group of Ministers
EIA Environmental Impact Assessment
ELCOMA Electric Lamp and Component Manufacturers' Association of India
EMU Electrical Multiple Units
ENS Energy Not Served
EPC Engineering Procurement Contract
EPS Electric Power Survey
EPSC Electric Power Survey Committee
ERDA Electric Research & Development Association
ESCos Energy Service Company or Energy Savings Company
ESCert Energy Saving Certificate
ESP Electro Static Precipitator
EU European Union
EV Electric Vehicles
FAUP Fly Ash Utilisation Programme
FBC Fluidised Bed Combustion
FEEED Framework for Energy Efficient Economic Development
FESS Fly wheels energy storage system
FGD Flue-gas desulfurization
FICCI Federation of Indian Chambers of Commerce & Industry
FO Forced Outage
FOR Forum of Regulators
FRP Fibre-Reinforced Plastic
FSA Fuel Supply Agreement
GAIL Gas Authority of India Limited
GBI Generation Based Incentive
GCV Gross Calorific Value
GCF Green Climate Fund
GDP Gross Domestic Product
GEF Green Energy Fund
GHAVP Gorakpur Haryana Anu Vidyut Pariyojana
GHG Green House Gas
GIS Geographic Information System
GPS Geographic Positioning System
GR General Review
GSPC Gujarat State Petroleum Corporation
GT Gas Turbine
GTAM Green Term Ahead Market
GW Giga Watt

ACRONYMS vii
 Central Electricity Authority Draft National Electricity Plan

ACRONYMS EXPANSION
H2FC Hydrogen Fuel Gas
HBJ Hazira-Bijapur-Jagdishpur ( pipeline)
HCSD High Concentration Slurry Deposit
HFO Heavy Fuel Oil
HEP Hydro Electric Project
HELP Hydrocarbon Exploration and Licensing Policy
HHV Higher Heating Valve
HLEC High-Level Empowered Committee
HoG Head on Generation
HPO Hydro Purchase Obligation
HRD Human Resource Development
HSD High Speed Diesel
HT High Tension
HVDS High Voltage Distribution System
HVAC High Voltage Alternating Current
HVDC High Voltage Direct Current
HVJ Hazira-Vijaipur-Jagdishpur
IAEA International Atomic Energy Agency
IC Installed Capacity
ICAR Indian Council for Agricultural Research
ID Induced Draft
IEA International Energy Agency
IEP Integrated Energy Policy
IEEMA Indian Electrical and Electronics Manufacturers Association
IGCAR Indira Gandhi Centre for Atomic Research
IGCC Integrated Gasification Combined Cycle
IISC Indian Institute of Science
IIT Indian Institute of Technology
IMTF Inter-Ministerial Task Force
INDC Intended Nationally Determined Contribution
IPCC Intergovernmental Panel on Climate Change
IPDS Integrated Power Development Scheme
IPP Independent Power Producer
IR Indian Railway
IRP Integrated Resource Planning
ISA International Solar Alliance
ITI Industrial Training Institutes
IS Indian Standard
ISCC Integrated Solar Combined Cycle
ISO International Standard Organisation
IT Information Technology
JMVP Jalmarg Vikas Project
JVs Joint Ventures

ACRONYMS viii
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ACRONYMS EXPANSION
KAPP Kakrapar Atomic Power Plant
kCal kilo Calorie
kgoe Kilogram of oil equivalent
KGD6 Krishna Godavari Dhirubhai 6
KKNPP Kudankulam Nuclear Power Project
kW kilo Watt
kWh kilo Watt hour
LCAC Light Commercial Air Conditioners
LE Life Extension
LEP/LE Life Extension Programme
LED Light Emitting Diode
LF Load Factor
LIDAR Light Detection and Ranging
LNG Liquefied Natural Gas
LOA Letter of Award
LOLP Loss of Load Probability
LP Linear Programming
LSHS Low Sulphur Heavy Stock
LT Low Tension
LWR Light Water Reactor
Mcm Million cubic metre
MCP Market Clearing Price
MEMU Mainline Electrical Multiple Unit
MII Make in India Initiative
MMTPA Million Metric Tonnes Per Annum
MMSCMD Million Metric Standard Cubic Metre per Day
MNRE Ministry of New & Renewable Energy
MNP Minimum Need Programme
MOC Ministry of Coal
MoEF&CC Ministry of Environment ,Forest & Climate Change
MoP Ministry of Power
MoP&NG Ministry of Petroleum and Natural Gas
MoRTH Ministry of Road Transport and Highways
MoU Memorandum of Understanding
MPA Major Port Authority
MuDSM Municipality Demand Side Management
MT Million Tonne
MTEE Market Transformation for Energy Efficiency
MToe Million Tonnes Oil equivalent
MU Million Units
M&V Monitoring & Verification
MW Mega Watt
NAPCC National Action Plan on Climate Change

ACRONYMS ix
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ACRONYMS EXPANSION
NAPS Narora Atomic Power Station
NCDP New Coal Distribution Policy
NDCs Nationally Determined Contributions
NDT Non Dispatchable Technologies
NECA National Energy Conservation Awards
NEERMAN National Energy Efficiency Roadmap for Movement towards Affordable &
Natural Habitat
NEF National Electricity Fund
NEP National Electricity Plan
NELP New Exploration Licensing Policy
NETRA NTPC Energy Technology Research Alliance
NHDP National Highway Development Project
NHM National Hydrogen Energy Mission
NHPC National Hydroelectric Power Corporation
NISE National Institute of Solar Energy
NIWE National Institute of Wind Energy
NLC Neyveli Lignite Corporation Limited
NMDC National Mineral Development Corporation
NMEEE National Mission for Enhanced Energy Efficiency
NML National Metallurgical Laboratory
NOX Oxides of Nitrogen
NPP National Perspective Plan
NPCIL Nuclear Power Corporation of India Ltd.
NPTI National Power Training Institute
NPMU National Smart Grid Mission Project Management Unit
NSGM National Smart Grid Mission
NSM National Solar Mission
NTPC National Thermal Power Corporation
NW National Waterway
OCGT Open Cycle Gas Turbine
O&M Operation & Maintenance
ODC Over Dimension Consignment/ Over Dimension Cargo
OHE Over Head Equipment
OSOWOG One Sun One World One Grid
OWC Over Weight Cargo
PAP Project Affected People
PAT Perform Achieve & Trade
PC Pulverized Coal
PCRA Petroleum Conservation Research Association
PDC Project Development Cell
PFA Power For All
PFBC Pressurised Fluidized Bed Combustion
PFC Power Finance Corporation

ACRONYMS x
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ACRONYMS EXPANSION
PGCIL Power Grid Corporation of India Limited
PHWR Pressurised Heavy Water Reactor
PIE Partnership In Excellence
PIB Public Investment Board
PLF Plant Load Factor
PLI Performance Linked Incentive
PLL Phase-locked loop
PMC Project Management Consultants
PMGY Pradhan Mantri Gramodaya Yojna
PMP Phased Manufacturing Programme
PM KUSUM Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan
PPMP Power Project Monitoring Panel
PPP Public Private partnership
PRGF Partial Risk Guarantee Fund
PRSF Partial Risk Sharing Facility
POSOCO Power System Operation Corporation
PPA Power Purchase Agreement
PPM Parts Per Million
PRGFEE Partial Risk Guarantee Fund for Energy Efficiency
PS Private Sector
PSA Power Supply Agreement
PSC Production Sharing Contract
PSDF Power System Development Fund
PSP Pump Storage Plant
PV Photovoltaic
PSS Pumped Storage Schemes
PSU Public Sector Undertaking.
R&D Research & Development
R&M Renovation & Modernisation
R-APDRP Restructured Accelerated Power Development and Reforms Programme
RAPS Rajasthan Atomic Power Station
REB Regional Electricity Board
REC Rural Electrification Corporation
RECTPCL REC Transmission Projects Limited
RES Renewable Energy Sources
RFP Request for Proposal
RFQ Request for Quotation
RGGVY Rajiv Gandhi Grameen Vidyutikaran Yojana
RGTIL Reliance Gas Transportation Infrastructure Ltd
RHE Rural Household Electrification
RLA Residual Life Assesment
RLDC Regional Load Dispatch Centre
RLNG Regasified Liquefied Natural Gas

ACRONYMS xi
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ACRONYMS EXPANSION
RM Reserve Margin
ROM Run Of Mines
ROR Run Of River
ROSHANEE Roadmap of Sustainable and Holistic Approach to National Energy Efficiency
ROW Right Of Way
RPCs Regional Power Committees
RPO Renewable Purchase Obligation
RSOP Research Schemes on Power
R&M Renovation & Modernisation
R&R Rehabilitation & Resettlement
RTC Round the Clock
SAARC South Asian Association for Regional Corporation
SBDs Standard Bidding Documents
SCADA Supervisory Control and Data Acquisition
SCCL Singareni Collieries Company Limited
SCR Selective Control Reduction
SDAs State Designated Agencies
SDL State Development Loan
SEAD Super-Efficient Appliance Development
SEB State Electricity Board
SEC Specific Energy Consumption
SECI Solar Energy Corporation of India
SEEP Super-Efficient Equipment Program
SERC State Electricity Regulatory Commission
SIDHIEE Simplified Digital Hands-on Information on Energy Efficiency
SJVNL Satluj Jal Vidyut Nigam Limited
SLC(LT) Standing Linkage Committee (Long-Term)
SLDC State Load Dispatch Centre
SDL Statutory Liquidity Ratio
S&L Standard & Labelling
SMEs Small & Medium Enterprises
SOG Sanctioned & Ongoing
SOX Oxides of Sulphur
SPM Suspended Particulate Matter
SS State Sector
SSTS Solid State Transfer Switches
STPP Super Thermal Power Plant
STPS Super Thermal Power Station
STUs State Transmission Utilities
SWHS Solar Water Heater System
T&D Transmission & Distribution
TERI The Energy Research Institute
TG Turbine Generator

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ACRONYMS EXPANSION
TIFAC Technology Information Forecasting & Assessment Council
TOD Time Of The Day
TOR Terms of Reference
TOU Time of Use
TPES Total Primary Energy Supply
TPP Thermal Power Plant
TPS Thermal Power Station
UAVs Unmanned Aerial Vehicles
UDAY Ujwal DISCOM Assurance Yojana
UHD Ultra High Definition
ULB Urban Local Bodies
UJALA Unnat Jyoti by Affordable LED for All
UMPP Ultra Mega Power Project
UN United Nations
UNDP United Nations Development Programme
UNFCCC United Nations Framework Convention on Climate Change
UNNATEE Unlocking National Energy Efficiency Potential
USC Ultra Super Critical
UT Union Territory
VAT Value Added Tax
VCFEE Venture Capital Fund for Energy Efficiency
VRE Variable Renewable Energy
WTE Waste to Energy

ACRONYMS xiii
 Central Electricity Authority Draft National Electricity Plan

PREAMBLE FOR NATIONAL ELECTRICITY PLAN, 2022-27

Section 3(4) of Electricity Act, 2003 stipulates that, the Central Electricity Authority (CEA) shall prepare a
National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in five
years.

Provided that the Authority while preparing the National Electricity Plan shall publish the draft National
Electricity Plan and invite suggestions and objections thereon from licensees, generating companies and the public
within such time as may be prescribed:
Provided further that the Authority shall –
a) Notify the plan after obtaining the approval of the Central Government;
b) Revise the plan incorporating therein the directions, if any, given by the Central Government while
granting approval under clause (a).

Further Section 3(5) of said act stipulates that, the Authority may review or revise the National Electricity Plan in
accordance with the National Electricity Policy.

Para 3 of National Electricity Policy, 2005 stipulates that, assessment of demand is an important pre-requisite for
planning capacity addition. Also, section 73 (a) of the Electricity Act provides that formulation of short-term and
perspective plans for development of the electricity system and coordinating the activities of various planning
agencies for the optimal utilization of resources to sub serve the interests of the national economy shall be one of
the functions of the CEA. The Plan prepared by CEA and approved by the Central Government can be used by
prospective generating companies, transmission utilities and transmission/distribution licensees as reference
document.

Accordingly, CEA shall prepare the National Electricity Plan that would be for a short-term framework of five
years while giving a 15-year perspective and would include:
 Short-term and long term demand forecast for different regions;
 Suggested areas/locations for capacity additions in generation and transmission keeping in view the
economics of generation and transmission, losses in the system, load centre requirements, grid stability,
security of supply, quality of power including voltage profile etc. and environmental considerations
including rehabilitation and resettlement;
 Integration of such possible locations with transmission system and development of national grid
including type of transmission systems and requirement of redundancies; and
 Different technologies available for efficient generation, transmission and distribution.
 Fuel choices based on economy, energy security and environmental considerations.

While evolving the National Electricity Plan, CEA will consult all the stakeholders including State Governments
and the State Governments would, at state level, undertake this exercise in coordination with stakeholders
including distribution licensees and State Transmission Utilities (STUs). While conducting studies periodically to
assess short-term and long-term demand, projections made by distribution utilities would be given due weightage.
CEA will also interact with institutions and agencies having economic expertise, particularly in the field of
demand forecasting. Projected growth rates for different sectors of the economy will also be taken into account in
the exercise of demand forecasting.

Accordingly, the first National Electricity Plan covering the review of 10 th plan, detailed plan for 11th plan and
perspective Plan for 12th Plan was notified in the Gazette in August, 2007.

The Second National Electricity Plan covering the review of 11th plan, detailed plan for 12th plan and perspective
Plan for 13th plan was notified in the Gazette in December, 2013 in two volumes (Volume-I, Generation and
Volume-II, Transmission).

The Third National Electricity Plan covers the review of 12th Plan, detailed Plan for 2017-22 and perspective Plan
for 2022-27 and was notified in the Gazette of India (Volume-I-Generation in March 2018 and Volume-II –
Transmission in January, 2019)

In order to initiate the work of preparation of NEP for the next five years (2022-27), a committee on National
Electricity plan under the chairmanship of Chairperson, CEA has been constituted by CEA vide office order no.

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File No.CEA-PL-11-12/1/2019-IRP Division dated 16.06.2020.In order to elicit views of various experts in Power
Sector in the work relating to the preparation of the National Electricity Plan for the next five years (2022-2027),
a committee for National Electricity Plan is constituted with following composition and Terms of Reference
(TOR).

COMMITTEE FOR PREPARATION OF NATIONAL ELECTRICITY PLAN 2022-27

A. CONSTITUTION:

i. Chairperson, CEA - Chairman

ii. Chief Engineer(IRP), CEA - Member Secretary

MEMBERS

i. All Members of CEA

ii. Economic Advisor, MOP
iii. Representative of MNRE not below the rank of JS, (MNRE)
iv. Director General, BEE
v. Advisor(Energy), NITI Aayog
vi. Director General, CPRI
vii. Chairman cum Managing Director, NTPC
viii. Chairman cum Managing Director, NHPC
ix. Chairman cum Managing Director, PGCIL
x. Chairman cum Managing Director, PFC
xi. Chief Executive Officer, (POSOCO)
xii. Chairman cum Managing Director, NPCIL
xiii. Chairman cum Managing Director, REC
xiv. Chairman cum Managing Director, EESL

B. TERMS OF REFERENCE OF THE COMMITTEE FOR NATIONAL ELECTRICITY PLAN, 2022-

27

i. To review the likely achievements vis-à-vis targets set for the 2017-22 period towards generation
from conventional sources along with reasons for shortfalls, if any.
ii. To assess the peak load and energy requirement for the period 2022-27 and perspective forecast for
2027-32.
iii. To assess the incremental capacity requirement to meet the projected load and energy requirement
after considering retirements, renewable and captive injection and suggest the feasible break up in
terms of thermal, hydro, nuclear ,renewables etc.
iv. To make an assessment of the resource requirement like fuel, land, water, indigenous manufacturing
capabilities, infrastructural, human resource for meeting the capacity addition requirements.
v. To assess investment requirement for generation and transmission capacity addition during 2022-
27 and beyond.
vi. To suggest energy conservation measures through Demand Side Management and suggest a
strategy for low carbon growth.
vii. Review of latest technological development and R & D in the power sector and to assess its
suitability for Indian conditions.
viii. Development of integrated Transmission Plan for the period from 2022-27 and perspective plan for
2027-32 including Grid Security, evacuation of Renewable Energy Sources and exploring SAARC
integration.

C. 1. The NEP committee may co-opt any expert as may be considered necessary.

2. NEP committee may constitute separate sub-Committees on any aspect. The report of the Sub-
Committee(s) shall be submitted to NEP Committee for consideration.

The first meeting of the Committee for the National Electricity Plan (NEP), 2022-27 was held on 6th August,
2020 under the chairmanship of Chairperson, CEA wherein, it was decided to constitute 10 nos. of Sub-
Committees to look into different aspects of power sector and provides inputs to committee for NEP. Thereafter
NEP Committee had met on 21.01.2022.The constitution and TOR of the Sub-Committees are given as:

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CONSTITUTION AND TERMS OF REFERENCE OF 10 SUB COMMITTEES CONSTITUTED UNDER

COMMITTEE FOR NATIONAL ELECTRICITY PLAN, 2022-27

1. SUB-COMMITTEE- 1- DEMAND SIDE MANAGEMENT, ENERGY EFFICIENCY &

CONSERVATION

CONSTITUTION:

• Director General(BEE)- Chairman

• Chief Engineer( TPE&CC), CEA - Member Secretary

MEMBERS:

• Representative from NTPC, EESL,PCRA,CII,IEEMA,ELCOMA

• Chief Engineer(DP&T), CEA
• Representative from Energy Intensive Industry
• Representative from Major DISCOM

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Assess and review energy efficiency & conservation measures implemented and achievements till 2022.
• Major Plans for efficiency improvement during the period 2022-27 and 2027-32
• Assessment of reduction in energy requirement and peak load demand through demand side management
(DSM) and energy efficiency.

2. SUB-COMMITTEE 2: DEMAND PROJECTION

CONSTITUTION:

• Member (Planning), CEA - Chairman

• Chief Engineer (PS& LF), CEA - Member Secretary

MEMBERS:

• Representative from MNRE, NITI Aayog, BEE, POSOCO,NTPC

• Chief Engineer( DP&T),CEA
• Representative from State Discoms
• Representative from Energy Intensive Industry

TERMS OF REFERENCE OF SUB-COMMITTEE:

• In coordination with the 20th EPS committee, demand assessment in terms of peak load and energy
requirements for the period from 2022-2027 & 2027-2032.
• To assess captive demand including Solar roof top and its impact on Grid demand.
• To assess the impact of various Govt. schemes for ex. Kusum, Saubhagaya, National Electric mobility
mission plan, etc on Grid demand.

3. SUB-COMMITTEE 3: REVIEW OF GENERATION CAPACITY ADDITION (2017-22) AND

GENERATION PLANNING

CONSTITUTION:

• Member (Planning), CEA- Chairman

• Chief Engineer (IRP), CEA – Member Secretary
•
MEMBERS:

• Representative from MNRE,CTU,POSOCO, NPCIL,BHEL ,Sterlite, L&T, TPPDL,

PREAMBLE xvi
 Central Electricity Authority Draft National Electricity Plan

• Representative from Solar Energy Corporation of India

• Representative from National Institute for Wind Energy
• CEA- CE( RPM),CE(TPM),CE(TPRM),CE( HPM),CE(TPP&D),CE(HPI),CE(GM)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• To review generation capacity addition achievements vis-à-vis targets during 2017-22 including new &
renewable energy and reasons for shortfalls if any.
• Assessment of generation capacity addition during 2022-27 and 2027-32 including renewable energy
sources and its integration thereof.

4. SUB-COMMITTEE 4- RESEARCH AND DEVELOPMENT IN POWER SECTOR

CONSTITUTION:

• Director General, CPRI - Chairman

• Chief Engineer(R&D),CEA - Member Secretary

MEMBERS:

• Representative from MNRE, National Institute for Solar Energy & National Institute for Wind Energy
• Representative from NETRA,NTPC
• Representative from IEEMA, IIT Kanpur, PGCIL, DST, BHEL
• CEA- CE(TETD), CE(HETD), CE(SETD)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Review of existing R&D facilities & programmes in Power sector

• Recommendation regarding R&D activities to be taken up during 2022-27 & 2027-32,
• Issues relating to cyber security
• To assess the infrastructure requirement to promote R&D activities in Power Sector.
• To identify future technologies in power generation including waste (Municipality, hospital, Industrial
etc.)

5. SUB-COMMITTEE 5- FUEL REQUIREMENT

CONSTITUTION:

• Member( Planning), CEA as Chairman

• Chief Engineer,(FM), CEA as Member Secretary

MEMBERS:

• Representative from MOP&NG, MOC, NTPC, NPCIL, NLC, GAIL,CIL

• CEA- CE(IRP),CE(TPP&D)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Identify and quantify the different types of fuels required to meet the electricity demand for the period
2022-27 and 2022-32
• To assess the availability of fuel source wise.

6. SUB-COMMITTEE 6- FUND REQUIREMENT

CONSTITUTION:

• Member, (E&C), CEA as chairman

• Chief Engineer( F&CA), CEA as Member Secretary

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 Central Electricity Authority Draft National Electricity Plan

MEMBERS:

• Representative from MOP, MNRE, NITI Aayog, NTPC,PGCIL ,NHPC, NPCIL, PFC, REC
• CEA-CE(TPP&D),CE(HPI),CE(PSP&A I)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Review of financial issues related to power sector

• Identify the investment required to meet the capacity addition and associated transmission system and
possible sources of fund etc.

7. SUB-COMMITTEE 7: KEY INPUTS FOR POWER SECTOR

CONSTITUTION:

• CMD, NTPC as Chairman

• Chief Engineer( TETD), CEA as Member Secretary

MEMBERS:

• Representatives of MoP&NG, Ministry of Railways, Ministry of Steel, Ministry of Road Transport and
Highway, Ministry of Shipping, MNRE, CPRI,PFC,BHEL, NHPC, Private Equipment Manufacturer,
CII.
CEA-CE(TPP&D),CE (PSP&A-I), CE(SETD), CE(TPRM)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Identify the key inputs required for meeting the capacity addition requirements
• To assess infrastructural support required for Power capacity addition during 2022-27 & 2027-32.
• Land , water Requirement & its availability
• Transport( Railways, Roads, Waterways, pipeline, LNG terminals), Port facilities
• Construction & manufacturing capabilities specifically erection machinery and agencies including civil
and BOP contractors. Steel, cement, aluminium & other materials required for construction work in
power sector.
• Assessment of sourcing inputs for power Sector under the Atmanirbhar Bharat initiative.

8. SUB-COMMITTEE 8- TRANSMISSION PLANNING

CONSTITUTION:

• Member(PS), CEA as Chairman

• Chief Engineer ( PSP&A-I) as Member secretary

MEMBERS:

• Representative of MNRE,PGCIL,POSOCO,PFC,REC, State Transmission Utility, CTU Distribution

Licensee
• CEA- CE(PSP&A-II),CE(PSPM),CE(SETD),RPCs

TERMS OF REFERENCE OF SUB-COMMITTEE

• Review of achievement of targets for the period of 2017-22 for transmission and reasons of shortfall if
any.
• Development of integrated transmission plan for the period from 2022-27 and perspective plan for 2027-
32.
• Technology development in transmission

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 Central Electricity Authority Draft National Electricity Plan

9. SUB-COMMITTEE 9- HUMAN RESOURCE REQUIREMENT

CONSTITUTION:

• Member( E&C), as Chairman

• Chief Engineer(HRD),CEA as Member Secretary

MEMBERS:

• Representatives of MNRE,PGCIL,NTPC,NHPC, POSOCO , two State GENCOs

• Representative from NPTI, PSTI
• Representative from National Skill Development Corporation

TERMS OF REFERENCE OF SUB-COMMITTEE:

• Assess the human resource requirement in power sector for the period 2022-27 and 2027-32.
• Human Resource Development Plans including training need assessment and infrastructure required.

10. SUB-COMMITTEE-10: REQUIREMENT OF FLEXIBLE RESOURCES FOR GRID

STABILITY

CONSTITUTION:

• Member (Planning), CEA as Chairman

• Chief Engineer (PSP&A -II) as Member Secretary of the Sub-committee.

MEMBERS:

• Representative from MNRE, NITI AAYOG, CTU, POWERGRID, NHPC, NTPC,NPCIL,

POSOCO,PFC
• CEA- Chief Engineer (IRP), Chief Engineer (TETD), Chief Engineer (PSP&A I), Chief Engineer
(R&D), Chief Engineer(HETD), Chief Engineer(HP&I), Chief Engineer (TPRM)

TERMS OF REFERENCE OF SUB-COMMITTEE:

• To assess the requirement of flexible resources for grid stability.

• To identify various flexible resources available for grid operation including energy storage options for
better operational characteristics, better utilization of Renewable energy, etc.
• Development of future roadmap for integration of energy storage system for better Operational
characteristics, better utilization of Renewable energy, etc.
• To formulate roadmap for maximum utilization of renewable energy by flexible operation of
conventional generating units keeping in consideration Grid stability, Security, reliability and cost
constraints.

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Central Electricity Authority Draft National Electricity Plan

MAJOR HIGHLIGHTS

The National Electricity Plan includes a review of the period 2017-22, detailed capacity
addition requirement during the years 2022-27 and Perspective Plan projections for the years
2027-32. Major Highlights are as follows.

i) The scheduled capacity addition from conventional sources during the period of 2017-
22 was 51,561.15 MW as per National Electricity Plan, 2018. The capacity addition
achieved from conventional sources is 30,667.91 MW for the year 2021-22.
ii) India has achieved a cumulative installed renewable energy capacity (including large
hydro) of 156607.9 MW as on 31.03.2022.
iii) Capacity consisting of Coal (18320 MW), Hydro (4801.5 MW) and Nuclear (3300 MW)
envisaged during the period 2017-22 is slipped where COVID-19 being the major reason
resulting in delay.
iv) The projected electrical energy requirement and peak electricity demand on all-India
basis is estimated as 1874 BU and 272 GW for year 2026-27 and 2538 BU and 363 GW
for year 2031-32 respectively.
v) Projections of energy savings for utility and non-utility is estimated to be 213 TWh for
the year 2026-27 and 404 TWh for year 2031-32.
vi) The projections of reduction of energy demand through implementation of various
programmes of Demand side management is 398.49 BU for year 2026-27 and 590.53 BU
for year 2031-32.
vii) The Installed Capacity of the country as on 31.03.2022 was 398986 MW(excluding 510
MW of Diesel) comprising of 235599 MW thermal, 6,780 MW Nuclear and 156607MW
renewables This is considered as a base installed capacity for the study period 2022-32.
viii) Under construction plants comprising of 25,950 MW of Thermal Power Plants, 10,903
MW of Hydro Power plants, 1580 MW of Pumped storage plants and 7,000 MW of
Nuclear Power plants has been considered for the studies during period of 2022-27
Additionally, a likely capacity of 8700 MW of Nuclear Power plants which are at under
various stages of construction (or in advance stages of development) likely to benefit
during period 2027-32.
ix) The retirement for period 2022-27 has been considered as 4629 MW.
x) The capacity addition required during 2022-27 to meet the peak demand and energy
requirement for the year 2026-27 is 2,28541 MW comprising of 40,632 MW of
Conventional capacity addition (Coal-25580MW, Gas-370 MW and Nuclear-7000MW)
and 187,909 MW of Renewable based Capacity Addition (Large Hydro-10951 MW, Solar-
132,080, Wind-40500 MW, Biomass-2318 MW, PSP-2700 MW) excluding 5,856 MW of
likely Hydro based Imports.
xi) The capacity addition required during 2027-32 to meet the peak demand and energy
requirement for the year 2031-32 is 2,43,042 MW comprising of 18,134 MW of
Conventional capacity addition (Coal-9,434 MW, Nuclear-8700 MW) and 224,908 MW
of Renewable based Capacity Addition (Large Hydro-10,888 MW, Solar-147,400, Wind-
53,100( Onshore- 43,100 and Offshore 10,000 MW, Biomass-1,500 MW, PSP-12,020
MW) excluding 5,856 MW of likely Hydro based Imports

MAJOR HIGHLIGHTS xx
Central Electricity Authority Draft National Electricity Plan

xii) All India installed capacity is likely to be 6,22,899 MW at the end of year 2026-27 and
8,65,941 MW at the end of year 2031-32.
xiii) It is seen that apart from under construction coal based capacity of 25GW, the additional
coal based capacity required till 2031-32 may vary from 17 GW to around 28 GW. It is
also seen that the BESS (5-hour) requirement in 2031-32 is varying from 51 GW to
84GW.
xiv) The Projection of Total capacity addition are in line with the target of the country to
achieve a non-fossil based installed capacity of 500 GW by the year 2029-30.
xv) A PSP based storage capacity of 6.81 GW is required to meet the projected peak
electricity demand and energy requirement in 2026-27. A PSP based capacity of 18.82
GW and 5-hour BESS capacity of 51.56 GW is likely to be required to meet the peak
electricity demand and energy requirement in 2031-32.
xvi) A generation of 1968 BU comprising of coal based -1158.8 BU, Gas based-35 BU, Nuclear
based- 82 BU, Large Hydro based- 189 BU (including generation from Hydro imports),
PV based-326 BU, Wind based- 170 BU and SHP based-8 BU, is projected during the year
2026-27 based on the generation planning studies to meet the projected hourly
demand.
xvii) The average PLF of the total Installed coal capacity of 239.3 GW was found to be about
55% in 2026-27. The average PLF of the total Installed coal capacity of 248.9 GW was
found to be about 62 % in 2031-32.
xviii) The domestic coal requirement in the year 2026-27 have been estimated as 831.5
Million Tonnes and in 2031-32 as 1018.2 MT and Imports by plants designed on
imported coal to be 40 Million tonnes.
xix) The total fund requirement for the period 2022-2027 is estimated to be Rs. 14,30,718
Crores, which also includes the likely expenditure during 2022-27 for advance action for
the projects expected to get commissioned during 2027-2032.
xx) The total fund requirement for the period 2027-2032 has been estimated to be Rs.
17,15,608 Crores. This fund requirement does not include advance action for the
projects which may get commissioned after 31.03.2032
xxi) Based on the estimation of fund requirement for the period 2022-27 and considering
sector-wise equity contribution mentioned in para 11.3.1, it is estimated that
developers will be required to infuse equity amount totalling to Rs. 3,57,679 Crores.
Further, they will have to arrange for total debt of Rs. 10,73,039 Crores.
xxii) Similarly, the equity and debt requirement (excluding fund requirement for advance
action for projects during the period beyond 31.03.2032) for the period 2027-2032 have
been estimated as Rs. 4,28,902 Crores and Rs. 12,86,706 Crores respectively.
xxiii) The average CO2 emission rate from coal based stations in the country has been on
declining trend indicating improvement in efficiency of power generation from coal
based power plants.
xxiv) During 2020-21, the country has achieved Fly Ash Utilization of 107.77 Million tonnes
with percentage utilization of 60.97%.
xxv) The total CO2 emissions projected will increase from 910 Million tonnes in 2020-21 to
1030 Million tonnes in the year 2026-27 and 1180 Million tonnes in 2031-32.
xxvi) The average emission factor is expected to reduce to 0.524 kg CO2/kWh in the year
2026-27 and to 0.441 kg CO2/kWh by the end of 2031-32.

MAJOR HIGHLIGHTS xxi

Central Electricity Authority Draft National Electricity Plan

MAJOR HIGHLIGHTS xxii

 Central Electricity Authority Draft National Electricity Plan

CHAPTER 1
INTRODUCTION

1.0 BACKGROUND

Power infrastructure is one of the most critical component for prosperity and economic
growth of country. The development of requisite power infrastructure is key for sustained
growth of Indian economy. With the increase in economic activity, the demand for power is
also increasing. India has witnessed electricity demand increase of around 4.1 % during the
last decade and it is projected that the increase in electricity demand is likely to be 6 % per
year for next decade. To meet the ever-increasing electricity demand, power sector in India
has grown considerably. The enactment of Electricity Act, 2003, has brought in revolutionary
changes in almost all the areas of the sector. Through this Act a conducive environment
has been created to promote private sector participation and competition in the sector by
providing a level playing field. This has led to significant investment in generation,
transmission and distribution areas. Over the years the installed capacity of Power Plants
(Utilities) has increased to 399496 MW as on 31.03.2022 from a meagre 1362 MW 1947.
Similarly, the electricity generation increased from about 5.1 Billion units in 1950 to 1491.9
BU (including imports) in the year 2021-22. Regional grids have been integrated into a single
national grid with effect from 31.12.2013 thereby providing free flow of power from one
corner of the country to another through strong inter regional AC and HVDC links. As a result,
the all India peak demand (MW) not met as well as energy (MU) not supplied have registered
steady decline. The peak power deficit during 2021-22 has been 1.2 % and Energy Deficit
has been 0.4 % only. This marginal shortage seen is on account of reasons other than
unavailability of Generation Capacity.
To ascertain the objective of carbon free energy capacity addition through RE [excluding
hydro above 25 MW] sources has exhibited a remarkable CAGR of 19 % since FY 2006–07.
The contribution of RE sources(including Large Hydro) to the installed capacity has increased
from 5.8% in 2006–07 to 39 % in 2021-22 till 31.03.2022 and its energy contribution in the
total generation has increased to 21.54 % in 2021-22 from 1.5 % in 2006-07.

1.1 STIPULATION REGARDING NATIONAL ELECTRICITY PLAN

1.1.1 Stipulations Regarding National Electricity Plan in Electricity Act 2003

The Electricity Act, 2003 provides an enabling legislation conducive to development of the
Power Sector in transparent and competitive environment, keeping in view the interest of
the consumers.

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 Central Electricity Authority Draft National Electricity Plan

As per Section 3(4) of the Electricity Act 2003, Central Electricity Authority (CEA) is required
to prepare a National Electricity Plan in accordance with the National Electricity Policy and
notify such Plan once in five years. The draft plan has to be published and suggestions and
objections invited thereon from licensees, generating companies and the public within the
prescribed time. The Plan has to be notified after obtaining the approval of the Central
Government. The National Electricity Policy stipulates that the Plan prepared by CEA and
approved by the Central Government can be used by prospective generating companies,
transmission utilities and transmission/distribution licensees as reference document.

1.1.2 Stipulations Regarding National Electricity Plan in National Electricity

Policy 2005

National Electricity Policy stipulates that the National Electricity Plan would be for a short-
term framework of five years while giving a 15-year perspective and would include:

 Short-term and long term demand forecast for different regions;

 Suggested areas/locations for capacity additions in generation and transmission keeping
in view of the economics of generation and transmission, losses in the system, load
centre requirements, grid stability, security of supply, quality of power including voltage
profile, etc.; and environmental considerations including rehabilitation and
resettlement;
 Integration of such possible locations with transmission system and development of
national grid including type of transmission systems and requirement of redundancies;
and
 Different technologies available for efficient generation, transmission and distribution.
 Fuel choices based on economy, energy security and environmental considerations.

The Policy also stipulates that while evolving the National Electricity Plan, CEA will consult
all the stakeholders including State Governments and the State Governments would, at
State level, undertake this exercise in coordination with stakeholders including distribution
licensees and State Transmission Utilities (STUs). While conducting studies periodically to
assess short-term and long-term demand, projections made by distribution utilities would
be given due weightage. CEA will also interact with institutions and agencies having
economic expertise, particularly in the field of demand forecasting. Projected growth rates
for different sectors of the economy will also be taken into account in the exercise of
demand forecasting.

INTRODUCTION 1.2
 Central Electricity Authority Draft National Electricity Plan

The Policy stipulates that in addition to enhancing the overall availability of installed capacity
to 85%, a spinning reserve of at least 5% at national level would be needed to be created to
ensure grid security, quality and reliability of power supply.

The Policy states that efficient technologies, like super-critical technology, Integrated
Gasification Combined Cycle (IGCC) etc. and large size units would be gradually introduced
for generation of electricity as their cost effectiveness gets established.

The present National Electricity Policy was enunciated in 2005 and since then it’s various
Aims and Objectives have achieved different levels of implementation. Keeping in view of
these and to cater to the further challenges of the sector the National Electricity Policy is
under revision.

1.2 POWER SCENARIO IN COUNTRY

1.2.1 Installed Capacity

The Installed Capacity of the country as on 31.03.2022 was 399496.61 MW comprising of
236108.72 MW thermal, 6,780 MW Nuclear and 156607.90 MW renewables and is depicted
in the Exhibit 1.1.
Exhibit 1.1

ALL INDIA INSTALLED CAPACITY AS ON 31.03.2022

(ALL VALUES ARE IN MW)

RES, 156607.90,
39%

Coal, 204079.50,
51%

Lignite, 6620.00, 2%

Nuclear, 6780, 2%
Diesel, 509.71, 0%
TOTAL: 399496.61 MW
Gas, 24899.51, 6%

INTRODUCTION 1.3
 Central Electricity Authority Draft National Electricity Plan

The country has significant potential of generation from renewable energy sources. All
efforts are being made by Government of India to harness this potential. The Installed
capacity as on 31st March, 2022 from renewable energy sources is 156607.90 MW. The total
renewable installed capacity comprises of 46722.52 MW of Large Hydro, 40357.58MW of
wind, 53996.54 MW of solar, 10682.36 MW of bio-Power & waste power and 4848.9MW of
small hydro plants as shown in Exhibit 1.2.
Exhibit1.2

ALL INDIA RE INSTALLED CAPACITY(MW) AS ON

Large Hydro,
46722.52 MW, 30% 31.03.2022 Solar, 53996.54 MW
,34%

Small Hydro,
4839.39 MW, 3%

Biomass, 10682.36
MW, 7% TOTAL: 156607.90 MW
Wind, 40357.58
MW, 26%
The growth of Installed Capacity and Electricity Generation in India from various sources is
shown in Table 1.1, Exhibit 1.3 and 1.4.
Table 1.1
Growth of Installed Capacity & Electricity Generation
IC Generation
Installed CARG CAGR for
Growth Generation Growth
Plan/Year Capacity for IC Generation
Rate YoY (BU) YoY basis
(MW) (%) (%)
basis (%) (%)
At the end of 1242
326832
12th Year plan
2017-18 344002 5.25 1307.76 5.35

2018-19 356100 3.52 1375.95 5.21

2019-20 370106 3.93 4.1 1389.12 0.96 3.72

2020-21 382151 3.25 1381.86 -0.522*

2021-22 399496 4.54 1491.9 7.96
* COVID YEAR

INTRODUCTION 1.4
 Central Electricity Authority Draft National Electricity Plan

Exhibit 1.3

GROWTH OF INSTALLED CAPACITY

450000
400000
350000
300000
250000
MW

200000
150000
100000
50000
0

Thermal Large Hydro Nuclear RES

Exhibit 1.4

GROWTH OF ELECTRICITY GENERATION

1600000
1400000
1200000
1000000
MU

800000
600000
400000
200000
0

Thermal Hydro Nuclear RES Bhutan Import

1.2.2 Per Capita Electricity Consumption

The per capita electricity consumption was 1122.00 kWh at the beginning of the 2017-18
i.e. 01.04.2017 and as on 31.03.2021 the per capita electricity consumption has increased
to 1161 kWh. The per capita electricity consumption during 2017-22 is summarized in Table
1.2.
Table 1.2
Per Capita Electricity Consumption
YEAR PER CAPITA CONSUMPTION (KWh)
2017-18 1149
2018-19 1181
2019-20 1208
2020-21 1161

INTRODUCTION 1.5
 Central Electricity Authority Draft National Electricity Plan

1.2.3 Actual Power Supply Position

The peak demand not met was about 3,314 MW (2.0%) and the average energy not supplied
in the country was about 8,629 MU (0.7%) during 2017-18. The peak not met and energy
not supplied of the country has substantially declined to 2475 MW (1.2 %) and 5,787 MU
(0.4%) respectively by the end of 2021-22. The power supply position in the country during
2017-22 is summarized in Table 1.3.
Table 1.3
All-India Actual Power Supply Position (2012-17)
Period Peak Peak Peak Peak Energy Energy Energy Energy
Demand Met Not Not Requireme Availability Not Not
(MW) (MW) Met/ Met/ nt (MU) Supplie Supplied
Surpl Surpl (MU) d/ /
us us Surplus Surplus
(MW) ( % ) (Mu) (%)
(- / +) (- / +) (- / +) (- / +)
2017-18
164,066 160,752 3,314 2.0 1,213,326 1,204,697 8,629 0.7
2018-19
177,022 175,528 1,494 0.8 1,274,595 1,267,526 7,070 0.6
2019-20
183,804 182,533 1,271 0.7 1,291,010 1,284,444 6,566 0.5
2020-21
190,198 189,395 802 0.4 1,275,534 1,270,663 4,871 0.4

2021-22 2,03,014 2,00,539 2,475 1.2 13,79,812 13,74,024 5,787 0.4

1.2.4 Plant Load Factor of Thermal Based Power Plant

The national average Plant Load Factor (PLF) of Thermal based power generating stations
for the year 2017-22 has been shown in Exhibit 1.5

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 1.5

PLF OF THERMAL POWER PLANTS (%)

62 60.72 61.07

60 58.87

58
55.99
56
54.51
54

52

50
2017-18 2018-19 2019-20 2020-21 2021-22

1.2.5 Annual System Load Factor

The Annual System Load Factor is the ratio of the energy availability in the system to the
energy that would have been required during the year if the annual peak load met was
incident on the system throughout the year. This factor depends on the pattern of utilization
of different categories of load. The Annual System Load factor has remained in the range of
82% to 86% since 2011-12 till 2017-18, primarily because of prevailing energy shortages in
the system and the load staggering measures adopted in the various states particularly in
agriculture sector. However, it has witnessed a gradual decline from 85.5% in 2017-18 to
76.6% in 2020-21 predominantly due to higher growth in the peak load met as compared to
the increase in energy terms. The year-wise Annual System Load Factor is graphically
depicted in the Exhibit 1.6.

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 1.6

System Load Factor (%)

87.00
85.55

85.00 84.29 84.40

83.88

84.13 82.43
83.00
System Load Factor (%)

81.95 83.36
82.59
81.00 81.51 81.62 80.33

79.00

77.00
76.59
75.00

Year

1.3 VARIOUS INITIATIVES OF THE GOVERNMENT

1.3.1 Tariff Policy 2016

The Central Government has notified the revised Tariff Policy vide Gazette notification dated
28.01.2016 in exercises of powers conferred under section 3(3) of Electricity Act, 2003. The
Tariff Policy has been evolved in consultation with the State Governments, the Central
Electricity Authority (CEA), the Central Electricity Regulatory Commission and various
stakeholders.

The tariff policy , 2016 ensure availability of electricity to consumers at reasonable and
competitive rates, ensure financial viability of the sector and attract investments, Promote
transparency, consistency and predictability in regulatory approaches across jurisdictions
and minimize perceptions of regulatory risks. It will further facilitate competition, efficiency
in operations and improvement in quality of supply. The tariff policy among other things
also includes promotion of renewable generation (Renewable Generation Obligation, Long
term growth trajectory of RPOs and increase in Solar RPO). Compulsory 100% procurement
of power from waste to energy plants by DISCOMs, mandatory use of sewage treated water
by thermal Plants, continuation of exemption of tariff based competitive bidding for hydro

INTRODUCTION 1.8
 Central Electricity Authority Draft National Electricity Plan

projects up to 15th August 2022, smart meters recovery of regulated assets, revision of
formula for calculation of cross subsidy etc.

1.3.2 Guidelines and Standard Bidding Documents (SBDs) for Procurement

of Electricity by Distribution Licensees through Tariff based bidding process

In compliance with section 63 of the Electricity Act 2003, the Central Government has
notified guidelines for procurement of power by Distribution Licensees through competitive
bidding. Competitive procurement of Power requirement by the Distribution Licensees
reduces the overall cost of procurement of power and in turn leads to significant benefits
for consumers.

i) Long Term procurement of power: Central Government had initially issued the Standard
Bidding Documents (SBDs) containing Request for Qualification (RfQ), Request for
Proposal (RfP) and Power Purchase Agreement (PPA) for long term procurement of
power from Case-2 projects (having specified site and location) through tariff based
competitive bidding in 2006 and amended it from time to time. The Standard Bidding
Documents for long term procurement of power from Case-1 projects (where the
location, technology or fuel is not specified) were issued in the year 2009 and amended
it in 2010. In pursuance of the decision of the EGoM on Ultra Mega Power Projects
(UMPPs) having specified site and location, the SBDs for Case-2 have been further
reviewed and the Model Bidding Documents (MBDs) comprising the Model RFQ, Model
RFP and the Model PPA for construction and operation of power generation projects/
UMPPs on design, Build, Finance, Operate and Transfer (DBFOT) basis have been issued
on 20 Sept, 2013. The Guidelines for procurement of electricity from Thermal Power
Stations set up on DBFOT basis for Case-2/UMPPs have been published in the Gazatte of
India on 21st September, 2013. Model Bidding Documents (MBDs) for Thermal Power
Stations set up on Design, Build, Finance, Own and Operate (DFBOO) basis for Case-1
issued on 8.11.2013. Further, amendments have been issued in the Documents on
5.5.2015. In order to facilitate use of linkage coal in the long term procurement of power
by Distribution Licensees as per the provisions of SHAKT Policy, SBDs and Guidelines for
long term Procurement of Electricity from Thermal Power Stations set up on Design,
Build, Finance, Own and Operate (DFFOO) basis have been revised and issued in March,
2019.

ii) Medium Term Procurement of power: Model Bidding Documents (MBDs) for
procurement of electricity for medium term from power generating stations set up
and/or operated on Finance, Own and Operate (FOO) basis was issued on 29.1.2014.

INTRODUCTION 1.9
 Central Electricity Authority Draft National Electricity Plan

Further, amendments have been issued in the Documents of 20.8.2015. Model Bidding
Documents (MBDs) for procurement of peaking power for medium term issued on
20.2.2014. In order to introduce e-bidding process along with reverse action, revised
Guidelines and Model Bidding Documents for medium-term procurement of power by
Distribution Licensees through tariff based competitive bidding process was notified on
17 January, 2017. Introduction of e-bidding process along with reverse auction will result
in greater transparency and fairness in the procurement process for ultimate benefit of
the consumers. Further, for enabling the use of linkage coal as per the new coal linkage
policy (SHAKTI Policy) of Ministry of Coal, Revised MBDs and revised Guidelines for
Procurement of Electricity for Medium Term were issued on 29.01.2019 and 30.01.2019
respectively.

iii) Short Term procurement of power The Central Government has issued Guidelines for
short-term procurement of electricity i.e. for a period of less than or equal to one year
under section 63 of the Electricity Act, 2003 on 16 May, 2012. For introduction of e-
reverse auction, the revised guidelines for short-term procurement of electricity were
also issued on 30 March, 2016.

1.3.2.1 Pilot Scheme-II for procurement of 2500MW for three years

under medium Term

In an attempt to revive the stressed power projects, a Pilot Scheme was introduced by
Ministry of Power in April 2018. Capacity totalling to 1900 MW has been awarded under the
scheme. Based on the experience gained from the Pilot Scheme, MOP has issued the Bidding
Documents and Guidelines for Pilot Scheme-II to facilitate procurement of aggregated
Power of 2500 MW for the period of 3 (three) years (covered under Medium Term) on
30.01.2019 and 01.02.2019 respectively.

1.3.3 Mega Power Policy 2017

Based on the CCEA decision dated 31.3.2017, time period for the provisional Mega projects
(25 projects) for furnishing the final Mega Certificates to the Tax authorities has been
extended to 120 months from the date of import. Further, guidelines for the release of
Proportionate Bank/FDRs for the Provisional Mega Power Projects have been finalized and
circulated on 21.9.2017.This is expected to ease out stress in the power sector to a great
extent as the money realized by the developer, if any, as a result of release of proportionate
Bank Guarantee would first be utilized towards the repayment of the Bank dues by the
developer. So far, four projects have been granted proportional Mega Certificate

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1.3.4 Promotion of Renewable Power

1.3.4.1 Competitive Bidding Guidelines for procurement of power from

Solar and Wind Power projects:

To promote competitive procurement of electricity from solar PV power plants and Wind
Power Plants, by distribution licensees and to protect consumer interests, Bidding
Guidelines have been issued for long term procurement of electricity by the distribution
licensees. Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power
from Grid Connected Solar PV Power Projects issued vide Resolution dated 3rd August, 2017.
Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid
Connected Wind Power Projects issued vide Resolution dated 8thDecember, 2017.
Necessary Amendments to these guidelines were made considering the views of the
Stakeholders, encouraging investment and timely commissioning of such projects.

1.3.4.2 Waiver of inter-state transmission charges and losses on transmission of the

electricity generated from solar and wind sources of energy

In Order to promote the capacity addition of Solar and wind Power Projects, Central
Government in compliance with the para 6.4(6) of tariff policy has issued Inter State
Transmission system (ISTS) waiver charges. The first order was issued on 30.09.2016 in
which ISTS transmission charges and losses was waived for transmission of electricity from
solar projects commissioned till 30.06.2017 and wind projects commissioned till 31.03.2019.
Further the date of waive of ISTS transmission charges and losses was extended for solar
projects upto 31.12.2019 vide MoP order dated 14.06.2017. Thereafter, the waiver available
for use of ISTS for transmission of electricity by Solar or Wind power projects commissioned
till December 2022 vide MoP order dated 13.02.2018. The waiver of ISTS charges on
transmission of electricity generated from Solar and Wind sources is further extended for
projects to be commissioned up to 30th June 2025 vide MoP order dated 21.06.2021. The
Waiver shall be applicable for the twentyfive years from the commissioning of such projects.
The ISTS waiver will be available for solar and wind projects entering into PPAs with all
entities, including Distribution Companies, for sale of power from solar and wind power
projects for compliance of their renewable purchase obligation. As a condition the above
waiver will be allowed only to those solar and wind projects that are awarded through
competitive bidding process in accordance with the guidelines issued by Central
Government.

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1.3.4.3 Waiver of inter-state transmission charges on transmission of the electricity

supplied by Pumped Storage Plants and Battery energy Storage Systems

In Order to promote commissioning and optimum utilization of Storage projects, Central

Government in compliance with the para 6.4(6) of tariff policy has issued Inter State
Transmission system (ISTS) waiver charges for PSP and BESS projects. As per MoP order no.
23/12/2016-R&R-Part(1)[239444] issued on 21.06.2021, Inter State transmission system
charges (excluding losses) were waived for transmission of electricity supplied by Hydro PSP
and BESS projects commissioned till 30.06.2025, if the following conditions are met:-
i. At least 70% of the annual electricity generation requirement of pumping of water
of the PSP plant is met by use of solar and wind based generation.
ii. At least 70% of the annual electricity generation requirement of charging of the BESS
system is met by use of solar and wind based generation.
The ISTS charges for power supplied from Hydro PSP or BESS projects shall be levied
gradually as follows:-
i. 25% of STOA charges for initial 5 years of operation.
ii. After 5 years, the charges will be increased in steps of 25% every 3 rd year to reach
100% of STOA charges from 12th year onwards.
These will also be aligned with the gradual reduction in tariff and payment of debt.
The aforementioned order also mandates the waiver of transmission charges for trading of
electricity generated/supplied from Solar, Wind, PSP and BESS in Green Term Ahead Market
(GTAM) and Green Day Ahead Market(GDAM) for till 30.06.2023.
This arrangement will be reviewed on annual basis depending upon the future
developments in power market.

1.3.4.4 Renewable Purchase Obligations (RPOs)

In light of par 6.4(1) of tariff policy 2016 and with the objective of creating renewable power
capacity of 175 GW by March 2022; the Ministry of power after consultation with Ministry
of New and Renewable Energy, had notified the long term trajectory of RPOs for Solar and
Non-Solar power vide its order dated 22.07.2016 and 14.06.2018. In super-session of the
orders Ministry of Power has issued RPO trajectory vide order dated 29.01.2021 and
specified Hydro Purchase Obligation(HPO) with non-solar renewable purchase obligation.
This has been issued to promote the Large Hydro Projects commissioning after 0.03.2019
and to add 30,000 MW of Hydro power capacity by 2029-30.
1.3.4.5 Flexibility in Generation and scheduling to reduce emissions of Thermal Power
Stations:
In order to reduce emissions and to encourage RE capacity addition, Central Government
on05.04.2018 has issued the mechanism for flexibility in generation & scheduling of thermal

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 Central Electricity Authority Draft National Electricity Plan

power station. Thermal Power Plants can supply power from RE sources under existing
contractual agreement.

1.3.4.6 National Mission on use of Biomass in coal based thermal power plants
In order to address the issue of air pollution due to farm stubble burning and to reduce
carbon footprints of thermal power generation, Ministry of Power has decided to set up a
National Mission on use of Biomass in coal based thermal power plants. This would further
support the energy transition in the country and our targets to move towards cleaner energy
sources.
The "National Mission on use of biomass in thermal power plants" will have the following
objectives; (a) To increase the level of co-firing from present 5% to higher levels to have a
larger share of carbon neutral power generation from the thermal power plants.
(b) To take up R&D activity in boiler design to handle the higher amount of silica, alkalis in
the biomass pellets.
(c) To facilitate overcoming the constraints in supply chain of bio mass pellets and agro-
residue and its transport upto to the power plants.
(d) To consider regulatory issues in biomass co-firing.

1.3.4.7 Guidelines for procurement of Round the Clock power (RTC Power) from
Renewable Projects through Tariff Based Competitive Bidding

With the aim of promoting RE power and to provide RoundThe-Clock (RTC) power to the
DISCOMs from renewable energy sources, Ministry of Power has issued RTC power
Guidelines vide notification dated 22.07.2020. The amendments made in the said guidelines
were notified in Gazette of India on 03.11.2020. Now the complemented power may be used
from any fuel sources

1.3.5 Reduction of Power Cost

1.3.5.1 Flexibility in Generation and scheduling of thermal power stations to reduce the
cost of power to the consumer
Ministry of Power (MoP), Government of India, notified the scheme on „Flexibility in
Generation and scheduling of thermal power stations to reduce the cost of power to the
consumer‟ on 30th August, 2018 (MoP scheme of Flexibility). The objective of the scheme
is to reduce the overall cost of power for the country by utilizing any un-despatched surplus
in existing cheaper generating stations by way of flexibility in scheduling of generation. The
scheme advocates flexibility to a generating company to supply power from any of its
generating stations against schedule received for its stations. As per the scheme, the

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 Central Electricity Authority Draft National Electricity Plan

cheaper generating stations could be dispatched up to its maximum capacity before

scheduling the costlier stations till the power requisitioned by all its beneficiaries is met.
The Scheme proposes Merit Order operation based on the Generation Bucket Filling (GBF)
schedule to meet the entire schedule of all beneficiaries. The Scheme also advocates
suitable provision of Gate Closure to take into account revision of schedule by beneficiaries
from ISGS power stations. (ii) The Scheme also proposes sharing of gain between the
beneficiaries and the generating company in the ratio of 50: 50 on monthly basis with
quarterly reconciliation. The share in the surplus, if any, is to be passed on to the
beneficiaries during the month in proportion to the total drawl by the beneficiaries from the
generating company

1.3.5.2 Ensuring sustainability in the Power Sector:

An Order was issued by Ministry of Power on 28.06.2019 on "Opening and maintaining of
adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase
Agreements by Distribution Licensees". As per Order for power purchases after 1 st August
2019, an adequate payment security mechanism as per contacts is to be established for the
Generators for power to be scheduled. This has been successfully implemented from
01.08.2019 and has helped in streamlining the payment to the generators from the
distribution companies. This measure is expected to bring sustainability in the Power Sector.
Considering the unprecedented and force majeure situation due to Covid-19 pandemic, it
has been decided that power may be scheduled even if payment security mechanism is
established for 50% of the amount for which payment security mechanism is to be otherwise
established contractually. This relaxation was available during the period 24.03.2020 to
30.06.2020.
1.3.5.3 Reduction in cost of power due to pre-payment in entire value chain of power
sector
Ministry of Power on 15.11.2019 had issued an order on "Reduction in cost of power due to
pre-payment in entire value chain of power sector". Due to pre-payment by the consumer
to Distribution licensee or advance payment by distribution company to Generating
company, the working capital requirements of these companies would get reduced. This
would therefore result in reduced generation tariff and the retail tariff to the consumer.

1.3.5.4 Security Constraint Economic Despatch (SCED)

In order to reduce the cost of power procured by the Distribution Licensees, a Pilot system
of Security Constraint Economic Despatch (SCED) was introduced in the last year where for
thermal Inter State Generating Stations (ISGS), the merit order dispatch at national level
shall be followed. Hence the cheapest generation will be available at the maximum level.
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 Central Electricity Authority Draft National Electricity Plan

This mechanism has resulted in savings of approximately Rs 3 Crores every day towards
power procurement cost of Distribution licensees. Central Electricity Regulatory
Commission has vide order dated 18.04.2020 has extended the time for pilot for a further
period up to 31st March, 2021. The Commission has also expanded the ambit of SCED by
including the generators other than the thermal ISGS whose tariff is determined by the
Commission.

1.3.6 Distribution Reforms

1.3.6.1 Power for All

Government of India has taken a joint initiative with respective State Governments for
preparation of State specific documents for providing 24x7 Power for All (PFA) to all
households/homes, industrial & commercial consumers and adequate supply of power to
agricultural consumer as per State Policy. This initiative aims at ensuring uninterrupted
supply of quality power to existing consumers and providing electricity access to all
unconnected consumers by 2019 in a phased manner. This joint initiative of Government of
India and State Governments also aims to enhance the satisfaction levels of the consumers,
improve the quality of life of people, and increase the economic activities resulting into
inclusive development of the States.

State Specific Documents for the all the States/UTs have been approved by the respective
State Governments and signed by State & Central Government for implementation.
Following has been achieved so far.

i) All inhabited villages of 5, 97,464 (Census 2011) stood electrified as on 28.04.2018 in

the country.

ii) All the willing households totaling to 2.82 crore have been electrified as on
31.03.2021 under Saubhagya scheme on launched in October 2017.

iii) System strengthening and augmentation in Distribution infrastructure including

metering of distribution transformers/ feeders/ consumers have been assisted by
GOI through its ongoing Schemes launched in December 2014 namely -IPDS for
Urban areas and DDUGJY for Rural areas (Details given in Subsequent paragraph)

iv) Status of 24x7 Power Supply:

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 Central Electricity Authority Draft National Electricity Plan

As per the status available in National Power Portal (NPP) the Power supply position
in respect of States and UTs (under various Discoms) for the month of March, 2021
is as under:

 In case of Urban area, in 20 states comprising 24nos. of Discoms [Andhra Pradesh,

Assam, Bihar, Goa, Gujarat, Himachal Pradesh, Jammu and Kashmir, Jharkhand,
Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram,
Rajasthan, Telangana, Tripura, Uttarakhand, West Bengal) having more than 20
average Hours of Power supply in a day has been achieved.
 Similarly, in case of Rural areas 17 states and 1 UT comprising 35 nos. of Discoms
[Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh,
Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Puducherry, Punjab,
Rajasthan, Tamilnadu, Telangana, Uttarakhand, Uttar Pradesh] having more than 20
average Hours of Power supply in a day has been achieved.

1.3.6.2 Integrated Power Development Scheme (IPDS)

To facilitate state utilities to ensure quality and reliable 24x7 power supply in the urban
areas, Government approved the “Integrated Power Development Scheme” (IPDS) on
20.11.2014 with a total outlay of Rs. 32,612 Crore, which includes a budgetary support of
Rs. 25,354 Crore from Government of India. Erstwhile R-APDRP has been subsumed in IPDS
and CCEA-approved R-APDRP outlay of Rs. 44,011 crore including a budgetary support of
Rs.22,727 crore for 12th& 13th Plan carried forward to the new scheme of IPDS.

1.3.6.3 Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

Government of India had launched Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) in
December, 2014 for augmentation and strengthening of rural sub-transmission and
distribution works, feeder segregation and rural electrifications in the rural areas in the
country. As reported by the States, all the inhabited un-electrified villages as per Census
2011 stand electrified on 28th April, 2018 across the country under DDUGJY. The overall
progress under the scheme is 94%.

1.3.6.4 Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya

Government of India has launched Saubhagya" on 11th October, 2017 with the objective to
achieve universal household electrification by providing last mile connectivity and electricity
connections to all households in rural and urban areas. The sunset timeline for the scheme
is March 2022. REC is the nodal Agency for implementation of this Scheme. Government of

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 Central Electricity Authority Draft National Electricity Plan

India had sanctioned an amount of Rs. 14,109 crore under Saubhagya scheme for various
States. Based on the eligible demand submitted by the States under Saubhagya scheme,
Grant Rs. 5,234 crore has been disbursed to the States during last three years and current
year up to 28.02.2021.
As reported by the States, 2.81 crore households have been electrified since the launch of
Saubhagya, up to 28.02.2021.

1.3.6.5 Ujwal DISCOM Assurance Yojana (UDAY),

The scheme was launched for financial and operation turnaround of State owned
Distribution Utilities (DISCOMs) in 2015. UDAY aimed at easing out the supply side gaps
impeding achievement of the goal of 24X7 reliable and quality power by catalysing the
efforts of the states and DISCOMs through the spirit of competitive and cooperative
federalism
UDAY had primarily two outcome parameters: (i) AT&C loss reduction to 15% and (ii) ACS-
ARR gap reduction to zero by March 2019. Due to the large scale problems/ challenges in
some States, as well as their late joining, some States were allowed to complete the
turnaround process of their DISCOMs by one to two years. In all 32 States/UTs finally joined
UDAY, with 16 States joining for comprehensive operational and financial turnaround
measures and the remaining for operational measures only.
While UDAY has contributed towards improvements in the DISCOM's performances, the
Government of India is formulating additional reform frameworks to complement the
efforts under UDAY to achieve a complete financial and operational turnaround of State
owned Utilities.
1.3.6.6 Atmanirbhar Package for State Power Distribution Companies
Amid COVID-19 crisis, Government of India has announced special economic package on
13.05.2020, which included liquidity injection for distribution companies. The liquidity
injection package envisaged funding by PFC and REC to the tune of Rs. 1,35,497 crore to
provide much needed support to power sector. The purpose of the liquidity scheme under
Atmanirbhar Bharat Package was for clearance of outstanding dues of CPSU GENCOs &
TRANSCOs, IPPs and RE Generators as on 31stMarch 2020.

Further, MOP vide its letter dt 02.09.2020 granted a one-time permission to PFC & REC for
extending loans to DISCOMs above working capital limits of 25% of last year's revenues
under UDAY to discharge the liabilities of CPSU Gencos & Transcos, IPPs and RE Generators
existing as on 30th June 2020.
Accordingly, PFC & REC have also formulated policy (ies) for offering Special Long-term
Transition Loans to Power DISCOMs for clearance of dues of CPSU Gencos & Transcos, IPPs
and RE Generators outstanding as on 31st March 2020 & 30th June 2020
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 Central Electricity Authority Draft National Electricity Plan

As on 05.04.2021 PFC & REC has sanctioned Rs. 1,35,497 crore and disbursed Rs. 77,205
crore to various State Power Discoms under the liquidity package announced by Gol.
A reforms-based result-linked power distribution sector scheme is proposed with an outlay
of Rs.3,05,984 crore over 5 years. The scheme will provide assistance to DISCOMs for
infrastructure creation and up-gradation, prepaid smart metering, feeder separation, up-
gradation of systems, etc. The release of funds will be tied to improvement in performance
including reduction in AT&C losses. Once finalize this scheme will subsume UDAY also.

1.3.6.7 Electricity (Rights of Consumers) Rules, 2020

Government of India MoP has notified Electricity (Rights of Consumers) Rules, 2020 in
December, 2020. These Rules specify the obligations of the licensee and sets the practices
that must be adopted by the licensee to provide efficient, cost-effective, reliable and
consumer friendly services so as to facilitate ease of use as well as ease of doing business by
the consumers. These Rules would provide a pathway to the SERCs to further improve upon
the Supply Code and SoPs already laid down by them so as to ensure 24*7 quality power
and better services to consumers by Distribution Licensees.

1.3.7 DIGITAL INITATIVES

1.3.7.1 Mob App 'Vidyut PRAVAH'
A Mobile App 'Vidyut PRAVAH' on Electricity Pricing and Availability Highlights was launched
on 31st March, 2016. The application provides highlights of the power availability in the
country on real time basis. This app will empower common people to demand 24x7 power
from the states and will take transparency to the next level by making State governments
more accountable.
1.3.7.2 DEEP (Discovery of Efficient Electricity Price) e-Bidding & e-Reverse Auction portal.
In order to bring uniformity and transparency in power procurement by the DISCOMs and
also to promote competition in electricity sector, "DEEP (Discovery of Efficient Electricity
Price) e-Bidding Portal" was been launched on 12th April, 2016. This Portal is being used for
Short Term and Medium Term procurement of Power by Discoms. The e-Revrse Auction
method has also been introduced in the short term and medium term power procurement.
1.3.7.3 MERIT (Merit Order Despatch of Electricity for Rejuvenation of income and
Transparency) web portal
In pursuance to the recommendations of the Merit Order Dispatch Committee headed by
Chairperson, CEA, a Web Portal ‘MERIT’ i.e. Merit Order Despatch of Electricity for
Rejuvenation of Income and Transparency, was launched on 23rd June 2017. Subsequently,
MERIT Mobile App was also launched on 5th July 2017. This Mobile App/Web Portal displays
the details of power purchased by the states from various power Stations/Sources and the

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 Central Electricity Authority Draft National Electricity Plan

rates thereof on day to day basis transparently and provides opportunity to states for
improving their power purchase portfolio. (http://www.meritindia.in)

1.3.7.4 e-Bidding portal for utilization of domestic coal in IPP Power Stations for reducing
the cost of power generation
An e-bidding portal was launched on 5th July 2017 for providing e-Bidding solution to States
to select Independent Power Producers (IPPs) for procurement of power by transferring
their domestic coal under the scheme of flexibility in utilization of domestic coal. The e-
Bidding portal has been designed to facilitate States in inviting bids for procurement of
power from the prospective IPPs in transparent and fair manner. The successful bidder shall
be selected through e-Reverse Bidding process. The flexibility in utilization of domestic coal
scheme envisages transferring coal to more efficient IPPs generating stations, leading to
lower generation costs and ultimately lesser cost of electricity for the consumers

1.3.7.5 Monitoring of 24x7 power supply through Integration of Distribution Sector data
with National Power Portal (NPP):
NPP, launched on 14th Nov, 2017, is a centralized system which facilitates online data
capture/ input (daily, monthly, and annually) and to disseminate related information
(operational, capacity, demand, supply, consumption etc.) through various analysed
reports, graphs, statistics etc. for Indian Power Sector. National Power Portal is a common
platform, where all data related to Power sector (Generation, Transmission, Distribution
etc.) are available on single window.
In Distribution Sector, NPP captures both operational and commercial data at feeder-level
for Rural and Urban areas. Operational data includes power supply position, outage data,
reliability data etc. and commercial data includes Billing efficiency, collection efficiency for
A&TC loss etc. CEA is upgrading the formats for data capturing and its presentation in NPP.

1.3.7.6 Power Rail Koyla Availability through Supply Harmony (PRAKASH)

Benefits of Portal to the Stake-holders: On a single platform, the following information is

available:

i. Coal company: Stocks and the coal requirement at power stations

ii. Indian Railways: Actual coal available at siding.
iii. Power stations can plan future schedule by knowing rakes in pipe line and
expected time of receipt.
iv. Ministry of Power /Ministry of Coal/ Ministry of Railways /CEA /POSOCO
can review the overall availability of thermal power in different regions and
coal available for the same.
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1.3.8 PROMOTION OF HYDRO PROJECTS

For boosting the generation of Hydro Power, the Government of India on 8th March, 2019,
approved a number of measures for promoting hydropower sector in the country which are
as under:
i. Declaring Large Hydro Power (LHPs) (> 25 MW projects) as Renewable Energy
source.
ii. Hydro Purchase Obligation (HPO) as a separate entity within Non-Solar
Renewable Purchase Obligation (RPO).
iii. Tariff rationalization measures for bringing down hydro power tariff.
iv. Budgetary Support for Flood Moderation/Storage Hydro Electric Projects (HEPs).
v. Budgetary Support to Cost of Enabling Infrastructure, i.e. roads/bridges. a) Rs.
1.5 crore per MW for projects upto 200 MW. b) Rs. 1.0 crore per MW for projects
above 200 MW

1.3.8.1 HYDRO POLICY NOTIFICATION, 2019

Hydro Policy, 2019 was notified by Govt. of India on 08.03.2019. The salient features of the
policy are given below:

 Declaring Large Hydro Power Projects (LHPs, i.e. >25 MW) AS Renewable Energy
Source.
However, LHPs would not automatically be eligible for any differential treatment for
statutory clearances such as Forest clearances, environmental clearance, National
Board for Wildlife clearance, related impact Assessment and carrying capacity study,
etc., available to Small Hydropower Projects (SHPS), i.e., projects capacity up to 25
MW.
 Hydro Purchase Obligation (HPO) as a separate entity within non-solar Renewable
Purchase, The HPO shall cover all LHPs commissioned after this notification as well
as untied capacity (i.e. without PPA) of the commissioned projects.
 Tariff rationalization measures to bring down hydropower tariff: Tariff
rationalization measures including providing flexibility to the developers to
determine tariff by back loading of tariff after increasing project life to 40 years,
increasing debt repayment period to 18 years and introducing escalating tariff of 2%;
 Budgetary support for funding flood moderation component and funding cost of
enabling infrastructure i.e. roads and bridges on case to case basis as per actual,
limited to Rs. 1.5 crore per MW for up to 200 MW projects and Rs. 1.0 crore per MW
for above 200 MW projects.

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1.3.8.2 GUIDELINES FOR THE RELEASE OF BUDGETARY SUPPORT FOR ENABLING

INFRASTRUCTURE I.E. ROADS/BRIDGES AND FOOD MODERATION COMPONENT
OF HYDROELECTRIC PROJECTS

"In line with Hydro Policy notified by Govt. of India (GoI) on 08.03.2019, Ministry of Power
(MoP), GoI vide OMs dated 28.09.2021 issued the detailed guidelines for release of
budgetary support towards cost of enabling infrastructure i.e. roads/bridges and flood
moderation component of hydroelectric projects including PSP."

1.3.9 GO ELECTRIC

Ministry of Power, Government of India, launched "Go Electric" Campaign on 19th February,
2021 with the objective of creating awareness among masses on benefits of adopting
Electric Vehicles and Electric Cooking appliances such as Induction cook hobs, Electric
pressure cooker etc. This initiative is intended to encourage consumers to switch over to
Electric Vehicles and Electric Cooking in place of currently used conventional modes and
appliances, thereby, reducing dependency of the country on imported fuel. The "Go Electric"
Campaign is aimed at promoting adoption of Energy Efficient Electric Vehicles and Electric
Cooking appliances and is expected to help the country to achieve energy transition as well
as low carbon economic growth in the future. These technologies being energy efficient, are
expected to scale down mobility and cooking related emissions, securing cleaner and
greener future. The share of renewables in the energy mix is expected to increase due to
integration of more renewable based power generation. Benefits of adopting these
electricity based technologies shall be completely realized by enhancing share of renewables
in the Grid.

1.3.10 CHARGING INFRASTRUCTURE

Government of India has taken the following actions to create and increase the electric
vehicle charging infrastructure to promote electric vehicles across the country:
i) There is no requirement of license for setting up charging stations for Electric Vehicles:
Ministry of Power on 13.04.2018, has issued clarification that no license is required for
setting up Charging Infrastructure for Electric Vehicles (EVs) with reference to the
provisions of the Electricity Act, 2003.
ii) Charging Infrastructure for Electric Vehicles – Revised Guidelines and Standards:
Ministry of Power, after extensive consultations with State Governments, different
departments/agencies of Central Government and the stakeholders, issued “Charging
Infrastructure for Electric Vehicles – Guidelines and Standards” dated 14.12.2018,
which was revised on 01.10.2019 and further, an amendment to it was issued on
08.06.2020. After careful consideration of progress made and suggestion received

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from various stakeholders, MoP amended the guidelines to accelerate the E-mobility
transition in the country vide MoP order dated 14.01.2022.
iii) Grid Connectivity and Safety regulations for charging stations for electric vehicles:
Central Electricity Authority (CEA) has issued amendments to following regulations of
CEA with reference to facilitation for charging stations: a. Central Electricity Authority
(Technical Standards for Connectivity to the Distributed Generation Resources)
Amendment Regulations, 2019. b. Central Electricity Authority (Measures relating to
Safety and Electric Supply) Amendment Regulations, 2019.
iv) Ministry of Housing and Urban Affairs (MoHUA) has issued following amendments to
building by-laws and Urban and Regional Development Plan Formulation for
facilitation of Charging Infrastructure for Electric Vehicles: a. Amendments in Model
Building Bye-Laws (MBBL – 2016) for Electric Vehicle Charging Infrastructure. b.
Amendments in Urban and Regional Development Plans Formulation and
Implementation Guidelines (URDPFI – 2014) for Electric Vehicle Charging
Infrastructure.
v) Energy Efficiency Services Limited (EESL), Power Grid Corporation Ltd. (PGCIL) and
NTPC Ltd. under Ministry of Power have been engaged in installation of Public
Charging Stations (PCS) in the country.

1.3.11 ENERGY CONSERVATIONAND EFFICIENCY

1.3.11.1 Performance Achieve and Trade (PAT):

Perform, Achieve and Trade (PAT) scheme is one of the flagship programs of Bureau of
Energy Efficiency aimed at reduction in Specific Energy Consumption (SEC) in energy
intensive industries. The energy saved by these industries is converted into tradable
instruments called Energy Saving Certificates (ESCerts) and are traded at the Power
Exchanges.
PAT cycle II, PAT cycle III, IV, V and VI were notified in 2017, 2018, 2019 and 2020
respectively. PAT cycle III was completed on the 31st of March 2020, with the evaluation of
116 new Designated Consumers (DCs) and the monitoring and verification of the energy
savings in progress. PAT cycle VI has been notified vide Gazette Notification S.O. 1254 (E)
dated 13th April, 2020. Under PAT cycle –VI, 135 new DCs have been notified with a total
energy saving target of 1.277 MTOE.

1.3.11.2 Buildings Energy Efficiency Programme (BEEP) of EESL

Building Energy Efficiency Program (BEEP) was launched to implement energy efficiency
measures in Government buildings across India. Under this Program 10,451 buildings have
been retrofitted with energy efficient equipment like LED Lights, 5 Star rated fans and super-
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efficient air-condition. Under this Programme, energy efficiency measures have been
implemented in approx. 7,000 railway stations/service buildings and approx. 66 Airports’
buildings

1.3.11.3 Unnat Jyoti by Affordable LEDs for All (UJALA)

UnnatJyoti by Affordable LEDs for All (UJALA) was launched on 5th January, 2015 as an
attempt to provide energy efficient LED bulbs to consumers. As on date 36.72 Crore LED
bulbs have been distributed under UJALA programme. This has resulted in energy saving of
47,691 million units of electricity per annum, peak demand reduction of 9,548 MW and
38.62 million tonnes of CO2 emission reduction annually.

1.3.11.4 Street Lighting National Programme (SLNP)

Street Lighting National Programme (SLNP) was launched to replace conventional street
lights with smart and energy efficient LED street lights across India. Till date, EESL has
installed over 1.15 crore LED street lights in Urban Local Bodies (ULBs) and Gram Panchayats
across India. This has resulted in estimated energy savings of 7.75 billion units kWh per year
with avoided peak demand of about 1,300 MW, GHG emission reduction of 5.33 million t
CO2 per year and estimated annual monetary savings of Rs.5,523 crore in electricity bills of
municipalities.

1.3.11.5 Standards and Labeling (S&L) Programme

The programme aims at providing consumers an informed choice regarding the energy
saving potential of various energy consuming appliances. This Programme prescribes
minimum energy performance levels for appliances/equipment, rated on a scale of 1 to 5
Star with 5 Star being the most energy efficient ones. As on date, 28 appliances are covered
under S&L Programme, out of which 10 appliances are under mandatory regime and
remaining 18 are under voluntary regime.

1.3.11.6 Energy Conservation Building Code

ECBC 2017 (Energy Conservation Building Code) was launched in 2017 and is applicable for
large commercial buildings with connected load of 100 kW and above or 120 kVA and above.
ECBC focuses on building envelope, mechanical systems and equipment including heating,
ventilating, and air conditioning (HVAC) system, interior and exterior lighting systems,
electrical system and renewable energy.

The Eco Niwas Samhita, Part – I Building Envelope (Energy Conservation Building Code for
Residential Sector) is developed and launched on 14th December, 2018 to set minimum
building envelope performance standards to limit heat gains (for cooling dominated
climates) and to limit heat loss (for heating dominated climate) as well as for ensuring
INTRODUCTION 1.23
 Central Electricity Authority Draft National Electricity Plan

adequate natural ventilation and day lighting. The code is applicable to all residential use
building projects built on plot area ≥ 500 m2. In 2018, the government launched Eco-Niwas
Samhita 2018(link is external), which is the ECBC for residential buildings, to push for energy
efficiency in the residential sector. The code aims for promoting design and construction of
homes including apartments and townships to give the benefits of energy efficiency to the
occupants.

In the subsequent years, new components will be added to the Eco-Niwas Samhita in the
Part-II, which will address other aspects such as, Energy Efficiency in Electro-Mechanical
Equipment for Building Operation, Renewable Energy Generation, Embodied Energy of
Walling Materials and Structural Systems.

1.3.12 Promotion of Energy Storage system

Ministry of Power (MoP), GoI notification no. 23/16/2020-R&R Part(1) dated

10.03.2022 issued the detailed Guidelines for Procurement and Utilization of Battery
Energy Storage Systems as part of Generation, Transmission and Distribution assets,
along with Ancillary Services.

INTRODUCTION 1.24
 Central Electricity Authority Draft National Electricity Plan

CHAPTER 2
REVIEW OF CAPACITY ADDITION DURING THE PERIOD OF
2017-22

2.0 INTRODUCTION

Review of the previous plan is a very useful and powerful way to evaluate strengths, weaknesses, and
progress in order to create a strong foundation for the development of future strategic plans and
priorities. Review creates a base of knowledge and shared understanding that provides a critical
backdrop about decision-making processes, including the setting of priorities, budget setting, dealing
with problem arising in the future. It helps to identify projects that have commissioned as per the
schedule or ahead of schedule and reasons for the delay in projects.
The COVID-19 pandemic has affected our day-to-day life, businesses, disrupted the world trade and
movements. Power sector is also one of the various industries and sectors affected by the pandemic.
The generation capacity addition from various sources got adversely impacted in the short run as:
 The strict lockdown to arrest the pandemic halted the constructions activities, due to a lack of
manpower.
 Delay in up gradation/transition-related activity in the power sector, due to slow growth of
economy and investment by the public and private sector.
 Delay in manufacturing and installation of various projects due to disruption in the global
supply chain led to difficulties with the availability of key components leading to delay in
execution of projects, for instance, solar segment manufacturing companies faced delays in
the procurement of material.
 Reduced revenue for companies due to weak demand which left companies with less capacity
for capital expenditure.

In this chapter, review of generation capacity which was scheduled to be added in National Electricity
Plan notified in 2018 has been carried out with reasons for the delay of projects which were scheduled
to be commissioned during the period 2017-22.

2.1 SCHEDULED GENERATION CAPACITY ADDITION FROM CONVENTIONAL

SOURCES

As per the National Electricity Plan notified in 2018, scheduled generation capacity addition from
conventional sources was envisaged 51,561.15 MW for the period 2017-22. Details of sector wise and
mode wise scheduled capacity addition is given in Table 2.1 and subsequently in Exhibits 2.1 and
Exhibits 2.2.

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 Central Electricity Authority Draft National Electricity Plan

Table 2.1
Scheduled Capacity Addition from conventional sources for year 2017-22
(Figures in MW)
Source Central State Private Total
Coal 22900 18340 6615 47855
Gas 0 406.15 0 406.15
Nuclear 3300 0 0 3300
Total 26200 18746.15 6615 51561.15
Note: Large hydro has been categorized as Renewable Energy Source.

Exhibit 2.1
CONVENTIONAL CAPACITY ADDITION PLANNED DURING 2017-22 (TYPEWISE)
Gas, 406.15, 1% , 0, 0% Nuclear, 3300, 6%

Coal
Gas
Nuclear

Total: 51561.15 MW
Coal, 47855, 93%

Exhibit 2.2
(Figures in MW)
CONVENTIONAL CAPACITY ADDITION PLANNED DURING 2017-22 (SECTORWISE)

6615 6615

18340 18746.15

406.15 3300

22900 26200

Coal Gas Nuclear Total

Central State Private

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 Central Electricity Authority Draft National Electricity Plan

2.2 GENERATION CAPACITY ADDITION ACHIEVED FROM CONVENTIONAL

SOURCES DURING 2017-22
During period, 2017-22 capacity totaling to 30667.91MW from conventional sources has been achieved
as on 31.03.2022 comprising of 30562 MW of Coal, 105.91 MW of Gas, and 0 MW of Nuclear. This
also includes projects totaling to 726.76 MW which were originally not scheduled for the period
2017-22 but have also been commissioned.

During the period 2017-22, the year wise capacity addition achieved from conventional sources is
shown in Table 2.2.
Table2.2
Year wise capacity addition achieved during 2017-22
(Figures in MW)
Year Source Thermal Nuclear Total
Coal Gas Total
2017-18 Centre 3670 0 3670 0 3670
State 1260 0 1260 0 1260
Private 3780 0 3780 0 3780
Total 8710 0 8710 0 8710
2018-19 Centre 1960 0 1960 0 1960
State 2780 69.755 2849.755 0 2849.755
Private 972 0 972 0 972
Total 5712 69.755 5781.755 0 5781.755
2019-20 Centre 3940 0 3940 0 3940
State 2780 0 2780 0 2780
Private 45* 0 45 0 45
Total 6765 0 6765 0 6765
2020-21 Centre 4080 0 4080 0 4080
State 810 36.15 846.15 0 846.15
Private 0 0 0 0 0
Total 4890 36.15 4926.15 0 4926.15
2021-22 Centre 2370 0 2370 0 2370
State 1590 0 1590 0 1590
Private 525 0 525 0 525
Total 4485 0 4485 0 4485
*: NIWARI TPP, UNIT-2 (45 MW) HAD ACHIEVED COD ON 20.03.17 BUT THE INTIMATION REGARDING COD WAS RECEIVED IN JUNE'19. THEREFORE, THE
PROJECT HAS TAKEN INTO CAPACITY ADDITION ON 06.06.2019 AFTER APPROVAL OF CHAIRPERSON, CEA

During the period 2017-22, sector wise and type wise capacity addition sector wise achieved from
conventional sources is shown in Table 2.3 and shown in Exhibit 2.3 and Exhibit 2.4.

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 Central Electricity Authority Draft National Electricity Plan

Table 2.3
Capacity addition achieved during 2017-22
(Figures in MW)
Source Thermal Nuclear Total
Coal Gas Total
Central 16020 0 16020 0 16020
State 9220 105.91 9325.91 0 9325.91
Private 5322* 0 5322 0 5322
Total 30562 105.91 30667.91 0 30667.91
*: NIWARI TPP, UNIT-2 (45 MW) HAD ACHIEVED COD ON 20.03.17 BUT THE INTIMATION REGARDING COD WAS RECEIVED IN
JUNE'19. THEREFORE, THE PROJECT HAS TAKEN INTO CAPACITY ADDITION ON 06.06.2019 AFTER APPROVAL OF CHAIRPERSON,
CEA
Exhibit 2.3
CONVENTIONAL CAPACITY ADDITION ACHIEVED DURING 2017-22 (TYPEWISE)

Nuclear, 0 MW, 0%
Gas, 105.91 MW, 0%

Coal, 30562 MW,

Total: 30667.91 MW 100%

* Large Hydro considered in RES

Exhibit 2.4

CONVENTIONAL CAPACITY ADDITION ACHIEVED DURING 2017-22 (SECTORWISE)

Private, 5322 MW, Central, 16020 MW,
17% 52%

Central
State
Private

State, 9325.91 MW,

31% Total: 30667.91 MW

REVIEW OF CAPACITY ADDITION DURING THE PERIOD OF 2017-22 (As on 31.03.2022) 2. 4

 Central Electricity Authority Draft National Electricity Plan

The State wise (Conventional Sources) summary of the capacity added during period 2017-22 is
given in Annexure 2.1 and the list of the commissioned conventional sources projects is given in
Annexure 2.2.

Out of scheduled generation capacity addition of 51561.15MW to be achieved during the period
2017-22, generation capacity addition totaling to 30667.91 MW is achieved AS ON 31.03.2022,
which includes 726.76 MW projects which were not envisaged in NEP,2018. Projects totaling to
21620 MW have slipped on account of various reasons viz. delay in placement of order for main
plant, slow progress of civil works, poor geology, legal issues, Covid-19 pandemic etc.

A summary of the total capacity addition during period 2017-22 is given in Table 2.4.

Table 2.4
Summary of generation capacity addition during period 2017-22
(Figures in MW)
A Scheduled Capacity Addition during period 2017-22 51561.15
B Capacity addition achieved as per schedule (51561.15MW) 29941.15
C Additional Capacity commissioned which were not envisaged in NEP, 2018 726.76

D Total Generation Capacity Addition as per the schedule 30667.91

H Capacity slipped from the scheduled capacity addition during period 2017-22 21620

Out of Scheduled capacity addition of 51561.15MW, a capacity of 21620 MW (41.93% of the target)
has slipped during the period. Sector wise and mode wise details of capacity slipped are shown in
Table 2.5.
Table 2.5
Summary of capacity Slipped during period 2017-22
Sector Centre State Private Total
Nuclear 3300 0 0 3300
Coal 7380 8990 1950 18320
Total 10680 8990 1950 21620

List of slipped Nuclear and Coal plants which were envisaged to be commissioned in National
Electricity Plan, 2018 is mentioned along with the detail of reason of delays in Annexure 2.3.

2.3 CAPACITY CONSIDERED FOR RETIREMENT DURING PERIOD 2017-22

Scheduled retirement as per National Electricity Plan 2018, was 22690.5 MW, out of which coal-
based capacity of 5,901.5 MW were considered for retirement due to old age and 16,789 MW (101
units) (as on August, 2017) due to not having sufficient space for installation of FGD to control SOx
emissions were identified.

Capacity totaling to 10044.295 MW for period (2017-22) have been retired. This includes retired
coal and gas-based capacity totaling to 2695.295 MW, which were not envisaged to retire during
the period 2017-22.

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 Central Electricity Authority Draft National Electricity Plan

A summary of the total capacity retired during period 2017-22 is given in Table 2.6.

Table 2.6
Summary of Capacity Retired during period 2017-22
(Figures in MW)
A Scheduled Retirement during the period 2017-22 22690.5

B Capacity Retired due to Old Age Criteria during period 2017-22 against 5901.5 4589
MW envisaged in NEP 18
C Capacity retired due to New Environmental Norms during period 2017-22 2760
against 16789MW envisaged in NEP 18
D Additional Capacity retired during period 2017-22 outside the retired 2695.295
capacity envisaged in NEP 18
E Total Capacity retired during period 2017-22 (B+C+D) 10044.295

F Capacity which did not retired but was scheduled for Retirement as per Old 1312.5
Age Criteria during period 2017-22(5901.5 MW-B)
G Capacity which did not retired but was scheduled for Retirement due to New 14029
Environmental Norms during period 2017-22(16789MW-C)

List of plants retired during period 2017-22 is given in Annexure 2.4.

List of plants which were envisaged to get retired in National Electricity Plan, 2018 but do not get
retired during period 2017-22is attached in Annexure 2.5.

2.4 CAPACITY ADDITION FROM RENEWABLE ENERGY SOURCES DURING

2017-22
The installed capacity from renewable energy sources in the country is 156607.9 MW including large
hydro as on 31.03.2022. Source wise installed capacity of renewable energy sources is shown in
Table 2.7 and Exhibit2.5.

Table 2.7
Installed capacity of Renewable energy sources as on 31-03-2022
(Figures in MW)
Source Capacity
Large Hydro (including PSP) 46722.52
Solar 53996.54
Wind 40357.58
Biomass & Waste to Energy 10682.36
Small Hydro 4848.9
Total 156607.90

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 2.5
INSTALLED CAPACITY FROM RE SOURCES AS ON 31.03.2022

Large Hydro, 46722.52

MW, 30% Solar, 53996.54 MW
,34%

Solar

Small Hydro, 4839.39 Wind

MW, 3% Biomass
Small Hydro
Large Hydro
Biomass, 10682.36
MW, 7% TOTAL: 156607.90 MW

Wind, 40357.58 MW,

26%

As on 31.03.2022, a capacity addition of 54,779.15 MW from renewable energy sources including large
hydro has been achieved during the period 2017-2022.The details of capacity added source wise
during 2017-22 is given in Table2.8 and Exhibit 2.6.

Table 2.8
Capacity addition from Renewable Energy Sources during 2017-22
As on 31.03.2022
(Figures in MW)
Source Capacity
Large Hydro (including PSP) 2138

Solar
41707.72
Wind
8077.81
Biomass & Waste to Energy
2386.58
Small Hydro
469.04
Total 54779.15

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 2.6
CAPACITY ADDITION FROM RE SOURCES DURING 2017-22
AS ON 31.03.2022 (FIGURES IN MW)
Small Hydro, 469.04,
Biomass, 2386.58, Large Hydro, 2138,
1%
4% 4%

Wind, 8077.81, 15%

Solar
Wind
Biomass
Small Hydro
Large Hydro

Solar, 41707.72, 76%

TOTAL: 54779.15 MW

During period, 2017-22 capacity totaling to 2138 MW from Large Hydro sources has been achieved as on
31.03.2022 comprising of 1100MW of Central Sector, 341 MW of State Sector and 697 MW of
Private Sector. This also includes projects totaling to 100 MW which were at various stages of
construction and originally not scheduled for the period 2017-22 but have also been commissioned.
The list of the commissioned Large Hydro projects is given in Annexure 2.2.

Out of Scheduled capacity addition of 6839.5MW from Large Hydro Projects for period 2017-22, a
capacity of 4801.50 MW is to be slipped during the period for the year 2017-22, comprising of
2884MW of Central Sector, 1775.5 MW of State Sector and 142 MW of Private Sector.
List of slipped Large Hydro plants which were envisaged to be commissioned in National Electricity
Plan, 2018 is mentioned along with the detail of reason of delays in Annexure 2.4.

2.5 MAJOR REASONS FOR SLIPPAGE OF PROJECTS DURING 2017-22

There are various reasons for slipping of plants during period 2017-22, with most important being the
COVID-19 pandemic, which halted the construction activities during the strict lockdown conditions to
arrest the pandemic. It has resulted into reduced revenue for companies due to weak demand, which
left companies with less capacity for capital expenditure. The global supply chain also was disrupted
which affected imports of various key components which resulted in delay of execution of the
projects.

Broad Reasons for delay of projects for Hydro, Coal projects are mentioned below and reasons for
delay for individual projects are attached in detail in Annexure 2.4.

REVIEW OF CAPACITY ADDITION DURING THE PERIOD OF 2017-22 (As on 31.03.2022) 2. 8

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Hydro Projects

• Delay in award of works

• Land Acquisition
• Environment and Forest issues
• Rehabilitation & Resettlement
• Natural Calamities
• Law & order problem & Local issues
• Contractual problems
• Geological uncertainties
• Difficult Terrain & Poor Accessibility
• Funds constraints with Contractor
• Force Majeure Risk
• Issues related to Quarry / Crushers Plants
• Inter-state issues
• Court / NGT / NCLT Cases.
• Teething trouble during commissioning

Thermal Projects

• Problems in acquisition of land for construction of power plant, ash dyke, raw water reservoir,
corridor for pipelines, Railway siding etc. and Right of Way /Right of Use for raw water pipe
line, ash slurry disposal pipelines and transmission lines etc.
• Local agitations including aspects such as R&R issues, labor disputes and law and order
problems. Further, ethnic violence in some specific regions has also resulted in long
interruptions at work site.
• Delay in timely availability of railway transport system and healthiness/load carrying capacity
of road transport system for smooth transportation of equipment and fuel to the plant site.
• Change in State policies viz. in respect of sand mining, extraction of ground water etc. during
plant construction period.
• Issues in timely availability of startup power at site.
• Issues in timely completion of power evacuation system and capacity of transmission system
to evacuate full power generated at the plant.
• Shortage of Natural Gas
• Cost overruns on account of delay in timely completion of power projects
• Issues in availability of adequate finances from banks and financial institutions for completion
of projects leading to cost overruns/increased cost of the plant.
• Poor performance of main contractor and sub-vendors including BoP sub-vendors for various
reasons/issues involved.
• Contractual disputes resulting in termination of contract and re-tendering etc. resulting in
project delays and cost overrun.
• Natural calamities and extreme weather conditions including heavy rains, cyclones etc.,
specifically in coastal areas.
• Not signing of long term PPA with DISCOMs and non-fulfillment of PPA conditions by the
project developers. In some cases, even no PPA is available for sale of power from the power
plant.

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 Central Electricity Authority Draft National Electricity Plan

• Delay in availability of Consent to Establish, Consent to Operate (CTO) from respective State
Governments.
• Court / NGT / NCLT Cases.

2.6 CONCLUSIONS
 During the period 2017-22, the capacity addition achieved from conventional sources is
30,667.91 MW.
 During the period 2017-22 as on 31.03.2022 the capacity addition from RE sources is 54,779.15
MW including large hydro.
 There has been considerable slippage in the Coal, Hydro and Nuclear capacity addition
envisaged during the period 2017-22 with COVID-19 being the major reason resulting in delay.

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Annexure 2.1
STATE-WISE SECTOR-WISE CAPACITY FROM CONVENTIONAL SOURCESS COMMISSIONED DURING
2017-22
(Figures in MW)
S.NO STATE CENTRAL STATE PRIVATE TOTAL
1 DELHI 0 0 0 0.00
2 HARYANA 0 0 0 0.00
3 HIMACHAL PRADESH 0 0 0 0.00
4 JAMMU & KASHMIR 0 0 0 0.00
5 PUNJAB 0 0 0 0.00
6 RAJASTHAN 0 2640 0 2640.00
7 UTTAR PRADESH 2640 660 660 3960.00
8 UTTARAKHAND 0 0 0 0.00
9 CHANDIGARH 0 0 0 0.00
SUB TOTAL NR 2640 3300 660 6600.00
10 CHHATTISGARH 1600 0 2220 3820.00
11 GUJARAT 0 800 0 800.00
12 MAHARASHTRA 1320 0 960 2280.00
13 MADHYA PRADESH* 2920 1320 645* 4885.00
14 GOA 0 0 0 0.00
15 DAMAN & DIU 0 0 0 0.00
16 DADRA & NAGAR HAVELI 0 0 0 0.00
SUB TOTAL WR 5840 2120 3825 11785.00
17 ANDHRA PRADESH 0 510 0 510.00
18 TELANGANA 0 1970 0 1970.00
19 KARNATAKA 800 0 0 800.00
20 KERALA 0 0 0 0.00
21 TAMIL NADU 1000 0 525 1525.00
22 PUDUCHERRY 0 0 0 0.00
SUB TOTAL SR 1800 2480 525 4805.00
23 BIHAR 3890 0 0 3890.00
24 JHARKHAND 0 0 0 0.00
25 ODISHA 1600 1320 0 2920.00
26 SIKKIM 0 0 0 0.00
27 WEST BENGAL 0 0 312 312.00
SUB TOTAL ER 5490 1320 312 7122.00
28 ARUNACHAL PRADESH 0 0 0 0.00
29 ASSAM 250 105.91 0 355.91
30 MANIPUR 0 0 0 0.00
31 MIZORAM 0 0 0 0.00
32 MEGHALAYA 0 0 0 0.00
33 NAGALAND 0 0 0 0.00

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34 TRIPURA 0 0 0 0.00
SUB TOTAL NER 250 105.91 0 355.91
35 ANDMAN & NICOBAR 0 0 0 0.00
36 LAKSHDWEEP 0 0 0 0.00
ALL INDIA TOTAL 15360 8395.91 5322 30667.91
*: NIWARI TPP, UNIT-2 (45 MW) HAD ACHIEVED COD ON 20.03.17 BUT THE INTIMATION REGARDING COD WAS RECEIVED IN JUNE'19. THEREFORE, THE PROJECT HAS TAKEN INTO CAPACITY ADDITION ON 06.06.2019
AFTER APPROVAL OF CHAIRPERSON, CEA

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 Annexure 2.2

LIST OF CONVENTIONAL SOURCES PROJECTS COMMISSIONED WHICH WERE ENVISAGED DURING 2017-22

(Figures in MW)
S.NO. PROJECT NAME TYPE STATE DEVELOPER CAPACITY
CENTRAL SECTOR
1 NABI NAGAR TPP U2,3,4 COAL BIHAR JV OF NTPC & RAILWAYS 750
2 SOLAPUR STPP U1-2 COAL MAHARASHTRA NTPC 1320
3 BARAUNI TPS EXTN U8-9 COAL BIHAR NTPC 500
4 KUDGI STPP PH-I U3 COAL KARNATAKA NTPC 800
5 MEJA STPP U1-2 COAL UTTAR PRADESH JV OF NTPC & UPRVUNL 1320
6 LARA TPP U1-2 COAL CHHATTISGARH NTPC 1600
7 BONGAIGAON TPP U3 COAL ASSAM NTPC 250
8 GADARWARA TPP U1-2 COAL MADHYA PRADESH NTPC 1600
9 NABINAGAR STPP U1-3 COAL BIHAR NPGCL 1980
10 TANDA TPS, STAGE-II U5-6 COAL UTTAR PRADESH NTPC 1320
11 KHARGONE STPP U1-2 COAL MADHYA PRADESH NTPC 1320
12 NEYVELLI NEW TPP U1-2 COAL TAMILNADU NLCIL 1000
13 DARLIPALLI STPP U1-2 COAL ODISHA NTPC 1600
14 BARH STPP STAGE-I UNIT- 1 COAL BIHAR NTPC 660
SUB TOTAL (CENTRAL SECTOR) 16020
STATE SECTOR
1 CHHABRA SCTPP U5 COAL RAJASTHAN RRVUNL 660
2 RAYAL SEEMA TPP U6 COAL ANDHRA PRADESH APGENCO 600
3 SHRI SINGHAJI TPP (PHASE-II) COAL MADHYA PRADESH MPPGCL 1320
U3-4
4 KOTHAGUDEM TPS STAGE-VII COAL TELANGANA TSGENCO 800
U12
5 CHHABRA TPP EXTN. U6 COAL RAJASTHAN RRUVNL 660
6 IB VALLEY TPP U3-4 COAL ODISHA OPGCL 1320
7 WANAKBORI TPS U8 COAL GUJARAT GSECL 800
8 SURATGARH SCTPP U7-8 COAL RAJASTHAN RRVUNL 1320
9 BHADRADRI-TPP U1-4 COAL TELANGANA M/S TSGENCO 1080
10 HARDUAGANJ EXP.-II TPP COAL UTTAR PRADESH M/S UPRVUNL 660
11 NAMRUP CCGT-GAS GAS ASSAM M/S APGCL 36.15
SUB TOTAL (STATE SECTOR) 9256.15
PRIVATE SECTOR
1 BINJKOTE TPP U1-2 COAL CHHATTISGARH SKS POWER GENERATION 600
(CHHATTISGARH) LTD
2 NAWAPARA TPPU2 COAL CHHATTISGARH TRN ENERGY 300
3 NASIK TPPPH-I U 3-5 COAL MAHARASHTRA RATTAN INDIA NASIK 810
POWER LTD
4 BARA TPP U3 COAL UTTAR PRADESH PRAYAGRAJ POWER 660
GENERATION CO.LTD.
5 INDIA POWER TPP (HALDIA) COAL WEST BENGAL INDIAN ENERGY LTD 300
U1-2 (HALDIA)
6 UCHPINDA TPP U3-4 COAL CHHATTISGARH RKM POWER GEN PVT. LTD. 720
 7 SHIRPUR TPP U1 COAL MAHARASHTRA SHIRPUR POWER PVT. LTD. 150
8 AKALTARA (NARIYARA) COAL CHHATTISGARH K.S.K MAHANADI POWER 600
COMPANY LIMITED
9 TUTICORIN TPP ST-4 COAL TAMIL NADU SEPC 525
SUB TOTAL (PRIVATE SECTOR) 4665
TOTAL (2017-2021) 29941.15

LIST OF ADDITIONAL CONVENTIONAL SOURCES PROJECTS ADDED DURING 2017-22 BUT NOT ENVISAGED IN NEP
2017-22
S.NO. PROJECT NAME / FUEL SECTOR CAP. (MW)
IMPLEMENTING
AGENCY
1 MAHAN TPP U2 / COAL PRIVATE 600
ESSAR POWER MP PVT.
LTD.
2 DISHERGARH TPP COAL PRIVATE 12
3 NIWARI TPP, UNIT-2 COAL PRIVATE 45*
4 LAKWA REPLACEMENT GAS STATE 69.76
PROJECT U1-7/APGCL
TOTAL 726.76
*: NIWARI TPP, UNIT-2 (45 MW) HAD ACHIEVED COD ON 20.03.17 BUT THE INTIMATION REGARDING COD WAS RECEIVED IN JUNE'19. THEREFORE, THE PROJECT
HAS TAKEN INTO CAPACITY ADDITION ON 06.06.2019 AFTER APPROVAL OF CHAIRPERSON, CEA

LIST OF LARGE HYDRO PROJECTS COMMISSIONED WHICH WERE ENVISAGED DURING 2017-22
(Figures in MW)
S.NO. PROJECT NAME TYPE STATE DEVELOPER CAPACITY
CENTRAL SECTOR
1 TUIRIAL HEP U1-2 HYDRO MIZORAM NEEPCO 60
2 KISHAN GANGA HEP U1-3 HYDRO J&K NHPC 330
3 PARE U1-2 HYDRO ARUNACHAL PRADESH NEEPCO 110
4 KAMENG HEP U1-4 HYDRO ARUNACHAL PRADESH NEEPCO 600
SUB TOTAL (CENTRAL SECTOR) 1100
STATE SECTOR
1 NEW UMTRU U1-2 HYDRO MEGHALAYA MEPGCL 40
2 SAINJ HEP U1-2 HYDRO HIMACHAL PRADESH HPPCL 100
3 PULICHINTALA U2-4 HYDRO ANDHRA PRADESH TSGENCO 90
4 SAWRA KUDDU U1-3 HYDRO HIMACHAL PRADESH HPPCL 111
SUB TOTAL (STATE SECTOR) 341
PRIVATE SECTOR
1 DIKCHU U-1 HYDRO SIKKIM SNEHA KINETIC POWER 96
PROJECTS PVT. LTD.
2 CHANJU-IU3 HYDRO HIMACHAL PRADESH IA ENERGY 12
3 TASHIDING U1-2 HYDRO SIKKIM SNEHA KINETIC POWER 97
PROJECTS PVT. LTD.
4 SINGOLI BHATWARI U1-3 HYDRO UTTARAKHAND L&T UHPL 99
 5 RONGNICHU UNIT 1-2 HYDRO SIKKIM MADHYA BHARAT POWER 113
CORPN.
6 BAJOLI HOLI UNIT 1,2,3 HYDRO HIMACHAL PRADESH GMR 180
SUB TOTAL (PRIVATE SECTOR) 597
TOTAL (2017-2022) 2038

LIST OF ADDITIONAL LARGE HYDRO PROJECTS ADDED DURING 2017-22 BUT NOT ENVISAGED IN NEP 2017-22
S.NO. PROJECT NAME / FUEL SECTOR CAP. (MW)
IMPLEMENTING
AGENCY
1 SORANG UNIT 1-2 HYDRO PRIVATE 100
TOTAL 100
 Annexure 2.3

SLIPPED COAL BASED PROJECTS ENVISAGED DURING 2017-22

S.NO. PROJECT NAME / IMPLEMENTING AGENCY SECTOR UNIT NO CAP. (MW)

CENTRAL SECTOR
1 BARH STPP-I /NTPC C U-2,3 2*660=1320
2 NORTH KARANPURA TPP/ NTPC C U-1,2,3 3*660=1980
3 TELANGANA PH-I/NTPC C U-1,2 2*800=1600
4 GHATAMPUR TPP/ NLC JV C U-1,2,3 3*660=1980
5 BARSINGSAR TPP EXT/NLC C U-1 250
6 BITHNOK TPP /NLC C U-1 250
TOTAL (CENTRAL SECTOR) 7380

STATE SECTOR
1 ENNORE EXP. SCTPP(LANCO) / TANGEDCO S U-1 660
2 ENNORE SCTPP / TANGEDCO S U-1,2 2*660=1320
3 UPPUR SCTPP/TANGEDCO S U-1,2 2*800=1600
4 JAWAHARPUR STPP/ UPRVUNL S U-1,2 2*660=1320
5 OBRA-C STPP/ UPRVUNL S U-1,2 2*660=1320
6 SRI DAMODARAM TPS ST-II S U-1 800
7 NORTH CHENNAI TPP ST-III S U-1 800
8 DR. NARLA TATA RAO TPS ST-V S U-1 800
9 YELAHANKA CCPP-GAS S GT+ST 370
TOTAL (STATE SECTOR) 8990

PRIVATE SECTOR
1 THAMMINAPATNAM TPP STAGE -II / MEENAKSHI P U-3,4 2*350=700
ENERGY PVT. LTD.
2 AKALTARA TPP (NAIYARA) / KSK MAHANDI POWER P U-4 600
COMPANY LTD.
3 SHIRPUR TPP/ SHIRPUR POWER PVT LTD P U-2 150
4 INDIA POWER TPP / HALDIA ENERGY LTD. P U-3 150
5 UTKAL TPP/IND BHARAT P U-2 350
TOTAL (PRIVATE SECCTOR) 1950

GRAND TOTAL 18320

Note: C- Center, S-State, P- Private

SLIPPED NUCLEAR BASED PROJECTS ENVISAGED DURING 2017-22

S.NO. PROJECT NAME STATE NO. OF UNITS X MW CAPACITY (MW)

1 KAKRAPAR ATOMIC POWER GUJARAT 2X700 1400

PLANT
2 RAJASTHAN ATOMIC POWER RAJASTHAN 2X700 1,400
STATION
 3 PFBR TAMIL NADU 1X500 500

TOTAL (2017-22) 3300

SLIPPED HYDRO BASED PROJECTS ENVISAGED DURING 2017-22

S.NO. PROJECT NAME STATE AGENCY NO. OF UNITS X CAPACITY

MW (MW)
CENTRAL SECTOR
1 PARBATI ST. II HIMACHAL PRADESH NHPC 4x200 800
2 TAPOVAN VISHNUGAD UTTARAKHAND NTPC 4x130 520
3 TEHRI PSS UTTARAKHAND THDC 4x250 1,000
4 VISHNUGAD PIPALKOTI UTTARAKHAND THDC 4x111 444
5 RAMMAM - III WEST BENGAL NTPC 3x40 120
CENTRAL SECTOR TOTAL 2884

STATE SECTOR

1 INDIRA SAGAR ANDHRA PRADESH APID 12x80 960

(POLLAVARAM MPP)
2 SHONGTONG KARCHAM HIMACHAL PRADESH
HPPCL 3x150 450
3 UHL-III HIMACHAL PRADESH BVPC 3x33.3 100
4 PALLIVASAL KERELA KSEB 2x30 60
5 PARNAI J&K JKSPDC 3x12.5 37.5
6 LOWER KALNAI J&K JKSPDC 2x24 48
7 VYASI UTTARAKHAND UJVNL 2x60 120
State Sector Total 1775.5
PRIVATE SECTOR
1 RANGIT-II SIKKIM SHPL 2x33 66
2 PHATA BYUNG UTTARAKHAND LANCO 2x38 76
PRIVATE SECTOR TOTAL 142
TOTAL 4801.5
 ANNEXURE 2.4

LIST OF PROJECTS RETIRED DUE TO OLD AGE CRITERIA

(All figures in MW)
S.NO. NAME OF THE NAME OF THE STATION UNIT NO. CAPACITY (MW)
UTILITY
1 DPL DPL TPS 3,4,5 1*70+2*75=220
2 ASEB CHANDRAPUR TPS 1,2 2*30=60
3 GSECL SIKKA TPS 1 120
4 GSECL UKAI TPS 1,2 2*120=240
5 IPGCL RAJGHAT TPS 1,2 2*67.5=135
6 UPRVUNL HARDUAGANJ 5 60
7 UPRVUNL OBRA TPS 8 94
8 NLC NEVYELI LIGNITETPS-I 1-9 6*50+3*100=600
9 TSPGCL KOTHADUDEM TPS 1-8 4*60+4*120=720
10 PSPCL GND (BATHINDA) TPS 1,2 2*110=220
11 CSPGCL DSPM KORBA TPS 1-4 4*50=200
12 UPRVUNL OBRA TPS 1,2 1*40+1*50=90
13 UPRVUNL PANKI TPS 3,4 2*105=210
14 PSPCL ROPAR TPS 1 2*210=420
15 MSPGCL KORADI TPS 5 200
16 PVUNL PATRATU TPS 4,6,7,9,10 1*40+1*90+1*105+2*110=455
17 NTPC LTD. BADARPUR TPS 1,2,3 3*95=285
18 DVC CHANDRAPUR TPS 2,3 2*130=260
TOTAL 4589

LIST OF PROJECTS RETIRED DUE TO NEW ENVIRONMENTAL NORMS

(THERMAL STATION UNITS WITHOUT SPACE FOR FGD INSTALLATION AND SHALL ATTAIN AGE OF =>25 YEARS ON
1/1/2022)

S. NO. NAME OF PROJECT SECTOR STATE REGION UNIT NO TOTAL

CAPACITY (MW)
1 BOKARO `B` TPS CENTRAL SECTOR JHARKHAND ER 1,2,3 3*210=630

2
TALCHER (OLD) TPS CENTRAL SECTOR ODISHA ER 1-6 4*60+2*110=460
3 BANDEL TPS STATE SECTOR WEST BENGAL ER 1,3,4 3*60=180
4 BADARPUR TPS CENTRAL SECTOR DELHI NR 4,5 2*210=420
5 PANIPAT TPS STATE SECTOR HARYANA NR 5 210
6 GND STATE SECTOR PUNJAB NR 3,4 2*110=220
TPS(BHATINDA)
7 KORBA-III STATE SECTOR CHHATTISGARH WR 1,2 2*120=240
8 SIKKA REP. TPS STATE SECTOR GUJARAT WR 2 120
9 SABARMATI PRIVATE SECTOR GUJARAT WR 15,16 2*30=60

10 MUZAFFARPUR TPS CENTRAL SECTOR BIHAR ER 1,2 2*110=220

TOTAL 2760
 LIST OF RETIRED DURING 2017-22 BUT NOT ENVISAGED FOR RETIREMENT IN NEP 2017-22
S. NO. NAME OF FUEL STATE UNIT NO TOTAL
PROJECT CAPACITY (MW)
1 DISHENGARH COAL WEST BENGAL 1,3,4,5 18 (1*3+3*5)

2 SEEBPORE TPS COAL WEST BENGAL 1,2,3,4 8.375 (3+1.5+1.875+2)

3 NAMRUP CCPP GAS ASSAM 1,4,5 55(1*20+1*11+1*24)

4 LAKWA GT GAS ASSAM 2,3,4 45 (3*15)

5 CHINAKURI TPS COAL WEST BENGAL 1,2,3 30 (3*10)

6 KUTCH LIGNITE COAL GUJRAT 1,2 140

7 BARAMURA GAS TRIPURA 1,2,3 16.5(2*5+1*6.5)
8 ROKHIA GAS TRIPURA 1,2 16(2*8)
9 D.P.L. TPS COAL WEST BENGAL 6 110

10 PARLI TPS COAL MAHARASHTRA 4,5 420(2*210)

11 TROMBAY TPS COAL MAHARASHTRA 6 500

12 YELHANKA DG DIESEL KARNATAKA 1,2,3,4,5,6 127.92 (6*21.32)

13 BASIN BRIDGE DG DIESEL TAMIL NADU 1,2,3,4 200 (4*50)

14 BHUSAWAL TPS COAL MAHARASHTRA 2 210 (1*210)

15 UTRAN CCPP GAS GUJARAT 1 144 (3*33+1*45)

16 KORADI TPS COAL MAHARASHTRA 7 210

17 ADAMTILA CCPP GAS ASSAM 1,2,3 9(3*3)
18 BASKHANDI GAS ASSAM 1,2,3,4 15.5(3*3.5+1*5)
19 KOLAGHAT TPS COAL WEST BENGAL 1,2 420(2*210)

TOTAL 2695.295
 ANNEXURE 2.5

LIST OF PROJECTS WHICH WERE NOT RETIRED AS ENVISAGED DURING THE PERIOD 2017-22DUE TO OLD AGE
CRITERIA

S.NO. NAME OF THE UTILITY NAME OF THE STATION UNIT NO. CAPACITY (MW)
1 TSPGCL RAMAGUNDEM-B TPS 1 62.5
2 PSPCL ROPAR TPS 3,4 2*210=420
3 MPPGCL SATPURA TPS 6,7,8,9 1*200+3*210=830
TOTAL 1312.5

LIST OF PROJECTS WHICH WERE NOT RETIRED AS ENVISAGED DURING THE PERIOD 2017-22 DUE TO NEW
ENVIRONMENTAL NORMS

S. NO. NAME OF PROJECT SECTOR STATE REGION UNIT NO TOTAL

CAPACITY (MW)
1 BARAUNI TPS STATE SECTOR BIHAR ER 6,7 2*105=210
2 PARICHHA TPS STATE SECTOR UTTAR PARDESH NR 1,2 2*110=220
3 TENUGHAT TPS STATE SECTOR JHARKHAND ER 1,2 2*210=420
4 IND BARATH TPP PRIVATE SECTOR ODISHA ER 1 350
5 TITAGARH TPS PRIVATE SECTOR WEST BENGAL ER 1-4 4*60=240
6 DURGAPUR TPS CENTRAL SECTOR WEST BENGAL ER 4 210
7 BAKRESWAR TPS STATE SECTOR WEST BENGAL ER 1-5 5*210=1050
8 BANDEL TPS STATE SECTOR WEST BENGAL ER 2,5 1*60+1*210=270
9 ROPAR TPS STATE SECTOR PUNJAB NR 5,6 2*210=420
10 KOTA TPS STATE SECTOR RAJASTHAN NR 1-5 2*110+3*210=850
11 TANDA TPS CENTRAL SECTOR UTTAR PARDESH NR 1-4 4*110=440
12 HARDUAGANJ TPS STATE SECTOR UTTAR PARDESH NR 7 105
13 DR. N.TATA RAO STATE SECTOR ANDHRA PRADESH SR 1-6 6*210=1260
TPS
14 RAICHUR TPS STATE SECTOR KARNATAKA SR 1-8 7*210+1*250=1720
15 TUTICORIN (P) TPP PRIVATE SECTOR TAMIL NADU SR 1,2 2*150=300
16 NEYVELI ( EXT) TPS CENTRAL SECTOR TAMIL NADU SR 1,2 2*210=420
17 NEYVELI TPS- II CENTRAL SECTOR TAMIL NADU SR 1-7 7*210=1470
18 METTUR TPS STATE SECTOR TAMIL NADU SR 1-4 4*210=840
19 NORTH CHENNAI STATE SECTOR TAMIL NADU SR 1-3 3*210=630
TPS
20 TUTICORIN TPS STATE SECTOR TAMIL NADU SR 1-5 5*210=1050
21 KOTHAGUDEM TPS STATE SECTOR TELANGANA SR 9,10 2*250=500
(NEW)
22 KORBA-WEST TPS STATE SECTOR CHHATTISGARH WR 1-4 4*210=840
23 GEPL TPP PH-I PRIVATE SECTOR MAHARASHTRA WR 1,2 2*60=120
24 OBRA TPS STATE SECTOR UTTAR PARDESH NR 7 94
TOTAL 14029
 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

CHAPTER 3
ENERGY EFFICIENCY & CONSERVATION

3.0 BACKGROUND

India stands at the forefront of addressing global challenge of climate change and has committed
to an ambitious Nationally Determined Contributions (NDCs) (proposed) of reducing emission
intensity by 45 % in 2030 against the levels of year 2005. In its Third Biennial Update Report (BUR
3) submitted to United Nations Framework Convention on Climate Change (UNFCCC), it has been
highlighted that India has proactively pursued mitigation and adaptation activities and achieved
a reduction in emission intensity of GDP by 24% over the period 2005-2016. India is one of the
very few countries on track to fulfilling its declared voluntary mitigation action up to 2020. As
per the proposed NDCs, India is committed to achieve 500GW of non-fossil fuel electric power
installed capacity by 2030, with the help of transfer of technology and low cost international
finance including from Green Climate Fund (GCF). India’s third NDC commitment is to create an
additional carbon sink of 2.5 to 3 billion tons of carbon dioxide equivalent through additional
forest and tree cover by 2030.

Energy efficiency simply means using less energy to perform the same task – that is, eliminating
energy waste. Energy efficiency brings a variety of benefits: reducing greenhouse gas emissions,
reducing demand for energy imports, and lowering our costs on a household and economy-wide
level. While renewable energy technologies also help accomplish these objectives, improving
energy efficiency is the cheapest – and often the most immediate way to reduce the use of fossil
fuels. There are enormous opportunities for efficiency improvements in every sector of the
economy, whether it is buildings, transportation, industry, or energy generation.

3.1 ENERGY CONSERVATION ACT AND FORMATION OF BUREAU OF

ENERGY EFFICIENCY
The Government of India set up Bureau of Energy Efficiency (BEE) on 1st March 2002 under the
provisions of the Energy Conservation (EC) Act, 2001. As a quasi-regulatory and policy advisory
body, the Bureau helps in developing policies and strategies that emphasize self-regulation and
market principles to achieve the primary objective of reducing the energy intensity of the
economy. The EC Act also empowers the State Government to facilitate and enforce the efficient
use of energy through their respective State Designated Agencies (SDAs) in consultation with
BEE. It also empowers the Central Government to specify energy performance standards.

The Act came into force in March, 2002. The broad objectives of EC Act, 2001 are:

 Promote faster adoption of energy efficiency and conservation through regulation,

participation and cost-effective measures
 Involve States and other stakeholders in the energy efficiency initiatives

ENERGY EFFICIENCY AND CONSERVATION 3.1

 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

 Create a sustainable environment for demand of energy efficient products,

technologies and professionals
 Energy Supply and Consumption

Exhibit 3.1
Sankey Diagram Overall Energy Balance of India 2019-20(P) in KToe

Source: Energy Statistics, 2021-(MOSPI)

3.2 ASSESSMENT OF ENERGY EFFICENCY MEASURES AND

ACHIEVEMENTS
Energy intensity of the country has declined from 0.2787 mega joule per INR in 2012-13 to 0.2232
mega joule per INR in 2019-20(P)
Exhibit 3.2

Energy Intensity of India in Mega Joule / rupee

0.28 0.2787
0.2670
0.27 0.2632
0.26 0.2508
0.25
MJ/Rs

0.2388
0.24 0.2358 0.2331
0.23 0.2232
0.22
0.21
0.2
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 (P)
Year

Source: Energy Statistics, 2021-(MOSPI)

ENERGY EFFICIENCY AND CONSERVATION 3.2

 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

3.3 Energy Efficiency Initiatives

 India has assumed leadership role in promotion of energy efficiency and conservation
towards addressing global issue of climate change. Government of India has undertaken
a two-pronged approach to cater to the energy demand of its citizens while ensuring
minimum growth in CO2 emissions, so that the global emissions do not lead to
irreversible damage to the ecosystem.
 In the generation side, the Government is promoting greater use of renewable in the
energy mix mainly through solar and wind and at the same time shifting towards ultra-
supercritical and supercritical technologies for coal based power plants.
 In the demand side, government have launched various schemes/programs targeted
towards improving efficiency under the overall ambit of Energy Conservation Act 2001
(EC Act).

Energy Efficiency initiatives of Government of India are as below:

3.3.1 ENERGY EFFICIENCY IN APPLIANCE SECTOR- STANDARDS &

LABELLING PROGRAMME:
 This scheme promotes energy efficiency at the citizens’ level
through use of more efficient appliances like Air
Conditioners, Refrigerators, Televisions, Geysers etc. by
regulation of standards and increasing awareness through
informative campaigns.It was launched with the key
objective of providing consumers an informed choice about
the energy and cost saving potential of the labelled
appliances/equipment being sold commercially. This
scheme entails laying down minimum energy performance
norms for appliances / equipment, rating the energy
performance on a scale of 1 to 5, 5 star being the most
energy efficient one. Energy labelling is one of the most
cost-effective policy tools for improving energy efficiency
and lowering associated energy cost of appliances or
equipment. As on August 2021, the programme covers 28
appliances out of which 10 appliances are under the
mandatory regime while as the remaining 18 appliances are
under the voluntary regime.

 The star labelling program for Chillers was introduced on a voluntary basis in September,
2018 for Microwave Oven in February, 2019 and for Solar Water Heater in December,
2019. Further, BEE has expanded the coverage by including Energy Efficient “Deep
Freezers” and “Light Commercial Air Conditioners (LCAC)” in March, 2020 on voluntary
basis. Voluntary star labelling program for UHD TV and Air Compressor has been launched
in January, 2021.

ENERGY EFFICIENCY AND CONSERVATION 3.3

 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

 Initially appliances are covered under voluntary regime and then included under
mandatory regime before the standards being gradually ratcheted. The process adopted
by BEE for this transition is shared in Table 3.1 below:

Table 3.1

S. No Mandatory Appliances S.No Voluntary Appliances

1. Room Air Conditioners 1. Induction Motors
2. Frost Free Refrigerator 2. Agricultural Pump Sets
3. Tubular Florescent Lamp 3. Ceiling Fans
4. Distribution Transformer 4. LPG-Stoves
5. Room Air Conditioner (Cassette, 5. Washing Machine
Floor Standing)
6. Direct Cool Refrigerator 6. Computer (Notebook/ Laptops)
7. Colour TV 7. Ballast (Electronic/ Magnetic)
8. Electric Geysers 8. Office Equipment (Printer, Copier,
Scanner, Multifunctional Display)
9. Variable Capacity Inverter Air 9. Diesel Engine Driven Mono-set Pumps,
Conditioners submersible and open-well
10. LED Lamps 10. Solid State Inverter
11 DG Sets
12 Chillers
13 Microwave oven
14 Solar Water Heater
16 Deep Freezers
16 Light Commercial Air Conditioners (LCAC)
17 Air Compressor
18 Ultra-High-Definition Television

3.3.2 EXPANDING COVERAGE OF INDUSTRIAL EFFICIENCY ADOPTION

NATIONAL MISSION FOR ENHANCED ENERGY EFFICIENCY (NMEEE)

 National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national
missions under the National Action Plan on Climate Change (NAPCC) that was released in
June 2008 by the Government of India.

 One of the flagship schemes under NMEEE, the

Perform, Achieve and Trade (PAT) scheme is a
mechanism designed to achieve emissions reduction
in energy intensive industries and it is designed on
the concept of reduction in Specific Energy
Consumption (SEC). It involves assessment of SEC in
the baseline year and projected SEC in the target
year covering different forms of net energy going
into the boundary of the plant and the products
leaving out of it over a particular cycle.

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 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

 The implementation of PAT cycle –I that completed in the year 2015 has led to energy
saving of 8.67 MTOE which is about 30 % more than the notified targets. This energy saving
also translates in to avoiding of about 31 million tonne of CO2 emission. This energy saving
has been converted to Energy Saving Certificates (ESCerts) tradable at the Power
Exchanges. Ministry of Power had issued about 38.25 lakh ESCerts to 306 industrial units
for excess energy saving and 110 industrial units have been entitled to purchase about
14.25 lakh ESCerts to meet the shortfall to meet energy saving targets. The total volume of
ESCerts traded is about 12.98 lakhs resulting into a business of about INR 100 crores during
17 weekly trading sessions.

 Subsequently, the second cycle of PAT (2016-19) was notified in March, 2016 covering 621
Designated Consumers (DCs) from 11 sectors which include eight existing sectors and three
new sectors viz. Railways, Refineries and DISCOMs. PAT cycle –II has ended on 31st March
2019 wherein 621 Designated Consumers (DCs) from 11 sectors have achieved total energy
savings of 14.08 Million Tonne of Oil Equivalent (MTOE) which exceeds the notified target
of 11.28 MTOE by about 16 %.A total of 57.38 lacs ESCerts were issued to 349 industrial
units and 193 industrial units are entitled to purchase 36.68 lacs ESCerts.

 Since PAT scheme is being implemented on a rolling cycles basis i.e. new sectors are
included every year, PAT cycle –III was notified with effect from 1st April, 2017. PAT
scheme in its third cycle seeks to achieve an overall energy saving target of 1.06 MTOE for
which SEC reduction targets have been assigned to 116 industrial units from six energy
intensive sectors. Subsequently, PAT cycle-IV has commenced with effect from 1st April
2018 in which 109 units have been notified from the existing sectors and two new sectors
i.e. Petrochemicals and Commercial Buildings (Hotels).

 PAT cycle –V has commenced with effect from 1st April 2019. Under PAT cycle –V, 110 units
from the existing sectors of PAT i.e. Aluminum, Cement, Chlor-Alkali, Commercial Buildings
(Hotels), Iron & Steel, Pulp & Paper, Textile and Thermal Power Plant have been notified.
The total energy consumption of these DCs comes out to be 15.244 million toe and it is
expected to get a total energy savings of 0.5130 million toe through the implementation
of PAT cycle –V.

 Under PAT Cycle VI 117 new units have been given targets to reduce their specific energy
consumptions through deepening and widening under the PAT scheme during FY 2019-
2020. These targets are effective for compliance from April, 2020 under PAT cycle VI. As on
the beginning of PAT Cycle VI, total of 1073 industrial and commercial units from 13 energy
intensive sectors are included under the PAT Scheme.

 Energy savings potential of 12 new sectors included in June 2020 (Airport, Cement, Railway
Prod unit) & feasibility studies for 4 new sectors (Glass, Chemicals, Mining, Zinc and
Copper) completed.

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 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

“Roadmap of Sustainable and Holistic Approach to National Energy Efficiency”

(ROSHANEE), a booklet on Revised National Mission for Enhanced Energy Efficiency was
launched on 14 May 2019 by Secretary (Power). The document is a detailed action plan till
2030. The revised mission includes all existing activities of BEE that have contributed
significantly towards enhancing energy efficiency and consequent CO2 mitigation as well
as the activities proposed in future, some of which have been identified and others which
need to be explored.

3.3.3 ENERGY CONSERVATION BUILDING CODE (ECBC)

 The Energy Conservation Building Code (ECBC) of BEE sets minimum energy performance
standards for commercial buildings having a connected load of 100kW or contract demand
of 120 KVA and above. While the Central Government has powers under the EC Act, the
State Governments have the flexibility to modify the code to suit local or regional needs
and notify them.

 In June 2017, BEE rolled out the updated version of ECBC which provides current as well as
futuristic advancements in building technology to further reduce building energy
consumption and promote low-carbon growth. ECBC 2017 sets parameters for builders,
designers and architects to integrate renewable energy sources in building design with the
inclusion of passive design strategies. The code aims to optimise energy savings with the
comfort levels for occupants, and prefers life-cycle cost effectiveness to achieve energy
neutrality in commercial buildings.

 As on June 2021, 18 States and 2 UTs have notified ECBC for their states. Other states are
at advance stages of adopting the ECBC.

 Energy Conservation Building Code (ECBC) Cells of BEE, housed at State Designated
Agencies (SDAs), are supporting implementation of ECBC at State level. As on August 2021,
48 Urban Local Body (ULBs) from 8 States have incorporated provisions of ECBC for building
approval process.

 Recently, residential building energy conservation code

(Eco Niwas Samhita) and labelling program for residential
building was launched. In order to promote energy
efficiency in residential building sector, “ECO-NIWAS”
Portal (www.econiwas.com) has been developed. The
scope for energy efficiency improvements in existing
buildings is immense. Energy Audit Studies have revealed a
savings potential to the extent of 40% in end use such as
lighting, cooling, ventilation, refrigeration etc.

 In order to create a market pull for energy efficient buildings, BEE developed a voluntary
Star Rating Programme for commercial buildings which is based on the actual performance
of a building, in terms of energy usage in the building over its area expressed in kWh/sq.

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 CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

m/year. This Programme rates buildings on a 1-5 star scale, with 5-Star labelled buildings
being the most energy efficient. Currently the scheme is applicable to 4 categories of
buildings i.e. Day use Office buildings, Shopping Malls, BPOs and Hospitals. As on August,
2021, 264 buildings have been rated under various categories.

 Union Minister of Power and New & Renewable Energy announced various initiatives being
taken by Government of India towards energy efficiency in the building sector, as part of
'Azadi Ka Amrit Mahotsav' on 16th July, 2021. The initiatives launched included:

 Specifying code compliance approaches and minimum energy performance requirements

for building services, and verification framework with Eco Niwas Samhita 2021.

 The web-based platform ‘The Handbook of Replicable Designs for Energy Efficient
Residential Buildings’ as a learning tool, which can be used to create a pool of ready-to
use resources of replicable designs to construct energy-efficient homes in India.

 Creating an Online Directory of Building Materials that would envisage the process of
establishing Standards for energy efficient building materials.

 Announcement of NEERMAN Awards, (National Energy Efficiency Roadmap for

Movement towards Affordable & Natural Habitat), with the goal of encouraging
exceptionally efficient building designs complying with BEE’s Energy Conservation
Building Codes.

 Online Star Rating tool for Energy Efficient Homes created to improve energy-efficiency
and reduce energy consumption in individual homes. It provides performance analysis to
help professionals decide the best options to pick for energy-efficiency of their homes.
Training of over 15,000 Architects, Engineers and Government officials on Energy
Conservation Building Code (ECBC) 2017 and Eco Niwas Samhita (ENS) 2021).

3.3.4 ENERGY EFFICIENCY AND DEMAND SIDE MANAGEMENT (DSM)-

DEMAND SIDE ENERGY EFFICIENCY

 Energy Efficiency and Demand Side Management (DSM) measures in the Energy Sector is
a cost-effective tool. Energy Efficiency programs encourage the installation of end-use
technologies that consume less energy, thereby reducing and/ or shifting the customers’
overall electric bill. Energy Efficiency and DSM programs can help utilities to reduce their
peak power purchases on the wholesale market thereby lowering their overall cost of
operations.

 The capacity building and other support is helpful for the DISCOMs to implement DSM in
their respective areas. Total 62 DISCOMS are covered under the programme. During the
period 2012-17, BEE had selected 34 DISCOMs for their capacity building and provided
necessary support for the implementation of DSM related activities. During second phase
(2017-20), additional 28 DISCOMs were included under this programme.

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 The objective of the programme is to carry out load management programme,

development of DSM action plan and implementation of DSM activities in their respective
areas.

During FY 2017-20, the major activities are as follows:

BEE has engaged 5 Project Management Consultants (PMCs) zone wise for undertaking
activities under “Capacity Building of DISCOMs” programme for the additional 28 DISCOMs
and existing 34 DISCOMs. The PMCs have carried out load research studies and
development of DSM Action Plan for each of the new DISCOMs and resulted in training of
around 1000 officers, 764 Master Trainers on DSM and Energy Efficiency.

Energy Efficiency Measures in Agriculture Sector

 Energy Efficiency in Agriculture provides

immense opportunity in reducing the
overall power consumption, improving
efficiencies of ground water extraction and
reducing the subsidy burden on the states
without sacrificing the service obligation of
this sector. Pump set efficiency up-
gradation is one of the key aspects of
energy efficiency measures in agriculture
sector. The mere replacement of existing
inefficient pump sets with energy efficient
star rated pump sets is proven to deliver
savings of 30-40%.

 In order to tap the energy savings

potential, Agriculture Demand Side Management (Ag DSM) program was initiated by BEE
with an objective to induce energy efficiency in agriculture sector by creating market based
framework for implementation of few pilot projects and create awareness among end
users & other stakeholders for adoption of energy efficient pump sets (EEPS).

 MOU was signed between BEE and Indian Council for Agricultural Research (ICAR). 508
awareness programs have been conducted by Kisan Vigyan Kendras (KVKs) and SDAs with
11,000 farmers trained.

Barriers & Challenges:

 Implementation of AgDSM program promises a lot of benefits for all its stakeholders.
However, there are various barriers and challenges that exist at present which needs to
overcome in order to realise the actual benefits of the program :

 Limited Policy dialogues at national and state level on sector reforms regarding
developing an integrated energy DSM framework for agriculture.

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 Unsuitable energy pricing for agriculture sector.

 Limited state level policies to encourage use of energy efficient pump sets
 Unavailability of local technology / service provider for energy efficient pumps and
other accessories.
 Limited availability of capital to invest in AgDSM projects.

Energy Efficiency Measures in Municipal Sector

 Identifying the immense energy saving potential in municipal sector, BEE initiated
Municipal Energy Efficiency Programs. The basic objective of the project was to improve
the overall energy efficiency of the Urban Local Bodies (ULBs), which could lead to
substantial savings in the electricity consumption, thereby resulting in cost
reduction/savings for the ULBs. 34 capacity building programs on Energy Efficiency and
O&M measures conducted by SDAs with 2024 number of officials from ULBs, UDDs and
MCs trained in 10 states.

3.3.5 ENHANCING ENERGY EFFICIENCY OF SMALL AND MEDIUM

INDUSTRIES (SMES)

 The MSMEs in India are around Sixty-Three

million – and a majority of them have not
implemented any energy efficiency (or)
technology upgradation measures and continue
to depend on obsolete, low efficiency
technologies that result in wasteful energy
consumption, also reducing profitability and
competitiveness of MSMEs sector in India.

 Considering the importance of MSMEs in

promoting energy efficiency, ‘National
Programme on Energy Efficiency and Technology
Upgradation of MSMEs’ has been developed by
Bureau of Energy Efficiency. Some of the key achievements are:

 A knowledge portal namely Simplified Digital Hands-on Information on Energy

Efficiency in MSMEs (SIDHIEE) was developed. The portal hosts variety of knowledge
resources like case studies, best operating practices, details of latest energy efficient
technologies etc.
 A MoU has been signed between O/o DC, MSME and BEE for joint implementation of
the programme titled “Promoting Energy Security of MSME sector”.

 Bureau of Energy Efficiency is implementing Energy Efficiency technologies in many

energy intensive clusters of India with the support from Global Environment Facility
through UNIDO and World Bank towards common goal of facilitating the development of

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the SME sector in India through the promotion and adoption of clean, energy efficient
technologies and practices. Some of the major achievements of the programs are as
below:

GEF – UNIDO – BEE programme

 Energy Management Centres have been established under this project in 12

clusters.
 Implementation of more than 50 energy efficient technologies as pilot projects.
 Implemented 17 demo projects in 7 clusters and the project has resulted in annual
energy savings of more than 8500 TOE

GEF – WB – BEE programme

 Technical Assistance to around 750 Energy Professionals
 Training Programs for Bankers/FI on energy efficiency projects and appraisals
 More than 5000 MSME units are covered through various awareness and capacity
building initiatives
 Annual Energy savings of 25000 TOE with average ROI of 18 months has been
achieved

Clean energy technology adoption by MSME sector

 Under the vision for ‘Atmanirbhar Bharat’ Hon’ble Minister launched "Energy Efficiency
Enterprise (E3) Certifications Programme for Brick manufacturing Sector" in March, 2021
to kick-start a series of events from Ministry of Power, Government of India under
'AzadiKaAmritMahotsav'.

3.3.6 AIMING TOWARDS GREENER TRANSPORT SECTOR

Fuel efficiency norms to save energy in transport vehicles

 Average fuel consumption standards for passenger cars on 23rd April 2015 issued.
The fuel consumption standards are under implementation from April’2017
onwards, and a second set of standards would come into force from 2022-23.

 Fuel economy norms for Heavy Duty Vehicles have been notified. These norms
are applicable for M3 (Buses) and N3 (Trucks) category vehicles complying with
BS IV norms with gross vehicle weight exceeding 12 tonnes.

 Fuel Economy norms for Light Commercial Vehicles notified. These norms shall
apply on the vehicles being sold or manufactured in India and having gross vehicle
weight ranging between 3.5 tonnes and 12 tonnes.

Low Carbon and less pollution Fuels

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 "Charging Infrastructure for Electric Vehicles - Guidelines and Standards" issued

on 14.12.2018 which were revised on 01.10.2019 and thereafter on 08.06.2020
(Battery Swapping stations included in this revision)

 Hon’ble Minister for Road Transport & Highways in the august presence of the
Hon’ble Minister of Power launched the “Go Electric” Campaign to spread
awareness on the benefits of e-mobility and EV Charging Infrastructure as well as
electric cooking in India.

 The Ministry of Railways, with a view to transform Indian Railways (IR) into “Green
Railways” has planned to achieve 100 % electrification of Broad Gauge (BG) routes
by 2023-24. This will facilitate elimination of diesel traction resulting in significant
reduction in its carbon footprint and environmental pollution. As of May 2021, IR
has electrified 45,881 route kilometer (RKM) (71 per cent – of total 64,689 RKM
BG routes). IR has also introduced Head on Generation (HOG) system, whereby
electrical power is fed to the coaches directly from the Over Head Equipment
(OHE) through the Locomotive. It eliminates the need for separate diesel fueled
power cars in trains and thus reduces the need for pulling extra coaches and
increases efficiency, which furthers results in reduction in carbon footprint. To
improve energy efficiency in Electric traction, IR has introduced three phase
technology in locomotives and Electrical Multiple Units (EMU)/Mainline Electrical
multiple units (MEMU), these locomotives and EMU/MEMU rakes are equipped
with regenerative braking feature capable to regenerate electricity during braking
action which is fed back to grid (15-20 % improvement in efficiency). From 1st
April, 2016 conventional electric locomotives (DC Motor based) were
discontinued.

Electric Vehicle Charging Infrastructure and R&D program

 DST is supporting industry-academia collaborations to develop indigenous low-
cost technologies like chargers for light Electric Vehicles (2/3 Wheelers), lighter
cars, Buses and Trucks.
 DST had conducted a series of stakeholder discussions on EV R&D Program,
monitored the EV Charging Standards Program at BIS and participated in the
deliberations under the Faster Adoption and Manufacture of Hybrid and Electric
Vehicles (FAME) and Phased Manufacturing Program Mission to identify the scope
and potential for undertaking R&D Program.

3.3.7 FISCAL INSTRUMENTS

Partial Risk Sharing Facility (PRSF): BEE supports Partial Risk Sharing Facility (PRSF) for
Energy Efficiency which is implemented by World Bank through SIDBI in India. PRSF
guarantee is for maximum 75% of loan amount or Rs. 15 crore per project, whichever is
less. This guarantee scheme is similar to PRGFEE and till date SIDBI has issued 18
guarantees with project cost worth Rs. 275 crore (approx.) and guarantee of worth Rs.
63.45 crore has been issued.

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3.3.8 STATE DESIGNATED AGENCY

 The EC Act mandates creation of a two-tier organization structure to promote the

efficient use of energy and its conservation in the country with BEE as the nodal agency
at central level and State Designated Agencies (SDAs) as nodal agencies at State / Union
Territory (UT) level. Section 15(d) of the EC Act stipulated that the State Government/ UT
Administration may designate any agency at the State level to co-ordinate, regulate and
enforce the provisions of the Act within the State/UT.

 Till June, 2021, 36 States/UTs have nominated SDA in their respective State/UT. Only two
States – Kerala and Andhra Pradesh have established Stand-Alone SDA. However,
remaining 34 States/UTs have assigned additional responsibility of facilitation and
enforcement of the provisions of the EC Act at the State level to one of their existing
agencies/departments, wherein, the SDA shares key facilities / staff / budget with the
parent department.

 Functions of SDA

SDAs have a crucial role to play in promoting energy efficiency among energy consumers
in all sectors within the State such as agriculture, building, industry/MSME, municipality,
and transport by undertaking the following activities.

a) Energy Efficiency Demonstration Projects to showcase the effectiveness of energy

efficient equipment / appliances / technologies to facilitate large scale replication.
b) Outreach / publicity activities for creating awareness and increasing consciousness
towards the importance and beneficial impacts of energy efficiency.
c) Research and innovation activities on energy efficiency in collaboration with various
private organizations, academic / technical / research institutions and laboratories;

 Workshops / capacity building programmes to disseminate latest information relating to

specific areas/aspects amongst respective stakeholders and provide them with the
required training on Energy Efficiency

 State Energy Efficiency Index

The Bureau of Energy Efficiency (BEE) has developed the State Energy Efficiency Index
program with an objective to help drive Energy Efficiency policies and program
implementation at the state and local level; highlight best practices and encourage
healthy competition among states and track progress in managing the States and India’s
energy footprint.

3.4 Impact of various EE measures on the energy consumption of the country

The total energy consumption and energy savings due to energy efficiency measures are shown
in Exhibit 3.3 below:

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Exhibit 3.3

Impact of various EE measures on the energy consumption of the

country
593.3 609.4
650 570.8 80
553.8

Energy Savings (Mtoe)

Energy consumption (Mtoe)

531.4
550 496.0
581.4 60
553.9 569.5
450 519.3 540.9
484.0 40
28.06
350 23.73
12.90 16.87
12.04 12.10 20
250
150 0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Year

Energy Savings (Mtoe) Business as Usual (Mtoe) Actual Consumption (Mtoe)

Data Source:- BEE, MOSPI Energy Statistics Report& Impact of Energy Efficiency Measures (2019-20)

Exhibit 3.4

Sector wise Electricity Savings for demand sectors (%) in 2019-20

Domestic
78%

Agriculture
8%
Commercial Building
Industry Transport Others
1%
6% 1% 6%
Industry Domestic Agriculture Commercial Building Others Transport

Net savings is 115.25 BUs i.e. 9.71% of net electricity consumption. Electrical Savings from PAT Supply
Side sectors is not considered here
(Source: Impact of Energy Efficiency Measures (2019-20), BEE)

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Exhibit 3.5

Energy Savings through various programmes and their shares in

2019-20 (28.06 Mtoe)
Domestic
28%

Commercial Buildings
Industry 0%
53%

Transport (including
Railways)
3%

Agriculture (including Others (including

Star Rated pumps) Municipal and
11% DISCOM)…
Industry Domestic
Commercial Buildings Transport (including Railways)
Others (including Municipal and DISCOM) Agriculture (including Star Rated pumps)

Source: Impact of Energy Efficiency Measures (2019-20), BEE

3.5 Details of Energy Savings and CO2 emission reduction (2017-21)

through Key Energy Efficiency Initiatives by BEE

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Table 3.2

Name of the 2017-18 2018-19 2019-20 2020-21(Provisional)

scheme /
Programme

Reduction in CO2

Reduction in CO2

Reduction in CO2

Reduction in CO2
emission (Million

emission (Million

emission (Million

emission (Million
Energy Saved

Energy Saved

Energy Saved

Energy Saved
tonnes CO2)

tonnes CO2)

tonnes CO2)

tonnes CO2)
Electrical

Electrical

Electrical

Electrical
Thermal

Thermal

Thermal

Thermal
(MTOE)

(MTOE)

(MTOE)

(MTOE)
(BU)

(BU)

(BU)

(BU)
PAT 14.3 37.9 86.9 14.3 37.9 86.9
Scheme 9.4 3.0 37.0 11.1 30.3 62.0
SME 0.0 0.0 0.1 0.0 0.0 0.1
Programme 0.0 0.0 2.2 0.0 0.1
Standards 0.0 56.3 46.2 0.0 56.3 46.2
& Labeling
Programme 0.0 48.5 40.0 55.7 45.7
Building 0.0 0.2 0.2 0.0 0.2 0.2
Programme 0.0 0.3 0.2 0.1 0.1
Agriculture 0.0 8.7 7.1 0.0 8.7 7.1
DSM
Programme 0.0 0.1 0.1 0.2 0.1
Mu DSM
6.9 5.6 8.1 6
(SLNP) 3.7 3.1 5.6 4.6
Transport 1.2 0.0 2.7 1.2 0.0 2.7
0.0 0.0 0.0 0.9 2.7
Other 0.0 0.0 0.0
UJALA
31.4 26.0 44.6 36.6 35.0 29.0 48.0 39.0
Total
Energy
Savings 9.4 86.9 108.5 11.1 137.4 151.8 15.6 145.0 177.9 15.6 159.2 188.3

3.6 PROJECTIONS OF ENERGY SAVINGS

Bureau of Energy Efficiency (BEE) has developed a Strategy Plan towards Developing an
Energy Efficient Nation (2017-2031) - Unlocking National Energy Efficiency Potential
(UNNATEE) which lays framework and implementation strategy, in the medium term and long
term, to establish a clear linkage between energy demand scenarios and energy efficiency
opportunities in order to conceptualize a comprehensive roadmap to address India’s
environmental and climate change commitments.
The breakup of projections of energy savings for utility and non-utility for the years 2022-27
and 2027-32 have been estimated and are shown in Table 3.3 below:

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Table 3.3
Projections of energy savings during 2022-27 and 2027-32

Moderate scenario Ambitious Scenario

Electricity (BU) Primary Energy Electricity (BU) Primary Energy

Year (Mtoe) (Mtoe)

2022-23 159 28.95 214 43.8

2023-24 171 34.79 230 52.52

2024-25 184 40.98 247 61.71

2025-26 198 47.53 265 71.41

2026-27 213 54.98 285 81.67

2027-28 229 61.85 306 92.51

2028-29 246 69.67 328 103.99

2029-30 265 77.99 353 116.15

2030-31 285 86.83 379 129.04

2031-32 304 107 404 160

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3.7 MEASURES TO BE ADOPTED TO ACHIEVE THE TARGET

Table 3.4

SN Area Programme Broad Activity

Energy
Propose amendment to the EC Act, 2001, for streamlining
Conservation Act
and enhancing the scope of the Act
(EC Act)
Policy and
Institutional set-up of the Bureau of Energy Efficiency
1 Institutional
framework Strengthening
Strengthening of State Designated
institutional
Agencies/establishment of State BEEs
framework
Cooperation with International Bodies

Expanding coverage of the scheme to other sectors.

Perform Achieve
Introducing a similar programme for Small and medium
and Trade (PAT)
scale Enterprises (SME)

Energy
Preparing guide materials for industry for strengthening
Conservation
energy conservation through operational and
guidelines and
maintenance practices
manual

2 Industries Promoting Promoting uptake of emerging technologies, e.g. Waste

energy efficient Heat Recovery/ co-generation/ tri-generation/micro
technologies turbine, etc.

Initiate periodic benchmarking and energy efficiency gap

Benchmarking
assessment for industrial sectors.

Database of
Creation of a public database of Energy Efficiency
Energy Efficiency
technology suppliers, to be updated periodically
technology

SME cluster
Promotion of innovative demo projects and capacity
programme for
building of SMEs
Energy Efficiency

Small & Low Carbon Promotion of innovative low carbon technologies in the
3 Medium technologies SME cluster
Enterprise
Brick Kilns Market transformation for energy efficient bricks

Knowledge sharing and synergizing the efforts of various

SAMEEEKSHA
organizations and institutions

Equipment Standards and Widen coverage of the current scheme, specify norms and
4 and Labeling standards for industrial processes, and digitization of S&L
appliances Programme database

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Super Energy
Market transformation for super-efficient
Efficient
equipment/appliances
Programme

Energy
Strengthening states institutions to operationalize
Conservation
Commercial and Residential Building Codes
Building Code

Buildings under Improving energy performance index of buildings through

PAT mandatory targets
5 Buildings
Energy Efficiency
Develop energy efficiency labels for buildings
label

Financing
Promoting Energy Efficiency in buildings through financial
incentives under
incentives
buildings

Demand
Side
Managemen Widen coverage of the current scheme for AgDSM and
6 DSM activities
t (DSM) and MuDSM
Data
analytics

Vehicle Fuel
Efficiency Develop fuel efficiency norms and standards for vehicles
Programme

Energy Efficiency Improving energy efficiency in Railways through PAT

in Railways scheme

Develop market approaches to enhance EV affordability

Electric vehicles
and promote public private partnerships
Sustainable
7 Transportati
Standards for
on Network Prescribing minimum energy performance standards for
EVs and charging
EVs and charging stations
station

Labeling
program for Labeling of the vehicles on their fuel efficiency levels
vehicles

Promoting the use of alternate technologies in the

Alternative Fuel
transport sector, e.g., hydrogen fuel cell

Encourage uptake of energy efficient technology through

Agriculture development of norms and standardizing technology to
8 Technology
sector aid development of business models viz, Cold Chains, farm
machinery and agricultural pumping

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Knowledge Disseminating the knowledge on Energy Efficiency among

sharing users through relevant universities, demo projects, etc.

Developing/ integrating innovative financing schemes

Innovative
focusing exclusively on energy efficiency in agriculture
financing
sector

Promoting use of analytical tool to assess data for load

Capacity Building
management, demand shift, etc. to formulate
of DISCOMs
DSM action plan and implementation of DSM activities

Module on Energy Efficiency for school children

Awareness in
National level Painting competition for school children
school Children
Energy Clubs in schools

Certification
Examination for
Enhancing the curriculum; accreditation and
Energy
empanelment of auditors
Managers and
Energy Auditors
Capacity
9 building and ESCO Improving capacity through workshops, trainings etc.
awareness
Energy
Promoting Energy Management by encouraging ISO
Management
50001 adoption
System

National Energy
Conservation Expand the scope of NECA to more sectors
Award (NECA)

Capacity building
Dedicated training modules for the operators and
of operators and
supervisors of utilities, Open Online Course
supervisors

Campaign for
Generating consumer awareness and benefits in
Optimum Space
maintaining air conditioning temperature at 240C or more
Cooling

Knowledge
Knowledge Sectoral platforms to be operationalized for better and
sharing/
10 Managemen accelerated learning by the sectors including peer to peer
Exchange
t learning, Open Online Course
Platform

To set up Energy Efficiency Financing Department in

Mobilize energy
Power Finance Corporation (PFC) and execute interest
11. Finance efficient
subvention scheme and credit guarantee scheme for
investment
promoting energy efficiency financing in industries sector.

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To set up energy efficiency financing cells in few

nationalized banks which will help banks in identifying and
appraising EE projects

Partial Risk Sharing Facility (PRSF)to support ESCO projects

by issuing partial risk guarantees to EE loans.

Energy Efficiency Financing Facility (EEFF) is to provide

direct financing of EE loans by IREDA and PFC.

New financing initiatives like financing through Micro

Financing Institutions (MFIs), absorption of transaction
cost of FIs for small projects, Green bonds, etc. to support
Other initiatives
energy efficiency financing for Industries, MSMEs,
buildings and any other areas having substantial energy
saving opportunities.

Research & Research &

Promote public/private partnerships, incubators and
12 Developmen Development
accelerators, basic R&D on energy efficient technology
t (R&D) and Innovation

Monitoring Monitoring,
Standardized baseline establishment and assessment of
Reporting & Reporting and
13 savings for ESCO projects and further refinements in M&V
Verification Verification
guidelines under PAT
(MRV) (MRV)

The investment potential of the country in order to achieve the potential energy efficiency saving target is estimated to be
between INR 10 lakh cr. to INR 13 Lakh cr. By adoption of energy efficiency measures, India holds a potential to reduce 438
MtCO2 to 623 MtCO2 by 2030.

3.8 Initiatives of Government for enhancing energy efficiency and

for decarbonisation of the power sector
I. Adoption of ultra-super critical/ super-critical technology in thermal generation:
Ultra supercritical & Supercritical units are designed with higher steam parameters of
280 kg/cm2 at 600/600°C and 247kg/cm2 at 565/593 °C respectively. With the higher
steam parameters of ultra-super critical/ supercritical units, the efficiency of these
ultra-supercritical and supercritical units would be 9% and 5% respectively higher than
the efficiency of present typical 500 MW sub-critical units. This would lead to
corresponding savings in coal consumption and reduction in GHG emissions. The
thermal units in the country so far have largest size unit capacity of 800 MW. 90 Nos.
ultra supercritical/ supercritical units of sizes varying between 660 to 800MW with a
total capacity of 62370 MW (including 2 units of ultra-supercritical of capacity of
1320MW) till 01.02.2022 have been commissioned and 27840 MW ultra-
supercritical/ supercritical units capacity are under construction (excluding
construction of 9,900 MW which is held up due to various reasons). In the
period 2021-25, coal based capacity addition would be mainly through ultra-super
critical / supercritical units.

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Higher size units of 660-800 MW based on ultra-super critical/ supercritical technology

will not only accelerate pace of capacity addition but will have lesser impact on
environment due to lower CO2 & SOx emissions per unit of electricity generated.
Emissions of other pollutants like NOx & SPM would also reduce with adoption of
latest technologies of low NOx burners, efficient ESPs etc. Higher efficiency, besides
leading to corresponding savings in coal consumption, would also lead to lower ash
generation. The land requirement for ash dump areas would also correspondingly
reduce and there would be reduction in auxiliary power consumption.
The national average thermal efficiency of coal/lignite based power plants has
increased from 34.94% in 2015-16 to about 35.69% in 2019-20. It is expected that the
efficiency of coal based generation would further improve in the period 2022-27 due
to commissioning of ultra super critical / supercritical units.
II. Renovation and Modernization (R&M) & Life Extension (LE) of existing old power
stations:
R&M and LE works of Thermal capacity of 16,146 MW and 7202MW have been
completed in 11th Plan and 12th Plan period respectively. During the years 2017-22
R&M and LE works of Thermal capacity of 14,929 MW (tentative) are being
considered.
III. National Hydrogen Mission
Hydrogen has found various applications in the end-user industry, for power
generation and as a clean fuel. Extensive research is supported by the Ministry of New
and Renewable Energy on production of hydrogen from renewable energy sources, its
safe and efficient storage and its utilization for energy and transport through
combustion and fuel cells.

Hydrogen is the most abundant element on the planet. Most of the hydrogen is
produced from fossil fuels by steam reforming or partial oxidation of methane and
coal gasification with only a small quantity by alternative routes such as biomass
gasification or electrolysis of water or with no carbon emissions. Green hydrogen is
produced using renewable energy and electrolysis to split water and is distinct from
grey hydrogen (which is produced from methane and releases greenhouse gases into
the atmosphere).

India has also launched the National Hydrogen Energy Mission to enable cost
competitive green hydrogen production. India would be conducting competitive bids
for green hydrogen to pave the road for viable usage of hydrogen as a fuel. But, the
world needs to come up with more electrolysis plants to bring down the costs.

3.9 CONCLUSION AND RECOMMENDATIONS

1. Having notified the DSM regulations, the DISCOMs may be encouraged to prepare
action plan. The DISCOMs may be suitably incentivized to implement energy

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efficiency projects like lighting, air-conditioning, agricultural pumps, refrigerators

and ceiling fans etc.
2. Develop strong coordination of energy policy across the different ministries at the
Central Government level.
3. Ensure more alignment between the Central Government and the States on key
energy efficiency related activities.
4. Encourage SME sector to adopt clean energy technologies.
5. Deployment of policy on Electric Vehicle Charging infrastructure at state level may
be encouraged.
6. Enhance efforts to promote adoption of Electric cooking.
7. Improve the collection, consistency, transparency and availability of energy data
across the energy system at Central and State Government levels.
8. In distribution, encourage implementation of ToD Tariffs for industries and
commercial consumers in phased manner and include domestic consumers
subsequently.
9. Voluntary carbon markets should be considered within the existing regulatory
framework of the PAT scheme through limited modifications, to enhance private
sector participation in energy transition.

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Annexure 3.1
State energy-saving target (in Mtoe) by 2032

State/ UT Domestic Commercial Industrial Municipal Transport Agriculture Total

Chandigarh 0.0382 0.0320 0.0456 0.0012 0.0172 0.0000 0.1342
Delhi 0.8939 0.4925 1.4234 0.0394 0.5393 0.0012 3.3910
Haryana 0.5196 0.2561 2.1055 0.0320 0.7031 0.3805 3.9980
Himachal
0.1096 0.0443 0.7326 0.0209 0.1244 0.0049 1.0355
Pradesh
Jammu and
0.1428 0.0640 0.3349 0.0234 0.2093 0.0148 0.7893
Kashmir
Punjab 0.4888 0.2389 1.4862 0.0246 0.5098 0.4593 3.2075
Rajasthan 0.6169 0.2844 2.7975 0.0850 1.0232 0.7954 5.6024
Uttar Pradesh 1.4628 0.3595 3.6976 0.0960 1.9701 0.5307 8.1155
Uttarakhand 0.1244 0.0788 1.3175 0.0148 0.1182 0.0074 1.6623
Chhattisgarh 0.2573 0.0825 1.4948 0.0135 0.2500 0.1613 2.2607
Gujarat 0.6932 0.3054 7.2314 0.0813 0.7006 0.4568 9.4675
Madhya
0.4827 0.1896 1.7731 0.0616 1.0232 0.7597 4.2911
Pradesh
Maharashtra 2.1449 0.9727 10.0302 0.1625 2.1880 1.1254 16.6250
Daman and
0.0025 0.0037 0.0332 0.0000 0.0000 0.0000 0.0406
Diu
Dadra and
0.0025 0.0025 0.1022 0.0000 0.0000 0.0000 0.1071
Nagar Haveli
Goa 0.0517 0.0246 0.3755 0.0000 0.0431 0.0012 0.4962
Andhra
0.5898 0.1712 2.0747 0.0308 1.4234 0.4519 4.7405
Pradesh
Telangana 0.7055 0.3398 2.0784 0.0406 0.9222 0.4753 4.5620
Karnataka 1.3754 0.4297 3.5942 0.1305 1.2867 0.7622 7.5799
Kerala 0.6748 0.2894 1.6512 0.0222 0.9087 0.0197 3.5658
Tamil Nadu 1.5182 0.6624 4.9769 0.1367 1.3815 0.4642 9.1399
Puducherry 0.0345 0.0135 0.1773 0.0037 0.0172 0.0025 0.2475
Lakshadweep 0.0012 0.0012 0.0000 0.0000 0.0000 0.0000 0.0012
Bihar 0.3349 0.0800 0.8779 0.0037 0.6784 0.0246 1.9984
Jharkhand 0.2019 0.0357 1.4148 0.0099 0.3842 0.0086 2.0550
Odisha 0.3041 0.1022 1.8051 0.0086 0.5479 0.0197 2.7877
West Bengal 0.8361 0.3805 3.4612 0.0517 2.0169 0.0776 6.8226
Sikkim 0.0086 0.0037 0.1404 0.0000 0.0135 0.0000 0.1675
Andaman and
Nicobar 0.0037 0.0049 0.0000 0.0000 0.0000 0.0000 0.0086
Islands
Arunachal
0.0123 0.0025 0.0566 0.0000 0.0197 0.0012 0.0923
Pradesh

ENERGY EFFICIENCY AND CONSERVATION 3.23

 CENTRAL ELECTRICITY AUTHORITY NATIONAL ELECTRICITY PLAN

Assam 0.1761 0.0628 0.8619 0.0037 0.3078 0.0086 1.4197

Manipur 0.0172 0.0025 0.0332 0.0012 0.0234 0.0012 0.0788
Meghalaya 0.0197 0.0062 0.1207 0.0012 0.0369 0.0000 0.1859
Mizoram 0.0123 0.0025 0.0431 0.0025 0.0172 0.0000 0.0763
Nagaland 0.0172 0.0049 0.0296 0.0000 0.0222 0.0012 0.0751
Tripura 0.0234 0.0049 0.1071 0.0049 0.0259 0.0025 0.1687
Total (all
14.90 6.03 58.49 1.11 19.45 7.02 107.00
India)

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CHAPTER 4
DEMAND PROJECTION

4.0 INTRODUCTION
Demand assessment is an essential prerequisite for planning of generation capacity addition and
commensurate transmission and distribution system to meet the future electricity requirement.
Reliable planning of capacity addition for future is largely dependent on accurate assessment of
future electricity demand. This chapter looks into the aspects related to “Demand Projection” for
the period of 2022-27 and 2027-32.

4.1 DEMAND ASSESSMENT BY CENTRAL ELECTRICITY AUTHORITY-

ELECTRIC POWER SURVEY COMMITTEE
Electricity demand of the country is periodically assessed by the Electric Power Survey Committee
(EPSC), taking into account the actual electricity demand incident on the system in the past years,
planned and under implementation policies and programs of the Government, various
developmental activities projected in future, impact of energy conservation measures, etc. The
last exercise to assess the demand was the 19th Electric Power Survey (EPS) and the report of
19th EPS was brought out in January, 2017. The 19th EPS Report covered year-wise electricity
demand for States/ UTs, Regions and for the country and perspective electricity demand up to
the year 2036-37. The 20th Electric Power Survey Committee (EPSC) has been constituted by CEA.
The terms of reference of the Committee were as under:
i. To forecast the year- wise electricity demand for each State/ UT, Region and for
the country for the years 2021-22 to 2031-32.

ii. To project the perspective electricity demand for each State/ UT, Region and for
the country the year 2036-37 and 2041-42.

The Electric Power Survey Committee has wide representation from the stake holders in the
power sector with representatives from Niti Aayog, Ministry of Power, Bureau of Energy
Efficiency, NTPC, NHPC, REC, BBMB, State Transmission Companies, State Distribution
companies, Electricity Departments, TERI, FICCI, CII, NCAER, etc. The work on 20thth EPS report
is under progress and expected to be published by June, 2022.

4.2 Demand Assessment

The estimated electricity demand of the country as per Electric Power Survey (EPS) forecasts
serves as a key input for preparing the National Electricity Plan (NEP). However, in absence of
20th EPS projections, the task of Demand projections was given to a Subcommittee on Demand
projections to assess the electricity demand of the country in terms of peak load and energy
requirements for the period from 2022-27 & 2027-2032.

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The subcommittee deliberated on the options available for assessing the electricity demand of
the country especially to prepare National Electricity Plan. On the possibility of using the 19th EPS
figures, the sub-committee was of the view that it may not be appropriate especially considering
the dynamic changes happening in the demand and supply system in recent years such as
increasing share of RE, emergence of distributed generation sources including solar rooftop
systems, Solar Pumps and increasing penetration of Electric Vehicles in India transport sector etc.
The prevailing pandemic conditions that have a huge impact on the electricity demand were also
not factored in during the 19th EPS exercise. Further, it was observed that the actual electricity
demand is less than 19th EPS projection. Therefore, the sub-committee believed that the 20th EPS
figures may ideally be considered for further planning exercises as the power sector is highly
capital extensive and accuracy of the report plays a crucial role in future investments. However,
keeping in view the statutory obligation of preparing NEP with in a definite time frame, the
committee recommends the projected peak electricity demand and energy requirement based
on the preliminary studies under 20th EPS may be considered for the planning studies.
The estimates of future electricity demand given in the chapter are based on the past trends in
the electricity sector and after factoring in several emerging aspects such as impacts of COVID
pandemic, SAUBHAGYA scheme, energy efficiency measures, solar roof top, solar pumps,
penetration of electric vehicles and the newly announced "National Hydrogen Energy Mission".
Based on these developments, the Electrical Energy Requirement & Peak Demand figures have
been worked out for the years 2021-22 to 2031-32.
The estimated Energy Requirement & Peak Demand figures on all-India basis are summarized
below:
Table 4.1
Projected Energy Requirement & Peak Demand figures on all-India basis
Year Energy Requirement Peak Demand
(in BUs) (in GW)
On Grid Incl. Roof Top
2026-27 1852 1874 272
2031-32 2459 2538 363

The projected region wise electrical energy and peak demand figures have been arrived at based
on the present ratios of actual region wise demand over all India demand and is given in Table
4.2.

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Table 4.2
Projected Region-wise electrical energy requirement & peak electricity demand for the years
2026-27& 2031-32
Electrical Energy Requirement
Peak Electricity Demand (MW)
Region (MU)
2026-27 2031-32 2026-27 2031-32
Northern 564774 762045 86187 117126
Western 573200 782574 84097 114285
Southern 504245 682202 74108 100710
Eastern 200611 266775 31638 42295
North -
31170 44862 5951 8087
Eastern
All-India 1874000 2538458 272000 363188

Note: The electricity demand projection covers electricity demand only for the utility system. The
projections do not include the portion of electricity demand of Industries and other consumers
that would be met from captive power plants.

4.3 CONCLUSIONS
1. The electrical energy requirement and peak electricity demand on all-India basis has been
projected at 1874 BU and 272 GW in 2026-27 & 2538 BU and 363 GW in 2031-32
respectively. These projections include impact of solar rooftop, green hydrogen, EV and
Energy efficiency measures.

2. It is proposed to revise the studies once the final figures of Electricity Demand is worked
out by 20th Electric Survey if the figures are found to be in variation to what are
considered.
******************

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CHAPTER 5
GENERATION PLANNING
5.0 INTRODUCTION
India’s demand for electricity has been growing steadily as electricity being the key enabler for
achieving socio-economic development of the country. Generation capacity addition along with
other measures to meet the ever-increasing demand for electricity has been the top priority of the
country. However, with the growing concerns on environment and climate change the options
available for power generation have shown a significant shift globally, changing the generation
capacity mix. India being an active participant globally has shown initiative towards sustainable
development and cleaner environment. Intermittent but clean sources of power generation have
been affordable and are playing significant and prominent role in meeting the demand. The
generation capacity mix, which is economically viable, environmentally sound, and socially just to
meet the future electricity demand reliably can be ascertained from generation expansion planning
studies. This chapter highlights the Principles and Methodology of Generation Planning adopted to
assess the capacity addition required by the end of year 2026-27 and 2031-32 keeping in view the
shift.

5.1 RESOURCES FOR POWER GENERATION IN INDIA

Coal has been the major source for power generation in our country thus far but the environmental
concerns coupled with abundance of solar and wind resources available in the country along with
reduction in their cost have given opportunities to exploit these resources to the fullest possible
extent, keeping in view the grid stability and security.
Presently, following options are available for Power Generation:

 Conventional Sources – Coal and lignite, Nuclear, Natural gas

 New and Renewable Energy Sources- Solar, Wind, Biomass, large and small Hydro, Geothermal,
Waste to energy, Battery Energy Storage system, Hydrogen/ fuel cells, etc.

5.2 GENERATION SOURCES IN INDIA

5.2.1 Coal/Lignite
Coal based power generation is backbone of Indian Power sector and may continue to play a
significant role in power generation in the country due to the abundant availability of domestic
coal. However, environmental concerns necessitate clean coal technologies such as supercritical
Resource and ultra-super critical technologies to be adopted. The coal including lignite based
installed capacity was 2,10,700 MW as on 31.3.2022 which was almost 52.7% of the total installed
capacity of the country. However, growing environmental concerns and global thrust on adoption

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of clean generation technologies is going to have an impact on share of coal based installed capacity
in the country in foreseeable future though the share of coal-based generation may continue to be
high. Operation of coal-based plants in a more flexible mode unlike as base load stations earlier,
needs to be emphasized in the wake of huge intermittency of renewable based generation.

5.2.2 Gas
Gas-based capacity has the capability to fast ramp-up and ramp-down. The advantage of fast
ramping capability becomes more important in view of large-scale integration of renewable energy.
Modern combined cycle gas turbines (CCGTs) have high efficiency of around 55% as compared to
coal-based plants (Gross efficiency of supercritical units is about 40%). Gas turbines/Engines could
be operated in a manner to maximize the output during the peak hours and minimize during the
off-peak hours. However, the production and supply of domestic gas had not been keeping pace
with the growing demand of natural gas in the country, including power sector. The domestic gas
supply for gas-based power stations in the country is inadequate owing to which the country is
facing potential generation loss from gas-based stations. As on 31.3.2022, the installed capacity of
gas-based power stations was 24899.51 MW (including liquid based) which is 6.2 % of the total
installed capacity of the country.
Presently, existing gas-based power plants are operating at extremely low PLF of about 24% and
few gas-based power plants are lying idle due to non-availability of domestic natural gas.

5.2.3 Nuclear
As on 31.3.2022 Nuclear Power Corporation India Limited is operating 21 reactors with an installed
capacity of 6,780 MW, which is 1.7% of the total installed capacity of the country.

5.2.4 Hydro
Total Hydro Electric Power potential in the country was assessed as 84,044 MW (at 60% load factor)
from a total of 845 number of identified Hydro Electric Schemes, which when fully developed would
result in an installed capacity of about 1,48,701 MW based on probable average load factor out of
which potential of H.E. schemes above 25 MW installed capacity works out to be 1,45,320 MW
from a total of 592 H.E. schemes. The total energy potential is assessed as 600 billion units per year.
However, the full development of India’s hydro-electric potential, while technically feasible, faces
various issues including issues of water rights, resettlement of project affected people and
environmental concerns etc. and all these issues need to be resolved to exploit full potential. As on
31.03.2022, the installed capacity of hydroelectric power plants (above 25 MW) in the country was
46,722.52 MW (including 4,746 MW of PSP) which is 11.7% of the total installed capacity of the
country.

5.2.5 Solar
India has abundant source of Solar irradiance due to its location in the solar belt and has vast solar
potential of about 749 GW (as per data furnished by MNRE) for power generation. The falling prices
of solar panels has brought the solar tariffs lower in an unprecedented way making it as one of the

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best sources for power generation economically. However, the diurnal nature of solar power lends
it unable to meet the peak demand occurring during the evening hours and necessitates the need
to find other generation resources to meet the evening peak demand of the country. The installed
capacity from Solar was 53,996.54 MW as on 31.03.2022. Share of Solar capacity in the total
installed capacity was about 13.5 % as on 31st March ,2022 which is likely to increase substantially
in coming years.

5.2.6 Wind
India also has substantial wind potential of about 302.25 GW at the height of 100 m and 695.5 GW
at 120m due to its long coastline (as per MNRE). India has also taken up developing offshore wind
generation which has increased the wind potential apart from wind generation at higher hub
heights. The installed capacity from Wind was 40,357.58 MW as on 31.03.2022. Share of Wind
capacity in the total installed capacity was about 10.1 %. With increase in the hub height and
increase in wind-based capacity addition, the share of wind capacity is also likely to increase
substantially in coming years.

5.2.7 Biomass
Based on the availability of biomass, the potential of power generation from biomass has been
assessed as around 25 GW. Present installed capacity from Biomass was 10,682.36 MW as on
31.03.2022. Share of Biomass capacity in the total installed capacity was about 2.7 %.

5.2.8 Small hydro

Hydro plants with installed capacity of up to 25 MW are categorized as small hydro in our country.
Small Hydro based plants have a power generation potential of around 20 GW. Present installed
capacity from small hydro was 4,848.9 MW as on 31.3.2022, which is 1.2% of total installed
capacity.

5.2.9 Storage systems

The next phase of energy transition driven by the large-scale deployment of variable renewable
energy sources (VREs) like solar and wind power can be fully realized by key technologies of Energy
Storage. The grid integration challenges of the intermittent generation sources ensuring quality of
supply on real time basis along with the capability to store excess electricity over different time
horizons (minutes, days, weeks) can be achieved by the electricity storage systems. Many grid scale
energy storage systems are commercially available worldwide which includes Pumped storage
plants, Battery energy storage systems etc. However, many other energy storage technologies like
Green Hydrogen are in nascent stages of development.

5.2.9.1 Pumped hydro storage systems

While many forms of energy storage systems have been installed globally, Pumped Storage Plants
(PSP) are playing an increasingly significant role in providing peaking power and maintaining system
stability in the power system of many countries. Pumped storage Resource is the long term

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technically proven, highly efficient, environment friendly and flexible way of energy storage on a
large scale to store intermittent and variable energy. PSPs improve overall economy of power
system operation and reduce operational problems of thermal stations during low load period. The
other advantages of pumped storage Resource are availability of spinning reserve at almost no cost
to the system and regulating grid frequency to meet sudden load changes in the network. It also
can provide ancillary benefits such as flexible capacity, voltage support and Black start facility etc.
Pumped storage Resource has advanced significantly since its original introduction and now
includes adjustable speed pumped turbines which can quickly shift from motor, to generator, to
synchronous condenser modes, for easier and more flexible operation of the Grid. The concept of
off-river PSP is getting popular in recent years due to huge benefits arising out of its fewer capital
cost/operations. Currently India is exploring the off-river storage systems which can be executed
with lesser cost and at a fast pace.

5.2.9.2 Battery Energy Storage systems (BESS)

Battery Energy Storage systems especially based on Lithium – ion battery is one of the storage
options. The cost of the BESS is reducing in an unprecedented way making it as one of the preferred
options for deployment. BESS has various advantages of balancing the grid against load
fluctuations, intermittency in generation etc. Energy storage can provide energy time-shifting
which can be useful with the large-scale deployment of variable renewable energy sources.
However, the storage requirement depends on the shape of the demand curve and the extent of
RE penetration. Energy storage technologies can also provide operating reserve requirements,
balancing, ramping and RE integration services.

5.3 PRINCIPLES OF GENERATION PLANNING

The objective of Generation Planning process is to obtain an optimal generation capacity mix in the
least cost manner to meet the demand at every instance of time while ensuring the most efficient
use of resources. The purpose of Energy modelling is not to predict or forecast the future, but a
Collaboratory effort to understand and explore the key factors and relationships shaping the future
of the power sector. Planning is therefore an activity encompassing balancing demand and supply
at all instances of time and at all locations which makes it a regular ongoing process.
The major aspects considered in planning process are:

 To achieve regulation targets and objectives of all policies of Government of India

 To achieve sustainable development.
 To fulfil desired operational characteristics of the system such as reliability and flexibility.
 Most efficient use of resources
 Fuel availability.
The above aspects have been considered within realms of feasibility, while drawing up this National
Electricity Plan along with the economics and the status of the various projects.

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5.3.1 Sustainable Development

The importance and relevance of power development within the confines of Clean and Green
Power is crucial for sustainable economic growth. Such a development depends upon the choice
of an appropriate fuel / Resource for power generation. Accordingly, the plan takes into account
the development of renewable energy sources including Hydro projects along with other measures
and technologies promoting sustainable development in the country.

5.3.2 Operational Flexibility and Reliability

Generating units utilizing different fuels have different operational characteristics. The demand of
our electric system varies with time of the day, season, year and the spatial location. Therefore,
matching the generation with demand at all instances of time requires not only installation of
adequate capacity but also to be sensitive to the type of generation capacity, each with its unique
characteristics of altering its output and the time taken to do so. Accordingly, this requirement of
the system also needs to be considered when deciding upon the type of generation. It is, therefore,
necessary to widen the scope of the planning process to take into account aspects of ‘reliability’
and ‘quality’ of power, apart from the adequacy and quantum of power.
Reliable power system operation requires constant balancing of supply and demand in accordance
with established operating criteria such as maintaining system voltages and frequency within
acceptable limits. Changes in demand pattern and generation from variable renewable energy
sources throughout the day and over the seasons are met by controlling generation from
dispatchable sources when needed. To achieve reliability in the system, adequate reserve capacity,
spinning as well as non-spinning, needs to be planned in the system. The National Electricity
Policy,2005 stipulates creation of spinning reserve of 5% in our system. This has been considered
while planning capacity addition requirement during the years 2022-27 and 2027-32.
To meet system stability requirements, a certain degree of flexibility in terms of ability of the
generators to respond rapidly to the changing demand and generation from renewable energy
sources must be introduced into the system through appropriate power generating plants and
financial mechanism. System should also be able to meet additional demand which arises due to
unexpected demand fluctuations and sudden outages of some generating units.

5.3.3 Fuel availability constraints

A significant Gas-based capacity is presently stranded due to lack of domestic gas and high cost of
imported LNG. Additionally, due to seasonal availability of Biomass, fuel restriction for the Biomass
has also been considered.

5.3.4 Efficient Use of Resources

The fossil fuels for power generation are scarce and must therefore be used most judiciously. From
the point of view of environment, it is essential that energy produced per unit of fuel is maximum
to the extent possible. This would minimize the pollution caused during the process of power
production therefore, achieving cleaner production. Maximum utilization of renewable sources of

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generation should be preferred as their variable cost of energy is minimal. However, a strategic
amount of VRE curtailment may be part of a cost-effective planning solution while ensuring grid
reliability.

5.4 PLANNING TOOLS - DETAILS OF PLANNING MODEL

5.4.1 Generation Expansion Planning Tool -ORDENA
The studies were carried out using generation expansion planning model namely ORDENA. Ordena
is a mixed integer linear optimization program that minimizes the net present value of investment
and operating costs subject to several constraints. The major constraints include balancing
electricity supply and demand, resource supply limits, planning and operating reserve limits and
policy targets. These constraints are met considering a broad portfolio of conventional generation,
renewable generation and storage.
The software is also capable of carrying out hourly/sub hourly economic generation dispatch
considering all the technical constraint associated with various generation technologies.
The schematic diagram of the software is given as Exhibit 5.1.

Exhibit 5.1

5.4.2 Generation Expansion Planning Tool –PLEXOS

PLEXOS is a powerful simulation engine that provides analytics and decision-support to modelers,
generators, and market analysts. Unlike other optimization platforms, PLEXOS offers both flexible
and precise simulations across several markets—electric, water, gas and renewable energy.
PLEXOS unifies the market simulations across electric, water, and gas energy systems which helps
to perform long-term planning, medium-term and short-term scheduling at once.

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5.5 PLANNING NORMS

The planning studies require accurate performance parameters of all types of generating units to
assess their availability and energy generation capabilities. The peaking availability and energy
generation capacity are important parameters for meeting the projected demand of the country.
The key performance factors required for the planning studies are the auxiliary power
consumption, heat rate, capital cost of the generating units, fuel cost, gross calorific value, O&M
schedules, etc. Different generating technologies have varied operational performance and
accordingly different norms have been used for thermal (coal and lignite), combined cycle gas
projects, hydro and nuclear projects. The generation planning norms for varied sizes of thermal
units are different. Accordingly, separate categories based on unit sizes have been derived.
Combined Cycle Gas Turbines (CCGT) are very efficient and have lower heat rates, however, their
availability and PLF depend on the availability of natural gas. The peaking availability, auxiliary
power consumption, heat rate for several types of generating units, as considered in the expansion
planning studies are given in Annexure 5.1.

5.5.1 NORMS ADOPTED FOR RELIABILITY CRITERIA

The Power System is planned to meet the forecasted demand while ensuring an expected level of
reliability. Reliability is a measure of the ability of a system to perform its designated function under
the designed conditions. In our Studies, Loss of Load Probability (LOLP) and Energy Not Served (ENS)
are the criteria adopted to reflect the capability of the system to meet the peak load and for
reflecting the Energy Requirement not met in the System respectively. LOLP is the probability that a
system will fail to meet its peak load under the specified operating conditions. It is the proportion of
days per year or hours per year when the available generating capacity is insufficient to serve the
peak demand. This index is dimensionless and can also be expressed as a percentage.

ENS is the expected amount of energy which the system will be unable to supply to the consumers
as a fraction of the total energy requirement. This index again is dimensionless and can also be
expressed as a percentage. In other words, this criterion indicates the quantum of energy
requirement in a year which is not met. Various countries in the world have adopted their own
Reliability Criteria depending upon the status of their power system and the price affordability of the
consumers to pay for the reliability of the system. It is evident that a more stringent and reliable
system would yield higher cost of electricity which has to be borne by the consumer. Earlier, while
formulating the National Electricity Plan 2018, LOLP of 0.2% and ENS of 0.05% has been adapted for
the country however, the studies carried out by CEA for preparation of current National Electricity
Plan is based on deterministic modeling wherein cost of ENS is estimated & is provided as a constraint
to the planning model. The results so obtained from above have been verified for derived LOLP &
ENS. Details of LOLP adopted in some countries are as given in Table 5.1.

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Table 5.1
LOLP of some countries
Name of LOLP
country (%)

Cambodia 1.8

Laos 0.27

Thailand 0.27

Vietnam 0.27

Hong 0.006
Kong

Belgium 0.2

USA 0.03

China 0.14

Source: Information collected from websites of above countries.

5.6 PLANNING APPROACH FOR GENERATION EXPANSION PLANNING

DURING THE PERIOD 2022-27 AND 2027-32

The Planning approach has been based on the premise of meeting the peak demand and energy
requirements for the period 2022-27 and 2027-32 at the least cost. In view of clean generation
technologies like Solar, Wind, etc. becoming increasingly cost competitive compared to the
conventional technologies, the optimal generation capacity mix would achieve the right balance
between cost economics and grid reliability. This requires the power system to be more flexible and
resilient, to accommodate the intermittency of renewable generation, seasonal spikes or time-of-
day variations – expected and unexpected in electricity demand etc. The dynamic response
characteristics of such a balanced system would contribute to higher reliability. This will ensure the
most rapid, real-time response to local peaking needs and variation in generation from RES.
Studies using sophisticated state of the art planning tools like ORDENA and PLEXOS have been
carried out to assess the installed capacity required to meet the demand projections for the years
2026-27 and 2031-32 in a reliable and cost-effective manner considering the five regions as nodes.
For carrying out the long-term generation expansion studies on regional basis, five Nodes have been
created with inter regional transmission links between them for Inter regional power transfer.

5.6.1 All India Peak Demand and Energy requirement forecast

Generation expansion planning studies have been carried out on regional basis considering the DC
load flow and inter-regional transmission lines only. The studies have been carried out to meet the
regional as well as All India Peak Demand and Energy requirement projections based on preliminary

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Demand estimates. The estimated peak demand (MW) and Energy requirement (BU) in the years
2026-27 and 2031-32 for all the five regions and All India are given in Table5.2 below.
Table 5.2
All India Peak Demand & Energy Requirement
Energy Requirement
Peak Demand (MW)
Region (BU)*
2026-27 2031-32 2026-27 2031-32
Northern 86187 117126 565 762

Western 84097 114285 573 782

Southern 74108 100710 504 682

Eastern 31638 42995 201 267

North-
Eastern 5951 8087 31 45

All India 272000 363188 1874 2538

(* Including solar Roof Top Energy)

The early estimates for the Peak and Energy demand on the electricity grid are inclusive of impact
due to factors like energy efficiency, penetration of electric vehicles, installation of solar roof tops
and production of green hydrogen.

5.6.2 Preparation of Hourly Load profile for the years 2026-27 and 2031-32

Region-wise hourly Load profile and Solar and Wind generation profiles
The most important aspect of any generation planning study is formulation of the annual hourly
demand projections. Hence, the endeavor has been to meticulously project hourly demand for the
years 2026-27 and 2031-32. The hourly demand profiles on regional basis of the previous five years
(2015-16 to 2019-20) were examined. The demands data for the three years 2015-16 to 2017-18 was
found to be more representative of the historical trend of the annual load curve. Therefore, the three
years’ demand data has been considered to obtain hourly average demand profile for each of the
five regions which is then Normalized and subsequently extrapolated w.r.t the projected annual Peak
Demand and Electrical Energy Requirement for the years 2026-27 and 2031-32 to obtain the most
probable load profile for the years 2026-27 and 2031-32 for each of the five regions.

Region wise hourly Solar and wind profiles

The actual hourly generation profile of solar and wind have been gathered from states having
considerable share in the All-India VRE generation.

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The hourly normalized generation profiles for Solar and wind of various states were then aggregated
to obtain hourly normalized generation profiles for each of the five regions.
The region wise solar & wind CUF (Capacity Utilization Factor) is given in Annexure 5.1.

5.6.3 Seasonal Variation of VRE and Hydro Generation

To capture the seasonal variation associated with hydro and RE generation, the time series hourly
data (demand, RE generation, hydro generation) for a year has been divided into five seasons. The
five seasons are as follows:
 Summer: April-June
 Monsoon: July-September
 Autumn: October-November
 Winter: December- January
 Spring: February-March
The hydro energy availability varies significantly across the years as it depends on the monsoon rains
in a particular year. The actual monthly hydro generation of the existing hydro power plants for the
years 2015-16, 2016-17 and 2017-18 has been studied to account for variation in generation
availability due to the eventualities of drought or excess rainfall in any particular year. The monthly
energy generation has been summed up to arrive at the seasonal energy. The energy of the hydro
units which are under construction or are in concurred/ S&I stage which are likely to yield benefits,
has been taken based on the design energy of the project in 90% dependable year.
The model optimizes available hydro generation in such a way that maximum benefit of hydro can
be exploited during peak hours along with ensuring minimum required outflow during off-peak
hours. In this context, both central and state-owned hydro power plants have been assumed to
contribute towards grid stability and peaking requirement of the country.

Creation of aggregated time Blocks for Generation Expansion Planning Studies

The long-term models with endogenous investments are computationally demanding when
optimizing investment decision as well as reducing operational cost for multiple years
simultaneously. A common way to reduce computation time is to optimize the dispatch decision only
for a limited number of representation time slices/blocks instead of modelling every hour of the year.
The 8760 hours is then represented by a set of time blocks or representative hours that capture
changes in seasonal, weekly and daily demand pattern as well as wind and solar availability to reduce
the computational burden.
Each season has been divided into blocks based on the RE generation profile for increasing the
granularity and precision of the study. The annual hourly time series profiles of projected regional
load, Regional Solar and wind generation profiles are aggregated into Blocks for each of the five
seasons.

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The aggregation of hours of the day into time blocks in the model is shown pictorially in Exhibit 5.2
below:
Exhibit 5.2

The time aggregation technique of aggregating hourly data into Time Blocks helps in reducing
simulation time that the model takes while capturing Seasonal peak demand for each region. The
number of time blocks considered is based on the system and Resource complexity while achieving
as much granularity as possible in time series data as the system permits.

5.6.4 Reserve capacity

As stipulated by National Electricity Policy 2005, 5% Spinning Reserve is to be provided. This reserve
capacity has been maintained while carrying out the Generation Planning studies.
5.6.5 Retirement of Thermal capacity
Information was compiled in respect of old thermal power plants which have already retired and
plants likely to be considered for retirement in future. Decommissioning of coal-based capacity due
to lack of plans for FGD installation also has been considered while carrying out the generation
expansion studies. A coal-based capacity totaling to 4629 MW (list of plants is enclosed at Annexure
5.2) is considered for likely retirement during the study period of FY 2022-27. No coal or Gas-based
capacity has been considered for retirement during the period of FY 2027-32.

5.6.6 Base Capacity considered for the year (2021-22) as on 31.03.2022

All India installed capacity of 398,986 MW (excluding 510 MW Oil based capacity) as on 31st March
2022 is considered as a base installed capacity for the study period 2022-32.

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The region wise and Resource wise breakup of the same is outlined in the Table 5.3 below:
Table 5.3
Region-wise Installed capacity as on 31.03.2022
(All Figures in MW)
N- Percentage
Resource Northern Western Southern Eastern All India
Eastern of Total IC
Hydro# 19576 5552 9734 5088 2027 41977 10.5%

PSP 0 1840 2006 900 0 4746 1.2%

Small Hydro 1680 646 1899 337 286 4848 1.2%

Solar PV 17791 13113 21990 931 171 53996 13.5%

Wind 4327 16742 19289 0 0 40358 10.1%

Biomass 3273 3148 3733 512 16 10682 2.7%

Nuclear 1620 1840 3320 0 0 6780 1.7%

Coal+ Lignite 45879 85586 42598 35887 750 210700 52.8%

Gas 5781 10806 6492 100 1720 24899 6.2%

Region-wise

Installed 99927 139273 111061 43755 4970 398,986

Capacity
#Excluding 2136 MW of Hydro imports from neighboring countries and 510 MW Diesel based capacity.

5.6.7 Planned/Under construction Capacity for the period FY 2022-27 & 2027-32
The fuel wise capacity which is under construction or in advance stages of development that are
likely to be commissioned during the study period is summarized in Table below. The fuel wise list of
under-construction projects (for likely benefits during 2022-23 to 2026-27 and 2027-28 to 2031-32)
is given in Annexure 5.3.

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Table 5.4
Type wise Under Construction/Planned Capacity for FY 2022-27 & 2027-32
(All Figures in MW)
Hydro
# # Coal + $
Year Hydro PSP Solar Wind Nuclear Gas Biomass TOTAL Import
Lignite
s
2022-27 10,903 1580 92,580 25,000 7,000 25,580 370 2318 165,331 3,720
2027-32 0 0 0 0 8,700* 0 0 1500 10200 0
TOTAL
10903 1580 92,580 25,000 15,700 25,580 370 3818 175,531 3,720
(2022-32)
# This is in line with an assumption of a planned capacity of 117.58 GW of Solar and Wind as per information furnished by
SECI/MNRE.
*Nuclear projects of 1700 MW are under construction while projects totaling to 7000 MW are in principle approval stage whose
construction is yet to begin.
$ Assumed Planned Capacity of Biomass

5.6.8 Hydro based Imports

The electricity hydro imports from neighboring countries till 2021-22 are 2,136 MW and for the
period of 2022-27 are likely to be 3,720 MW. The list of these projects is placed at Annexure 5.4.
Hydro imports from neighboring countries considered for the studies during 2022-32 is given in the
Table 5.5 below:
Table 5.5
Hydro based imports during 2022-27 & 2027-32 (IN MW)

Nepal Bhutan Total

Existing till 2021-22 0 2136 2136

2022-27 900 2820 3720

2027-32 NIL

Total Hydro based Imports till 2032 900 4956 5856

5.6.9 Investment options considered for selection by model

 Coal based super critical plants at pit head locations have been considered as investment
options for the study period.
 Location specific hydro and PSP projects which have been concurred by CEA or are under
S&I stage have been considered as investment options for the studies.
 No Gas based plants have been considered as investment options for the studies.
 No additional Nuclear based plants have been considered as investment options for the
studies apart from the plants which have been accorded administrative approval and financial
sanctions.

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 Based on region wise RE potential capacity data received from MNRE, regions wise PV and
Wind based investment option capacity has been taken as input for the studies. The potential has
been worked out based on state level potential furnished by MNRE.
 Region wise BESS investment options (5-hour storage) have been considered in the studies
for the period of 2022-23 to 2031-32. The cost of battery energy storage system includes cost of
battery, inverter, Battery and Energy Management Systems and other costs (cabling and installation
costs). Also, the capital cost of the battery has been increased to account for the constraint of 90%
depth of discharge. A custom duty of 22% on the imported cost of Battery pack and GST of 18% on
the cost of Battery system has been considered to arrive at the total cost of the Battery Storage
system.

5.6.10 Inter-Regional Transmission Capacity

The inter-regional transmission capacity likely to be installed by end of FY 2021-22 according to
National Electricity Plan Vol II (Transmission) (for the period 2017-22) has been considered for the
planning studies. The details of the same are given in table 5.6 below:
Table 5.6
Inter-Regional Transmission (Transfer) Capacity in FY 2021-22
(All Figures in MW)
From Node/To NR WR SR ER NER
node
NR - 26864 - 16144 3000
WR 26864 - 9328 24178 -
SR - 9328 - 13118 -
ER 16114 24178 13118 - 2410
NER 3000 - - 2410 -

Additionally, candidate lines between the regions have also been considered. The capital cost of a
candidate inter regional transmission links is assumed to be Rs 10,163/MW-km and for Lines to and
from NER it is assumed twice.

5.6.11 Fuel constraint

Due to the unavailability of natural gas and high price of imported RLNG, fuel restriction for gas-
based plants has been considered and fuel availability has been limited to present supply of the
domestic natural gas. Also, due to seasonal availability of Biomass, fuel restriction for the Biomass
has been considered.

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5.7 RESULTS OF GENERATION EXPANSION PLANNING STUDIES FOR

THE PERIOD 2022- 27 AND 2027-32
5.7.1 Base Case
The studies were carried out to assess the source wise generation capacity addition requirement to
meet the projected demand during the year 2026-27 and 2031-32 with the assumptions mentioned
above. The region wise and Resource wise likely installed capacity by 2026-27 and 2031-32 from the
study results are shown in the Tables and exhibits given below.
Table 5.7
Region-wise likely Installed capacity by the end of 2026-27
(All Figures in MW)
Percentage
Resource Northern Western Southern Eastern N-Eastern All India
of Total IC
Hydro# 25791 5952 10794 6245 4147 52929 8.5%
PSP 1000 2320 2586 900 0 6806 1.1%
Small Hydro 1680 646 1899 337 286 4848 0.8%
Solar PV 87171 49813 47990 931 171 186076 29.9%
Wind 12327 31242 37289 0 0 80858 13.0%
Biomass 3984 3831 4543 623 19 13000 2.1%
Nuclear 3720 3240 6820 13780 2.2%
Coal+ Lignite 52420 87048 51348 47767 750 239333 38.4%
Gas 5781 10806 6862 100 1720 25269 4.1%
Region-wise
193874 194898 170131 56903 7093 622899 100.00%
Installed Capacity
# Excluding 5856 MW of Hydro Imports from Nepal and Bhutan

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Exhibit 5.3

PROJECTED INSTALLED CAPACITY 2026-27

Gas, 4%
PSP, 1%
Small Hydro, 1%
Hydro,
9%
Coal + Lignite, 38%

Solar PV, 30%

Nuclear, 2%
Biomass, 2% Wind, 13%
TOTAL IC-622,899 MW

Table 5.8
Projected All India Installed capacity by the end of 2031-32
(All Figures in MW)
Installed Capacity
Resource Percentage (%)
(MW)
Hydro# 63,816 7.4%
PSP 18,826 2.2%
Small Hydro 4848 0.6%
Solar PV 3,33,476 38.5%
Wind 1,33,958 15.5%
Biomass 14,500 1.7%
Nuclear 22,480 2.6%
Coal + Lignite 2,48,767 28.7%
Gas 25,270 2.9%
Total 8,65,941 100.00%
BESS* 51,555
# Excluding 5856 MW of Hydro Imports from Nepal and Bhutan
*5-hour Storage; Battery storage is not included in Installed Capacity

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Exhibit 5.4

PROJECTED INSTALLED CAPACITY 2031-32

Gas, 3% Hydro, 7% PSP, 2%
Small Hydro, 1%
Coal + Lignite, 29%

Nuclear, 3%

Biomass, 2% Solar PV, 38%

Wind, 15%

TOTAL IC- 865,941 MW

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Table 5.9a
Capacity addition required during 2022-27 and 2031-32
(All figures in MW)
Coal+ Biomass
Hydro PSP Solar Wind Nuclear Gas TOTAL BESS
Lignite
Under
Construction 10,903 1580 92,580 25,000 7,000 25,580 370 2318# 165,331 0
(2022-27)(A)
Additional
Capacity
48 480 39500 15500 0 7682 0 0 63210 0
Requirement
(2022-27)(B)
Total
Capacity
addition 10,951 2,060 132,080 40,500 7,000 33,262 370 2318 228541 0
(2022-27)
C=(A+B)
Under
Construction 0 0 0 0 * 0 0 1500# 10200* -
8700
(2027-32)(C)
Additional
Capacity
10888 12020 147400 53100 0 9434 0 0 232842 51555
Requirement
(2027-32)(D)
Total Net
Capacity
addition 10888 12020 147400 53100 8700 9434 0 1500 243042 51555
(2027-
32)(C+D)
*Nuclear projects of 1700 MW are under construction while projects totaling to 7000 MW are in principle approval stage whose
construction is yet to begin but considered as under construction during the year 2027-32 for studies.
# Assumed Planned Capacity of Biomass

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Table 5.9b
Region wise details of Additional Capacity addition required during 2022-27 and 2027-32(Apart
from capacity already under-construction)
(All figures in MW)
Coal+
Period Region Hydro PSP Solar Wind Total BESS*
Lignite
NR 48 19500 4000 1000 24548 0
WR 0 480 4000 2000 1762 8242 0
Additional capacity
SR 0 0 16000 9500 0 25500 0
addition required
ER 0 0 4920 4920 0
(2022-27)
NER 0 0 0 0
Total 48 480 39500 15500 7682 63210 0
NR 2826 0 71500 15000 2200 91526 41266
WR 0 960 13900 3600 2758 21218 0
Additional capacity
SR 0 11060 62000 34500 496 108056 10289
addition required
ER 520 0 0 0 3980 4500 0
(2027-32)
NER 7542 0 0 0 0 7542 0
Total 10888 12020 147400 53100 9434 232842 51555
*5-Hour BESS System

Analysis of Base Case Result

 As is seen from the table, the likely share of thermal IC reduces to 42.5 % of the total
installed capacity in 2026-27 as compared to 59 % in 2021-22 while the RE based IC in 2026-27
(including Large Hydro) increases to 55.4% of the total installed capacity as compared to 39.3 % in
2021-22.
 To meet the electricity demand and electrical energy requirement in 2026-27 additional capacity
from PV, Wind and PSP may be required apart from the capacity which is already under construction.
 Likely PSS based installed capacity of 6.8 GW in 2026-27 may fulfil the storage requirement of the
grid by 2026-27 to meet the peak and energy requirements in 2026-27. However, Battery energy
storage requirements emerge from the year 2027-28 onwards and 5-hour BESS storage of 257.77
GWh is required along with 18.8 GW of PSS for the year 2031-32.
 It has been analyzed that in case of BESS Resource the model chooses to invest preferably in NR
region as compared to other regions (80% of the total BESS Storage required in 2031-32 is seen to be
required in NR). Due to the fact that historically NR peak occurs during the evening hours. Therefore,
BESS Resource is found to be most cost effective and optimally utilized if installed locally in the NR
region.
 It is seen that many PSP plants are likely to yield benefits during the period 2027-32 in the Southern
region, thereby making it a cost-effective storage alternative there and thus reducing the need of
additional Battery storage in SR for the said period.

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5.8 SCENARIOS CONSIDERED FOR GENERATION EXPANSION

PLANNING DURING THE YEAR 2026-27
Studies were also carried out to assess the capacity addition requirement to meet the projected
demand in the year 2026-27 in the following scenarios:
1. Delayed nuclear capacity addition
2. Delayed hydro capacity addition scenario
3. Conservative Scenario (Based on historical trend of capacity addition)
4. High demand scenario (5% increase in Peak and Energy demand).
These scenarios and the resultant likely Installed Capacity have been outlined in detail below:

5.8.1 SCENARIO 1- Delayed nuclear capacity addition

A scenario has been studied wherein the Nuclear based capacity addition for the years 2022-23 to
2031-32 is delayed/deferred by 2-3 years. The planned capacity addition of 7000 MW during 2022-
23 to 2026-27 is reduced to 3600 MW in this scenario.
The likely resultant installed capacity for the year 2026-27 and 2031-32 in this scenario is as given
in Table 5.10.
As can be seen, in this scenario due to lesser Nuclear based generation available, the required Coal
based installed capacity increases to 241.5 GW in 2026-27 and 250.2 GW in 2031-32 when compared
to base case value of 239 GW in 2026-27 and 248.7 in 2031-32 to cater to the Electricity Demand.

5.8.2 SCENARIO 2- Delayed hydro capacity addition scenario

A scenario has been studied wherein the upcoming hydro, PSP based projects likely to yield benefit
during 2022-27 are deferred by 2 years as envisaged in base case. The likely resultant installed
capacity for the year 2026-27 and 2031-32 in this scenario is given in Table 5.10.

In this scenario, in 2026-27 the Hydro and PSP based installed capacity decreases to 49.7 GW and 6.2
GW respectively as compared to 52.9GW and 6.8 GW in base case, owing to which in order to meet
the electricity demand, the required coal based capacity increases from 239.3GW (in base case) to
243 GW. Additionally, in 2031-32, the Hydro and PSP based installed capacity decreases to 57.7 GW
and 13.2 GW respectively as compared to 63.8 GW and 18.8 GW in base case, owing to which in
order to meet the electricity demand, the required coal based capacity increases from 248.7 GW (in
base case) to 250.6 GW.

5.8.3 Scenario 3- Conservative Scenario (Based on historical trend of capacity

addition)
A scenario has been developed wherein the upcoming capacity addition from different fuel sources
likely to yield benefit during 2022-2032 are deferred based on historical trends of construction time
for different technologies.

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The likely installed capacity for the year 2026-27 and 2031-32 is given in Table 5.10.
It is seen in this scenario that the coal based installed capacity in 2026-27 increases to 241GW from
239GW in base case scenario and in 2031-32, it increases to 259.6 GW from 248.7 GW in base case
scenario.
5.8.4 SCENARIO 4- High demand scenario (5% increase in Peak and Energy demand).
A scenario has been studied where in an increase of 5% in both the estimated peak demand as well
as energy Requirement for the years 2026-27 has been considered. The likely installed capacity in
this scenario is given in Table 5.10.
It can be seen that increase in electrical demand by 5% in 2026-27, entails an increase in capacity
addition requirement from Coal by around 6 GW and an increase in Storage Capacity both from PSP
and BESS(5-hour) by 1.2 GW and 5.2 GW respectively when compared to base case. Also, in 2031-32
an increase in capacity addition requirement from Coal by around 3.4 GW and an increase in Storage
Capacity from BESS(5-hour) by 15 GW when compared to base case is seen.
The likely installed capacity in this scenario is given in Table 5.10.
Results of different scenarios have been summarized in the table 5.10 below.
Table 5.10a
LIKELY INSTALLED CAPACITY BY END OF 2026-27 IN DIFFERENT SCENARIOS
(All figures in GW)

Delayed Delayed Conservative High Demand

Scenario Base Case
Nuclear Hydro Scenario (5%)

Hydro * 52.9 53.1 49.7 47.2 53.1

PSP 6.8 7.0 6.2 6.2 8.0
Small Hydro 4.8 4.8 4.8 4.8 4.8
Solar 186.1 186.1 186.1 148 186.1
Wind 80.9 80.9 80.9 57.5 80.9
Biomass 13.0 13.0 13.0 13.0 13.0
Nuclear 13.8 10.4 13.8 10.1 13.8
Coal + Lignite 239.3 241.6 243.1 241.3 245.1
Gas 25.3 25.3 25.3 25.3 25.3
Total 622.9 622.2 622.9 553.4 630.1
Battery Energy
Storage System 0 0 0 9.0 5.2
(5-Hour)

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*Excl. Hydro imports from neighboring countries

It is observed that the range of coal capacity required in the year 2026-27 varies from 239 GW in
Base case to around 245 GW in Higher Demand scenario (5% increase in Peak and Energy
requirement). Amongst all scenarios, the BESS capacity is required in 2026-27 only in the high
demand scenario and in the conservative scenario.

Table 5.10b
LIKELY INSTALLED CAPACITY BY END OF 2031-32 IN DIFFERENT SCENARIOS
(All figures in GW)

Delayed Delayed Conservative High Demand

Scenario Base Case
Nuclear Hydro Scenario (5%)

Hydro * 63.8 63.8 63.8 58.0 74.7

PSP 18.8 18.8 13.2 14.5 18.8
Small Hydro 4.8 4.8 4.8 4.8 4.8
Solar 333.4 333.4 333.4 299.4 333.4
Wind 133.9 133.9 133.9 90 134.2
Biomass 14.5 14.5 14.5 14.5 14.5
Nuclear 22.4 21.1 22.4 15.5 22.4
Coal + Lignite 248.7 250.2 250.6 259.6 252.1
Gas 25.3 25.3 25.3 25.3 25.3
Total 865.6 865.8 861.9 781.6 880.2
Battery Energy
Storage System 51.5 51.2 60.0 84.1 67.2
(5-Hour)
*Excl. Hydro imports from neighboring countries
It is observed that the range of coal capacity required in the year 2031-32 varies from 248.7 GW in
Base case to around 259.6 GW in Conservative scenario while the BESS capacity varies from 51.2 GW
in delayed Nuclear scenario to 84.1 GW in the conservative scenario.

5.8.6 Observations based on Scenario Analysis

The likely coal based and BESS installed capacity by end of 2026-27 and 2031-32 in different
scenarios is shown in Exhibit 5.5 below :-

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Exhibit 5.5a

Likely Coal based IC in Different Scenarios

in 2026-27 and 2031-32
259.6
260
252.1
255 250.2 250.6
248.7
250 245.1
Coal IC(GW)

243.1
245 241.6 241.3
239.3
240
235
230
225
Base Case Delayed Delayed Hydro Conservative Increased
Nuclear Demand

2026-27 2031-32

Exhibit 5.5b

Likely BESS Capacity* in Different Scenarios

in 2026-27 and 2031-32

100 84.1
80 67.2
BESS IC(GW)

60
51.5 51.2
60

40

20 9 5.2
0 0 0
0
Base Case Delayed Delayed Conservative Incresed
Nuclear Hydro Demand

2026-27 2031-32 *5-Hour Battery system

 From scenario analysis, it is seen that apart from under construction coal based capacity of 25GW,
the additional coal based capacity required till 2031-32 may vary from 17GW to around 28 GW.
Additionally, it is seen that the BESS (5-hour) requirement in 2031-32 is varying from 51.5GW to
84GW.
 When the Peak demand and energy requirement increases, both the coal based capacity and
storage requirement (PSS and BESS) increases along with marginal increase in Hydro based capacity.

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 In the event of delay in achievement of Hydro based plants which are in concurred/under
construction stage, there is additional requirement of coal of around 4 GW in capacity mix in 2026-
27.
 In the event of non-availability of the base load nuclear capacity the model opts for cheaper coal
candidates available to provide base load support.

5.9 SHORT TERM STUDIES - (HOURLY GENERATION DISPATCH)

Investing in power sector infrastructure requires long lead times, and – given the long life of
resulting projects – future investment options are influenced by investments that are made today.
Avoiding near-term inefficiencies due to a poorly specified long-term transition plan requires a more
integrated approach, which moves from long-term through short-term planning steps, and
establishes clear, internally consistent feedback loops.
Production cost models or the short-term studies help to validate results from long-term generation
expansion models and complement the long-term results in overcoming their internal limitation in
the time resolution.
A top-down approach of planning and assessments is quite logical such that the process would move
from high-scope planning (time horizon) to high-detail analysis.
The Exhibit 5.6 below represents the sequence of steps followed in Generation planning process.

Exhibit 5.6

NO

YES

To begin with, long-term generation expansion planning defines and proposes a future capacity mix.
Having established that mix in the respective years, that capacity mix is used to assess optimal

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dispatch, which in turn is used in hourly/sub hourly analysis of the system to ascertain stability and/or
to find weaknesses, if any, in system operation.

The short-term view of system encompasses the following aspects of power system operation
during the planning process: -

 Hourly/ sub-hourly time steps

 Unit commitment decisions
 Ramping Constraints
 Weather based Hydro inflows
 Technical Constraints like Minimum Technical load of Coal based power plants
 Start up and shut down costs.

5.9.1 Short Term Dispatch studies for the year 2026-27

All the operational/financial parameters and technical characteristics of the units have been
considered for the short-term studies to arrive at the least cost and optimum hourly generation
dispatch from the projected capacity for all 365 days (8760 hours) throughout the year 2026-27.

Based on the hourly dispatch studies it was found that the capacity mix obtained from Long term
studies consisting of 239.3 GW of Coal and Lignite based capacity,13.8 GW of Nuclear and around
6.8 GW of PSP capacity is capable of meeting India’s electricity demand reliably (i.e., every hour of
the year in each of the five regions) with 337.7 GW of RE based installed capacity (comprising of 52.9
GW of Large Hydro, 186 GW from PV, 80.9 GW form Wind, 13 GW from Biomass and 4.9 GW from
SHP) in the year 2026-27. This is in line with the target of 500 GW of Non fossil fuel-based capacity
by the year 2029-30. Given below is the likely source wise generation in the year 2026-27: -

Table 5.11

Gross
Source Percentage (%)
Generation (BU)
COAL+ LIGNITE 1158.8 59%
GAS 35.3 2%
NUCL 82.1 4%
#
HYDRO 188.9 10%
PV 326.0 17%
Wind Power 169.8 9%
Other RE 7.7 0.4%

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Total 1968.6 100%

PSP 17.37
# including Generation from Hydro based imports

Exhibit 5.7

Source Wise Likely Gross Generation(BU) in 2026-27

Other RE
WIND
7.7
169.8
0%
9%
PV
326.0
16%

HYDRO*
188.9
10%
NUCLEAR COAL+LIGNITE
82.1 1158.8
GAS 59%
4%
Total: 1968.6 BU 35.3
2%
COAL+LIGNITE GAS NUCLEAR HYDRO* PV WIND Other RE

Source wise likely generation in 2031-32 is as follows:-

Table 5.12

SOURCE Gross Generation (BU) Percentage (%)

COAL+LIGNITE 1333.8 49.9%
GAS 35.4 1.3%
NUCLEAR 134.3 5.0%
#
HYDRO 231.8 8.7%
PV 624.4 23.4%
WIND 305.7 11.4%
OTHER RE 8.6 0.3%
TOTAL 2674.0 100.0%
BS 92.3
PSS 50.0
# including generation from Hydro Based Import

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Exhibit 5.8

Source wise Likely Gross Generation (BU) in 2031-32

WIND OTHER RE
12% 0.3%

PV
23%

COAL+LIGNITE
50%

HYDRO
9%
NUCLEAR GAS
Total: 2674 BU 5% 1%
COAL+LIGNITE GAS NUCLEAR HYDRO PV WIND OTHER RE

5.9.1.1 Daily Variation in Demand and VRE Absorption

The Exhibit 5.9 given below depicts the variation of daily electrical energy requirement and daily
VRE generation (solar and wind only) along with the percentage of daily electrical energy
requirement met from renewable sources (solar and wind). It may be seen that demand met by VRE
generation on few days is as high as 40%.

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Exhibit 5.9

Daily Electrical Energy(BU) met form Daily VRE (Solar+Wind)

Generation in 2026-27
6 100%
90%
Daily Energy Reuirement(BU)

% of daily VRE Generation

5 80%
4 70%
60%
3 50%
40%
2 30%
1 20%
10%
0 0%

Days
Daily Electrical Energy Reuirement( BU) RE Generation (BU)
% of daily VRE Generation

5.9.1.2 Key Findings based on short-term dispatch studies for the year 2026-27
Some of the salient outcomes of the short term dispatch studies are given below:
 Monte Carlo based simulations on hourly level were run to determine the reliability indices for the
Long term results of capacity mix for the year 2026-27 as given in the Table 5.7 above. The normative
values of Forced outages and planned outages for the generators were taken based on either
historical averages or characteristics of technologies while carrying out the Monte Carlo simulations.
It has been found out that the base case IC for the year 2026-27 meets the reliability criteria of LOLP
of 0.2% and ENS of 0.05%.
 Energy storage technologies like PSP help in diurnal grid balancing during high RE months. Storage
technologies charge during the daytime (coincident with solar generation) and discharge during the
morning and evening peak periods (4-6 hours total each day). They also help to meet steep system
ramps.
 The contribution of Renewable energy based generation(excluding Large Hydro) towards the total
generation in 2026-27 is likely to increase to around 26.4 % in 2026-27 from 11% in the year 2021-
22.
 It has been observed that about 3.48 % of RE based generation may not be absorbed during the
year 2026-27. If peak demand shifts in afternoon hours from evening then this value may further
reduce.

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 The average PLF of the total Installed coal capacity of 239.3 GW was found to be about 55.28% in
2026-27.
 The maximum coal capacity (Gross) of about 190 GW was observed in the month of october.
 Coal based capacity of about 123.4 GW is expected to run at a high PLF of more than 70% while a
capacity of about 53.07 GW is expected to run at a low PLF of less than 30% as shown in Exhibit 5.10
Exhibit 5.10

Duration curve for Coal+Lignite capacity on Bar

2,00,000
Coal+Lignite Capacity on Busbar (MW)

1,80,000

1,60,000

1,40,000

1,20,000

1,00,000

80,000

60,000

40,000

20,000
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Time

5.9.2 Short term dispatch studies for a few critical days during the year 2026-27
Due to annual/ seasonal variability of VRE resources i.e., Wind as well as Hydro generation and to
account for the variation in Solar Insolation in different regions of the country around the year,
changes in the shape of the demand curve over the year, a few critical days were identified in a year
based on the historical hourly Demand profiles and VRE generation data. The Resource wise
generation patterns for the country (while honoring the inter-regional transmission constraints)
were studied in detail for such critical days with the purpose of ascertaining if the power system with
the given capacity mix in the year 2026-27 is stable and resilient to meet the projected system
demand at every instance of time.

The details of typical days identified for the short-term studies are given in Table 5.13.

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Table 5.13
Critical Days identified during the year 2026-27
Sl. No. Scenario Month
1 Peak Demand Day September
2 Maximum VRE (Wind+ Solar) generation day June
3 Maximum Solar generation day March
4 Minimum Solar generation day July
5 Maximum Energy Demand Day March
5 Minimum Energy demand day December
6 Minimum VRE (Wind+ Solar) generation day January
7 Maximum Variation in demand day December
8 Maximum Variation in Net demand day October

5.9.2.1 Peak Demand Day

One of the most critical days from power planning perspective is the peak demand day and it must
be ensured that there would be adequate supply for meeting the peak demand whenever it occurs.
This demonstrates the capability of the system for meeting the peak demand on other days as well.
From the likely hourly demand profiles of 2026-27, it has been observed that the peak demand of
272 GW in the country occurs in the month of September.

Hourly generation dispatch from all the resources for the peak day is shown in the Exhibit 5.11

Exhibit 5.11

Technolgy wise Likely Generation Dispatch on Peak Demand

Day( 2026-27)
300000

250000
BIOMASS
200000
SOLAR
MW

150000 WIND

100000 PSP
HYDRO
50000
GAS
0
COAL
NUCLEAR
DEMAND

HOUR

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It has been observed that on this day when the peak demand occurs, the electricity peak and
energy demand is likely to be fully met with the generation capacity mix obtained from the long-
term studies. Further, it is seen that online coal capacity is running at 55% minimum technical load
(MTL) during the hours when full solar generation is available. The Storage is getting charged during
the period when excess solar generation is available and dispatched during non-solar hours.
However, RE generation could not be fully absorbed due to shape of load curve, minimum technical
loading of the coal and gas plants etc. even when wind Capacity Utilization Factor (CUF) on the day
is 24.08% and solar CUF is 17.73%. The Gross PLF of the coal-based capacity is likely to be 59.65 %
on the day.

The study of short-term hourly dispatch for other critical days as given in Table above shows that
the system is resilient and stable to meet the demand of such days with the capacity mix obtained
from the Long-Term studies.

5.9.2. PLF of Coal based Capacity in 2026-27 and 2031-32

Table 5.14
Energy Generated from coal & Lignite and Average PLF of coal-based stations

Likely Coal+ Lignite Based

Likely PLF of Coal
Year Generation (Gross)
Based Plants (%)
(BU)

2026-27 1159 55.28

2031-32 1334 61.21

5.10 CONCLUSIONS
 The projected All India peak electricity demand and electrical energy requirement is 272 GW
and 1874 BU for the year 2026-27 and 363 GW and 2538 BU for the year 2031-32 respectively as per
the preliminary estimates of Demand projections.
 The capacity addition of 228,541 MW comprising of 40,632 MW of Conventional capacity
addition (Coal-33262 MW, Nuclear-7,000MW, Gas-370MW) and 187,909 MW of Renewable based
Capacity Addition (Large Hydro-10,951 MW, Solar-132,080, Wind-40,500 MW, Biomass-2318 MW,
PSP-2060 MW) is required during 2022-27 to meet the peak electricity demand and energy
requirement for the year 2026-27.
 Based on generation planning studies carried out for the period of 2022-27, the likely
Installed Capacity for the year 2026-27 is 622,899 MW comprising of 278,382 MW of Conventional
capacity addition (Coal-239,333 MW, Gas–25,269 MW, Nuclear-13,780MW) and 344,517 MW of

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Renewable based Capacity Addition (Large Hydro-52,929 MW, Solar-186,076 MW Wind-80,858 MW,
Small Hydro-4848MW, Biomass-13,000MW, PSP-6806MW)
 The capacity addition of 243,042MW comprising of 18,134 MW of Conventional capacity
addition (Coal-9434 MW, Nuclear-8700 MW) and 223,408 MW of Renewable based Capacity
Addition (Large Hydro-10,888 MW, Solar-147400, Wind-53100MW, Biomass-1500 MW, PSP-
12020MW) excluding 5856 MW of likely Hydro based Imports, is required during 2027-32 to meet
the peak electricity demand and energy requirement for the year 2031-32.
 Based on generation planning studies carried out for the period of 2027-32, the likely
Installed Capacity for the year 2027-32 is 865941 MW comprising of 296517 MW of Conventional
capacity addition (Coal-248767 MW, Gas–25270MW, Nuclear-22,480MW) and 569424 MW of
Renewable based Capacity Addition (Large Hydro-63,816 MW, Solar-333,476MW, Wind-
133,958MW, Small Hydro-4848MW, Biomass-14,500 MW, PSP-18826MW; excluding 5856 MW of
likely Hydro based Imports) along with 5-hour BESS capacity of 51.55 GW.
 The likely installed capacity for the year 2026-27 is in line with the target of the country to
achieve a non-fossil fuel based installed capacity of 500 GW by the year 2029-30.
 It is seen that apart from under construction coal based capacity of 25GW, the additional
coal based capacity required till 2031-32 may vary from 17 GW to around 28 GW. It is also seen that
the BESS (5-hour) requirement in 2031-32 is varying from 51 GW to 84GW.
 Short term studies carried out for the year 2026-27 on an hourly basis suggest that with the
aforementioned capacity mix, the hourly demand will be met on each of the 365 days reliably while
honoring various technical system constraints. Dispatch modeling validates that the optimal resource
mix can meet demand in every hour of the year i.e. there is no loss of load, even during days when
the system is stressed, such as days of peak load, highest net load, highest RE variability, etc.
 A generation of 1968 BU comprising of coal based -1158.8 BU, Gas based-35 BU, Nuclear
based- 82 BU, Large Hydro based- 189 BU (including generation from Hydro imports), PV based-326
BU, Wind based- 170 BU and SHP based-8 BU, is projected during the year 2026-27 based on the
generation planning studies to meet the projected hourly demand.
 Based on monte carlo based simulations run on hourly level, it has been found out that the
IC for the year 2026-27 as given in the table above meets the reliability criteria of LOLP of 0.2 % and
ENS of 0.05% as per the globally accepted planning norms.
 The average PLF of the total Installed coal capacity of 239.3 GW was found to be about 55%
in 2026-27. The average PLF of the total Installed coal capacity of 248.9 GW was found to be about
62 % in 2031-32.
 Several scenarios viz. Delayed Nuclear capacity addition, Delayed Hydro based capacity
addition, Higher Demand requirement (Peak demand and energy requirement increases by 5%) were
studied to assess the capacity addition requirement to meet the projected demand in the year 2026-
27 corresponding to different plausible situations considered in the respective scenario

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Annexure-5.1
Region wise Wind & Solar CUF considered
NODE NR WR SR ER NER ALL INDIA

Solar CUF 22.21% 23.47% 23.74% 21.55% 20.02% 22.20%

WIND(onshore) CUF 24.36% 27.16% 23.93% - - 25.15%

TRANSMISSION PARAMETERS

For carrying out the long-term generation expansion studies on regional basis, five Nodes have been created
with inter regional Transmission links between them for Inter regional power transfer. The following values
have been assumed for the inter-regional transmission links: -

Capital Cost of New Transmission Line * Rs 10,163 /MW-km

Actual transfer capacity of lines (assumed to be SIL) ~50% of installed Capacity

Line Voltage 400 KV

*For Lines to and From NER it is assumed 2 times of the above cost

FINANCIAL PARAMETERS

Following cost parameters have been assumed in the year 2021-2022:

Resource Capex* O&M Fixed Cost Construction Time Amortization/Lif

(in ₹/MW) (in ₹/MW) (in years) e time (in years)
Coal 8.34 Cr 19.54 Lakh 4 25
Nuclear 12 Cr 20 Lakh 6 30
Hydro~ 6 Cr to 20 Cr 2.5% of Capex 5 to 8 40
Solar! 4.5 Cr to 4.1 Cr 1 % of Capex 0.5 25
Wind(Onshore) 6 Cr 1% of Capex 1.5 25
Wind(Offshore) $ 16.59 Cr to 13.69 Cr 1% of Capex 1.5 25
Biomass 9 Cr 2% of Capex 3 20
Pumped Storage 3 Cr to 8 Cr 5 % of Capex 7 40
Battery Energy Storage@ 9.3 Cr to 5.24 Cr 1 % of Capex 0.5 14

Inter -Regional 10,163 /MW/Km - 1 25

transmission Line Cost

* All the Capex figures are on actual basis at the cost level of 2021-22 i.e., inflation is not considered while calculating capex.
~ The Capex values of Hydro and PSS candidates are considered as per the project cost details furnished by the respective developers
for state and private sector plants and as per RCEs done periodically by CEA for central sector plants. A benefit in the total Capex of
the project equivalent to infrastructure development cost as per the data furnished by the project developer has been considered
based on revised Hydro policy guideline as per MoP order no. 23/03/2016-R&R.

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! Solar Cost is assumed to reduce from Rs 4.5 Cr in 2021-22 to Rs 4.1 Cr in 2029-30 beyond which its assumed to be the same for next
two years.
$Off-shore wind has been considered as investment option from 2027-28 onwards with cost trajectory reducing from 16.59 Cr/MW
in 2027-28 to 13.69 Cr/MW in 2031-32.
@Battery Energy Storage System Cost (5-hour storage) is assumed to reduce from Rs 9.3 Cr/MW in 2021-22 to Rs 6.99 Cr/MW in
2024-25 and then to Rs 5.24 Cr/MW in 2029-30 beyond which its assumed to be the same for next two years. A custom duty of 22%
on the Battery pack cost and GST of 18% on the total Battery system cost has been considered in the studies.

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Annexure 5.2
LIST OF COAL BASED PLANTS FOR LIKELY RETIREMENT DURING 2022-23 TO 2026-27

(All Figures in MW)

TOTAL
S.NO NAME OF PROJECT STATE SECTOR ORGANISATION CAPACITY
(MW)
RRVUNL
2*110+2*210
1 KOTA TPS UNIT 1-4 RAJASTHAN STATE SECTOR
=640
UPRVUNL
2 HARDUAGANJ TPS UNIT 7 UTTAR PRADESH STATE SECTOR 105

CSPGCL
3 KORBA-WEST TPS UNIT 1-4 CHHATTISGARH STATE SECTOR 4*210=840

GEPL
4 GEPL TPP PH-I UNIT 1,2 MAHARASHTRA PRIVATE SECTOR 2*60=120

ANDHRA APGENCO
5 DR. N. TATA RAO TPS UNIT 1-6 STATE SECTOR 6*210=1260
PRADESH
TANGEDCO
6 THOOTHUKUDI TPS UNIT 1-3 TAMIL NADU STATE SECTOR 3*210=630

WBPDC 1*60+1*210=
7 BANDEL TPS UNIT 2,5 WEST BENGAL STATE SECTOR
270
CESC
8 TITAGARH TPS UNIT 1-4 WEST BENGAL PRIVATE SECTOR 4*60=240

DVC
9 DURGAPUR TPS UNIT 4 WEST BENGAL CENTRAL SECTOR 210

UPRVUNL
10 PARICHHA TPS UNIT 1,2 UTTAR PARDESH STATE SECTOR 2*110=220

UPRVUNL
11 OBRA TPS UTTAR PARDESH STATE SECTOR 94

TOTAL 4629

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Annexure 5.3

LIST OF UNDER CONSTRUCTION THERMAL PLANTS FOR LIKELY BENEFITS DURING 2022-23 TO 2026-27
(All Figures in MW)
TOTAL
S.NO. NAME OF PROJECT STATE SECTOR ORGANISATION CAPACITY
(MW)
1 SRI DAMODARAM TPS ST-II ANDHRA PRADESH STATE APGENCO 800
2 NORTH CHENNAI TPP ST-III TAMIL NADU STATE TANGEDCO 800
3 YELAHANKA CCPP-GAS KARNATAKA STATE KPCL 370
4 DR. NARLA TATA RAO TPS ST-V ANDHRA PRADESH STATE APGENCO 800
JV OF NLC &
GHATAMPUR TPP/ NLC JV U-1,2,3
5 UTTAR PRADESH CENTRAL UPRVUNL 3*660=1980
6 KHURJA SCTPP UNIT 1,2 UTTAR PRADESH CENTRAL THDC 2*660=1320
7 JAWAHARPUR STPP/ UPRVUNL UNIT 1,2 UTTAR PRADESH STATE UPRVUNL 2*660=1320

OBRA-C STPP/ UPRVUNL UNIT 1,2

8 UTTAR PRADESH STATE UPRVUNL 2*660=1320

PANKI TPS EXTN

9 UTTAR PRADESH STATE UPRVUNL 660

BHUSAWAL STPP UNIT 1

10 MAHARASHTRA STATE MAHAGENCO 660

ENNORE SCTPP / TANGEDCO U-1,2

11 TAMIL NADU STATE TANGEDCO 2*660=1320
12 UDANGUDI STPP UNIT 1,2 TAMIL NADU STATE TANGEDCO 2*660=1320

TELANGANA PH-I/NTPC U-1,2

13 TELANGANA CENTRAL NTPC 2*800=1600
14 YADADRI TPS UNIT 1-5 TELANGANA STATE TSGENCO 5*800=4000
15 BARH STPP-I /NTPC U-2,3 BIHAR CENTRAL NTPC 2*660=1320
16 BUXAR TPP UNIT 1,2 BIHAR CENTRAL SJVNL 2*660=1320
17 NORTH KARANPURA TPP/ NTPC U-1,2,3 JHARKHAND CENTRAL NTPC 3*660=1980
JV OF NTPC &
JHARKHAND
18 PATRATU STPP UNIT 1-3 JHARKHAND CENTRAL 3*800=2400
BIDYUT VITRAN
NIGAM LTD.
SAGARDIGHI THERMAL POWER PLANT
19 PH-III WEST BENGAL STATE WBPDCL 660

TOTAL 25950 MW
*Rourkela TPP-II Expansion (250 MW) is a captive power project and is not to be added in Under Construction list, hence not being
monitored by CEA.

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Annexure 5.3 (Continued)

LIST OF UNDER CONSTRUCTION HYDRO PLANTS (EXCLUDING PSP) FOR LIKELY BENEFITS DURING 2022-23 TO
2026-27
(All Figures in MW)
TOTAL
S.NO. NAME OF PROJECT STATE SECTOR ORGANISATION CAPACITY
(MW)
1 VYASI UNIT 1,2 UTTARAKHAND STATE UJVNL 2*60=120
2 NAITWAR MORI UNIT 1,2 UTTARAKHAND CENTRAL SJVNL 2*30=60
3 PALLIVASAL XT UNIT 1,2 KERALA STATE KSEB 2*30=60
HIMACHAL NHPC
4 PARBATI ST. II UNIT 1-4 PRADESH CENTRAL 4*200=800
ARUNACHAL NHPC
5 SUBANSIRI LOWER UNIT 1-8 PRADESH CENTRAL 8*250=2000
6 THOTTIYAR UNIT 1,2 KERALA STATE KSEB 1*30+1*10=40
M/S STATKRAFT
HIMACHAL INDIA PVT. LTD.
7 TIDONG-I UNIT 1,2 PRADESH PRIVATE 2*50=100
JAMMU &
8 PARNAI UNIT 1-3 KASHMIR STATE JKSDPC 3*12.5=37.5
9 TAPOVAN VISHNUGAD UNIT 1-4 UTTARAKHAND CENTRAL NTPC 4*130=520
10 TEESTA- VI UNIT 1-4 WEST BENGAL CENTRAL NHPC 4*125=500
HIMACHAL STATE BVPCL 3*33.33=100
11 UHL-III UNIT 1-3 PRADESH
JAMMU & CENTRAL CVPPL 4*156=624
12 KIRU UNIT 1-4 KASHMIR
ASSAM STATE APGCL 2*55+1*5+2*2.
13 LOWER KOPILI UNIT 1-5 5=120
ANDHRA PRADESH STATE POLAVARAM 12*80=960
14 POLAVARAM UNIT 1-12 PROJECT AUTHORITY
15 RAMMAM - III UNIT 1-3 WEST BENGAL CENTRAL NTPC 3*40=120
16 RANGIT-IV UNIT 1-3 SIKKIM CENTRAL NHPC 3*40=120
17 SHAHPURKANDI UNIT 1-7 PUNJAB STATE PSPCL 6*33+1*8=206
SHONGTONG KARCHAM UNIT 1- HIMACHAL STATE HPPCL 3*150=450
18 3 PRADESH
19 VISHNUGAD PIPALKOTI UNIT 1-4 UTTARAKHAND CENTRAL THDC 4*111=444
HIMACHAL CENTRAL SJVNL 2*33=66
20 DHAULASIDH U1,2 PRADESH
HIMACHAL PRIVATE JSW ENERGY LTD 3*80=240
21 KUTEHR UNIT 1-3 PRADESH
HIMACHAL CENTRAL SJVNL 2*80+2*25=210
22 LUHRI STAGE-I UNIT 1-4 PRADESH
JAMMU & CENTRAL CVPPL 4*250=1000
23 PAKAL DUL UNIT 1-4 KASHMIR
JAMMU & CENTRAL RHEPPL/NHPC 4*205+1*30=85
24 RATLE UNIT 1-5 KASHMIR 0
SIKKIM PRIVATE GATI 3*17=51
25 BHASMEY UNIT 1-3 INFRASTRUCTURE

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MADHYA PRIVATE SMHPCL 10*40=400

26 MAHESHWAR UNIT 1-10 PRADESH
27 PHATA BYUNG UNIT 1,2 UTTARAKHAND PRIVATE LANCO 2*38=76
SIKKIM HYDRO
28 RANGIT-II UNIT 1,2 SIKKIM PRIVATE POWER VENTURES 2*33=66
LIMITED
HIMACHAL PRIVATE TRPG 2*22=44
29 TANGNU ROMAI- I UNIT 1,2 PRADESH
30 LOWER KALNAI UNIT 1,2 JAMMU AND STATE JKSPDC 2*24=48
KASHMIR
31 LATA TAPOVAN UNIT 1-3 UTTARAKHAND CENTRAL NTPC 3*57=171
32 PANAN UNIT 1-4 SIKKIM PRIVATE HIMGIRI HYDRO 4*75=300
ENERGY PVT. LTD.
TOTAL 10903

LIST OF UNDER CONSTRUCTION PUMPED STORAGE PLANT FOR LIKELY BENEFITS DURING 2022-23 TO 2026-27
(All Figures in MW)
NAME OF TOTAL
S.NO. STATE SECTOR ORGANISATION
PROJECT CAPACITY (MW)
1 TEHRI UNIT 1-4 UTTARAKHAND CENTRAL THDC 4*250=1000
2 KUNDAH UNIT 1-4 TAMIL NADU STATE TANGEDCO 4*125=500
3 KOYNA LEFT BANK MAHARASHTRA STATE WRD 2*40=80
UNIT 1,2
TOTAL 1580

LIST OF UNDER CONSTRUCTION NUCLEAR PLANTS FOR LIKELY BENEFITS DURING 2022-23 TO 2026-27

(All Figures in MW)

INSTALLED
S.NO. NAME OF GENERATOR DEVELOPER STATE CAPACITY
(MW)
KAKRAPARA A.P.S. UNIT
1 3,4 NPCIL GUJARAT 2*700=1400
KUDANKULAM UNIT
2 3,4,5 NPCIL TAMILNADU 3*1000=3000
3 PFBR NEW UNIT 1 BHAVINI TAMILNADU 500
RAJASTHAN A.P.S. UNIT
4 7-8 NPCIL RAJASTHAN 2*700=1400
5 GORAKHPUR UNIT 1 NPCIL HARYANA 700
TOTAL 7000

LIST OF UNDER CONSTRUCTION NUCLEAR PLANTS FOR LIKELY BENEFITS DURING 2027-28 TO 2031-32
(All Figures in MW)
INSTALLED
S.NO. NAME OF GENERATOR DEVELOPER STATE CAPACITY
(MW)
1 KUDANKULAM UNIT 6 NPCIL TAMILNADU 1000

2 GORAKHPUR UNIT 2 NPCIL HARYANA 700

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3 GORAKHPUR UNIT 3,4* NPCIL HARYANA 2*700=1400

4 KAIGA A.P.S. UNIT 5,6* NPCIL KARNATAKA 2*700=1400
MADHYA
5 CHUTKA UNIT 1,2* NPCIL PRADESH 2*700=1400
MAHI BANSWARA
RAJASTHAN ATOMIC
6 NPCIL RAJASTHAN 4*700=2800
POWER PROJECT UNIT
1,2,3,4 *
TOTAL 8700
* Accorded Administrative Approval and Financial Sanction

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Annexure-5.4

List of Hydro Based Imports from neighbouring countries during 2022-23 to 2026-27
(All Figures in MW)
S.NO PLANT NAME COMMISSIONING YEAR CAPACITY (IN MW)

1 PUNATSANGCHHU 1 2024-25
1200
2 PUNATSANGCHHU 2 2024-25
1020
3 KHOLONGCHU 2024-25 600
4 ARUN-III 2024-25 900
TOTAL 3720

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CHAPTER 6
RENEWABLE ENERGY SOURCES IN INDIA
6.0 INTRODUCTION
To promote human welfare with social and economic development, the supply of electricity needs
to be secure and have a low impact on the environment to achieve sustainable development.
Renewable energy plays a key role in achieving the set objectives, especially in mitigating climate
change.

Renewable energies sources are clean, inexhaustible and due to technological innovation
becoming competitive with the fossil fuel-based sources. Renewable energy sources are vital for
combating climate change and limiting its devastating effects. The global average temperature has
risen by an average 1.09 °C from the 1850-1900 (IPCC report) which clearly indicates that some
necessary steps have to be taken at the earliest to keep global temperature in permissible limits.
Keeping this in mind Renewable energies received important backing from the international
community through the Paris Accord signed at the UNFCCC Summit held in December 2015.

The Paris Agreement’s central aim is to strengthen the global response to the threat of climate
change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-
industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees
Celsius. The Paris Agreement requires all Parties to put forward their best efforts through
“nationally determined contributions” (NDCs) and to strengthen these efforts in the years ahead.

India’s nationally determined contributions (NDCs) consists of a goal to achieve 40% of installed
capacity from non-fossil fuels. India has been fully committed to moving towards cleaner
investments and has set an ambitious target of 500 GW of non-fossil fuel capacity by year 2030.
This chapter detailed the of status of Renewable energy in India, major Renewable Energy sources
and its potential, new emerging technologies, challenges associated with the integration of
renewable energy sources with the grid and how we can deal with these challenges.

6.1 PRESENT STATUS OF RENEWABLE ENERGY IN THE COUNTRY

India is endowed with large renewable energy potential consisting of solar, wind, large hydro,
small hydro, biomass and other renewable energy sources. As per Hydro policy, 2019 notified on
08.03.2019 Large Hydro power projects (LHPs, i.e., >25 MW) are declared as Renewable Energy
source. India has achieved a cumulative installed renewable energy capacity (including large
hydro) of 156607.90 MW as on 31.03.2022 as shown in Table 6.1 and share of each RE source is
shown in Exhibit 6.1. State wise installed capacity of Renewable energy sources as on 31.03.2022
is attached in Annexure-6.1.

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Table 6.1
Installed Capacity of Grid-connected Renewable Power Plants
(As on 31.03.2022)

Renewable Energy Source Installed capacity (MW)

Large Hydro (including PSP) 46722.52

Solar 53996.54
Wind 40357.58
Bio-Power & Waste Power 10682.36
Small Hydro 4848.9
Total 156607.90

Exhibit 6.1
(All figures in MW)
INSTALLED CAPACITY FROM RE SOURCES AS ON 31.03.2022
Large Hydro,
46722.52 MW, 30% Solar, 53996.54 MW
,34%

Solar

Small Hydro, 4839.39 Wind

MW, 3% Biomass
Small Hydro
Large Hydro
Biomass, 10682.36
MW, 7%

Wind, 40357.58 MW,

26%

Share of installed capacity of Renewable energy sources in total installed capacity and share of
electricity generation from RE sources in total electricity is increasing continuously which is shown
in Table 6.2

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Table 6.2
India’s RE Sector at a Glance

Year Installed RE % Share of Generation Total % Share of

Capacity (in RE in total from Generation RE in
MW) Installed Renewable from all Generation
Capacity Sources sources
(in BU) (in BU)
2017-18 114315.8 33.23 227.95 1308.14 17.43
2018-19 123040.9 34.55 261.65 1376.1 19.01
2019-20 132726.9 35.86 294.09 1389.1 21.17
2020-21 140643 36.80 297.55 1381.86 21.53
2021-22 156607.90 39.00 321.02 1491.9 21.54

6.2 OVERVIEW OF RENEWABLE ENERGY TECHNOLOGIES

6.2.1 Solar energy
India is endowed with vast solar energy potential. About 5,000 trillion kWh per year energy is
incident over India's land area with most parts receiving 4-7 kWh per sq. m per day. Solar also
provides the ability to generate power on a distributed basis and enables rapid capacity addition
with short lead times. From an energy security perspective, solar is the most secure of all sources,
since it is abundantly available.

There has been a visible impact of solar energy in the Indian energy scenario during the last few
years. Solar energy based decentralized and distributed applications have benefited millions of
people in Indian villages by meeting their cooking, lighting and other energy needs in an
environment friendly manner. Solar energy sector in India has emerged as a significant player in
the grid connected power generation capacity over the years. It supports the government agenda
of sustainable growth, while, emerging as an integral part of the solution to meet the nation’s
energy needs and an essential player for energy security. With technological improvements,
economy of scale and reduction in solar cell/ module prices solar tariff in India is now competitive
and has achieved grid parity.

India have witnessed a steep decline in solar tariffs from Rs. 6.47/ kWh in 2013-14 to Rs.
1.99/kWh in December, 2020 as shown in Exhibit 6.2

RENEWABLE ENERGY SOURCES IN INDIA 6.3

 Central Electricity Authority Draft National Electricity Plan

Exhibit 6.2

Decrease trend in Tariff

7 6.47
6.17
6

5 4.34
Tariff Rs/Kh

4 3.3
3 2.44 2.44 2.36
1.99
2

0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Year

(Source: Ministry of New and Renewable Energy, India)

6.2.1.1 Solar Energy Potential in India:

National Institute of Solar Energy (NISE) has assessed the Country’s solar potential of about 748
GW assuming 3% of the waste land area to be covered by Solar PV modules. State-wise estimated
solar energy potential is shown in Annexure-6.2

A typical normalized monthly generation profile of a solar is shown in the Exhibit 6.3.
Exhibit 6.3

TYPICAL MONTH WISE CUF VARIATION OF SOLAR

0.25

0.2

0.15
CUF(%)

0.1

0.05

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

As shown from Exhibit 6.2, Average solar generation is maximum in the month of Feb-March

RENEWABLE ENERGY SOURCES IN INDIA 6.4

 Central Electricity Authority Draft National Electricity Plan

Season Wise Daily Variation of normalized solar profile for different regions is shown in Exhibit
6.4 (a) to (e)

Exhibit 6.4 (a) Exhibit 6.4 (b)

Exhibit 6.4 (c) Exhibit 6.4 (d)

Exhibit 6.4 (e)

RENEWABLE ENERGY SOURCES IN INDIA 6.5

 Central Electricity Authority Draft National Electricity Plan

6.2.1.2 Status of Grid Connected Solar:

As on 31.03.2022, India has achieved 5th rank in the world in solar power deployment. In solar
power, capacity has increased by more than 20.77 times in the last five years from 2.6 GW in
March 2014 to 54 GW in March 2022.

Year wise achievement of Grid connected solar power Project is shown in Table 6.3:

Table 6.3
Year-wise Grid Connected Solar power in the Country
S.NO YEAR CAPACITY ADDED CUMULATIVE
DURING F.Y (MW) CAPACITY (MW)
1 2017-18 9362.63 21651.48
2 2018-19 6529.20 28180.68
3 2019-20 6447.14 34627.82
4 2020-21 5757.55 40085.37
5 2021-22 13911.17 53996.54

6.2.2 Wind energy:

India’s wind energy sector is led by indigenous wind power industry and has shown consistent
progress. The expansion of the wind industry has resulted in a strong ecosystem, project operation
capabilities and manufacturing base of about 10,000 MW per annum (as per MNRE). The country
currently has the fourth highest wind installed capacity in the world with total installed capacity of
40.357 GW as on 31.03.2022

The Government is promoting wind power projects in entire country through private sector
investment by providing various fiscal and financial incentives such as Accelerated Depreciation
benefit; concessional custom duty exemption on certain components of wind electric generators.
Besides, Generation Based Incentive (GBI) Scheme was available for the wind projects
commissioned before 31 March 2017.
In addition to fiscal and other incentives as stated above, following steps also have been taken to
promote installation of wind capacity in the country:
 Technical support including wind resource assessment and identification of potential sites
through the National Institute of Wind Energy, Chennai.
 Issued Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power
from Grid Connected Wind Power Projects with an objective to provide a framework for
procurement of wind power through a transparent process of bidding including
standardization of the process and defining of roles and responsibilities of various
stakeholders. These Guidelines aim to enable the Distribution Licensees to procure wind
power at competitive rates in a cost-effective manner.

India have witnessed a steep decline in wind tariffs from Rs. 5.92/ kWh in 2014-15 to Rs. 3/kWh
in December, 2020 as shown in Exhibit 6.5

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 6.5

Decrease trend in Tariff

7
5.92 5.92 5.76
6 5.4

5
Tariff Rs/Kh

4
2.83 2.84 3
3
2
1
0
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Year

(Source: Ministry of New and Renewable Energy, India)

Wind Energy Potential in India:

Wind is an intermittent and site-specific resource of energy and therefore, an extensive Wind
Resource Assessment is essential for the selection of potential sites. The Government,
through National Institute of Wind Energy (NIWE), has installed over 800 wind-monitoring stations
all over country and issued wind potential maps at 50m, 80m, 100m and 120m above ground
level. The recent assessment indicates a gross wind power potential of 302 GW in the country at
100 meter and 695.50 GW at 120 meter above ground level. Most of this potential exists in seven
windy States as shown in Annexure-6.2.

GENERATION PROFILE OF WIND:

Wind energy is subjected to daily and seasonal weather patterns. Changes in wind generation
occur slowly during the course of hours during approaching storm. This is different from the solar
generation where changes occur rapidly and variation may be from second to second due to cloud
cover.

A typical normalized monthly generation profile of a wind is shown in the Exhibit 6.6.

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 6.6
TYPICAL MONTH WISE CUF VARIATION OF WIND
0.7

0.6

0.5

0.4
CUF(%)

0.3

0.2

0.1

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

As it can be seen from Exhibit 6.6 that wind generation is usually more in the period May to Aug.
which coincide with the monsoon period in India.

Season Wise Daily Variation of normalized wind profile for different regions is shown in Exhibit
6.7 (a) to (c)

Exhibit 6.7 (a) Exhibit 6.7 (b)

Exhibit 6.7 (c)

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 Central Electricity Authority Draft National Electricity Plan

6.2.3 Large Hydro:

The inherent benefits of hydroelectric power, whether in terms of technical, economic and
environmental benefits, make it an important contributor to the future energy mix, particularly in
the developing countries like India. India has an ever-intensifying need for power and water
supplies and have large hydro potential to be harness.

While development of all the remaining hydroelectric potential could not hope to cover total
future demand for electricity, implementation of even half of this potential could thus have
enormous environmental benefits in terms of avoided generation by fossil fuels.

As the impacts of climate change become evident globally, governments are increasingly looking
for ways to reduce their greenhouse gas emissions. For countries seeking to reduce or install no-
carbon generation options, hydropower projects can be one of the reliable options to achieve
carbon neutral economy. Hydropower projects are clean, renewable energy and the schemes are
generally integrated within multipurpose development schemes like construction of dam, secure
water supply, irrigation for food production and flood control, and societal benefits such as
increased recreational opportunities, improved navigation, the development of fisheries, cottage
industries, etc. This is not the case for any other source of energy.

It has the lowest operating costs and longest plant life, compared with other large scale generating
options. Once the initial investment has been made in the necessary civil works, the plant life can
be extended economically by periodic maintenance at minimal cost and replacement of
electromechanical equipment (replacement of turbine runners, rewinding of generators, etc. - in
some cases the addition of new generating units). Typically, a hydro plant in service for 40-50 years
can have its operating life doubled.

Electrical System Benefits

Hydropower, as an energy supply, provides unique benefits to an electrical system. Firstly, when
stored in large quantities in the reservoir behind a dam, it is immediately available for use when
required. Secondly, the energy source can be rapidly adjusted to meet demand instantaneously.
These benefits are a part of large number of benefits which include:

 Black start capability - the ability to start generation without any external source of power.
This service allows system operators to provide auxiliary power to more complex
generation sources that could take long time to restart. Systems with hydroelectric
generation are able to restore service more rapidly than those dependent solely on
thermal generation.
 Regulation and frequency response - the ability to meet small fluctuations in power
system. When a system is unable to respond properly to load changes its frequency
changes, resulting not just in a loss of power, but potential damage to electrical equipment
connected to the system. Hydropower's fast response characteristic makes it especially
valuable in load-frequency control.
 Spinning reserve - the ability to run at zero load while synchronized to the electric system.
When loads increase, additional power can be loaded rapidly into the system to meet

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 Central Electricity Authority Draft National Electricity Plan

demand. Hydropower can provide this service while not consuming additional fuel,
thereby assuring minimal emissions.
 Non-spinning reserve - the ability to enter generation into an electrical system from a
source not on line. While other energy sources can also provide non-spinning reserve,
hydropower's quick start capability is unparalleled, taking just a few minutes, compared
with other sources.
 Voltage support - the ability to control reactive power to maintain stable voltage profiles
in transmission network, thereby assuring that power flows from generation to load.

Providing Stability to Power Grid and support for Integration of variable Renewable Energy
Sources
The power system operation stability requires the system to minimize fluctuations between
demand and supply. This encompasses, for example, short term reserves (generation, storage,
demand response) to cover potential incidents which decrease power supply to the system, or to
respond to short-term variations in demand and generation. Hydropower therefore provides an
ideal solution for the challenges of a transitioning power system.

Hydropower brings a strong contribution to flexibility in the power system by filling the gap
between supply and demand that has been induced by the non-dispatchable variability of RES.
The storage capabilities of many hydropower plants make them a perfect instrument for
optimizing the use of variable RES over shorter and longer periods, thus facilitating the integration
of variable RES into the power system and providing a key tool to maintain a stable and balanced
grid.

Hydropower also provides a number of ancillary services which are needed in order to manage a
transmission system in a way that secures system stability and security of supply. Moreover,
during power system restoration, such as in the case of an extreme event (e.g., blackout), auxiliary
loads of conventional thermal and nuclear power plants need external power source, which can
be provided quickly by hydropower.

Hydropower plants with reservoirs reduce the dependency on the variability of the natural inflow
and enable adjustments of power generation to the variability in demand. These plants are
operated on a scheduled basis taking into account data regarding water flow forecast and
consumption patterns. They are commonly used for intense load following and to meet peak
demand. The generation of peak-load energy from reservoir type hydropower plants allows the
optimization of base-load power generation from other less flexible electricity sources, such as
nuclear and thermal power plants.

Hydro-Electric Potential:
India has considerable hydro power potential, which can play a key role in reducing the carbon
footprint of the Indian power sector. For assessment of the hydroelectric potential in the country,
Central Electricity Authority carried out a Reassessment study in various river basins during the
period 1978-87. As per these studies, total hydropower potential in the country was assessed, as
84,044 MW (at 60% load factor) from a total number of 845 identified hydroelectric schemes
which when fully developed would result in an installed capacity of about 1,48,701 MW. From

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 Central Electricity Authority Draft National Electricity Plan

these potential hydroelectric schemes above 25 MW installed capacity works out to be 1, 45,320
MW from a total of 592 H.E. Schemes on the basis of probable average load factor. The total
energy potential is assessed as 600 billion units per year.
As on 31th March 2022, Hydro Electric Schemes (above 25 MW capacity) have a total installed
capacity of 46,722.52 MW including Pumped storage schemes (PSS) capacity of 4,745.6 MW.
Summary of the status of Hydro Electric Potential development in the country is indicated in Table
6.4
Table: 6.4
Summary of the status of Hydro Electric Potential (As on 31.03.2022)

Conventional Pumped Storage

Capacity Capacity
Nos (%) Nos (%)
(MW) (MW)
Total Potential 592 145320 63 96529.6
203 41976.90 28.75 8 4745.6 4.92
Schemes under Operation
Schemes under 24 9747.50 6.71 2 1500 1.55
Construction
Schemes in which 8 1156.00 0.80 1 80 0.08
construction is held up
DPRs Concurred by CEA &
yet to be taken up for 29 22268 15.32 2 2200 2.28
construction
DPRs under Examination 2 756 0.52
by CEA - -
DPRs returned by CEA for 25 7777.1 5.35
resubmission - -
Under S & I for preparation 14 4295 2.96 17 16770 17.37
of DPRs
Schemes under S&I- Held 61 14069 9.68 1 660 0.68
up

Total Developed/ 203/ 41976.90 8/ 4745.6/ 4.92/

28.89/
Under Development 163 / 60068.6 23 21210 21.97
41.34

6.2.4 Small Hydro:

In India, hydro power plants of 25MW or below capacity are classified as small hydro, which have
further been classified into micro (100kW or below), mini (101kW-2MW) and small hydro (2-
25MW) segments. Hydro Power was being looked after by Ministry of Power prior to 1989 mainly
with the help of State Electricity Boards. In 1989, plant capacity up to 3MW and below was
transferred to the Ministry of New and Renewable Energy (MNRE) and as such 63 MW aggregate
installed capacity of 3MW and below hydro projects came within the jurisdiction of MNRE. Many
initiatives were taken by Government of India since then for the promotion of small hydro which

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 Central Electricity Authority Draft National Electricity Plan

included implementation of a UNDP-GEF assisted Technical Assistance project entitled

“Optimizing Development of Small Hydro Resources in Hilly Regions of India” and India-Renewable
Resources Development Project with IDA credit line having inter alia small hydro development
component with target of 100MW canal based small hydro power projects through private sector
participation. Subsequently plant capacity up to 25MW and below was entrusted with the MNRE
in November 1999.

The installed capacity of Small Hydro power in the country as on 31.03.2022 is 4848.90 MW.

Small Hydro Potential in India:

The estimated potential of 21135.37 MW from 7135 sites for power generation in the country
from small / mini hydel projects is assessed by the Alternate Hydro Energy Centre (AHEC) of IIT
Roorkee in its Small Hydro Database of July 2016. The hilly States of India mainly Arunachal
Pradesh, Himachal Pradesh, Jammu & Kashmir and Uttarakhand, and constitute around half of this
potential. Other potential States are Maharashtra, Chhattisgarh, Karnataka and Kerala. Focused
attention is given towards these States through close interaction, monitoring of projects and
reviewing policy environment to attract private sector investments. The state wise location of
identified SHP sites are given - Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh,
Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala,
Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Punjab,
Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, West Bengal.
State-wise estimated small Hydro potential is shown in Annexure-6.2

6.2.5 Biomass/Bagasse:

Biomass has always been an important energy source for the country considering the benefits it
offers. It is renewable, widely available, carbon neutral and has the potential to provide significant
employment in the rural areas. Biomass is also capable of providing firm energy. Ministry of New
and Renewable Energy has realised the potential and role of biomass energy in the Indian context
and hence has initiated a number of programmes for promotion of efficient technologies for its
use in various sectors of the economy to ensure derivation of maximum benefits. For efficient
utilization of biomass, bagasse-based cogeneration in sugar mills and biomass power generation
have been taken up under biomass power and cogeneration programme.

Biomass power & cogeneration programme is implemented with the main objective of promoting
technologies for optimum use of country’s biomass resources for grid power generation. Biomass
materials used for power generation include bagasse, rice husk, straw, cotton stalk, coconut shells,
soya husk, de-oiled cakes, coffee waste, jute wastes, groundnut shells, saw dust etc.

As on 31.03.2022, a total capacity of 10682.36 MW has been installed in Biomass Power and
Cogeneration Sector which includes 476.75 MW of Waste to power, 10205.61 MW of Biomass
(Bagasse and Non-Bagasse) Cogeneration.

Potential:

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 Central Electricity Authority Draft National Electricity Plan

As per a recent study sponsored by MNRE, the current availability of biomass in India is estimated
at about 750 million metric tonnes per year. The Study indicated estimated surplus biomass
availability at about 230 million metric tonnes per annum covering agricultural residues
corresponding to a potential of about 28 GW. Apart from this about 14 GW additional power can
be generated through bagasse-based cogeneration in the country’s 550 Sugar mills, if these sugar
mills adopt technically and economically optimal levels of cogeneration for extracting power from
the bagasse produced by them.

Technology:

I. Combustion

The thermo-chemical processes for conversion of biomass to useful products involve combustion,
gasification or pyrolysis. The most commonly used route is combustion. The advantage is that the
technology used is similar to that of a thermal plant based on coal, except for the boiler. The cycle
used is the conventional Rankine cycle with biomass being burnt in high-pressure boiler to
generate steam and operating a turbine with the generated steam. The exhaust of the steam
turbine can either be fully condensed to produce power, or used partly or fully for another useful
heating activity. The latter mode is called cogeneration. In India, cogeneration route finds
application mainly in industries.

II. Cogeneration in Sugar and Mills

Sugar industry has been traditionally practicing cogeneration by using bagasse as a fuel. With the
advancement in the technology for generation and utilization of steam at high temperature and
pressure, sugar industry can produce electricity and steam for their own requirements. It can also
produce significant surplus electricity for sale to the grid using same quantity of bagasse. For
example, if steam generation temperature/pressure is raised from 400oC/33 bar to 485oC/66 bar,
more than 80 kWh of additional electricity can be produced for each ton of cane crushed. The sale
of surplus power generated through optimum cogeneration would help a sugar mill to improve its
viability, apart from adding to the power generation capacity of the country.

6.3 NEW AREAS IN RENEWABLE ENERGY:

6.3.1 Waste to Energy:

The increasing industrialization, urbanization and changes in the pattern of life, which accompany
the process of economic growth, give rise to generation of increasing quantities of wastes leading
to increased threats to the environment. In recent years, technologies have been developed that
not only help in generating substantial quantity of decentralized energy but also in reducing the
quantity of waste for its safe disposal.
Government of India is promoting all the technology options available for setting up projects for
recovery of energy in the form of Biogas/Bio CNG/Electricity from agricultural, Industrial and urban
wastes of renewable nature such as municipal solid wastes, vegetable and other market wastes,
slaughterhouse waste, agricultural residues and industrial/STP wastes & effluents.

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The total estimated energy generation potential from urban and industrial organic waste in India
is approximately 5690 MW.

Types of Waste

There are different types of waste which are generated from our daily or industrial activities such
as organic waste, e-waste, hazardous waste, inert waste etc. Organic waste refers to waste which
degrades or broken down by microorganisms over time. All organic wastes are essentially carbon
based compounds; though they may be diverse in nature and have different degradation rate.
Organic waste has significant portion in overall waste generation in industrial/urban/ agricultural
sector and therefore it can be used for energy generation.

The organic fraction of waste can be further classified as non-biodegradable and biodegradable
organic waste
i) Biodegradable waste consists of organics that can be utilized for food by naturally occurring
micro- organisms within a reasonable length of time. The biodegradable organic comprise of agro
residue, food processing rejections, municipal solid waste (food waste, leaves from garden waste,
paper, cloths/ rags etc.), waste from poultry farms, cattle farm slaughter houses, dairy, sugar,
distillery, paper, oil extraction plant, starch processing and leather industries.

ii) Non-Biodegradable organic materials are organics resistant to biological degradation or have a
very low degradation rate.

Technologies available:

Waste-to-Energy (WTE) technologies to recover the energy from the waste in the form of
Electricity and Biogas/Syngas are given as below:

i) Biomethanation: Biomethanation is anaerobic digestion of organic materials which is converted

into biogas. Anaerobic digestion (AD) is a bacterial fermentation process that operates without
free oxygen and results in a biogas containing mostly methane (60%), carbon dioxide (40%) and
other gases. Biomethanation has dual benefits. It gives biogas as well as manure as end product.

This technology can be conveniently employed in a decentralized manner for biodegradation of

segregated organic wet wastes such as wastes from kitchens, canteens, institutions, hotels, and
slaughter houses and vegetables markets.
The biogas generated from Biomethanation process can be burned directly in a gas boiler/burner to
produce heat for thermal application industries and cooking or burnt in a gas engine to produce
electricity. Alternatively, the biogas can be cleaned to remove the carbon dioxide and other
substances, to produce Bio CNG. This can be injected into the national gas grid to be used in the
same way as natural gas, or used as a vehicle fuel.
By using Biomethanation process, 20-25kgs of Cattle dung can generate about 1m3 of biogas and
further 1m3 of Biogas has potential to generate 2 units of electricity or 0.4kgs of Bio CNG.

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ii) Incineration: Incineration technology is complete combustion of waste (Municipal Solid Waste or
Refuse derived fuel) with the recovery of heat to produce steam that in turn produces power
through steam turbines.
The flue gases produced in the boilers have to be treated by an elaborate air pollution control
system. The resultant ash from incineration of solid waste can be used as construction material
after necessary processing while the residue can be safely disposed of in a landfill.
This technology is well established technology and has been deployed in many projects successfully
at commercial level in India to treat solid wastes like Municipal Solid Waste and Industrial solid
Waste etc. and generate electricity.

iii) Gasification: Gasification is a process that uses high temperatures (500-1800 degree Celsius) in
the presence of limited amounts of oxygen to decompose materials to produce synthetic gas (a
mixture of carbon monoxide (CO) and hydrogen (H2)). Biomass, agro-residues, Segregated
Municipal Solid Waste and Refuse Derived pellets are used in the gasifiers to produce Syngas. This
gas further can be used for thermal or power generation purposes
The purpose of gasification of waste is to generate power more efficiently at lower power level (<
2MW) and also to minimize emissions and hence it is an attractive alternative for the thermal
treatment of solid waste.

iv) Pyrolysis: Pyrolysis uses heat to break down combustible materials in the absence of oxygen,
producing a mixture of combustible gases (primarily methane, complex hydrocarbons, hydrogen,
and carbon monoxide), liquids and solid residues. The products of pyrolysis process are: (i) a gas
mixture; (ii) a liquid (bio-oil/tar); (iii) a solid residue (carbon black). The gas generated by either of
these processes can be used in boilers to provide heat, or it can be cleaned up and used in
combustion turbine generators. The purpose of pyrolysis of waste is to minimize emissions and to
maximize the gain.

6.3.2 Off-shore wind

Out of the total estimated potential more than 95% of commercially exploitable wind resources are
concentrated in seven states (Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra,
Rajasthan and Tamil Nadu). The precious land resources required for onshore wind projects are
gradually becoming a major constraint. With exhaustion of best windy sites, we expect upward
movements of market determined tariffs for onshore wind energy in future.
Offshore wind power offers a plausible alternative in such a scenario. Absence of any obstruction in
the sea offers much better quality of wind and its conversion to electrical energy. Offshore wind
turbines are much larger in size (in range of 5 to 10 MW per turbine) as against 2-3 MW of an
onshore wind turbine. While, the cost per MW for offshore turbines are higher because of stronger
structures and foundations needed in marine environment, the desirable tariffs can be achieved on
account of higher efficiencies of these turbines after development of the eco system.
Off Shore wind Potential in India:

Based on the preliminary assessment from satellite data and data available from other sources eight
zones each in Gujarat and Tamil Nadu have been identified as potential offshore zones for
exploitation of offshore wind energy. Initial assessment by NIWE within the identified zones

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 Central Electricity Authority Draft National Electricity Plan

suggests 36 GW of offshore wind energy potential exists off the coast of Gujarat only. Further, nearly
35 GW of offshore wind energy potential exists off the Tamil Nadu coast.
The offshore wind energy potential estimation carried out through satellite data needs to be
validated through actual ground measurements in order to make the data bankable. Government
of India has decided to launch a measurement campaign deploying Light Detection and Ranging
(LIDAR’s) at the identified zones off the coast of Gujarat and Tamil Nadu. One LiDAR was
commissioned in November 2017 for Offshore Wind Resource assessment in identified zone-B off
the coast of Gujarat nearly 25 km away from the port of Pipavav. Two years data collected from the
deployed LiDAR has been analysed and the report is published at NIWE’s website.
In addition to the wind data, the viability of offshore wind projects also largely depends on the
condition of site in terms of oceanographic data, geophysical and geotechnical data. Government
of India has planned to carry out the required study in this regard through NIWE and provide the
basic data to the stakeholders before commencement of the bidding so as to mitigate the risks. Geo-
physical Survey for 365 Sq. km (Gujarat) for 1.0 GW project capacity in Gujrat has been completed.

6.4 Estimated renewable energy Installed Capacity by 2026-27 and

2031-32
With support of government policies, the declining cost of many RE technologies, an increase of
energy demand and with more focus on sustainable development there is continuous increase in
capacity of RE sources over the last years and in future as well renewable energy will play a much
bigger role in optimal energy mix of the country. As per the modelling studies carried which is
detailed in Chapter 5, it has been estimated that renewable energy installed capacity is likely to be
3,44,517 MW by 2026-27. The contribution of the major renewable energy sources to reach an
installed capacity of 3,44,517 MW by 2026-27 and 5,69,425 MW by 2031-32 is shown in Table 6.5.

Table 6.5
Estimated contribution of the major Renewable Energy Sources
(All figures in MW)
Sl. No. Renewable Energy Estimated Installed Estimated Installed
Source Capacity by 2026-27 Capacity by 2031-32
1. Large Hydro 59735 82642
(including PSP)
2. Solar 186076 333476
3. Wind 80858 133958
4. Biomass 13000 14500
5. Small Hydro 4849 4849
Total 344518 569425

Type-wise renewable energy installed capacity on All India basis by 2026-27 is shown in Exhibit 6.8.

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 6.8
(All figures in MW)

ESTIMATED RENEWABLE ENERGY INSTALLED CAPACITY BY

2026-27
Biomass, 13000 MW, Small Hydro, 4849 MW,
Large Hydro
4% 1%
(including PSP),
59734 MW, 17%
Wind, 80858 MW,
24%

Large Hydro (including PSP)

Solar
Wind
Biomass
Small Hydro

Solar, 186076 MW,

54%

TOTAL: 344517 MW

6.5 PROJECTION OF RENEWABLE ENERGY GENERATION

Based on the projections of capacity addition targets from Renewable Energy Sources by the year
2026-27 and considering an RES capacity addition of 2,24,908 MW during the period 2027-32,
expected electricity generation from various renewable energy sources has been estimated and is
given in Table 6.6 and Exhibit 6.9. It can be seen that contribution of RES will be around 35.6% of
the total energy of the country in the year 2026-27 and 45.09% by 2031-32.
Table 6.6
Estimated Electricity Generation from RES in years 2026-27 and 2031-32
Expected Generation in (BU)
Installed
capacity Large Contribution of
Year of RES Hydro RES to Total
Solar Wind Others Total
Energy Demand
(MW)
(%)

2026-27 3,44,517 163.7 326 169.8 7.7 667.2 35.60

2031-32 5,69,425 206.6 624.4 305.7 7.7 1144.4 45.09

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 Central Electricity Authority Draft National Electricity Plan

Exhibit 6.9

PROJECTED ELECTRICITY GENERATION FROM RES

BY 2026-27(IN BU)
Others, 7.7, 1%
Large Hydro , 163.7,
Wind, 169.8, 25% 25%

Large Hydro
Solar
Wind
Small Hydro

TOTAL: 667.2 BU Solar, 326, 49%

6.6 MAJOR ONGOING SCHEMES AND POLICIES RELATED TO

RENEWABLE ENERGY SOURCES
6.6.1 National Solar Mission
National Solar Mission (NSM) was launched on 11th January, 2010. NSM is a major initiative of the
Government of India with active participation from States to promote ecological sustainable
growth while addressing India’s energy security challenges. It will also constitute a major
contribution by India to the global effort to meet the challenges of climate change. The Mission’s
objective is to establish India as a global leader in solar energy by creating the policy conditions
for solar technology diffusion across the country as quickly as possible. The Mission targets
installing 100 GW grid-connected solar power plants by the year 2022. This is in line with India’s
Intended Nationally Determined Contributions(INDCs) target to achieve about 40 percent
cumulative electric power installed capacity from non-fossil fuel based energy resources and to
reduce the emission intensity of its GDP by 33 to 35 percent from 2005 level by 2030.

In order to achieve the above target, Government of India have launched various schemes to
encourage generation of solar power in the country like Solar Park Scheme, VGF Schemes, CPSU
Scheme, Defence Scheme, Canal bank & Canal top Scheme, Bundling Scheme, Grid Connected
Solar Rooftop Scheme etc.

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6.6.2 International solar alliance

The International Solar Alliance (ISA) is a treaty based inter-governmental organization working to
create a global market system to tap the benefits of solar power and promote clean energy
applications. The Paris Declaration that established the ISA states that the countries share the
collective ambition to undertake innovative and concerted efforts to reduce the cost of finance
and technology for deployment of solar generation assets. The ISA aims to pave the way for future
solar generation, storage and technologies for Member countries’ needs by mobilising over USD
1000 billion by 2030. Achievement of ISA’s objectives will also strengthen the climate action in
member countries, helping them fulfil the commitments expressed in their Nationally Determined
Contributions (NDCs).
The ISA plays a four-fold role in establishing a global solar market: it is an accelerator, an enabler,
an incubator, and a facilitator.
ISA’s vision to enable One World, One Sun, One Grid (OSOWOG): The concept is to interconnect
generators and loads across continents with an international power transmission grid. A tripartite
Memorandum of Understanding (MoU) between the International Solar Alliance (ISA), the
Government of India, and the World Bank was signed on September 8th, 2020 to implement the
OSOWOG initiative. Currently, a long-term vision, implementation plan, road map and institutional
framework is being developed by the ISA, which will implement this project. A consultant has been
selected to undertake a study for evaluating the feasibility and implementation of the global
OSOWOG project.

6.6.3 Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM
KUSUM)
PM-KUSUM scheme is one of the largest initiatives in the world to provide clean energy to more
than 3.5 million farmers by solarising their agriculture pumps. PM-KUSUM scheme aims to install
grid connected ground mounted solar power plants (up to 2 MW) aggregating to a total capacity
of 10 GW under Component A; install 20 Lakh standalone solar pumps under Component B; and
solarize 15 Lakh grid connected agricultural pumps under Component C. All components combined
would support installation of additional solar capacity of 30.80 GW.

6.6.4 Green Energy Corridors

To facilitate evacuation of electricity from RE projects, Green Energy Corridor scheme was
launched in 2015 for setting up of transmission and evacuation infrastructure. The Inter-State
Transmission System (ISTS) component consisting of 3200ckm transmission lines and 17,000 MVA
substations has been completed in March 2020. The Intra-State Transmission System (InSTS)
component has been sanctioned to eight RE rich states of Tamil Nadu, Rajasthan, Karnataka,
Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh and Madhya Pradesh for evacuation of
over 20,000 MW of renewable power.

6.6.5 National Wind-Solar Hybrid Policy:

Government of India issued National Wind-Solar Hybrid Policy on 14th May, 2018. The main
objective of the policy is to provide a framework for promotion of large-scale grid connected wind-
solar PV hybrid systems for optimal and efficient utilization of wind and solar resources,
transmission infrastructure and land. The wind-solar PV hybrid systems will help in reducing the

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variability in renewable power generation and achieving better grid stability. The policy also aims
to encourage new technologies, methods and way-outs involving combined operation of wind and
solar PV plants.

The Major Highlights of the Policy are as under:

 A wind-solar plant will be recognized as hybrid plant if the rated power capacity of one
resource is at least 25% of the rated power capacity of other resource.
 Both AC and DC integration of wind-solar hybrid project are allowed.
 The power procured from the hybrid project may be used for fulfilment of solar RPO
and non-solar RPO in the proportion of rated capacity of solar and wind power in the
hybrid plant respectively.
 Existing wind or solar power projects, willing to install solar PV plant or Wind Turbine
Generators (WTGs) respectively, to avail benefit of hybrid project, may be allowed.
 All fiscal and financial incentives available to wind and solar power projects will also be
made available to hybrid projects.
 The Central Electricity Authority (CEA) and Central Electricity Regulatory Commission
(CERC) shall formulate necessary standards and regulations including metering
methodology and standards, forecasting and scheduling regulations, REC mechanism,
grant of connectivity and sharing of transmission lines, etc., for wind-solar hybrid
systems.
 Storage may be added to the hybrid project to ensure availability of firm power for a
particular period.

6.6.6 National Offshore Wind Energy Policy, 2015

Under the policy, the Ministry of New & Renewable Energy (MNRE) has been authorized as the
nodal Ministry for the use of offshore area within the Exclusive Economic Zone (EEZ) of the country
and the National Institute of Wind Energy (NIWE) has been authorized as the nodal agency for
development of offshore wind energy in the country and to carry out the allocation of offshore
wind energy blocks, coordination and allied functions with related ministries and agencies. It
would pave the way for offshore wind energy development including setting up of offshore wind
power projects and research and development activities, in waters, in or adjacent to the country,
up to the seaward distance of 200 nautical miles (EEZ of the country) from the base line.
Preliminary assessments along the 7,600 km long Indian coastline have indicated prospects of
development of offshore wind power. With the introduction of the National Offshore Wind Energy
Policy, the Government is attempting to replicate the success of the onshore wind power
development in the area of offshore wind power development.
The scheme would be applicable throughout the country depending upon the offshore wind
potential availability.

6.6.7 Hydro Policy Notification, 2019

Hydro Policy, 2019 was notified by Govt. of India on 08.03.2019. The salient features of the policy
are given below:

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 Declaring Large Hydro Power Projects (LHPs, i.e., >25 MW) AS Renewable Energy Source.
However, LHPs would not automatically be eligible for any differential treatment for statutory
clearances such as Forest clearances, environmental clearance, National Board for Wildlife
clearance, related impact Assessment and carrying capacity study, etc., available to Small
Hydropower Projects (SHPS), i.e., projects capacity up to 25 MW.
 Hydro Purchase Obligation (HPO) as a separate entity within non-solar Renewable Purchase,
The HPO shall cover all LHPs commissioned after this notification as well as untied capacity
(i.e., without PPA) of the commissioned projects. This HPO will be within the existing Non-Solar
RPO after increasing the percentage assigned to it so that existing Non-Solar RPO for other
renewable sources remain unaffected by the introduction of this HPO. Necessary amendments
will be introduced in the Tariff Policy and Tariff Regulations to operationalize HPO.
 Tariff rationalization measures to bring down hydropower tariff: Tariff rationalization
measures including providing flexibility to the developers to determine tariff by back loading
of tariff after increasing project life to 40 years, increasing debt repayment period to 18 years
and introducing escalating tariff of 2%;
 Budgetary support for funding flood moderation component of hydropower projects on case-
to-case basis; and
 Budgetary support for funding cost of enabling infrastructure i.e., roads and bridges on case-
to-case basis as per actual, limited to Rs. 1.5 crore per MW for up to 200 MW projects and Rs.
1.0 crore per MW for above 200 MW projects.

6.6.8 Renewable Purchase Obligation (RPO) Trajectory notified by order on 29th

January, 2021

 On 8th March 2019, the government had issued an order detailing various policy measures to
promote hydropower sector in India inter-alia declaring large hydropower projects including
pumped storage projects having capacity of more than 25 MW (LHPs) which come into
commercial operation after 08.03.2019 as RE source and to specify Hydropower Purchase
Obligation (HPO) within Non-Solar RPO.

 In compliance of the above decision and with the objective to add 30000 MW of Hydropower
capacity by the year 2029-30, Ministry of Power has prepared a revised Trajectory of RPO
including long term trajectory for HPO considering the LHPs commissioned after 8 th March,
2019

 In super-session of orders dated 22nd July 2016 and 14th June 2018, Ministry of Power hereby
specifies the following RPO Trajectory:

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Year Solar RPO Non-Solar RPO Total RPO

HPO Other Non- Total Non-
Solar RPO Solar RPO
2019-20 7.25 % - 10.25 % 10.25% 17.50 %
2020-21 8.75 % - 10.25 % 10.25% 19 %
2021-22 10.50 % 0.18 % 10.50 % 10.68 % 21.18 %
2022-23 To be 0.35 % To be To be To be
2023-24 specified later 0.66 % specified later specified later specified later
2024-25 1.08 %
2025-26 1.48 %
2026-27 1.80 %
2027-28 2.15 %
2028-29 2.51 %
2029-30 2.82 %

 RPO will be calculated in energy terms as a percentage of total consumption of electricity

excluding consumption met from hydro sources (LHPs).

 HPO benefits may be met from the power procured from eligible LHPs commissioned on
and after 8.8.2019 and up to 31.03.3030 in respect of 70 % of the total generated capacity
for the period of 12 years from the date of commissioning. Free power is to be provided as
per agreement with the state government and that provided for Local Area Development
Fund (LADF), shall not be included within this limit of 70% of the total generated capacity.

 HPO liability of the State/Discom could be met out of the free power being provided to the
State from LHPs commissioned after 08.03.2019 as per agreement at that point of time
excluding the contribution towards LADF if consumed within the State/Discom. Free power
(not that contributed for Local Area Development) only to extent of HPO liability of the
State/Discom, shall be eligible for HPO benefit.

 In case the free power, as above, is insufficient to meet the HPO obligations, then the state
would have to buy the additional hydro power to meet its HPO obligations or may have to
buy the corresponding amount of Hydro Energy Certificate to meet the non-solar hydro
renewable purchase obligations.

 The Hydro Energy Certificate mechanism under regulation to be developed by CERC to

facilitate compliance of HPO obligation, would have a capping price of RS 5.50/Unit of
electrical energy w.e.f 8th March 2019 to 31st March, 2021 and with annual escalation @5
% thereafter for purposes of ensuring HPO compliance.
 The above HPO trajectory shall be trued up on an annual basis depending on the revised
commissioning schedule of Hydro projects. The HPO Trajectory for the period between
2020-21 and 2039-40 shall be notified subsequently.

 Hydro power imported from outside India shall not be considered for HPO.

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 On achievement of HPO Compliance to the extent of 85% and above, remaining shortfall,
if any, can be met by excess solar or other non-solar energy consumed beyond specified
Solar RPO or other Non-Solar RPO of that particular year.

 SERCs may consider to notify RPO Trajectory including HPO for their respective states in
line with aforesaid RPO trajectory. Moreover, CERC may consider to devise mechanism
similar to Renewable Energy Certificate (REC) mechanism to facilitate fulfilment of HPO.

6.7 SPECIAL MEASURES TO PROMOTE GROWTH OF RENEWABLE

ENERGY
6.7.1 Ensuring Round-the-Clock-Power (RTC) from the RE Power Projects
In order to overcome the issues of intermittency and low-capacity utilization of transmission
infrastructure, the mechanism of ‘bundling’ has been brought out by Government of India. To
ensure uninterrupted firm power round-the-clock, RE is bundled with power from other sources
or combined storage. Such bundled power is supplied to the distribution company (DISCOM)
thereby obviating the need for DISCOMs to balance power.

6.7.2 Renewable Energy Hybrid Projects

Solar and Wind power being variable in nature pose challenges to provide a stable supply.
However, in India solar and wind resources are complementary to each other as wind is stronger
during evening and night, when there is limited input from solar power. Hybridization of these two
technologies reduces the variability and optimizes the utilization of land and transmission systems.
Capacities of 1,440 MW of wind-solar hybrid projects are under implementation in the states of
Rajasthan and Tamil Nadu.

6.7.3 Solar Cities

At least one city, (either the state capital city or a well-known tourist destination) in each of the
states of India is being developed as a solar city. All electricity needs of the city will be fully met
from RE sources, primarily from solar energy. All houses in the solar city will have roof-top solar
energy plants. Every Solar city will also have solar street lights and waste to energy plants among
others. The balance of energy needs will be met by ground mounted Solar Plants.
The Solar City programme aims:

 To enable and empower Urban Local Governments to address energy challenges at City -
level.
 To provide a framework and support to prepare a Master Plan including assessment of
current energy situation, future demand and action plans.
 To build capacity in the Urban Local Bodies and create awareness among all sections of civil
society.
 To involve various stakeholders in the planning process.
 To oversee the implementation of sustainable energy options through public - private
partnerships.

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6.7.4 Renewable Purchase Obligations (RPO)

Uniform Renewable Purchase Obligations (RPO) have been introduced wherein all electricity
distribution licensees have to consume a specified minimum quantity of their total requirements
from Renewable Energy Sources.

6.7.5 Waiver of Inter State Transmission System Charges

 Inter State Transmission System (ISTS) charges on transmission of electricity generated

from solar and wind power projects have been waived for projects to be commissioned
up to 30.06.2025.
 Waiver of total Inter State Transmission System charges shall also be allowed for Hydro
Pumped Storage Plant (PSP) and Battery Energy Storage systems (BESS) projects to be
commissioned up to 30.06.2025, if following conditions are met:

i. At least 70% of the annual electricity requirement for pumping of water in the
Hydro Pumped storage plant is met by use of electricity generated from solar
and/or wind power plants
ii. At least 70% of the annual electricity requirement for pumping of water in the
Battery energy storage plant is met by use of electricity generated from solar
and/or wind power plants

 The Inter State Transmission System (ISTS) charges for power generated/supplied from
such Hydro PSP and such BESS shall be levied gradually: 25% of the STOA charges of initial
5 years of operation, then charges can be gradually increased in steps of 25% after every
3rd year to reach to STOA charges from 12th year onwards. This may be aligned with
gradual reduction in tariff and payment of debt.
 Waiver of Transmission charges shall be allowed for trading of electricity generated/
supplied from Solar, Wind, PSP, BESS in Green Term Ahead Market (GTAM) and Green
Day Ahead Market (GDAM) TILL 30TH June, 2023. This arrangement may be reviewed on
annual basis depending upon the future development in the power market.

6.7.6 ENHANCING DOMESTIC MANUFACTURING CAPACITY

In compliance of the Atma Nirbhar call given by the Hon’ble Prime Minister and the call “To be
Vocal for Local” several steps were taken to enhance domestic manufacture of RE machinery,
components and equipment. While sufficient manufacturing capacity in wind power exists in the
country, the present installed capacity for manufacturing of solar cells in the country is around
2.5 GW, while the functional capacity of solar modules is around 9-10 GW, whereas the annual
requirement for the next 10 years is around 30 GW, necessitating imports. In order to enhance
the domestic manufacturing capacity, Government of India has been consistently bringing out
policies to support domestic PV manufacturing. Some of the initiatives are:
 Government of India has created a captive market of more than 36 GW over the next 2
to 3 years for domestic producers by making deployment of domestic cells and modules
mandatory in schemes such as PM-KUSUM, Solar Rooftops and CPSU schemes.

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 Further the procurement of RE sector-related goods by Public Sector Enterprises has to

be from domestic sources only.
 A Performance Linked Incentive (PLI) scheme has been approved by the Government for
encouraging the production of high efficiency solar modules.
 In order to protect domestic manufacturers from cheap imports, a Safeguard Duty has
been imposed on import of solar cells and modules.
 To hand-hold and facilitate investors for setting up manufacturing plants in India, a
Project Development Cell (PDC) has been set up.
 In order to give a long-term visibility to investors, Government has announced an advance
trajectory of Basic Customs Duty (BCD) on solar cells & modules. Further, the BCD rates
on solar inverters and solar lanterns/lamps have been increased.

6.8 CHALLENGES WITH INTEGRATION OF SOLAR AND WIND POWER WITH THE
GRID

Intermittency: Intermittency consists of two distinct aspects:

 Temporal variability: Temporal variability of Solar and Wind generation makes the supply
uncorrelated with demand pattern, thus creating system management related challenges
for operators.

 Output uncertainty: Uncertainty of output from Solar and Wind plants creates scheduling-
related challenges as RE generation forecasts deviate at real time of operation.

Integration with grid: The existing power system structure can handle certain quantum of
variability and uncertainty from demand and unit outage using controllable reserve (e.g., thermal
power plants). An adjustment of the system operation protocol can only support up to a certain
level of Solar and Wind penetration. With large-scale introduction of generation uncertainty and
variability, operational adjustment alone is not enough and significant investment planning is
required.

Resource Location: Location specificity of Solar and Wind resources is one of the major planning
related challenges. In India, geographical distribution of solar and wind resources are not uniform
or spatially correlated with demand and are situated far away from load centres often create
transmission related challenges. Solar potential is high in western states while wind potential is
high in western and southern coastal areas. High capacity of inter-state and inter-regional
transmission is therefore needed to evacuate Solar and Wind power to deficit areas.

6.9 WAYS TO ADDRESS THE CHALLENGES OF INTEGRATION OF SOLAR

AND WIND POWER WITH GRID

Hybrid of Solar and Wind Energy: An increasingly popular solution is a simple balancing
approach in which the production of intermittent renewables such as wind and solar are
monitored and intermixed so as to utilise the available energy from both sources at a given time.

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The approach allows the maximum possible power to be delivered by combining dominating and
non-dominating resources all of the time – and mitigates the intermittency of individual resources.

Energy Storage: Energy storage is a vital tool for accomplishing the seemingly impossible task
of matching the grid electricity supply to the demand on a second-by-second basis. Storage plays
a critical role in frequency regulation and in maintaining the stability and safety of the grid. It
enables excess energy to be stored for consumption at a more convenient time. It provides a buffer
source for use in case of emergencies. Together these four functions ensure the essential grid
system resilience.

Energy storage methods include not only electrochemical batteries, but also hydraulic (pumped)
storage, mechanical storage (flywheels), thermal storage, compressed air storage, storage in an
electric field (capacitors) and other methods.

Various Energy Storage system are described in Chapter 10.

Flexibility Associated with Conventional Generating Units

To accommodate the variability and uncertainty of generation from RES, the conventional
generating plants must be flexible. The flexibility of generating station refers to its ability (i) to
cycle on and off including its lead time required; (ii) the ramping rate at which it can vary the
generation; and (iii) maximum and minimum output while it is in operation.

In terms of flexibility, hydro plants, pumped storage plants, open and combined cycle gas turbine,
gas engines etc. are very suitable. In many countries, thermal stations are extensively used for
cycling as well as ramping.

Transmission Strengthening

In India, Green Energy Corridors for evacuation of power from the regions having high
concentration of RES is in the process of implementation.

Advanced Forecasting
Wind and solar power forecasting can help reduce the uncertainty of variable renewable
generation. Better forecasting helps grid operators to commit or de-commit generators in
accommodating changes in wind and solar generation more efficiently and prepare for extreme
events in which renewable generation is unusually high or low. Forecasts can help reduce the
amount of fast response operating reserves needed for the system, thereby reducing costs of
balancing the system.

Demand Response

Demand side management measures encourage the customers to maximize the use of variable
renewable energy sources while the supply is naturally high. For example, when wind and solar
PV are producing more than the demand, demand response can incentivize consumers to use

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more power during that time through appropriate price signals of low rates, thus helping shift the
load and ensuring better utilization of generation resources. The change in load may occur
automatically in response to time of use or dynamic rates or due to the direct control by the grid
operator or due to participation of demand response in wholesale, ancillary or capital market. To
have effective demand response, smart-grid technologies involving smart meters, communication
and other methods are used. Electric vehicle “smart charging” is based on V2G and G2V concept
where electric vehicle can become an integral part of the grid and are charged or discharged in
response to external signals or dynamic prices.

Promotion of Off-grid renewable sector as it is much more competitive with conventional

power as it avoids investment in transmission to remote location. E.g., Rice Husk gasifiers-based
electricity generation is one such model.

6.10 CONCLUSIONS
Renewables sector in India is set to expand and supply electricity to an increasingly large number
of people. From public transport to infrastructure for industry and societal development,
renewable energy and the technological capability to store power for on-demand usage creates a
new dynamic within the country to further explore green opportunities for the future. With the
ambitious plan country can accomplish the dual goal of economic development and green-energy
production, which is certainly within the realms of possibility.

The Government of India has taken several initiatives to promote a healthy environment for the
growth of renewable products manufacturing sector in the country.

Measures should be taken to attract private investors and more funds should be allocated to
support research and innovation activities in this sector so that technologies which are in nascent
stage should become reality in future.

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Annexure-6.1

STATE-WISE INSTALLED CAPACITY OF GRID INTERACTIVE RENEWABLE POWER (AS ON 31.03.2022)

Sl. STATES/UT RENEWABLE

No.
HYDRO RES(MNRE) RES TOTAL
1 CHANDIGARH 101.71 55.17 156.87727
2 DELHI 723.09 270.12 993.21436
3 HARYANA 2324.62 1242.13 3566.75274
4 HIMACHAL PRADESH 3248.88 1040.47 4289.349862
5 JAMMU AND KASHMIR 2321.88 239.05 2560.932404
6 PUNJAB 3818.28 1767.82 5586.098754
7 RAJASTHAN 1941.93 17040.62 18982.5484
8 UTTAR PRADESH 3424.03 4483.52 7907.552272
9 UTTRAKHAND 1975.89 931.80 2907.690106
NORTHERN-REGION
751.45 0.00 751.453828
UNALLOCATED
1 CHHATTISGARH 233.00 233.00 869.08
2 GUJARAT 772.00 772.00 16587.90
3 MADHYA PRADESH 3223.66 3223.66 5468.88
4 MAHARASHTRA 3331.84 3331.84 10657.08
5 GOA 2.00 2.00 20.34
6 DAMAN AND DIU 0.00 0.00 40.72
7 DADAR AND NAGAR HAVELI 0.00 0.00 5.46
WESTERN-REGION 0.00 0.00 0.00
UNALLOCATED
1 ANDHRA PRADESH 1673.60 9211.56 10885.16
2 TELANGANA 2479.93 4959.19 7439.12
3 KARNATAKA 3631.60 15904.59 19536.19
4 KERALA 1856.50 670.70 2527.2
5 TAMIL NADU 2178.20 16148.61 18326.81
6 PUDUCHERRY 0.00 13.69 13.69
SOUTHERN-REGION 0.00 0.00 0.00
UNALLOCATED
1 DAMODAR VALLEY 186.20 0.00 186.1999
CORPORATION
2 BIHAR 110.00 387.35 497.3489
3 JHARKHAND 191.00 97.14 288.139
4 ODISHA 2163.22 617.09 2780.3101
5 SIKKIM 633.00 56.79 689.7878
6 WEST BENGAL 1396.00 586.95 1982.949
EASTERN-REGION 85.01 0.00 85.0053
UNALLOCATED
1 ARUNACHAL PRADESH 544.55 142.34 686.885
2 ASSAM 522.08 154.05 676.13

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3 MANIPUR 95.34 17.70 113.04

4 MEGHALAYA 409.27 50.48 459.75
5 MIZORAM 97.94 44.37 142.31
6 NAGALAND 66.33 33.71 100.04
7 TRIPURA 68.49 30.90 99.39
NORTH EASTERN REGION 140.00 0.00 140
UNALLOCATED
1 ANDAMAN AND NICOBAR 0.00 34.74 34.74
2 LAKSHADWEEP 0.00 3.27 3.27
ALL INDIA 46722.52 109885.38 156607.895

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Annexure-6.2
STATE-WISE ESTIMATED SOLAR POWER POTENTIAL IN THE COUNTRY
SL. NO. STATE/UT SOLAR POTENTIAL (GWP) #
1 ANDHRA PRADESH 38.44
2 ARUNACHAL PRADESH 8.65
3 ASSAM 13.76
4 BIHAR 11.20
5 CHHATTISGARH 18.27
6 DELHI 2.05
7 GOA 0.88
8 GUJARAT 35.77
9 HARYANA 4.56
10 HIMACHAL PRADESH 33.84
11 JAMMU & KASHMIR 111.05
12 JHARKHAND 18. 18
13 KARNATAKA 24.70
14 KERALA 6.11
15 MADHYA PRADESH 61.66
16 MAHARASHTRA 64.32
17 MANIPUR 10.63
18 MEGHALAYA 5.86
19 MIZORAM 9.09
20 NAGALAND 7.29
21 ODISHA 25.78
22 PUNJAB 2.81
23 RAJASTHAN 142.31
24 SIKKIM 4.94
25 TAMIL NADU 17.67
26 TELENGANA 20.41
27 TRIPURA 2.08
28 UTTAR PRADESH 22.83
29 UTTRAKHAND 16.80
30 WEST BENGAL 6.26
31 UTS 0.79
TOTAL 748.98
(Source: Ministry of New and Renewable Energy, India)
# Assessed by National Institute of Solar Energy

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STATE-WISE ESTIMATED WIND POWER POTENTIAL IN THE COUNTRY

S.NO. STATE WIND POWER WIND POWER POTENTIAL
POTENTIAL AT AT
100 MTR AGL IN GW 120 MTR AGL (GW)

1 ANDHRA PRADESH 44.23 74.90

2 GUJARAT 84.43 142.56
3 KARNATAKA 55.86 124.15
4 MADHYA PRADESH 10.48 15.40
5 MAHARASHTRA 45.39 98.21
6 RAJASTHAN 18.77 127.75
7 TAMIL NADU 33.80 68.75
TOTAL (7 WINDY STATES) 292.97 651.72
OTHER STATES 9.28 43.78
ALL INDIA TOTAL 302.25 695.50
(Source: Ministry of New and Renewable Energy, India)

STATE-WISE ESTIMATED SMALL HYDRO POWER POTENTIAL IN THE COUNTRY

SL. NO. STATE/UT POTENTIAL (MW) #

1 ANDHRA PRADESH 409.32
2 ARUNACHAL PRADESH 2064.92
3 ASSAM 201.99
4 BIHAR 526.98
5 CHHATTISGARH 1098.2
6 GOA 4.7
7 GUJARAT 201.97
8 HARYANA 107.4
9 HIMACHAL PRADESH 3460.34
10 UT OF JAMMU & KASHMIR 1311.79
11 UT OF LADAKH 395.65
12 JHARKHAND 227.96
13 KARNATAKA 3726.49
14 KERALA 647.15
15 MADHYA PRADESH 820.44
16 MAHARASHTRA 786.46
17 MANIPUR 99.95
18 MEGHALAYA 230.05
19 MIZORAM 168.9
20 NAGALAND 182.18
21 ODISHA 286.22
22 PUNJAB 578.28
23 RAJASTHAN 51.67
24 SIKKIM 266.64
25 TAMIL NADU 604.46
26 TELENGANA 102.25

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27 TRIPURA 46.86
28 UT OF A & N ISLANDS 7.27
29 UTTAR PRADESH 460.75
30 UTTARAKHAND 1664.31
31 WEST BENGAL 392.06
TOTAL 21133.62
(Source: Ministry of New and Renewable Energy, India)

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CHAPTER 7
FUEL REQUIREMENT

7.0 INTRODUCTION
Fuel is the key input required to be tied up before implementation and operation of a
thermal power plant. In the changed scenario with growing concern on environment,
Government has given emphasis on Renewable Energy projects. However, the country’s
reliance on coal-based generation cannot be overlooked. An important aspect which,
therefore, needs to be addressed is the availability of adequate coal for generation of
power. In order to optimize coal usage, Government is committed to super critical/ ultra-
super critical technology which is much more efficient and results into reduction in usage
of coal. The timely availability of all the key inputs including fuel would ensure timely
completion of a project and would, therefore, avert detrimental implications of cost and
time overruns in case the power project is delayed.

This Chapter broadly deals with review of fuel availability during 2017-22, detailed plan
for 2022-27 and perspective plan for 2027-32 as well as critical issues which need to be
addressed and constraints being experienced in the coal sector. This would give a broad
picture to all the associated stakeholders to enable them to take advance action and plan
their production targets.

7.1 COAL SUPPLY SCENARIO

7.1.1 Background

Coal is the mainstay of India’s energy sector. The All India Installed Capacity of the country
is about 399,497 MW, as on 31.03.2022, out of which about 204,080 MW (51.1%) is coal
based. Once the power station is commissioned, the biggest challenge is to operate the
station at a high plant load factor (PLF), which is a measure of the output of a power plant
compared to the maximum output it could produce. Higher plant load factor usually
means more output and a lower cost per unit of electricity generation. Performance of
the power plant is measured on the basis of PLF and Station Heat Rate (SHR). However,
the Plant Load Factor (PLF) of the coal-based power stations in the country has been
decreasing steadily over the years. The PLF has varied from 60.5 % in 2017-18, 60.9 % in
2018-19, 55.9% in 2019-20, 54.6% in 2020-21and 58.8 % during 2021-22.

7.1.2 NEW COAL DISTRIBUTION POLICY (NCDP)

The Government introduced the New Coal Distribution Policy (NCDP), effective from 1st
April 2009, which assured supplies at pre-determined prices to some categories of
consumers and reintroduced e-auction to encourage a vibrant market for the commodity.
The main features of the Policy are:

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 100% normative requirement of coal would be considered for supply to Power

Utilities.
 Supply of coal through commercially enforceable Fuel Supply Agreements (FSAs) at
notified prices by Coal India Limited (CIL).
 10% of annual production of CIL to be offered through e-auction for consumers who
are not able to source coal through available institutional mechanism.
 FSAs to indicate Annual Contracted Quantity (ACQ) of coal to Power Utilities by coal
companies during entire year. Incentive and penalty clauses incorporated in FSAs.
Signing of Fuel Supply Agreement (FSA)
FSAs were signed for supply with a trigger value of 90% of the Annual Contracted Quantity
(ACQ) for the thermal power plants commissioned before 31st March 2009. Subsequently,
Cabinet Committee of Economic Affairs (CCEA) in June, 2013 directed CIL to sign FSAs for
a total capacity of about 78,000 MW, which were likely to be commissioned by
31.03.2015. Out of 78000 MW, around 9,840 MW were having erstwhile tapering
linkages. Taking into account the overall domestic availability and the likely actual
requirements of these power plants, FSA’s were signed for supply of domestic coal
quantity of 65%,65%,67% and 75% of ACQ for the years 2013-14,2014-15,2015-16 &2016-
17 respectively for power plants having normal coal linkages. However, actual coal
supplies were commensurate to long term PPA’s.
7.1.3 Scheme for Harnessing and Allocating Koyala (Coal) Transparently in
India (SHAKTI)
Ministry of Coal vide letter dated 22.05.2017 issued the SHAKTI Policy for allocation of
coal to power plants of Central, State and Private Sector. Subsequently, Ministry of Coal
on 25.03.2019 issued certain amendments to the SHAKTI Policy after CCEA approval based
on the recommendations of Group of Ministers (GoM), which examined the specific
recommendations of High-Level Empowered Committee (HLEC)constituted to address the
issues of stressed thermal power projects.

Developments under various provisions of SHAKTI Policy are as follows:

(a) Para B (i): Coal linkages to Central Government and State Government generating
companies would be granted based on recommendations by Ministry of Power.
Since the launch of SHAKTI Policy, under para B (i), SLC (LT) has accorded coal linkage
to 23 nos. of Thermal Power Projects totalling to 25,340 MW capacity.
(b) Para B(ii): Coal linkages may be granted on notified price on auction basis for power
producers/IPPs having already concluded long term PPAs based on domestic coal.
Power Producers shall bid for discount on tariff.
Till date, four rounds of auction for coal linkage under SHAKTI B(ii) have been held under
which a total of 40.99 MT of coal (G13 grade equivalent) have been allocated to 17 nos.

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of TPPs having installed capacity of 11,934 MW and long term PPA capacity of 9,204.6
MW.
(c) Para B(iii): Future coal linkages may be granted on auction basis (bid for premium above
the notified price) for power producers/IPPs without PPAs that are either commissioned
or to be commissioned. Coal drawl will be permitted only against valid long term and
medium term PPAs, which the successful bidder shall be required to procure and submit
within two (2) years of completion of auction process.
Till date, around 7.15 MT of coal (G13 grade equivalent) have been awarded by
CIL to 7 nos. of TPPs, having installed capacity of 5995 MW and non-PPA capacity of
3774.94 MW.
(d) Para B(iv): Coal linkage may be earmarked to the states for fresh PPAs, by pre declaring
the availability of coal linkage. States may indicate these linkages to Discoms and based
on linkages, undertake tariff based competitive bidding for long term and medium-term
procurement.
Till date, coal linkages have been allocated by CIL to States of Gujarat, Uttar
Pradesh and Madhya Pradesh for 3915 MW, 1600 MW and 3000 MW capacity of power
respectively, to be raised through tariff based competitive bidding.
(e) Para B(v): Power requirement of Group of States can be aggregated and procurement of
power on tariff-based bidding shall be made by a designated agency.
PFC Consulting Ltd. (PFCCL) (a wholly owned subsidiary of PFC) is the designated
agency. 10 MT of coal has been earmarked by CIL for this purpose.
(f) Para B (viii) (a): Linkage would be given on auction basis to power plants for their non-
PPA capacity, under B (iii) and B (iv) of SHAKTI Policy for a period of minimum 3 months
up to a maximum of 1 year, for trading power in Short Term through Discovery of Efficient
Energy Price (DEEP) Portal and in Day Ahead Market (DAM) through Power Exchanges.
Till date, under SHAKTI B (viii) (a) covering para B (iii) of SHAKTI Policy, around 7.3
MTs of coal (G-13 grade equivalent) have been allocated to various private power plants
in auctions held for seven quarters viz. Apr-June’2020 to Oct-Dec’2021.

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7.1.4 Coal Stocking Norms:

7.1.4.1 Earlier Coal Stocking Norms of CEA:

The earlier norms for number of days of coal stock to be maintained by power stations was
based on the distance of the power plant from the mine-head as per details given in Table
7.1.
Table 7.1
Earlier Coal stocking norms for power stations

Distance of Power Plant Number of Days of Stock

Pit-head Station 15

Upto 500 kms from coal mine 20

Upto 1,000 kms from coal mine 25

Beyond 1,000 kms from coal mine 30

Critical / Super critical stock at power plants

Earlier, the coal stock position at coal based thermal power plants in the country having
coal linkages with CIL/ Singareni Collieries Company Limited (SCCL)were being
monitored by CEA on a daily basis. The coal stock at power plants was categorised as
critical and super critical based on number of days of stock available at the plant, so that
coal supply to such power plants could be augmented on priority.

7.1.4.2 Revised Coal Stocking Norms of CEA:

CEA has revised the coal stocking norms w.e.f 6th December 2021. As per the revised
norms, daily coal requirement for both Pithead and Non-Pithead plants would be
estimated @85% PLF and number of days for which stock needs to be maintained would
vary from 12 to 17 days for Pithead plants and 20 to 26 days for Non-Pithead plants with
month-wise variation based on coal despatch/coal consumption pattern during the year
as detailed below in Table 7.2.

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Table 7.2
Q1 Q2 Q3 Q4
Plant
April May June Jul Aug Sep Oct Nov Dec Jan Feb Mar
Pithead 17 17 17 14 13 12 13 14 15 16 17 17
Non-
26 26 26 22 21 20 21 22 23 24 26 26
pithead

The Gencos would be graded in three zones. Grading of a Genco/Independent

Power Producers (IPP) into red, yellow and green zone will be done on monthly basis
based on the average coal stock maintained by the plant during previous month and its
outstanding dues with coal companies. Gencos/IPPs in Green Zone will be given highest
priority followed by Yellow and the least priority to Red Zone- in terms of rakes loading
and supply of coal.

Further, in the event that availability by any power plant is less than the Normative
Availability (as per prevailing regulatory norms of Central Electricity Regulatory
Commission (CERC)/ State Electricity Regulatory Commission (SERC) - as applicable) due
to less coal stock maintained by the plant, the penalty will be levied on defaulter
Gencos/IPPs as per the revised norms.

Revised criteria for identifying critical coal stock

At present, all coal based thermal power stations in the country are being monitored on
daily basis and daily coal stock report is published on National Power Portal (NPP)
(npp.gov.in).
The coal stocking norms issued on 06.12.2021 provides for the criteria for identifying
plants having critical coal stock. It has been decided to adopt a uniform criteria for both
pithead and non-pithead plants and to do away with the category of plants having critical
and super critical coal stock.

The plants having stock of less than 25% of the mandated coal stock as per the revised
norms is being identified as having critical coal stock.

The details of coal stock available at the power plants as on last day of financial year since
2017-18 and as on 31.03.2022 is given at Exhibit 7.1

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Exhibit 7.1

Coal Stock (as on last day) in Million Tonnes

50
45.0
30 30.9 28.9 25.6
16.3
10
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22

Stock in Million Tonnes

During the year 2020-21, the coal stock at the power plants has reached the highest level
of about 51.7 MTon 06.05.2020, whereas it reached the lowest of 7.23 MT as on
08.10.2021 during FY 2021-22.
7.1.5 Import of coal
In the past, Power Utilities were advised to import coal to maintain the stipulations of the
then Ministry of Environment & Forest regarding use of coal of less than 34% ash content
and to supplement the inadequate availability of coal from indigenous sources. Further,
with the commissioning of power plants designed for use of imported coal as fuel, power
utilities imported coal to meet the requirement of fuel for these power plants. The details
of coal imported by power utilities since 2017-18 are furnished in Table 7.3 and Exhibit
7.2.
Table 7.3
Details of coal imported by power utilities
Year Requirement for Coal Import for
Imported Coal Blending Imported based Total(MT)
based Plants (MT) power plants
(MT) (MT)
2017-18 46.0 17.0 39.4 56.4
2018-19 46.0 21.4 40.3 61.7
2019-20 47.0 23.8 45.5 69.2
2020-21 45.0 10.4 35.1 45.5
2021-22 45.3 8.1 18.9 27.0

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Exhibit 7.2

80.0
Coal Import (In Million Tonnes)
69.3
61.7
60.0 56.4
45.5 45.5
39.4 40.3
40.0 35.1
23.8 27.0
21.4 18.9
17.0
20.0 10.4 8.1

0.0
2017-18 2018-19 2019-20 2020-21 2021-22
Blending Imported

7.1.5.1 Import Substitution: -

1. Power Utilities have been importing coal in view of their cost economics. During 2020-
21, with the increased availability of domestic coal, Govt. of India advised the power
plants to make best efforts to substitute imported coal used for blending with domestic
coal. With the concerted efforts of all the stakeholders, viz. MoP, CEA, MoC, coal
companies, power plants, etc., the coal imported for blending purpose has reduced by
about 56% in 2020-21 as compared to 2019-20. CIL vide Notice no. 178 dated
06.05.2020 had informed the decision to offer coal to TPPs under import substitution
considering sufficient availability of coal with CIL subsidiaries for power plants.
Subsequently, CIL vide letter dated 13.04.2021 informed the decision to continue
supply of coal to power plants under import substitution mechanism for FY 2021-22
also.
Accordingly, CIL vide letter dated 23.04.2021 had offered about 17 MT domestic
coal in lieu of import substitution.
2. However, during the second quarter of the FY 2021-22, due to bottlenecks in supply of
coal to TPPs in monsoons and less production by CIL mines, the coal stock available with
the TPPs depleted. Further, coal companies prioritized coal supplies under FSA to their
linked power plants and to plants having critical / supercritical coal stock. Since coal is
offered on as is where basis under import substitution, the supply of coal to TPPs was
affected.
3. Considering less coal stock in TPPs during 2021-22 and supply pattern from domestic
sources, Ministry of Power vide letter No. FU-21/2020-FSC CN:253974 dated 28.04.2022
has issued an advisory regarding import of coal for blending purpose for the period 2022-
23. As per the advisory, the requirement of imported coal for blending purpose during
2022-23 has been estimated at 10% of coal requirement at 85% availability for State
Gencos and IPPs. NTPC and DVC have been advised to import 20 Million Tonnes (MT) and
3 MT respectively for blending in FY 2022-23. State Gencos and IPPs DVC have been
advised to import 22.1 Million Tonnes (MT) and 15.9 MT respectively for blending in FY
2022-23.

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7.1.6 Generation loss due to coal shortage

The loss of generation due to shortage of coal as reported by power utilities during 2017-
18 to 2020-21 and 2021-22 is given in Table 7.4 and Exhibit 7.3.

Table 7.4
Generation loss due to coal shortage
Year Generation loss due to coal shortage (BU)
2017-18 30.6
2018-19 30.9
2019-20 30.0
2020-21 0.0
2021-22 0.0

Exhibit 7.3

Generation loss due to coal shortage (BU)

40.0
30.6 30.9 30.0
30.0
BU

20.0

10.0
0.0 0.0
0.0
2017-18 2018-19 2019-20 2020-21 2021-22

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7.2 COAL DEMAND AND SUPPLY

7.2.1 Estimated coal requirement, source-wise actual receipt and coal

consumption from 2017-18 are given at Table 7.5 and Exhibit 7.4.
Table 7.5
Estimated Requirement, Receipt and Consumption
Source 2017-18 2018-19 2019-20 2020-21 2021-22
Requirement (Million Tonnes)
Domestic Coal
584 609 651 645 678
Requirement
Imported Coal
46 46 47 45 45
Requirement
Total Coal Requirement 630 655 698 690 723
Actual Receipt (Million Tonnes)
CIL Receipt 416.0 457.4 438.5 422.5 501.5
SCCL Receipt 52.1 55.9 54.3 43.2 55.9
Captive 31.6 40.1 43.5 50.1 71.0
e-Auction 39.0 28.7 33.1 35.0 39.3
Total Domestic Receipt 538.6 582.1 569.5 550.8 667.6
Imported (Blending) 17.0 21.4 23.8 10.4 8.1
Imported (Imported coal
39.4 40.3 45.5 35.1 18.9
plants)
Total Imported Receipt 56.4 61.7 69.2 45.5 27.0
Total Coal Receipt 595.0 643.7 638.7 596.3 694.6
Consumption(Million Tonnes)
Domestic Coal Based
568.1 588.4 577.3 579.1 678.8
Plants
Imported Coal Based
39.9 40.5 44.9 36.3 18.5
Plants
Total Coal Consumption
608 628.9 622.2 615.4 697.3
(Domestic + Imported)

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Exhibit 7.4

Requirement, Receipt and Consumption (in Million Tonnes)

800 698 690 723 668 695 697
630 655 595
644 639
596 608 629 622 615
582 569 551
600 539

400

200
56 62 69 45 27
0
Total Coal Requirement Total Domestic Receipt Total Imported Receipt Total Coal Receipt Coal Consumption

2017-18 2018-19 2019-20 2020-21 2021-22

7.2.2 Comparison Coal Supply Position during 2020-21 and 2021-22:

The details of source-wise program and receipt of coal by power plants during 2020-21
and 2021-22 are given in Table 7.6 and Exhibit 7.5.

Table 7.6
Source-wise program and receipt of coal

Period 2020-21 2021-22

% of % of
Source Program Receipt Program Program Receipt Program
CIL 526.0 457.5 (*) 87.0% 548.0 540.8 98.7%
SCCL 55.0 43.2 78.5% 56.0 55.9 99.8%
Captive 63.0 50.1 79.5% 74.0 71.0 95.9%
Total (Domestic) (A) 644.0 550.8 85.5% 678.0 667.6 98.5%
E-Auction - 35.0 - - 39.3 -
Import (Blending) - 10.4 - - 8.1 -
Import (Imported Coal
45.0 35.1 78.1% 45.0 18.9 42.0%
Based)
Total (Import) (B) 45.0 45.5 101.2% 45.0 27.0 60.0%
Total (A+B) 689.0 596.3 86.6% 723.0 694.6 96.1%
(‘*’: includes e-Auction coal)

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Exhibit 7.5

Comparison of Source-wise Receipt (in Million Tonnes)

800.0
694.6
667.6
700.0 643.8
638.7
582.1 595.0 596.3
569.4
600.0 540.8 538.6 550.8
486.1
500.0 454.9 471.6
457.5

400.0
300.0
200.0
71.0 56.461.769.345.5
100.0 52.155.954.343.255.9
31.640.143.550.1 27.0 39.028.733.135.039.3

0.0
CIL SCCL Captive Domestic Imported Total Receipt E-Auction
Receipt Receipt
2017-18 2018-19 2019-20 2020-21 2021-22

7.2.3 Coal Demand and Availability Position during the Year 2022-23

For the year 2022-23, coal based gross generation programme of 1080BU has been
estimated by CEA. Based on the generation program, the total coal requirement of 788.5
MT has been estimated. The details of coal requirement vis-à-vis likely coal availability
during the year 2022-23 are given in Table 7.7.

Table 7.7
Coal Requirement and likely availability for the year 2022-23
S.No. Description Units 2022-23

1 Coal based generation

1.1 Gross Coal based generation programme during BU 1080
2020-21
2 Coal Requirement
2.1 For plants designed on domestic Coal MT 759.9

2.2 For plants designed on imported coal MT 28.6

2.3 Total Coal Requirement MT 788.5

3 Coal Availability from Indigenous Sources

3.1 From CIL MT 565

3.2 From SCCL MT 57

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3.3 From Captive Mines MT 113

3.4 Total domestic coal availability MT 735

3.5 Shortfall in domestic coal availability MT 25

3.6 Requirement of imported coal for blending MT 17

It is thus observed from the above that power plants on domestic coal may not meet their
requirement of coal from domestic sources and may require import of coal for blending.

7.2.4 Coal Demand and Availability Position during the year 2026-27 and
2031-32

Preliminary Exercise has been carried out in CEA for assessing the power requirement of
States/UTs considering past growth rates and the increase in Electrical Energy
Requirement on account of Power for All Make in India initiatives, reduction in demand
on account of DSM and various efficiency improvement measures being under taken by
the Government. Accordingly, the total electricity requirement on All India basis has been
assessed.

With the likely Renewable Energy Sources (RES) capacity addition, the coal-based
generation has been estimated and accordingly provisional coal requirement has been
worked out. The estimated generation from coal-based power plants is expected to be
around 1133 BU during 2026-27 and about 1303 BU during 2031-32. However, in view of
uncertainty associated with VRE Nuclear, Hydro generation, the coal requirement for the
year 2026-27 and 2031-32 has been worked out assuming 20% reduction in Hydro,
Nuclear and VRE generation due to uncertainty. This is to be compensated by coal-based
generation. Accordingly the details of coal requirement for the year 2026-27 and 2031-32
have been worked out and the details are given in Table 7.8.

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Table 7.8
Coal requirement during the year 2026-27 and 2031-32

Unit 2026-27 2031-32

S. No Coal Requirement Calculation

1 Coal based generation (gross) BU 1133 1303

2 Hydro based generation (gross) BU 196.6 239.6
3 Nuclear based generation (gross) BU 82.1 134.3
4 Wind Generation(gross) BU 169.8 305.7
5 Solar Generation(gross) BU 326 624.4
Total VRE( Solar & Wind) +Hydro
6 +Nuclear generation (gross) BU 774.5 1304
20% reduction in Hydro, Nuclear and
7 VRE generation due to uncertainty BU 154.9 260.8
Total coal based generation
8 (Sl no 1+Sl No 7) BU 1287.9 1563.8
Coal Requirement
9 @0.67kg/kwh+1% transportation loss MT 871.5 1058.2
10 Imported Coal requirement MT 40.0 40.0
11 Domestic Coal Requirement MT 831.5 1018.2

In order to enhance coal availability, multi-dimensional efforts are underway by Coal India
Ltd to enhance production of domestic coal. A road map has been prepared by CIL to
substantially enhance coal production level to 1 Billion Tonnes (BT) by the year 2023-24.
With this programme there would be no shortage in the availability of coal for the power
plants during 2026-27 and 2031-32. In addition, coal production from the captive coal
blocks allotted to power utilities would also supplement the availability of domestic coal.
The Government has also allowed commercial mining and mines have already been
allocated through auction to the participating bidders. This would further supplement the
supply of domestic coal to the power utilities. Likely coal-based generation and coal
requirement during 2021-22, 2026-27 and 2031-32 are shown in Exhibit 7.6 and Exhibit
7.7.

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Exhibit 7.6

Coal based Generation and Coal Requirement

1400 1303

1200 1133
1042 1058.2 1018.2
1000 871.5 831.5
800 723
678
600

400

200

0
2021-22 2026-27 2031-32

Coal Based Generation (in BU) Total Coal Required (in MT) Domestic Coal Required (in MU)

Exhibit 7.7

Domestic Coal Requirement (MT)

1050 1018.5

1000

950

900

850 831.5

800

750

700 678

650

600
2021-22 2026-27 2031-32

CONCLUSIONS
The coal requirement for the year 2026-27 and 2031-32 have been worked out. The
domestic coal requirement in the year 2026-27 have been estimated as 831.5 Million

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Tonnes and in 2031-32 as 1018.2 MT and Imports by plants designed on imported coal to
be 40 Million tonnes.

7.3 ISSUES/CONSTRAINTS IN MAKING COAL AVAILABLE TO

POWER STATIONS
Timely availability of adequate coal is extremely crucial for maximizing generation from
the power plants. In addition to tapping fuel source or organizing its availability, it is also
essential to create the infrastructure to facilitate fuel to reach the intended destination.
Therefore, development of mines/ ports and requisite transportation facilities
commensurate with the completion of the projects is very necessary. The gestation period
in the development of mines and even transport facilities are in some cases, longer than
the gestation period for setting up of thermal power stations. It is, therefore, imperative
for the Power Sector to make its prospective coal requirement, over a long time horizon,
known to the Ministry of Coal, Railways and port authorities to enable them to undertake
co-ordinated development of coal mines and transport infrastructure with the coming up
of thermal power stations.

However, to address the issue of supply of coal to the power plants due to infrastructural
constraints etc. there is an Inter-ministerial Sub group in the Ministry of Coal. The Inter-
ministerial subgroup constituted by the Infrastructure Constraints Review Committee, is
under the Chairmanship of Joint Secretary, Ministry of Coal comprising of representatives
from Ministry of Railways, Ministry of Power, Shipping, NITI Aayog CEA, Coal India Limited
and NTPC Limited. The subgroup reviews and monitor coal supply and related
infrastructural constraints on day-to-day basis for adequate supply of coal to power
plants.

7.4 NEW INITIATIVES TAKEN BY THE GOVERNMENT FOR

ADDRESSING ISSUES RELATED TO COAL SUPPLY TO THE
POWER PLANTS

7.4.1 Rationalization/ Swapping of Coal Linkages

A. For State/Central Gencos (Constitution of a new Inter- Ministerial
Task Force - IMTF)
i. In order to undertake a comprehensive review of existing sources of coal and
considering the feasibility of rationalization of these sources to optimize cost of
coal transportation, a new Inter-Ministerial Task Force (IMTF) was constituted by
Ministry of Coal in June, 2014.CIL also engaged M/s KPMG Advisory Services
Private Ltd to assist the Task Force in optimization exercise.

ii. The new Inter-Ministerial Task Force (IMTF) had recommended a three-step
approach for implementation. The recommendations inter-alia included
rationalization of linkage sources for 19 power utilities in Stage-I by swapping

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linkage coal between different coal companies to optimize distances and

maximizing dispatches of coal. As per status of implementation of
recommendations of IMTF, Coal India Ltd. executed revised Fuel Supply
Agreement (FSA) with 17 power plants in respect of Stage-I rationalization. This
had resulted in movement rationalization of 24.6 MT coal with potential annual
savings of about Rs. 913 crores.

iii. The Task Force recommended rationalization of 6 swap sets among power utilities
in Stage-II which envisaged swapping of coal between ‘imported coal and domestic
coal’ and ‘domestic coal of different power stations among 6 States involving 11
power utilities in Centre /State/ Private Sector.Among the participating
companies, 19 swaps were envisaged. Out of these swaps, only 6 swaps (saving
952 Crores) were agreed for implementation. However, with the improved
availability of coal for pit head power plants, the swaps agreed for swapping of
imported coal with domestic coal for pit head plants was not feasible. However,
only one set of swaps has been implemented for movement of rationalization of
1.3 MT coal and potential annual savings of 458 crores of transportation cost.

iv. With the implementation of Stage-I and Stage-II of recommendations of the IMTF,
movement rationalization of 25.9 MT coal has been taken.

B. For IPPs

i. Ministry of Coal vide OM dated 18th July, 2017 constituted a new “Inter-
Ministerial Task Force (IMTF)” to rationalize the linkages of the Independent
Power Producers (IPPs). The IMTF was constituted under the Chairmanship of
Additional Secretary, Ministry of Coal, with members from Ministry of Coal,
Ministry of Power, Ministry of Railways, Ministry of Shipping, CEA, CIL, and SCCL.

ii. The terms of reference of the IMTF was to undertake a comprehensive review of
existing coal sources of IPPs having linkages and consider the feasibility for
rationalization of these sources with a view to optimize transportation cost given
the various technical constraints. The benefits accrued would be passed on to the
DISCOMs/consumers in an objective and transparent manner.

iii. Based on the recommendation of IMTF, Ministry of Coal vide letter dated
15.05.2018 issued the Methodology for Linkage Rationalization for IPPs. The
summary of the methodology is as under:

a. Basic objective of the methodology is to reduce the landed cost of coal due to
reduction in transportation cost and cost of coal. The reduced landed price of
coal would lead to savings, to be reflected in cost of power generated, and
these savings shall be passed on to the buyers of power through a transparent
and objective mechanism.

b. Reduce the distance by which the coal is transported, thus, easing up the
Railway infrastructure for gainful utilization for other sectors.

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c. The methodology has considered rationalization only for IPPs having linkages
obtained through allotment route. The IPPs having linkages obtained through
auction process are not eligible for rationalization under this scheme.

Status:
i. In the first round of linkage rationalization for IPPs initiated by CIL on 28.08.2018,
the linkage of Bajaj Energy Limited (5 plants) has been rationalized for a quantity
of 1.605 MT as per the decision taken in the meeting held on 11th March, 2019
by the Apex Committee comprising members from CIL, SCCL, CEA and Railways.

ii. In the second round of linkage rationalization for IPPs initiated by CIL on
25.08.2020, linkage of seven IPPs (Talwandi Sabo Power Ltd., Nabha Power Ltd.,
Jhajjar Power Ltd., Bajaj Power, Jhabua Power Ltd., Maithon Power Ltd. and
Dhariwal Infrastructure Ltd.) has agreed for rationalization. Nabha Power Ltd. has
already signed FSA at the rationalized source (Northern Coalfields Ltd.) in
December ’21 based on the decision of the Apex Committee on 14.06.2021.

7.4.2 Third Party Sampling

i. In order to address quality concern of the coal supplied to power plants, it was
decided in the meeting dated 28.10.2015 that coal samples shall be collected and
prepared by a Single Third-Party Agency appointed by power utilities and coal
companies. Accordingly, it was decided by the Ministry of Power and the Ministry
of Coal that the power utilities would appoint a Third-Party Sampler (CIMFR) for
Third Party Sampling and Analysis of coal at loading-end as well as at unloading-
end. Based on the Third-Party Sampling analysis results furnished by CIMFR,
credit/debit note are being issued by coal companies to the power plants in case
of difference between declared grade of coal and analysed grade of coal.
ii. Third party sampling has been started by CIMFR at loading as well as unloading
ends, which has resulted into lowering of ECR, thus benefiting the end consumers
of electricity.
iii. Subsequently, Ministry of Power vide letter dated 30.03.2021 conveyed the
decision that Power Finance Corporation (PFC) shall empanel Third Party Sampling
(TPS) Agencies for Power Sector, in addition to CIMFR, and consumers shall be free
to take services of any of the empanelled agencies. The Terms of Reference for
empanelment for the agency was to be formulated with the following broad
guidelines:
a. Multiple Agencies should be available.
b. Sampling only at loading end with appellate/referee provision.
c. Choice of taking services from empanelled agencies shall be of the buyer
of coal.
d. Review mechanism to review the working of the system.

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iv. MOP, after consultation with the stakeholders including CEA, finalized the Terms
of Reference for empanelment of TPS which was forwarded to PFC on 17.08.2021
for taking further necessary action.
v. PFC has empanelled one firm (M/s Mitra SK Private Limited) as a 'Third Party
sampling Agency (TPSA) for collection, preparation and analysis of coal samples at
loading end with appellate/referee provision for power sector’.
7.4.3 Flexibility in Utilization of Domestic Coal
i. The Government, on 04.05.2016, approved the proposal for allowing flexibility in
utilization of domestic coal amongst power generating stations to reduce the cost
of power generation. Under the scheme, the Annual Contracted Quantity (ACQ) of
each individual coal linkage as per Fuel Supply Agreement is to be aggregated as
consolidated ACQ for each State and Company owning Central Generating Stations
instead of individual generating station. The State/Central Gencos have flexibility
to utilize their coal in most efficient and cost-effective manner in their own power
plants as well as by transferring coal to other State/Central Gencos Power plants
for generation of cheaper power. The methodology provides for utilizing coal
amongst State/Central Generating Stations having 4 cases- i) within state ii) one
state to another state iii) one state to CGSs & vice versa and iv) within CGSs &
other CGSs. The methodology in this regard has been issued by CEA on 08.06.2016.
ii. Further, the methodology for use of coal transferred by a State to Independent
Power Producer (IPP) generating stations has been issued by Ministry of Power,
Govt. of India on 20.02.2017. As per the methodology, the State can divert their
coal and take equivalent power from IPP generating station, which is selected
through an e-bidding process. The guiding principle of the methodology is that the
landed cost of power from IPP generating station at the State’s periphery should
be lower than the variable cost of generation of the State generating station
whose power is to be replaced by generation from IPP. The landed cost of power
is inclusive of the transmission charges and transmission losses.
iii. Based on the experience gained, Ministry of power vide letter dated 15.06.2018
has amended clauses related to bid security, performance security coal
transportation mode in the methodology for Case-4. Subsequently, Ministry of
Power vide letter dated 25.10.2018 has issued 2nd amendment in the
methodology allowing moisture correction while reconciliation of coal.
7.4.3.1 Status/ Current Development of the Scheme:
i. All State/Central gencos have signed supplementary agreement with Coal
Companies for aggregation of their ACQ. CIL, on quarterly basis, allocates coal to
the plants of State /Central Gencos as per their requirement within their AACQ.
ii. Based on the methodology issued by MoP on 20.02.2017 for Case-4, Gujarat Urja
Vikas Nigam Limited (GUVNL) and Maharashtra State Power Generation
Company Limited (MSPGCL) invited bids for supply of power from willing IPPs.

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iii. GMR Chhattisgarh Energy Limited (GCEL) emerged as successful bidder in case of
bid invited by GUVNL and was awarded contract to take equivalent power of 500
MW at a tariff of Rs 2.81 per unit for a period of 8 months starting from November
2017 to June 2018. However, power supply started from January 2018. The
contract was later extended by GUVNL till November, 2018.Gujarat again invited
bids and awarded contract to GCEL for supply of 1000 MW at a tariff of Rs. 3.16
per unit. The Power purchase agreement (PPA) was signed on 21.12.2018 and the
contract period was upto June, 2019. However, the supply of power started from
January, 2019 and the contract was extended till December, 2019.
iv. Maharashtra tied up 400 MW (185 MW with Dhariwal Infrastructure Ltd. and
215 MW with Ideal Energy Projects Ltd. for a period of 8 months at a tariff of Rs.
2.76 per unit. The supply of power started by Dhariwal Infrastructure Ltd. from
April 2018 and by Bela TPS from May 2018. Maharashtra again tied up 185 MW
with Dhariwal Infrastructure Ltd. from November 2019 to October 2020.

7.5 LIGNITE

Lignite reserves in the country have been estimated at around 40.9 Billion Tonnes, most
of which is found in the State of Tamil Nadu. About 82 % of the Lignite reserves are located
in the State of Tamil Nadu & Pondicherry. At present only a small percentage of the total
reserves of lignite have been exploited. There is considerable scope for exploitation of
lignite reserves and use of lignite in thermal power stations subject to cost-economics,
particularly in the States of Tamil Nadu, Rajasthan and Gujarat having the limitations of
transportation of coal to these regions. State-wise distribution of Lignite resources is
shown in Table- 7.9.
Table 7.9
State-wise Lignite Reserves
State Total [MT]
Tamil Nadu 33309.53
Rajasthan 4835.29
Gujarat 2722.05
Jammu & Kashmir 27.55
Others (Kerala, West Bengal) 11.44
Total 40905.86

The anticipated Lignite Generation for 2026-27 & 2031-32 are shown in Table 7.10.
Table–7.10
Anticipation Lignite generation of 2026-27 & 2031-32
S.No. Description 2026-27 2031-32

1.1 Gross Lignite based generation

25.8 30.8
(BU)

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7.6 GAS-BASED POWER PLANTS

7.6.1 INTRODUCTION

Natural Gas is the next generation fossil fuel with less carbon dioxide per joule delivered
than either by coal or oil and contains far fewer pollutants than other hydrocarbon fuels.
Therefore, the natural gas has emerged as the most preferred fuel due to its inherent
environmentally benign nature, easy transportability, ease of use, greater efficiency and
cost effectiveness. The development of Natural Gas industry in the country started in
1960s with discovery of gas fields in Assam and Gujarat. After discovery of South Basin
fields by ONGC in 1970s, Natural Gas assumed importance. The Exploration activities in
India were earlier carried out only by the National Oil Companies (ONGC & OIL) under
nomination regime. Later private companies were allowed to enter into exploration
through JV with National Oil Companies (NOCs) under Pre-NELP (New Exploration
Licensing Policy) regime. Subsequently, 100% foreign participation in exploration was
allowed under NELP regime. Later discoveries were made in Gujarat, Krishna Godavari
(KG) basin, Cauvery basin, Tripura, Assam etc. Subsequently, Hydrocarbon Exploration
and Licensing Policy (HELP) was introduced in March, 2016 for a uniform licensing system
to cover all hydrocarbons such as oil, gas, coal bed methane etc. under a single licensing
framework coupled with open acreage policy.

The demand of natural gas has sharply increased in the last two decades at the global
level. However, the supply of domestic gas in India is not keeping pace with the demand
and gas-based power plants are operating at sub-optimal PLF. The power and fertilizer
industries emerged as the key demand drivers for natural gas due to the scale of their
operations, policy intervention and social impact. In an agrarian economy such as India,
the priority has been the production of fertilizers.

7.6.2 BACKGROUND

In India, Natural gas produced from domestic sources is being allocated to different
sectors by the Central Government as per policy guidelines issued from time to time. In
case of imported gas, the marketers are free to import Liquified Natural Gas (LNG) and
sell the Regasified LNG (RLNG) to customers.

The domestic gas in the country is being supplied mainly from the oil & gas fields located
at western and south-eastern areas viz. Hazira basin, Mumbai offshore & KG basin. In
addition, North Eastern Region (Assam & Tripura) is also having limited domestic gas
production which is being consumed by the localised gas consumers. Import of LNG is
being mainly carried out at terminals located on western and southwestern coast viz.
Dahej(GJ), Hazira(GJ), Mundra(GJ), Dabhol(MH) and Kochi(KL).

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Gas-based generation in India got the impetus when HVJ (Hajira- Vijaypur-Jagdishpur) gas
pipeline was commissioned by GAIL in the 80's after discovery of gas in the west coast of
India. This led to commissioning of a number of Gas-based Combined Cycle Gas Turbines
(CCGTs) along the HVJ pipe line in the Western and Northern part of India. Apart from the
major HVJ trunk pipeline, certain regional gas grids, like in KG basin and Kaveri basin also
helped in development of some gas-based power generation capacities. Isolated fields
are located mainly in parts of Tamil Nadu, Rajasthan and North-Eastern Region.

With the New Exploration Licensing Policy (NELP), gas exploration in India got an impetus
and the discovery of gas in Krishna Godavari Dhirubhai 6 (KG-D6) field by Reliance
Industries Limited in 2002, was expected to be a turning point in gas production in the
country. With the commissioning of East West pipeline by Reliance Gas Infrastructure
India Limited, KGD6 gas got infused into the system in early 2009.

With the commencement of production from KGD6 field and the expectation of
considerable increase in the volume of production from this field, number of gas-based
plants were taken up for implementation in the country even without firm allocation of
gas. Before the commencement of production from KGD6 fields, gas-based power plants
were operating primarily with the allocated Administrative Price Mechanism (APM) /Non
APM/Panna-Mukta-Tapi- Ravva basin gas from nominated fields, but these supplies were
short of their requirement. The production from KG D-6 reached its peak of around 60
MMSCMD in March 2010 and thereafter the production has decreased steadily. In view
of this decrease in production from KG D-6, MoPNG issued an order in July 2010 to apply
pro-rata cuts in supply against firm allocations to all customers on days when the total
production is less than signed Gas Sale and Purchase Agreements (GSPAs). The
Empowered Group of Ministers (EGoM) in its meeting held on 23rd August,2013 decided
that the incremental production of NELP gas, available during the years 2013-14, 2014-15
& 2015-16 be allocated to power sector after first ensuring the supply of 31.5 Million
Metric Standard Cubic Meters per Day (MMSCMD)to fertilizer sector.

Thus, contrary to the expectations, the gradual reduction in production from KG D6 had
upset the gas-based capacity addition programme in the country. When the production
from KG D6 field fell to 16 MMSCMD in March, 2013, the supplies to power sector got
reduced to zero. The gas supply against allocation from KG D6 field to power sector is NIL
since March 2013.

7.6.3 PRESENT STATUS

CEA monitors 62 nos. of gas-based power stations, using gas as primary fuel, with a total
capacity of about 23845 MW. Out of this, about 20922 MW are connected with gas
pipeline grid and the balance 2923 MW are connected with isolated gas fields. The plants
connected with isolated gas fields operate on the gas which is available locally and are
located in Tamil Nadu, North-East and Rajasthan. Out of total installed capacity of
3,99,497 MW in the country as on 31st March 2022, a capacity of 23845 MW (about 6%)

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is from gas-based power plants. However, during 2021-22, generation from gas-based
plants was only about 2.4 % of the total generation in the country.

Normative gas requirement to operate the existing power plants having capacity of
23,845 MW at 85% Plant Load Factor (PLF) is about 102 MMSCMD. However, the total
domestic gas allocated to power projects is about 85 MMSCMD and average gas supplied
to these gas-based power plants during the year 2021-22 was only 22.62 MMSCMD. Out
of 22.62 MMSCMD gas, grid connected capacity has received 13.31 MMSCMD and gas-
based capacity connected with isolated gas fields received 9.31 MMSCMD gas during the
year 2021-22. The PLF achieved by grid connected gas-based capacity is around 12.5%
only, whereas, plants connected with isolated field has achieved average PLF of around
51%. Overall PLF of gas-based capacity during the year 2021-22 remained around 17.2%.

7.6.4 Gas supply position to gas-based power plants

The details of plant wise gas-based installed capacity and gas supply position for the year
2021-22 is given at Annexure 7.1.

Supply of natural gas to gas-based power plants since 2017-18 is shown in Table 7.11.

Table 7.11
Average Gas Supply and Shortfall

Gas-based
Average Gas
Capacity at Gas Required* Shortfall
Sl. Years Supplied
the end of (MMSCMD) (MMSCMD)
(MMSCMD)
year (MW)
1 2 3 4 5 (6)=(4)-(5)
1 2017-18 23842.87 101.5 30.7 70.8
2 2018-19 23882.68 101.8 31.0 70.8
3 2019-20 23900.82 102.0 29.5 72.5
4 2020-21 23901.97 102.0 30.1 71.9
5 2021-22 23845.05 101.5 22.6 78.9

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Supply / Consumption of gas to gas-based power plants since 2017-18 is shown at Exhibit
7.8
Exhibit 7.8

Gas based Installed Capacity Vs Gas

Consumption
35.0 23920.0
Gas Consumed( in MMSCMD)

Installed Capacity(in MW)

30.0 30.7 31.0 30.1 23900.0
29.5
25.0 23880.0
22.6
20.0 23860.0
15.0 23840.0
10.0 23820.0
5.0 23800.0
2017-18 2018-19 2019-20 2020-21 2021-22
Year
Gas Based Capacity (in MW) Fig. in MMSCMD

Domestic gas supply to gas-based power plants had reached a peak of 59.3 MMSCMD
during 2010-11, thereafter, due to unprecedented reduction in gas supply, the gas supply
to gas-based power plants had reduced sharply. The gas supplied to gas-based power
plants since 2017-18 to 2020-21 has been almost 30 MMSCMD. However, during the year
2021-22, total gas supplied to gas-based power plants was only 22.62 MMSCMD.

7.6.5 Average PLF of Gas-based capacity

Average PLF of gas-based capacity since 2017-18 is shown in Exhibit 7.9 It can be seen
that average PLF of gas-based capacity during 2017-18 was around 24% and has decreased
to about 17% in the year 2021-22.

Exhibit 7.9

Avg PLF (%) of gas based Plants

26.0 23.8 23.7 24.2
23.0
24.0
22.0
PLF (in %)

20.0
17.2
18.0
16.0
14.0
12.0
10.0
2017-18 2018-19 2019-20 2020-21 2021-22
Year

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Share of Gas-based Generation in Total Generation

Share of gas-based power generation against total generation from 2017-18 to 2021-22
is shown in Exhibit 7.10.
It can be seen that share of gas-based generation since 2017-18 till 2020-21 has been
about 3.6%, which has reduced to around 2.4% during 2021-22.
Exhibit 7.10

Total Generation v/s Gas Based Generation

1600 4.5%
1400 4.0%

Gas Based Generation( in %)

3.8%
Total Generation (in BUs)*

3.6% 3.7%
1200 3.5% 3.5%
3.0%
1000
2.4% 2.5%
800
2.0%
600
1.5%
400 1.0%
200 49.96 49.63 48.23 50.64 0.5%
35.93
0 0.0%
2017-18 2018-19 2019-20 2020-21 2021-22
Year

Gas Based Generation (BUs) Total Generation (BUs) Gas Based Generation (in %)

7.6.6 ADVANTAGES OF GAS-BASED POWER PLANTS

Natural gas-based power generation has many advantages over other conventional
energy sources mainly on account of its lesser impact on the environment and better
economics. However, despite these advantages, due to shortage of domestic gas, India’s
energy mix is skewed towards coal compared to other countries, with gas-based
generation share in India is only around 2.4% at present.

Gas-based power plants require significantly less land and water in comparison to coal-
based power plants of the same capacity. In addition, gas-based plants with quick ramping
up/down capability can support the renewable balancing power requirements. This gains
importance especially in the context of India’s aspiration to rapidly scale up renewable
generation. Besides, gas-based capacity will minimize the need for other alternative
modes of power generation during peak hours of power shortage such as using diesel
generators etc., which are not only costlier but also result in more environmental
pollution. It may also be noted that gas-based power generation would reduce carbon
emissions, as emissions from gas-based power generation is less as compared to Diesel or
coal-based generation. Details are shown in the Table 7.12

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Table 7.12
CO2 emission from various fuels

Particulars of the Plant Gas based Coal based Diesel based

Capacity (MW) 1000 1000 1000
Gross Station Heat Rate kcal/kWh 1850 2350 1975
Auxiliary Power Consumption (%) 3% 8.5% 3.5%
Net Station Heat Rate (kcal/kWh) 1907 2568 2047
Fuel emission factor (g CO2/KJ) 49.4 99.6 69
Specific CO2 emission (tCO2/MWH) 0.30 0.98 0.59

However, due to acute shortage of domestic gas and higher price of imported natural gas,
gas-based power plants are not in a position to run their plants efficiently and help in
reduction of environmental pollution.

7.6.7 STEPS taken by Government to overcome shortage of gas

 Policy to grant relaxation, extension & classifications at development & production

stage for early monetization of hydrocarbon discoveries.
 Discovered Small Field Policy.
 Formulation of Hydrocarbon Exploration and Licensing Policy (HELP) in March,
2016.
 Policy for marketing freedom for gas produced from Deepwater & Ultra Deepwater
areas.
 In order to revive and improve utilization of gas-based capacity in the country,
Government of India had sanctioned a scheme for utilization of gas-based power
generation capacity for the years 2015-16 and 2016-17. The scheme envisaged supply
of imported spot RLNG to the stranded gas-based plants as well as plants receiving
domestic gas, selected through a reverse e-bidding process. The scheme also
envisaged sacrifices to be made collectively by all stakeholders and support from
PSDF (Power System Development Fund). The scheme ended on 31.03.2017.
 The Government of India constituted a High-Level Empowered Committee (HLEC) on
29th July, 2018 to consider issues related to stressed thermal power projects. HLEC,
in its report submitted in November 2018 has, inter-alia, recommended that MOP
and MOPNG may jointly devise a scheme in line with the earlier e-bid RLNG scheme
supported by PSDF in order to revive gas-based power plants. The recommendation
of HLEC is under consideration in the Ministry of Power.

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7.7 CONCLUSION

1. The scheme for utilisation of gas-based generation capacity introduced by

Government of India ended on 31.03.2017. However, it is felt that a long-term policy
intervention is required for optimal utilization of gas-based capacity in the country.

2. Large scale renewable capacity addition is being implemented in the country. Such
largescale renewable integration is likely to pose a number of challenges to system
operations. One of the challenges is to provide support to the grid particularly during
the peak hours when solar energy is going down and the load is ramping up. Gas-based
power plants can play a vital role in grid stability and provide the much-needed
balancing power for integrating renewable sources-based power generation into the
grid, particularly in view of their fast ramp up/down capability.

3. The regasification capacity in the country is also a matter of concern for gas-based
power plants, particularly those who are connected with RGTIL East-West pipeline.
Due to technical constraints like directional flows etc., imported RLNG from west coast
cannot be transported to power plants located in the East Coast. Therefore, facility of
re-gasification capacity may be suitably created at East Coast also.

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Annexure 7.1
FUEL SUPPLY/CONSUMPTION FOR GAS-BASED POWER STATIONS IN THE COUNTRY
FOR THE PERIOD 2021-22

Installed Domestic Gas

S. Name of
Utility Capacity State Gas Allotted Consumed
No Power Station
(MW) (MMSCMD) (MMSCMD)
(A) CENTRAL SECTOR
1 NTPC, FARIDABAD CCPP NTPC 431.59 HARYANA 1.81 0.07
2 NTPC, ANTA CCPP NTPC 419.33 RAJASTHAN 1.55 0.08
3 NTPC, AURAIYA CCPP NTPC 663.36 UTTAR PRADESH 2.47 0.25
4 NTPC, DADRI CCPP NTPC 829.78 UTTAR PRADESH 3.25 0.46
Sub Total (NR) 2344.06 9.08 0.86
5 NTPC, NTPC 657.39 GUJARAT 3.19 0.27
GANDHAR(JHANORE)
CCPP
6 NTPC, KAWAS CCPP NTPC 656.2 GUJARAT 5.72 0.17
7 RATNAGIRI CCPP RGPPL 1967.08 MAHARASHTRA 8.50 1.69
Sub Total (WR) 3280.67 17.41 2.12
8 KATHALGURI NEEPCO 291 ASSAM 1.40 1.42
9 AGARTALA GT+ST NEEPCO 135 TRIPURA 0.75 0.71
10 MONARCHAK NEEPCO 101 TRIPURA 0.50 0.45
11 TRIPURA CCPP OTPC 726.6 TRIPURA 2.65 2.20
Sub Total (NER) 1253.60 5.30 4.79
Total (CS)=A 6878.33 31.79 7.77
(B) STATE SECTOR

12 I.P.CCPP 270 DELHI 0.95 0.16

IPGCL

13 PRAGATI CCGT-III Pragati Power 1500 DELHI 2.49 1.72

Corp. Ltd.
14 PRAGATI CCPP Pragati Power 330.4 DELHI 2.05 0.89
Corp. Ltd.
15 DHOLPUR CCPP RRVUNL 330 RAJASTHAN 1.60 0.00
16 RAMGARH RRVUNL 273.8 RAJASTHAN 1.65 1.27
Sub Total (NR) 2704.20 8.74 4.05
17 DHUVARAN CCPP GSECL 594.72 GUJARAT 0.69 0.15
18 HAZIRA CCPP GSEG 156.1 GUJARAT 0.81 0.02
19 HAZIRA CCPP EXT GSEG 351 GUJARAT 0.00 0.04
20 PIPAVAV CCPP GPPC (GSPC- 702 GUJARAT 0.00 0.08
Pipavav Power
Comp. Ltd.)
21 UTRAN CCPP GSECL 374 GUJARAT 1.45 0.22
22 URAN CCPP MAHAGENCO 672 MAHARASHTRA 4.90 1.52

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Sub Total (WR) 2849.82 7.85 2.02

23 GODAVARI 235.4 ANDHRA 1.31 0.33
APEPDCL
(JEGURUPADU) PRADESH
24 KARAIKAL CCPP PPCL 32.5 PUDUCHERRY 0.20 0.17
25 KOVIKALPAL TANGEDCO 107 TAMIL NADU 0.45 0.17
26 KUTTALAM TANGEDCO 100 TAMIL NADU 0.45 0.29
27 VALUTHUR CCPP TANGEDCO 186.2 TAMIL NADU 0.89 0.56
Sub Total (SR) 661.1 3.30 1.53
28 LAKWA GT APGCL 97.2 ASSAM 0.50 0.28
29 LAKWA Replacement 69.76 ASSAM 0.40 0.33
APGCL
CCPP
30 NAMRUP CCPP + ST APGCL 162.4 ASSAM 0.66 0.59
31 BARAMURA GT TSECL 42 TRIPURA 0.40 0.26
32 ROKHIA GT TSECL 95 TRIPURA 0.50 0.40

Sub Total (NER) 466.36 2.46 1.86

Total (SS)=B 6681.48 22.35 9.45
(C) PVT/IPP SECTOR

33 RITHALA CCPP (NDPL) Tata Power 108 DELHI 0.40 0.00

Delhi
Distribution
Ltd.
34 GAMA CCPP Gama Infraprop 225 UTTARAKHAND 0.00 0.21
Pvt. Ltd.
35 KASHIPUR CCPP Sravanthi 225 UTTARAKHAND 0.00 0.37
Energy Pvt. Ltd.
Sub Total (NR) 558 0.40 0.57
36 BARODA CCPP GIPCL 160 GUJARAT 0.45 0.00
37 ESSAR CCPP EPL 300 GUJARAT 1.17 0.00
38 PAGUTHAN CCPP CLP India 655 GUJARAT 1.43 0.00
39 SUGEN CCPP Torrent Power 1147.5 GUJARAT 4.21 2.33
Ltd.
40 UNOSUGEN CCPP Torrent Power 382.5 GUJARAT 0.00 0.70
Ltd.
41 DGEN Mega CCPP Torrent Power 1200 GUJARAT 0.00 0.00
Ltd.
42 TROMBAY CCPP Tata Power 180 MAHARASHTRA 1.50 0.56
Comp. Ltd.
43 MANGAON CCPP PGPL 388 MAHARASHTRA 0.00 0.00
Sub Total (WR) 4413 8.76 3.60
44 GAUTAMI CCPP GVK Energy 464 ANDHRA 3.82 0.00
Ltd. PRADESH
45 GMR- KAKINADA GMR Energy 220 ANDHRA 0.88 0.00
Ltd. PRADESH

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46 GMR- Rajahmundry 768 ANDHRA 0.00 0.00

GREL
PRADESH
47 GODAVARI (SPECTRUM) Spectrum 208 ANDHRA 1.04 0.14
Power PRADESH
Generation Ltd.
48 JEGURUPADU CCPP GVK Energy 220 ANDHRA 2.22 0.00
PHASE- II Ltd. PRADESH
49 KONASEEMA CCPP Konaseema Gas 445 ANDHRA 1.78 0.00
Power Ltd. PRADESH
50 KONDAPALLI EXTN CCPP LANCO 366 ANDHRA 1.46 0.00
. Kondapalli PRADESH
Power Pvt. Ltd.
51 KONDAPALLI ST-3 CCPP LANCO 742 ANDHRA 0.00 0.00
Kondapalli PRADESH
Power Pvt. Ltd.
52 KONDAPALLI CCPP LANCO 368.14 ANDHRA 1.82 0.25
Kondapalli PRADESH
Power Pvt. Ltd.
53 PEDDAPURAM Reliance Infra. 220 ANDHRA 1.09 0.00
Ltd. PRADESH
54 VEMAGIRI CCPP GMR Vemagiri 370 ANDHRA 3.12 0.00
Power PRADESH
Generation Ltd.
55 VIJESWARAN CCPP 272 ANDHRA 1.32 0.63
APGPCL
PRADESH
56 PCIL POWER AND PCIL power and 30 ANDHRA 0.12 0.0
HOLDINGS Ltd. Holdings Ltd. PRADESH
57 RVK ENERGY RVK Enegy 28 ANDHRA 0.11 0.0
PRADESH
58 SILK ROAD SUGAR SILK ROAD 35 ANDHRA 0.10 0.0
SUGAR PRADESH
59 LVS POWER LVS POWER 55 ANDHRA 0.22 0.0
PRADESH
60 KARUPPUR CCPP Lanco Tanjore 119.8 TAMIL NADU 0.50 0.16
61 P.NALLUR CCPP PPN Power 330.5 TAMIL NADU 1.50 0.00
Generating
Company
62 VALANTARVY CCPP Pioneer Power 52.8 TAMIL NADU 0.38 0.05
Ltd.
Sub Total (SR) 5314.24 21.48 1.23
Total(PVT/IPP)=C 10285.24 30.64 5.40
GRAND TOTAL=A+B+C 23845.05 84.79 22.62

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CENTRAL ELECTRICITY AUTHORITY Draft National Electricity Plan

CHAPTER 8
FUND REQUIREMENT

8.0 INTRODUCTION
The generation capacity addition for the period 2022-27 and 2027-32 has been assessed in
the Chapters 5. This Chapter estimates total fund requirement corresponding to this capacity
addition. The requirement of funds for transmission and distribution will be included in
Volume-II of the National Electricity Plan. The requirement of funds assessed in this chapter
does not include the funds required for captive power plants and for R&M of existing power
plants.

8.1 FUND REQUIREMENT FOR THE PERIOD 2022-2027

8.1.1 A total capacity addition of 40,632 MW from conventional sources (Coal, Gas and
Nuclear) and 1,87,909 MW from renewable energy sources (Hydro including SHP, Pumped
Storage Plants (PSP), Solar, Wind and Biomass) has been envisaged for the period 2022-2027.
The requirement of funds for generation projects for the period 2022-27 has been assessed
for the above mentioned capacity addition.

8.1.2 To assess the fund requirement for various types of generation projects, the year-wise
phasing of expenditure has been considered in accordance with the base scenario. The
estimates of standard cost per MW for the year 2021-22 has been taken as input for various
technologies (except Hydro and Nuclear stations) and this has further been escalated
thereafter @2.65% per annum (considering 4 year CAGR of WPI for- FY15/16-19/20). The fund
requirement of Hydro projects has been considered based on estimated capital cost data and
actual expenditure incurred for identified individual projects. Fund requirement for Nuclear
capacity addition has been based on estimates provided by NPCIL. The details of assumptions
of capital cost per MW and year-wise phasing of expenditure of different categories of
generation projects are given in Annexure 8.1 and Annexure 8.2 respectively.

8.1.3 Based on the above, the total fund requirement for the period 2022-2027 is estimated
to be Rs.14,30,718 Crores, which also includes the likely expenditure during this period for
the projects expected to get commissioned during 2027-2032. Table 8.1 below captures the
year-wise details of total estimated fund requirement.

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Table 8.1
Total fund requirement for Generation projects during 2022-2027

(Rs. Crores)
2022-23 2023-24 2024-25 2025-26 2026-27 Total
For projects likely
to be
commissioned
during 2022-27 2,93,071 3,14,418 2,14,315 1,83,378 64,266 10,69,448

Advance action
for projects likely
to be
commissioned 7,926 30,410 43,750 57,771 2,21,413 3,61,270
during 2027-32
Total 3,00,997 3,44,828 2,58,065 2,41,149 2,85,679 14,30,718

8.1.4 The source-wise estimated fund requirement for the period 2022-2027 (including the
likely expenditure during this period for the projects expected to be commissioned during
2027-2032) is given in Table 8.2

Table 8.2
Fund requirement for Generation projects (Source-wise) during 2022-2027

(Rs. Crores)
2022-23 2023-24 2024-25 2025-26 2026-27 Total
A. Conventional

Thermal 68,632 64,417 40,274 37,767 41,611 2,52,701

Nuclear 18,598 30,028 29,013 20,628 30,855 1,29,122
3,81,823

B. Renewables

Hydro 15,774 15000 14,694 15,010 18,587 79,065

PSP 2,104 7,233 9,174 11,506 13,082 43,099
Wind 47,591 59,170 53,938 53,528 61,155 2,75,382
Offshore
0 0 0 0 4,852 4,852
Wind
Biomass 4,237 4,868 4,998 5,130 5,266 24,499
Solar 1,44,061 1,64,112 1,05,974 97,580 1,10,271 6,21,998
10,48,895
C. Total 3,00,997 3,44,828 2,58,065 2,41,149 2,85,679 14,30,718

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8.2 FUND REQUIREMENT FOR THE PERIOD 2027-32

8.2.1 The fund requirement for the period 2027-32 has been estimated based on total
capacity addition of 2,94,597 MW, consisting of 18,134 MW from conventional energy
sources, 2,24,908 MW of renewable energy sources and 51,555 MW of Battery Energy
Storage Systems (BESS). with 5 hours storage.

8.2.2 The fund requirement for the period of 2027-32 has been assessed using same
principles as that for 2022-27. The total fund requirement for coal based generation, solar,
wind, Biomass, PSP and SHP has been arrived based on estimated standard cost per MW for
the year 2021-22 with annual escalation @2.65%. The fund requirement of Hydro projects
has been considered based on estimated cost data and actual expenditure incurred for
identified individual projects. Fund requirement for Nuclear capacity addition has been based
on estimates provided by NPCIL. The details of assumptions of capital cost and year-wise
phasing of expenditure of different categories of generation projects are given in Annexure
8.1 and Annexure 8.2 respectively.

8.2.3 Based on the above, the total fund requirement for the period 2027-2032 has been
estimated to be Rs. 17,15,608 Crores. This fund requirement does not include advance action
for the projects which may get commissioned after 31.03.2032.

8.2.4 The source-wise fund requirement for the period 2027-2032 is given in Table 8.3.

Table 8.3
Fund requirement for Generation projects (mode-wise) during 2027-2032

(Rs. Crores)
2027-28 2028-29 2029-30 2030-31 2031-32 Total
A. Conventional

Thermal 26,815 12,385 1,693 1,614 1,614 44,121

Nuclear 30,648 20,981 13,293 7,840 2,123 74,885
1,19,006
B. Renewables
Hydro 27,209 25,319 19,623 12,258 4,661 89,070
PSP 13,048 9,697 7,303 4,120 1,364 35,532
Wind 68,071 88,889 56,636 43,666 21,822 2,79,084
Offshore 18,957 41,342 44,700 44,136 26,674 1,75,809
Wind
Biomass 5,405 3,840 1,664 0 0 10,909
Solar 1,39,423 1,57,380 1,63,616 1,67,952 33,765 6,62,136
12,52,540
C. BESS 24,870 60,841 79,680 84,124 94,547 3,44,062

D. TOTAL 3,54,446 4,20,674 3,88,208 3,65,710 1,86,570 17,15,608

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8.3 SOURCES OF FUNDS

8.3.1 In case of Central Sector projects, generally developers make an equity contribution
of 30%. In case of projects developed in State Sector and Private sector, the equity
contribution is generally 20% and 25% respectively. Therefore, to arrive at overall
requirement of equity and debt, we have assumed an average of 25% equity and 75% debt
for overall fund requirement.

8.3.2 Based on the estimation of fund requirement for the period 2022-27 and considering
sector-wise equity contribution mentioned in para 8.3.1, it is estimated that developers will
be required to infuse equity amount totaling to Rs. 3,57,679 Crores. Further, they will have to
arrange for total debt of Rs. 10,73,039 Crores.

8.3.3 Similarly, the equity and debt requirement (excluding fund requirement for advance
action for projects during the period beyond 31.03.2032) for the period 2027-2032 have been
estimated as Rs. 4,28,902 Crores and Rs. 12,86,706 Crores respectively.

8.3.4 The equity can be arranged from surplus generated from operations, Initial Public
Offerings by Listing in Markets, Follow on Public Issues, convertible debentures and
monetization of operational assets. Equity markets investments can be directly from the
public and also from Mutual funds, Insurance companies’ funds etc. NPS has provision of
allowing Equity investment. Similarly, provident fund also has provision of certain percentage
investments in equity to support investments. As solar capacity includes roof top solar
capacity, funding would be available from individuals, companies and the community from
their savings. As per NITI Aayog estimates, funds availability for power sector from National
Monetization Pipeline is estimated to be Rs. 85,032 Crore over 2022-25.

8.3.5 The sources available for debt funding are scheduled commercial banks, financial
institutions like Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Life
Insurance Corporation (LIC), commercial banks and Bonds (domestic as well as overseas),
External Commercial Borrowings, foreign currency loan from World Bank, ADB, KfW, EXIM
Bank and also Buyer’s credit from foreign equipment manufacturers.

8.3.6 In respect of nuclear power generation, Government budgetary support may be

required for funding equity requirement for future power projects.

8.3.7 IREDA, as Non-Banking Financial Institution is already engaged in promoting,

developing and extending financial assistance for setting up projects relating to new and
renewable sources of energy. Further, for financing renewable energy projects under various
schemes and supporting technologies like Energy Storage, Green Climate Fund may also be a
potential source.

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Annexure 8.1
Assumptions for estimating capital cost of power projects (Part-a)

I. Cost /MW considered for assessment of fund requirement for the period 2022-2027

Sl.No. Project type Capital cost per MW (Rs. Crores)

2022-23 2023-24 2024-25 2025-26 2026-27
1 Coal 8.56 8.79 9.02 9.26 9.51
2 Hydro* - - - - -
3 PSP 5.13 5.27 5.41 5.55 5.70
4 Nuclear# - - - - -
5 Solar 4.57 4.64 4.71 4.77 4.84
6 Wind 6.16 6.32 6.49 6.66 6.84
7 Biomass 9.24 9.48 9.73 9.99 10.26
8 BESS 8.75 8.17 7.56 7.37 7.17

II. Cost (Rs Crore) /MW considered for assessment of fund requirement for the period
2027-2032

Sl.No. Project type Capital cost per MW (Rs. Crores)

2027-28 2028-29 2029-30 2030-31 2031-32
1 Coal 9.76 10.02 10.28 10.55 10.83
2 Hydro* - - - - -
3 PSP 5.85 6 6.16 6.33 6.49
4 Nuclear# - - - - -
5 Solar 4.91 4.98 5.05 5.19 5.33
6 Wind 7.02 7.21 7.40 7.59 7.79
7 Biomass 10.53 10.81 11.09 11.39 11.69
8 BESS 6.95 6.71 6.46 6.63 6.81

*The fund requirement of Hydro projects has been considered based on estimated cost data
and actual expenditure incurred.
# Fund requirement for Nuclear has been based on estimates provided by NPCIL

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Annexure 8.2

Assumptions for estimating capital cost of power projects (Part-b)

Phasing of expenditure of generation projects, for the periods 2022-27 and 2027-32

Type of Year Year Year Year Year Year Year Year Year Total
Generation 1 2 3 4 5 6 7 8 9
Project
Coal 10% 10% 20% 30% 30% - - - - 100%
Hydro 20% 25% 25% 20% 10% - - - - 100%
PSP 20% 25% 25% 20% 10% - - - - 100%
Solar 80% 20% - - - - - - - 100%
Wind 60% 40% - - - - - - - 100%
Biomass 30% 40% 30% - - - - - - 100%
SHP 30% 40% 30% - - - - - - 100%
BESS 100% - - - - - - - - 100%
Nuclear$ - - - - - - - - - -

$ Phasing of Funds for Nuclear has been considered as per estimates provided by NPCIL

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 Central Electricity Authority Draft National Electricity Plan

Chapter 9
Key Inputs for Power Sector
9.0. Introduction
Material and equipment are the backbone of any capital-intensive sector like the power sector.
Technological prowess in electricity generation can only be harnessed when support is available from
all the contributing agencies. Timely availability of all key inputs - as per the requirement of the
individual power projects, is vital for its successful completion and long-term sustenance. These key
inputs include availability of major equipment, key materials including the material for construction
and equipment as well as availability of various types of transportation facilities. Infrastructural
support such as port facility, rail and road connectivity and erection agencies including civil contractors
are of equal important.

 The requirement and availability of following major key inputs has been examined in the
report.
 Requirement of Equipment for Thermal, Hydro, Wind & Solar power plants and other RE
sources
 Requirement of Key Materials like Cement, Steel and Aluminium
 Transportation including Railways, Roadways, Ports, Inland Waterways, LNG terminals & Gas
pipelines
 Land and Water requirement
 Availability of Construction Machinery
 Availability of materials for solar power generation.

9.1. Capacity Addition Plan for the period 2022-27 and2027-32

The projected Installed Capacity from different energy sources (Thermal- Coal & Gas,
Hydro, Nuclear, Renewable – Solar, Wind, Biomass, Small Hydro) in the country at the
end of year 2021-22, as considered in the base case of generation planning studies, is
given in Table 9.1.
Table 9.1
Installed Capacity from different energy sources in 2021-22
S.No. Source Capacity (MW)
1 Coal + Lignite 210700
2 Gas 24899
3 Nuclear 6780
4 Hydro (including small Hydro) 46825
6 Solar 53996
7 Wind 40358
8 Pumped Storage 4746
9 Biomass 10682
Total 398986

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Capacity addition plan for 2022-27 & 2027-32, as estimated in the generation planning
studies is as given in Table 9.2.
Table 9.2
Capacity addition plan for 2022-27 & 2027-32
Capacity Addition in Capacity Addition in
S.No. Source \ Year
2022-27 (MW) 2027-32 (MW)
1 Solar PV 132080 147400
2 Wind Power 40500 53100
3 Coal 33262 9434
4 Hydro* 10951 10888
5 Nuclear 7000 8700
6 Pumped Storage 2060 12020
7 Biomass 2318 1500
8 Gas Power 370 0
Total (MW) 228541 243042
Battery Energy 51555
Storage System#
*including small Hydro but excluding hydro imports of 5856 MW
#5 Hour Battery energy Storage

It may be noted that 4629 MW of Coal capacity is considered to be retired during the period
2022-27.

9.2. Requirement of Equipment

9.2.1. Thermal Power Plants

9.2.1.1. Main Plant Equipment

The thermal power generation expected in next ten years is around 43 GW. Accordingly,
approximately 4.3 GW/year is expected to be added. Boiler, Turbine &Generator (BTG) form
a major part of the thermal power plant. The overall BTG manufacturing capability in the
country has been estimated to be around 22 to 25 GW/year, as shown in Table 9.3.
Table 9.3
BTG manufacturing capability in the country
S.No. Company Boilers (MW) Turbine –
Generator (MW)
1 BHEL 13500 13500
2 L&T-MHI Power Boiler Pvt Ltd 4000 -
3 L&T MHI Power Turbine Generators Pvt Ltd - 4000
4 Doosan Power System Pvt Ltd 2200 -
5 GE Power Systems India Pvt Ltd - 4000
6 Toshiba JSW Power System Pvt Ltd - 3000
7 Thermax - Babcock & Wilcox 3000 -
Total 22700 24500

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Thus, adequate indigenous manufacturing capacity of main plant equipment is available in

the country. However, most manufacturers reportedly do not have requisite orders and have
expressed concerns on lack of orders.

9.2.1.2. Balance of Plant (BoP) equipment

Following balance of plant equipment are assessed for requirements:

9.2.1.2.1. Dry Bottom Ash Handling system

In these systems, the bottom ash is air-cooled as it is being removed from the boiler and
transported, eliminating the need to use water which leading to substantial saving in water
consumption. As this system, does not use any water to handle bottom ash, boasts the
following advantages over conventional hydraulic transport systems:
・lesser environmental impact
・Wider and more effective uses of dry bottom ash
・Lower equipment and running costs
Dry Bottom Ash Handling Systems are currently not being manufactured in the country.

9.2.1.2.2. High Concentration Slurry Disposal (HCSD):

High concentration fly ash slurry is the fly ash disposal system that is followed in many coal-
based thermal power plant in India. Efforts to reduce the dilution of the slurry will result in
energy conservation as well as water conservation. The main advantages of HCSD system are
as given below:
1. Water consumption: high concentration ash slurries use up to a factor 12 less water
than dilute slurries.
2. No or minimal contamination by water leaking to the environment.
3. Pipeline transportation is safe, silent and reliable without ash spills.
4. Pipeline scaling eliminated.
5. High availability, low parts usage, low maintenance.
6. Substantial energy savings to run system.
HCSD systems have not been fully indigenised with major components like slurry pumps being
imported.

9.2.1.2.3. Air Cooled Condensers (ACC):

An air-cooled condenser (ACC) is a direct dry cooling system where steam is condensed inside
air-cooled finned tubes. Since these kinds of power plants, which are equipped with ACCs, do
not require a large volume of cooling water, the power plants can easily be built in a region
where water may not be available, or where its use is restricted or expensive.

ACCs are currently the frontrunners in dry cooling technology for thermal power plants.
Design for lower rating ACC’s with multi row tube arrangement is available in India, while

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BHEL is making efforts to indigenize the design for higher ratings. Efforts are underway to
indigenize the components used in ACC like vacuum pumps, raw material for tube bundles,
etc. Approx. 5% to 7% of complete ACC is imported.

Hence, in case of certain specialised Balance of Plant equipment there are still some
constraints in their indigenous availability as highlighted above.

9.2.1.2.4. Emission Control Equipment

9.2.1.2.4.1. Flue Gas Desulphurisation (FGD)

In order to meet the new emission norms notified by MoEFCC, thermal power plants need to
install FGD to control SOx emissions. While sufficient FGD system suppliers are present, and
most of the components used in manufacturing FGDs are indigenously available, there are
still some constraints w.r.t the following components.
 Some special materials are imported
• C276 clad/sheet
• Titanium Gr2 clad / sheets
• Alloy 59, Haste Alloy C22, Alloy 31
• Bromo-butyl rubber lining
• Borosilicate lining
 Some specialised systems involved in FGD
• Gypsum Dewatering system
• Slurry recirculating pumps
• Agitators
• Mist Eliminator
Although manufacturing capability of 70 to 80% FGD components is available in India, the
balance 20 to 30% of FGD components are being imported from other countries. It is
estimated that to create a manufacturing capability of these items in India it would take few
years.

9.2.1.2.4.2. Selective Catalytic Reduction (SCR)

In order to meet the NOx emission standards under the new emission norms notified by
MoEFCC, thermal power plants need to either implement combustion modification or install
SCRs depending upon the stringency of the norms applicable to a particular unit/plant. While
sufficient SCR system suppliers are present, and some of the SCR components can be
indigenously sourced, there are still some constraints w.r.t major components like Ferritic
Stainless Steels, Titanium Oxide (TiO2) catalyst etc. As per information collected by the
subcommittee, M/s BHEL is augmenting its capacity to manufacture the SCR Catalyst to 4,000
MW/year.

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9.2.1.3. Construction Machinery

There is a general consensus that no constraint in availability of major construction machinery

for power plants. However, contractors usually take on work beyond their capacities and this
leads to delay in mobilisation of resources at site. Proper planning of construction schedule
and provisioning of resources beforehand can address this problem. The list of major
construction equipment required for construction of 660 MW sets is given in Table 9.4.

Table 9.4
Major Construction Equipment for 660 MW sets
S.No. Major Construction Equipment for 660 MW sets

1 Heavy Lift High Reach (HLHR) Crane for Ceiling Girder Erection
(600 MT or above capacity)
2 250/270/300 MT Class Crane – 2 Nos.
3 250/270 MT Class Crane
4 135/150 MT Class Crane- 4 Nos.
5 100/120 MT Class Crane - 2 Nos.
6 100/120 MT Class Crane – 2 Nos.
Or Tower Crane of 20 MT capacity – 2 Nos.
7 75/80 MT Class Crane – 6 Nos.
8 Induction Heating Machine
9 Strand Jack System

9.2.1.4. Requirement of spare parts and maintenance contracts for existing thermal
projects

In the last one decade there has been renewed thrust on renewables and the trend of shift
away from fossil fuels to renewables is expected to continue in the coming decades leading
to sharp decline in the growth rate of new capacity addition of coal-based power, and gradual
movement of OEMs away from manufacturing of thermal capital equipment.
The above situation of spare parts is likely to impact the support for spares and services for
coal power plants especially for fast-moving wear parts such as those in Ash Handling Plant
(AHP), Coal Handling Plant (CHP) and Coal mills. In the boiler area, the supply of bearings of
fans and air-preheaters may be affected. High-grade bearings and boiler tubes may also have
limited availability in India. In the Turbine Generator (TG) area, spares for governing system
of old generation turbines may impact coal-based generation in the long run.

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Therefore, it would be in the interest of the thermal power utilities to anticipate the future
spare and maintenance requirements and prepare for reliable operation of their plants
accordingly.

9.2.2. Hydro Power Plants

Installation of a Hydro Electric Plant (HEP) involves Hydro-Mechanical, Electro-Mechanical

and Civil works. There seem to be sufficient number of companies involved in each of these
fields (A list of major suppliers is given in Annexure-9.1.). However, it has been noticed that
some of the components of the Hydraulic System for Gates of Hydro Power Plants still require
full indigenization. Especially the cylinders used in the hydraulic system of the Spillway Gate,
Penstock Intake Gate, Silt Excluder Gate and the Power Pack in some cases is being imported
from countries like Italy and Germany. Hence, efforts toward indigenization of these
components may be accelerated.
While availability of equipment is not the main concern for hydro power development in the
country, there are some constraints regarding capability of civil contractors. As civil
construction and engineering usually forms a huge part of overall project time and cost of an
HEP, this has always remained an area of concern. It has come to the knowledge of the
committee that the financial health and competence of Indian civil contractors has eroded
over the years due to slow progress on capacity addition of HEPs. This is a sector specific issue
and while measures like easing the cash flow to contractors, relaxing qualification
requirements etc. are being undertaken, more attention needs to be given to the matter.
In this regard, Ministry of Power’s OM on “Measures to Promote Hydro Power Sector” dated
8th March 2019 may be referred (Annexure A8).

9.2.3. Wind Power Plants

In India, over 17 wind turbine manufacturers are available with the domestic annual
production capacity of around 10,000 MW/year. India has a manufacturing base for most of
the major wind components within the country. They supply the components to domestic
wind turbine industry and export the components to the global wind turbine market.
The present wind turbine gearbox manufacturing capacity available in the country is more
than 6 GW per year which is more than the present annual requirement by wind turbines
power plants. Therefore, the present gearbox manufacturing capacity can meet both the
existing and future increase in demand, if any. In addition to the main gearbox, the
manufacturing capacity for both pitch and yaw drives is also sufficient at more than 10 GW
per year.
However, at certain instances, the Gear boxes required for wind turbine power plants are also
being imported to India due to issues related to Quality, Cost and Delivery lead time. Hence,
more focus on quality and cost effectiveness in this area is required. The report on 'Scaling up
Domestic Manufacturing of Wind Turbine Components – A Step towards Atmanirbhar Bharat,
Sept 2020' prepared by NIWE may be referred in this regard.

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9.2.4. Solar Power Plants

India has made significant progress in indigenous manufacturing of solar power project
equipment. However, it seems difficult for the manufacturing capacities of major solar
equipment to match up to the country’s ambitious solar capacity addition plans. At present
the Solar PV Modules manufacturing capacities in India is around 12 GW/year; while for Solar
PV Cells, the manufacturing capacity is around 3.0 GW/year and around 5GW/year for solar
inverters.
Further, other electrical equipment like String & Central Inverters, Cables, etc. are required
for solar PV power plant. While 5 - 6 nos. of String Inverters are required for 1 MW power
plant, one central inverter is sufficient for each 2 – 4MW of power plant capacity. Cables
required are as follows: String cable, 2800 m/MW, DC Power cable, 3000 m/MW and HV Cable
(33kV), 500 m/MW.

9.2.5. Other Renewables

9.2.5.1. Small Hydro

Indigenous capacity for small hydropower equipment manufacturing is in order of 1000 MW

annually, since the country has six to seven established manufacturing companies in the field.
A list of major manufacturers is given in Annexure 9.2. For SHP, most of the raw material is
available in India. However, up to 20% components of generators are imported. Control
panels and governors are available indigenously.

9.2.5.2. Biomass

All equipment, technology & services supply for these projects can be sourced indigenously.

9.2.6. Availability of Equipment in India - Make in India efforts

Efforts are underway in India to reduce dependence on imports for power plant equipment.
At present, many components/systems used in thermal power plants are being imported.
Large steam turbine components like High Pressure (HP) and Intermediate Pressure (IP) rotor
forgings of 10% Cr Steel are being imported irrespective of weight, while all Low Pressure (LP)
Rotors are also being imported. Large diameter Alloy Steel Pipes SA335P22 and Carbon Steel
Pipes Sa106GRC of thickness greater than 36 mm are being imported. Further, there is no
indigenous supplier for Electrohydraulic Actuators for HP/IP turbine valves, Servo Valves for
Turbine Control Valves and Generator Terminal Bushing.

Similarly for other sources, there is dependence on import of certain components which are
not manufactured in India from certain generator components to special quality steel parts.
In case of renewables, there is large import dependency for solar power plants. The country
is largely importing solar cells for the manufacturing of solar modules/panels.

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 Central Electricity Authority Draft National Electricity Plan

Efforts are underway in GoI through Make in India (MII) initiative to reduce import component
in power plant equipment. The Government of India has issued Public Procurement
(Preference to Make in India) Order 2017 via Department of Industrial Policy and Promotions
(DIPP) and revision thereof (time to time) to promote manufacturing and production of goods
and services in India with a view to enhance income and employment. In pursuance of the
aforesaid orders of DIPP, Ministry of Power issues order time to time wherein the preference
shall be given by all public procuring entities to domestically manufactured products used in
the Power Sector.

9.3. Requirement of Key Materials

9.3.1. Cement, Steel, Aluminium
The overall requirement of materials (Cement, Structural Steel, Reinforcement Steel, Stainless
Steel and Aluminum) in thousand metric tons as per the capacity addition plan for the period
2022-27 is given in Table 9.5. It is estimated that approximately 52.1 million metric tons of
material would be required for 2022-27.

Table 9.5
Overall requirement of materials (round off values in thousand MT) in 2022-27
S.N Materials Coal Nuclea Hydro Solar Wind Biomas Total
o. (thousand MT) r s
1 Cement 6253 1708 12438 2972 4455 1159 28985

2 Structural Steel 2927 798 442 3170 6075 3477 16889

3 Reinforcement 1596 434 1210 - 2835 - 6075
Steel
4 Stainless Steel 66 18 - - - - 84
5 Aluminium 17 5 1 - - - 23

Similarly based on the perspective plan for the period 2027-32, the material requirement in
thousand metric tons is as given in Table 9.6. It is estimated that approximately 59 million
metric tons of material would be required for 2027-32.
Table 9.6
Overall requirement of materials (round off values in thousand MT) in 2027-32
S.No. Materials Coal Nuclear Hydro Solar Wind Biomass Total
(thousandMT)
1 Cement 1774 2123 21900 3316 5841 750 35704
2 Structural 830 992 779 3538 7965 2250 16354
steel
3 Reinforcement 453 539 2130 - 3717 - 6839
steel
4 Stainless steel 19 23 - - - - 42

5 Aluminium 5 6 2 - - - 13

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The following norms (given in Table 9.7, Table 9.8 and Table 9.9) have been used to estimate
the key materials required for thermal, nuclear, hydro and renewable power projects.

Table 9.7
Norms for estimation of key materials for Thermal projects
S.No. Materials (Ton/MW) Thermal
Coal/Lignite Gas
1 Cement 188 60
2 Structural steel 88 29
3 Reinforcement steel 48 24
4 Stainless steel 2 1
5 Aluminum@ 0.5 0.5

Table 9.8
Norms for estimation of key materials for Hydro & Nuclear projects
Inputs for Cement and other materials for nuclear projects have been considered at 130% of
the requirement of coal-based projects based as considered in NEP-2015.
S.No. Materials(Ton/MW) Nuclear Hydro

1 Cement 244 956

2 Structural steel 114 34
3 Reinforcement steel 62 93
4 Stainless steel 2.6 -
5 Aluminium@ 0.7 0.1

Table 9.9
Norms for estimation of key materials for Renewable projects
S.No. Material Solar Biomass Wind Power Small Hydro
(Ton/MW) Power Power Plant Plant Power Plant*
Plant
1 Cement 20 – 25 500 110 160
2 Steel 21 – 27 1500 220 190
3 Aluminum@ - - - -
4 Copper 1 – 1.25 - - -
@: Aluminium is only used in transmission lines employed in power evacuation. The same is excluded here as material usage
within power plant boundary has been considered.
*: The figure has been arrived at with the assumption that 30% SHP projects are on canal fall and dam toes which require
lesser construction material and 70% SHP projects are in hilly region.

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9.3.2. Tubes, Pipes & Thick Boiler Plates for TPS

Table 9.10
Norms for estimation of Tubes, Pipes & Thick Boiler Plates for TPS
Material For Supercritical Units (in Tons/MW)
Tubes & Pipes 10.62
Thicker Boiler Quality Plates 3.38 / 1.61*
*The value is 3.38 when we consider plates with thickness > 20 mm and the value is
1.61 when we consider plates with thickness > 100 mm as thick boiler plates.

9.3.3. Castings & Forgings for Turbine-Generators (TG) Sets for TPS

Table 9.11
Norms for estimation of Castings and Forgings for TPS
S.No Equipment Weight of Casting(MT Weight of Forging(MT
per set) per set)
1. Turbine (660 MW) 430 – 477 221 – 250
2. Turbine (800 MW) 380 – 528 220 – 255
3. Generator 2.5 – 3 102 – 130

9.3.4. Emission Control Equipment for TPS

9.3.4.1. Flue Gas Desulphurisation:

The major requirement (in Metric Tonnes) for a typical FGD system for a 2x500 MW TPS is
given in Table 9.12. The exact values are dependent on the unit-specific design aspects.

Table 9.12
Major material requirement (MT) for a typical FGD system (2x500 MW)

S. No. Major Materials Material Requirement (MT)

i Cement 25,000
ii Structural Steel 15,000
iii Reinforcement steel 5,750 – 6000
iv Stainless steel & plates 350 – 400
v Aluminium 50 – 70
vi Casting and Forgings 200
vii Casting and Forgings special alloy 50
/ Duplex stainless steel
viii Tube & Pipes 600 – 800
ix BQ Plates 30
x C276 clad/sheet for absorber 350 – 375
xi Titanium Gr2 for ducting 300 – 350

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Most of the flue gas desulphurisation technology is limestone based. As per the information
available with Ministry of Mines, India has limestones reserves of 1,70,749 million tonnes
containing more than 38% Cao, and 1640 million tonnes of limestone with CaO content
greater than 50%. Production of limestone in the year 2018-19 was 351 million tonnes, with
cement industry using almost 95% of the production. Limestone requirement of thermal
power sector is expected to increase in the coming years to a peak of around 18 million tonnes
when all plants are using FGDs. With existing reserves and production capacity this seems to
be an achievable target.

9.3.4.2. Selective Catalytic Reduction (SCR)

Major material requirement of SCR for a 660/800 MW unit in MT/MW is given in Table 9.13.

Table 9.13
Major material requirement (MT/MW) of SCR in a typical 660/800 MW plant

S.No. Items MT per MW

1 Ferritic Stainless Steel Grade 430 0.280
2 Titanium dioxide (TiO2) 0.193
3 Structural Steel 5
4 SA 516 Grade 70 0.3 – 0.5
5 Carbon Steel 1.14 – 1.20

9.3.5. Material requirement for Solar Power Plants

Solar comprises almost 45% of the installed RE capacity. Raw polycrystalline silicon,
commonly referred to as polysilicon, is a high-purity form of silicon which serves as an
essential material component in the solar photovoltaic (PV) manufacturing industry. It is the
primary feedstock material used for the production of solar cells today.
Solar panels are made of tempered glass, also referred to as safety glass/ toughened glass as
specific characteristics of tempered glass suitable for the manufacturing of solar PV panels.
With ambitious plans to use renewables, India’s requirement for flexibility in power
generation and power ramping is expected to increase in the coming years. Batteries, among
other types of storage, are ideally suited to meet these rising flexibility needs. Battery storage,
coupled with solar PV, can become one of the most cost-effective ways to produce clean
reliable power both on-grid and off-grid.

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Table 9.14 present the major material requirement of Solar Photovoltaic power plants.

Table 9.14
Material usage estimate* for Solar PV
S No Item Attribute Unit Quantity
1. Solar Cell Monocrystalline/Poly-crystalline kg/MW 4350
Low iron content, high transmissivity, m2/MW 7500
2. Tempered 3.2/2.5/2 mm thickness with Anti
ARC Glass Ton/MW 60
reflective coating
Anodized Aluminium, Anodization
3. Frame parts thickness>15 microns, 2 long pieces, 2 km/MW 21
short pieces
4. Cell Alloy Sn60Pb40, 0.9mm x 0.23mm km/MW 750
Interconnect
*Assumptions used for estimation:) For 1 MW AC Solar Power 1.45 MW DC Power is required; ii) Glass is 75% by weight of
the module.

Material requirement of Lithium-Ion Battery is given in Table 9.15.

Table 9.15
Material usage estimate for Lithium-Ion Battery

S No Item Unit Quantity

1 Cobalt kg/MWh 176
2 Lithium kg/MWh 144
3 Nickel kg/MWh 475
4 Manganese kg/MWh 166
5 Graphite kg/MWh 1109

9.4. Transportation
Transport requirements of the power sector

Transport Exigencies in case of Wind Turbines

Accessibility by roadways/ railways to project sites is imperative for effective installation/
commissioning of power plants and their O&M activities. Location of wind power plants in
remote location often creates a problem of transportation of heavy, large sized equipment.
One of the primary challenges facing the wind industry is the sheer size and dimensions of
wind turbine components that typically require special logistical handling throughout
transportation. Once fully constructed, a blade cannot be bent or folded, limiting both the
route a truck can take and the radius of turns that it can make, often making elongated routes
necessary to avoid urban roadblocks.

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While the towers that support wind-turbines extend high into the sky, their width is also a
significant factor to consider. Their transportation is often obstructed when the diameter of
components is unable to fit under highway overpasses or bridges.
Roadways should be sufficient/ broad enough for the crane movement, transporting the rotor
blades of length ranging from 15 m to 70 m by trailers and other heavy construction
equipment.

Transportability consideration for Biomass and Small Hydro

As both Biomass and Small Hydro based projects are usually small in size & located in
remote/rural areas, their requirement regarding transportability is more about the
availability of roads rather than the size of roads/ rail network. Motor able roads are most
essential for movement of equipment during construction phase and for transport of labor&
fuel during the operational phase. Rail network, if available, can provide a low-cost
alternative.

Transportability consideration for Solar

Road and Rail infrastructure is key essential requirements in facilitation of the Solar PV and
solar thermal power plant. It is required for the smooth movement of logistic components,
and manpower (for installation and maintenance). Especially the connecting roads till the
power plant site is to be established for a damage free movement of the goods

Transportability consideration for Hydro Electric Plants (HEPs)

While availability of roads augments the swift completion of large scale HEPs, the weight and
dimensions are the real concerns when it comes to transport consideration of HEPs. From the
point of view of cargo transportation, there are several Over-dimensional (ODC) and heavy
weight equipment in HEP like the Generator Rotor, Rotor Spider, GSU transformer, Penstock
valve, Main Inlet Valve, EOT Crane Girder etc. which need clearances.

9.4.1. Ports

Availability of major & minor ports of the country brings about a significant boost to sea trade.
It allows the consumers to transport their equipment & materials to distant locations in a
secure and relatively inexpensive manner. India has a coastline of about 7500km with close
to 200+ ports, including 12 major ports. Around 95% of India's trading by volume and 65% by
value is done through maritime transport and hence, play vital role in the country’s trade and
commerce. Total traffic handled at Indian Ports rose from 885 MTPA in 2010-11 to 1300 MTPA
in 2019–20. The 12 Major Indian Ports handled nearly 54 per cent of the total cargo in 2019-
20, and have witnessed just about 4% CAGR growth in overall cargo traffic over last 5 years.

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Major Ports in India

There are 12 major ports in India with a total capacity of around 1500 million tonnes. The
port-wise capacity and their utilization is in Table 9.16: -

Table 9.16
Capacity of major ports in India

S. No. PORTS State Capacity Utilisation

(MTPA)
1 SMP, Kolkata (KDS) West Bengal 27.30 63%
1b SMP, Kolkata(Haldia) West Bengal 53.45 87%
2 Paradip Odisha 259.50 43%
3 Visakhapatnam Andhra Pradesh 126.89 57%
4 Kamarajar Tamil Nadu 91.1 35%
5 Chennai Tamil Nadu 134.60 35%
6 VO, Chidambaranar Tamil Nadu 95 38%
7 Cochin Kerala 73.67 46%
8 New Mangalore Karnataka 112.51 35%
9 Mormugao Goa 62.5 26%
10 Mumbai Maharashtra 77.85 78%
11 JNPT Maharashtra 118.3 58%
12 Deendayal Gujarat 261.1 47%
TOTAL 1493.77 47%
SMP: Syama Prasad Mukherjee Port | KDS: Kolkata Dock System | HDC: Haldia Dock Complex
JNPT: Jawaharlal Nehru Port Trust

Major Ports Authority Bill

The Major Ports Authority (MPA) Bill 2020 was enacted as an Act of the parliament in
February, 2021.The new act is expected to usher in an era for enhanced administration of
Major Ports in India, wherein, the Major Ports will contribute significantly to the economic
growth of the country and provide world-class port infrastructure by adopting Landlord
Model of development. Under the bill, the Major Ports shall gain autonomy on many key
matters including tariffs, development of port assets, master planning of infrastructure within
port limits and powers to make regulations for port operations.

Sagarmala Project

In 2015, the Sagarmala programme was approved with the vision to reduce logistics cost for
EXIM and domestic trade with minimal infrastructure investment. Aimed at propagating
‘Port-led economic growth, the key pillars of the Sagarmala Programme include Port
Modernization & New Port Development, Port Connectivity Enhancement, Port-linked
Industrialization, Coastal Community Development and Coastal Shipping and IWT.’

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Under the Sagarmala Programme, 802 projects at an estimated investment of more than Rs.
5.52 Lac Crore have been identified for implementation up to 2035. Of these, 165 projects
(Rs. 86,939 Crore) have been completed and 238 additional projects (Rs. 2.16 Lac Crore) have
been awarded and are under implementation.

Pillar wise summary of projects under Sagarmala is given in Table 9.17:

Table 9.17
Pillar-wise summary of Sagarmala project
Under
S. No Project Theme Total Completed
Implementation

1 Port Modernization 242 74 55

2 Port Connectivity 207 47 80
3 Port Led Industrialization 33 8 22
4 Coastal Community Development 88 18 28
5 Coastal Shipping and IWT 232 18 53
Total 802 165 238

Coal handled at Indian Ports

Sea route is being extensively used for coal transportation. In the year 2019-20, the major
ports across the country handled approx. 144 million tonnes of coal. The port wise break-up
for the total coal handled (in '000 tonnes) at major ports in India for the year 2019-20 is given
in Table 9.18:

Table 9.18
Coal handled at Indian Ports (Thousand tonnes)
Ports Coal (Thousand tonnes)
Thermal Coal Coking Coal Other Coal Total
SMP, Kolkata (KDS) - 286 ! 614 900
SMP,Kolkata (Haldia) 2359 7680 7532 17571
Paradip 27003 11995 129 39127
Visakhapatnam 821 7552 9749 18122
Kamarajar 19313 953 - 20266
Chennai - - - 0
V.O. Chidambaranar 7190 61 6012 13263
Cochin - - - 0
New Mangalore - 10 5133 5143
Mormugao 1550 7936 - 9486
Mumbai 2335 - - 2335
J.N.P.T. - - - 0
Deendayal 16821 1040 17861
TOTAL: 77392 37513 29169 144074

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Mechanisation of Ports
Mechanisation of ports is under various stages of implementation by Ministry of Shipping.
Mechanisation Status of major ports is given in Annexure 6.

9.4.2. Inland Waterways

To promote inland water transport in the country as an economical, environment friendly and
supplementary mode of transport to rail and road, 111 inland waterways were declared as
national waterways by the National Waterways Act, 2016.

Five national waterways are at advanced stage of development. Their brief status is given
below.
 National Waterway (NW) – 1
Government is implementing the Jal Marg Vikas Project (JMVP) at an estimated cost of Rs.
5369. l8 cr. for capacity augmentation of navigation on National Waterway -1 (NW- l) on the
Haldia - Varanasi stretch of Ganga-Bhagirathi- Hooghly River System with the technical and
financial assistance of the World Bank. The project is scheduled to be completed in 2022-23.
Five locations for Ro-Ro terminals have been identified on the waterway.
 National Waterway (NW) – 2
The river Brahmaputra having a length of 891 Km between Bangladesh Border and Sadiya was
declared as NW-2 in 1988. The existing infrastructure includes high & low-level jetties at
Pandu with railway connectivity, Ro- Ro terminal at Dhubri, 11 floating terminals and
Navigational aids. Development has been undertaken with renewed works which include -
Cargo I Ro-Ro terminals at Dhubri & Hatsinghimari, Slipway at Pandu.
 National Waterway (NW) – 3
West Coast Canal from Kottapuram to Kollam (168 KM) together with Champakara canal (14
Km) and Udyogmandal canal (23 KM) was declared as NW-3 in 1993. The National Waterways
Act 2016 included stretch of West Coast Canal from Kottapuram to Kozhikode for a length of
165 km, thereby extending the total length of NW-3 to 370 km. IWAI has constructed nine
permanent terminals along the waterway.
 National Waterway (NW) – 4
NW-4 was declared in 2008 for the length of 1,078 km comprising of the Kakinada-
Puducherry stretch of canals and the Kaluvelly Tank, Bhadrachalam Rajahmundry stretch of
river Godavari and Wazirabad Vijayawada stretch of river Krishna in Andhra Pradesh &Tamil
Nadu. With the notification of the National Waterways Act 2016, the total length of NW-4 got
extended to 2,890 km
 National Waterway (NW) – 5
NW-5 will provide connectivity between Paradip/ Dhamra Ports and Kalinganagar Industrial
cluster (Pankapal) in Phase I and Mahanadi Coal Field Ltd. (Talcher) in Phase 2.

Out of the remaining 106 national waterways, 23 have been found to be suitable for cargo
transportation. Out of the 23 waterways identified for cargo movement, the development
activity on the following eight waterways has started.
i. River Barak (NW-16) in Assam

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ii. River Gandak (NW-37) in Bihar

iii. Cumberjua (NW-27) in Goa
iv. Mandovi (NW-68) in Goa
v. Zuari (NW-111) in Goa
vi. Alappuzha-Kottayam-Athirampuzha Canal (NW-9) in Kerala
vii. River Rupnarayan (NW-86) in West Bengal
viii. Sunderbans (NW-97) in West Bengal
Coal handled by Inland Waterways
The amount of coal being handled by NWs has been increasing at an annualised CAGR of
about 17%. The details of transportation of coal (thousand MT) on NWs for FY2018-19, FY
2019-20 and FY 2020-21 (till January 2021) are given in Table 9.19: -

Table 9.19
Coal handled by Inland Waterways (thousand metric tonnes)
FY 2018-19
S.No. National Waterways No. Total Total Grand
Export Import Total
1 NW – 10 (Amba River) 155 7997 8152
2 NW-68 (Mandovi River) - 36 36
3 NW -83 (Rajpuri Creek) - 37 37
4 NW -85 (Revadanda Creek-Kundalika River System) - 1060 1060
5 NW – 91(Shastri River-Jaigad Creek System) 161 1474 1635
6 NW-100 (Tapi River) - 7991 7991
7 NW-111 (Zuari River) - 51 51
Total (FY 2018-19) 18962

FY 2019-20
S.No. National Waterways No. Total Total Grand
Export Import Total
1 NW-10 (Amba River) - 11043 11043
2 NW-68 (Mandovi River) - 402 402
3 NW-85 (Revadanda Creek-Kundalika River System) - 1188 1188
4 NW-91(Shastri River- Jaigad Creek System) 103 - 103
5 NW -100 (Tapi River) - 9016 9016
Total (FY 2019-20) 21752

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FY 2020-21
S.No. National Waterways No. Total Total Grand
Export Import Total
1 NW-1 (Ganga-Bhagirathi-Hooghly River System) 1586 293 1879
2 NW-2(Brahamputra River) - 2 2
3 NW-10 (Amba River) - 8636 8636
4 NW -68 (Mandovi River) - 3 3
5 NW -85 (Revadanda Creek –Kundalika River System) - 420 420
6 NW-91(Shastri River-Jaigad Creek System) 4940 4112 9052
7 NW-100 (Tapi River) 4669 1153 5822
8 NW -111(Zuari River) - 262 262
Total (FY 2020-21) 26076

9.4.3. Rail Transportation

Indian Railways play a crucial role in development of power sector in India. India’s railway
network is the 4th largest in the world totaling to more than 70,000 km. Apart from enabling
transportation of fuel (coal, lignite etc.) from the mines to the power plants, railways also
provide an alternative route for transportation of heavy equipment over long distances.

Dedicated Freight Corridor

The Dedicated Freight Corridor (DFC) is the most ambitious and biggest ever infrastructure
project in the Railways. DFC project is aimed at providing better transportability to Railway’s
freight customers. Under DFC, separate high-speed railway lines have been laid over selected
routes having high freight traffic.

DFC is aimed to be constructed along the golden quadrilateral routes. The golden
quadrilateral route is only 16% of the total length of IR but caters to 52% of passengers and
58% of the freight traffic. The Construction of DFC is in advanced stage. While both Eastern
and Western DFCs are targeted to be completed by June 2022, the work for preparation of
DPRs for the East Coast, North-South & East-West sub-corridors is underway.

The following DFC corridors are under implementation.

1) The Eastern DFC (1856 kms): Ludhiana (Punjab) – Dankuni (West Bengal).
2) The Western DFC (1506 kms): New Mumbai (Maharashtra) – Dadri (UP).
Detailed Project Report (DPR) for the following corridors is under preparation.
1) East Coast corridor: Kharagpur – Vijayawada
2) East-West sub-corridors:

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(i) Bhusaval – Wardhan – Nagpur – Rajkharswan – Kharagpur – Uluberia –

Dankuni
(ii) Rajkharswan – Kalipahari – Andal
3) North – South sub-corridor: Vijayawada – Nagpur – Itarsi
DFC will offer higher transport output in the country with reduced transit time & cost.

Rail Connectivity of Major Ports

Availability of railways near ports enables last mile connectivity for transport of cargo. A
number of projects have been undertaken by MoR with private participation, for enhancing
the rail connectivity of ports as given in Table 9.20.

Table 9.20
Projects undertaken by MoR with private participation for rail connectivity of ports

S. Project name State Implementing Kms Comp Participating agencies

Agency - SPV letion
1 Surendernagar Guj. Pipapav Rail Corp 271 2003 MoR, GPPL, IL&FS, GIC, NIA
Pipavav (GC) Ltd (PRCL)
2 Hassan Kar. Hassan Mangalore 183 2006 MoR, GoK, KRIDE, New
Mangalore (GC) Rail Development Mangalore port trust, MEL
Corp Ltd (HMRDC)
3 Bharauch Guj. Bharuch Dahej 63 2012 RVNL, GMB, Dahej SEZ Ltd,
Dahej (GC) Rail Co Ltd GNFC, AdaniPetronetDahej
(BDRCL) Port, Hindalco, Jindal Rail
Infrastructure, GIDC
4 Krishnapatnam A.P. Krishnapatnam 113 July RVNL, Sagarmala
- Rail Co Ltd (KRCL) 2019 Development Corp Ltd,
Venkatachalam Krishnapatnam Port
– Company Ltd, Govt. of A. P,
Obulavaripalle NMDC Ltd, Brahamani
(NL) Industries
5 Haridaspur Odisha HaridaspurParadip 82 Aug RVNL, GoO, Paradip Port
Paradip (1996- Railway Co Ltd 2020 Trus, Essel Mining, JSPL,
97) (NL) (HPRCL) Rungta Mines Ltd, OMC,
MSPL, SAIL, IDCO

Apart from these, currently other railway projects are under implementation by MoR which
are significant from coal evacuation point of view.
1) A total of 14 projects which are jointly monitored by Ministry of Railways and Ministry
of Coal are given in Annexure 3.
2) There are 51 projects which have been prioritised by Chairman & CEO, Railway Board
(CRB) are given in Annexure 4.

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It is recommended that Capacity augmentation may be explored for the following.

 East Central Railway (ECL) to East Coast Railway (ECoR) - Railway traffic congestion in
coal rake movement has been observed in the route ECL to ECoR due to simultaneous
coal rake movement towards ports and rake movement in the coal-based power
plants under ECoR and in the southern states of the country.

 In the Jabalpur division capacity augmentation may be explored in view of Railway

traffic congestion observed in the route for movement of the rakes.

9.4.4. Road Transportation

India has an extensive road network of 1,34,381kms of national highways. Further 14,382kms
are under construction at different phases of execution.

Bharatmala Project

In 1998, the Government of India announced the National Highways Development Project
(NHDP) comprising of the Golden Quadrilateral and other projects in Phase-I, and North South
& East West Corridors in Phase II. The Government of India has entrusted NHAI the
responsibility of implementing a greatly expanded National Highways Development Project
(adding Phase III to VII) with an investment of about Rs. 2,20,000 Crore. Subsequently, balance
works of various phases of balance NHDP has been subsumed under “Bharatmala Pariyojana”
Phase-I which includes, developing the road connectivity to Border areas, development of
Coastal roads including road connectivity for Non-Major ports, improvement in the efficiency
of National Corridors, development of Economic Corridors, Inter Corridors and Feeder Routes
along with integration with Sagarmala under proposed Bharatmala Pariyojana.

ODC Movement

ODC movement has been highlighted as a major constraint in the last NEP. A cargo may be
over dimensional (ODC) depending on any of its dimensions including length, breadth and
height while a cargo with extra weightis classified as Over Weight Cargo (OWC).
MoRTH has institutionalised an online application system in January 2015 for obtaining
permission for cargo movement by the transporters. There is a system of online approval and
quick fee payment after the details are entered by the transporter. However, at present the
system is able to grant the permission online for cargo less than 169 Tons. If the cargo weight
is more than 169 Tons or certain distressed bridges are involved, the approval of concerned
RO is required through the offline route. It is understood that on completion of Indian Bridge
Management System (IBMS), which is under development, the process of online approvals
could be expanded. Some necessary conditions for the movement of ODC/OWC as shared by
MoRTH are mentioned in Annexure 5.

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Road Connectivity of Major Ports

Availability of roads near ports provide last mile connectivity to the sea cargo being
transported onto land. All the major ports in the country are connected by at least one
national highway. List of National Highways near Ports are as given in Table 9.21.

Table 9.21
List of National Highways near Ports
S. No. PORTS State NH near Port
1 SMP, Kolkata (KDS + HDC) West Bengal 12, 115
2 Paradip Odisha 53
3 Visakhapatnam Andhra Pradesh 16
4 Kamarajar Tamil Nadu 16
5 Chennai Tamil Nadu 716, 32, 48
6 VO Chidambaranar Tamil Nadu 38, 138
7 Cochin Kerala 966A, 966B, 66
8 New Mangalore Karnataka 66
9 Mormugao Goa 366
10 Mumbai Maharashtra 48
11 JNPT Maharashtra 348, 348A
12 Deendayal Gujarat 141

9.4.5. Natural Gas: LNG Regasification & Gas Pipelines

LNG Regasification

At present the country is having six (6) operational LNG re-gasification terminals operational
with capacity to the tune of 42.5 MMTPA. In CY 2020, total imports in India were around 26.4
MMTPA, as per IHS market. Accordingly, average utilization (considering nameplate capacity)
of LNG terminals in India is62%. Further, LNG terminal wise utilization is as given in Table 9.22:

Table 9.22
Capacity of RLNG terminals in India
S.No Location Owner/operator Capacity Capacity Utilization
(MMTPA) in CY 2020
1 Dahej (Gujarat) PLL 17.5 93%
2 Hazira (Gujarat) SHELL 5 96%
3 Kochi (Kerala) PLL 5 18%
4 Dhabol (Maharashtra)* GAIL (KLPL) 5 35%
5 Mundra (Gujarat) GSPC LNG Ltd 5 11%
6 Ennore (Tamil Nadu) IOCL 5 43%
Total Capacity (MMTPA) 42.5 62%
*the name plate capacity is 5 MMTPA but in absence of the break-water, the terminal can only operate at 1.7 MMTPA
# Data from Annual reports of PLL & IOCL 2019-20, LNG Market Data Sheet: India by IHS Market.

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Gas Pipelines

Efficient operation of gas pipelines is important for successful running of Gas based thermal
power plants. In recent past, gas power plants have been running at low PLF of around 23%.
However, the low PLF is not due to lack of gas pipeline infrastructure, but due to unavailability
of cheap sources of natural gas. At present, around 18,161 Km long pipeline is under
operation in the country of which 13,560 km is operated by GAIL. Capacity Utilization of Gas
Pipelines of GAIL varies from pipeline to pipeline. Average pipeline capacity utilization for GAIL
network during FY2020-21 is around 47%.

For further capacity strengthening, around 16,200 km long pipeline network is under
construction of which 6,000 kms of pipeline is being executed by GAIL. Efforts are underway
to complete the gas grid in time bound manner. State-wise details of existing & under
construction gas pipeline are given in Annexure – 7

GAIL has connected various power plants with its pipelines across the country. However, due
to reasons like non-availability of low-priced gas many gas power plants are stranded /
underutilized. Total gas consumed by the gas-based power stations in the country in the year
2019-20 was 30 MMSCMD at a PLF of approx.23% by an installed capacity of approx. 24 GW.

As per PNGRB regulations, 25% of the pipeline capacity is required to be offered on common
carrier basis i.e. for capacity for a period of less than one year. The details of available
common carrier capacity in various GAIL pipelines is available on GAIL website. Any Shipper
including power plants desirous of booking common carrier capacity in GAIL’s pipeline can
access the open access portal of GAIL. In case of capacity booking requirement with term
exceeding one year, the same is undertaken at mutually agreed terms between shipper and
transporter.

Status of International pipelines of India

GAIL under the aegis of Government of India has been pursuing the TAPI pipeline project. In
this regard, two Govt. level agreements (Inter Governmental Agreement and Gas Pipeline
Framework Agreement) have been signed. The FEED studies of the pipeline, survey field
works and land acquisition planning have been completed. TPCL (TAPI Pipeline Company Ltd,
incorporated in November 2014) has also signed bilateral Pleads of Terms of the Host
Government Agreements with Governments of Afghanistan and Pakistan. Typically, such
international pipelines take lot of time in fructification.

9.5. Land and Water requirement

9.5.1. Land
The land required for development of a power plant varies with the type of technology used, site
geography, size of power plant, location, topology and several other factors. However, for a

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typical power plant in each technology the following estimates as given in Table 9.23 have been
considered.

Table 9.23
Land requirement for different technologies
S.No. Source Type Land Requirement (Acre/MW)
Lower Estimate Upper Estimate Median Estimate
1 Thermal + 0.67 1.09 0.88
2 Nuclear^ 0.20 0.66 0.60
3 Hydro 0.50 10.00 5.00
4 Solar 3.90 4.10 4.00
5 Wind 1.50 2.00 1.75
6 Biomass* 5.00 7.00 6.00
7 Small Hydro # 1.00 2.47 1.60
+ For pithead plants ^lower estimate for coastal plants *includes area for fuel storage #varies with whether
project is on canal fall/dam toe/hill; excludes area for transmission development
Note: 1 sq. km = 247 acre 1 hectare = 2.47 acre 1 acre = 4047 sq. m

Variation in land requirement is especially high in case of hydroelectric plants, because of the
following features that leads to large variations in the design of the plant.
a) The amount of Submergence involved.
b) Surface/ Underground Structures involved.
c) Spread / Concentrated (Dam-Toe) Scheme.
d) Resettlement and Rehabilitation involved and Compensatory Afforestation (in lieu of
Forest Land) involved.

Land Acquisition Issues

Land acquisition has been conventionally fraught with several challenges, which continue to
affect major development projects in the country. The major issues regarding land acquisition
for power plants are as follows: -
• Lack of proper land records,
• Lack of clarity about the status of occupiers/ encroachers on Govt. land/ Forest Land
leading to issues related to compensation
• Right of User (ROU) for Pipelines, Right of Way (ROW) for Transmission lines sometimes
face resistance from local people with demands for higher compensation.
• MOEF&CC clearance.
• Wide variation from State to State in cost implications (land premium, cess, lease rent).
• Rehabilitation & Resettlement of the Project Affected Families (PAFs).

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Land considerations for Solar Power plants

Land is the most important resource, after Solar Irradiation, for Solar power plant. Due to the
advent of high wattage PV modules (450Wp and above) the Land requirement has come down
to minimum 20% and has reduced from more than 5 Acre/MW to 4 Acre/MW usable land for
large ground mounted Solar PV Power Plants.
However, there are issues pertaining to the availability of land and to the legal issues of land
transfer. As of now primarily waste land, arid land and land in the remotest regions of the
country with good solar radiation is being utilised for installing large ground mounted solar
power plants. Going forward other avenues such as floating, roof-top, & canal-top solar etc.
for installing solar PV Modules need to be explored.
Floating Solar PV (FSPV) project comprises solar modules on floating platform which are,
anchored or moored and placed on top of the water surface. Floating solar can be deployed
on various types of water bodies including industrial water ponds, irrigation or drinking water
reservoirs, abandoned quarry lakes, aquaculture ponds, canals, and dams.
Floating Solar PV offers other benefits apart from saving in land-
i. The cooling effect of water on the installed PV modules helps to reduce thermal losses
which increases the efficiency of panels. Plant operators claim higher efficiencies in the
range of 5-16% from floating solar power plants compared to land based PV plants.
ii. While land disputes including multiple owners are much prevalent, it is expected that the
water bodies shall have no problem on these accounts. Also, the water evaporation losses
tend to be less by as much as 40% and therefore very useful for water stressed areas.

Solar plants installed on rooftops of institution, universities, housing societies and commercial
building and canal tops can be utilized at the distribution level.
Water

Water is consumed in power generation from thermal power plant mainly on account of
cooling purposes.
Over the years, considerable technology improvements have been made, to reduce water
consumption in the stations. The consumptive water requirement which used to be about
7m3/MWh in the past, been optimized by various technological interventions & water
conservation practices, and has been brought down to 3.0 m3/ MWh in present day stations.
As per the new environmental Regulations issued by MOEF&CC in Dec-2015, all new stations
to be installed after 1st January, 2017, shall be required to meet specific water consumption
up to maximum of 3.0 m3/ MWh without FGD. These norms are, however, not applicable to
the Thermal Power Plants using sea water.
Since, the availability of water is going to be a concern in operation of thermal power projects
in the future, efforts need to be made to access the feasibility of adopting air cooled
condensers, especially in areas with shortage of water.

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Solar

In PV power plants, water is required mainly to clean the modules. The estimated water
requirements per MW is 3,000 Litres, for one cleaning cycle. In general, cleaning frequency is
2 times in a month. Thus, water requirement for 1MW plant is ~ 6000 Litres/ month. The
water usage varies with respect to the soiling conditions (location dependent), PV module
size, frequency of cleaning of PV modules, and cleaning method. Currently, India doesn’t have
specified norms/ standards to limit the usage of water in solar power plants. However, for
modern solar power plants, the PV industry is moving towards dry cleaning with robots thus
reducing the water requirement drastically.

9.6. Conclusions & Recommendations

a. With the thrust of Government on clean energy (Renewable Energies Sources), the
conventional fossil-based power plants have to play supporting role. Despite the
above development, thermal power plants will continue to play a stabilising role in
the electricity grid. Being the oldest and most widely adopted technology, there are
little infrastructural challenges in thermal power development. However, for
compliance of new environment norms suppliers should continue to explore
indigenous sources/alternatives for required materials.
b. In case of hydro power plants, while equipment availability is not a constraint, there
is dearth of competent and resourceful civil contractors in the country to execute the
Major Works of hydro power plants. Many of the available Civil Contractors that have
wide experience in execution of Hydro Projects are facing a financial crunch. This and
other systemic challenges in hydro power (e.g. geological surprises, R&R etc.) need
urgent redressal, if hydro-sector has to keep pace with other technologies.
c. For timely execution of the hydro power projects, it is recommended that the
requirement of the construction agencies may be suitably included in the Detailed
Project Report (DPR). Further, regarding the difference in estimated material
requirement in the initial DPR and that during the actual project execution of hydro
power projects, a study may be conducted by relevant agencies in order to reduce
this gap.
d. As brought out in the capacity addition plan, most of the capacity addition is expected
to happen in the renewable energy sector. The capacity addition in fossil-based
generation is small in comparison to the Renewable Energy Sources. Further,
whatever small capacity addition is expected to happen in coal, it is expected to take
place in existing TPP hotspot areas. Hence, the infrastructure development for
renewable energy projects shall be given due importance in coming years.
e. In case of thermal power projects, while the BTG equipment market is fully developed,
there are new challenges in terms of full indigenisation of FGD and SCR. Further,

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special emphasis may be given on indigenous development of Dry Bottom Ash

Handling system, High Concentration Slurry Disposal (HCSD) pumps and Air-Cooled
Condensers (ACC). ACC becomes increasingly important as the country tries to reduce
the water consumption of its thermal power plants.
f. In recent years, Solar PV deployment has been stepped up in a big way. The trend is
expected to continue. However, the country is highly dependent on imported solar
cells and wafers for keeping pace with the solar capacity addition targets. More focus
shall be given on increasing the production capacity of Indian solar equipment
manufacturers.
g. Transportability is a major concern for wind power projects as the main components
(Blade, tower etc) are usually over-dimensional. Adding to the difficulty is the usual
remote location of wind power plant sites. Improving last mile connectivity via road
and highway development near probable high wind sites can accelerate the pace of
wind power capacity addition. Extending the functionality of online over dimensional
(ODC)/Over Weight Cargo (OWC) portal would assist in faster movement of all heavy
equipment.
h. Government of India has given special push towards improving transportability of
commercial cargo, equipment and materials across sectors. The Bharatmala
Pariyojana aims to be the subsequent achievement in road transportation after the
Golden Quadrilateral. Similarly, the progress towards developing Dedicated Freight
Corridors (DFCs) by the Indian Railways is expected to be a big boost to faster & more
economical transportation across long distances.
i. While all 12 major ports are well connected through national highways, effort are
underway to extend similar connectivity to over 200 minor ports along the Indian
coast. This along with several other initiative like port mechanisation are encapsulated
in the Sagarmala Pariyojana of GoI. Identification of 111 National Waterways by GoI
shows the potential of this growing mode of transport.
j. Gas power plants work on an established conventional technology and are more
flexible than coal/ lignite/ nuclear power plants. In this regard, commercial and
regulatory bottlenecks in enhancing consumption of natural gas in power sector be
taken care of to help gas-based power act as balancing power, together with
renewables-based power. Use of combination of domestic gas, imported LNG and
APM/Non-APM gas may be examined for optimum pricing of power produced.
k. Large scale land is required for construction of thermal, nuclear, hydro and renewable
power plants. Land acquisition continues to be fraught with challenges. While
rehabilitation & resettlement is a major issue for hydro power plants, availability of
land records for remote locations and issues like Right of Way & Right of Use need to
be resolved in amicable manner.

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l. Water is becoming an increasingly scarce resource. Water usage is comparatively

higher in thermal power plants as compared to other sources. Efforts towards
adoption of low water use technologies like ACC, HCSD, Dry Bottom Ash systems need
to be envisaged. Similarly, in view of the large-scale capacity addition in solar PV,
innovations methods like dry-cleaning/ robotic cleaning of panels/modules need to be
encouraged with the objective of reducing the water usage.

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CHAPTER 10
EMISSIONS FROM POWER SECTOR
10.0 INTRODUCTION
The phenomenal growth in demand for energy is increasingly affecting the natural
environment. Human activities now occur on a scale that has started to interfere with
complex natural systems. Anthropogenic activities such as energy generation from fossil fuels,
industrialization and deforestation have been increasing the atmospheric concentration of
Green House Gases (GHGs) above their natural levels resulting in Global climatic change.
Excessive concentration of Green House Gases like Carbon di-oxide (CO2) and Methane (CH4)
and other harmful emissions in the atmosphere has become one of the most critical global
environment issues by which human life is gravely threatened.

In most of the developing countries, the major requirement of power is met through thermal
power plants. India also depends largely on coal as a major source of energy for producing
power and coal may continue to play an important role in producing power in near future. As
on 31.03.2022, coal based power generation capacity is around 52.74% of total installed
capacity, however during 2021-22 coal based generation was almost 69.8 %of total power
generation in country and lignite based power capacity is about 1.65% as on 31.03.2022 of
the total installed capacity but generates almost 2.48% of total power generation in country
during 2021-22.

Generation of power by use of fossil fuel like coal, oil and gas pollutes the atmosphere in
many ways. Emission of particulate matter and generation of fly ash from coal based power
stations are local health hazard. Gaseous emissions from fossil fuel based power generation
like CO2, SOx, NOx and Mercury etc. affect the local as well as global climate.

10.1 EMISSION FROM THERMAL POWER STATIONS

Fossil fuel-fired power plants burn fossil fuels like coal, lignite, natural gas, diesel etc. to
generate steam/ hot air to run turbines generating electricity. The generation of power from
combustion of fossil fuels has an impact on Air, Water and Land resulting in degradation of
local as well as global environment.
The major types of pollutants emitted from thermal power stations are as follows:

10.1.1 Air Pollution

The following major air pollutants are generated from combustion of fossil fuels by thermal
power stations: i) Nitrogen oxide(NO2) ii) Sulphur di-oxide (SO2) iii) Green House Gases like
CO2 iv) Suspended Particulate Matter (SPM) v) Mercury Emissions. Traces of Carbon monoxide
(CO) is also produced during the process of combustion. The brief description of major
pollutants and their effects are detailed below:

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10.1.1.1 Nitrogen Oxide

Most of the NOx is emitted as NO which is oxidised to NO2 in the atmosphere. All combustion
processes at high temperature are sources of NOx emission. Formation of NO X may be due
oxidation of nitrogen in the air (thermal NOX ) or due to nitrogen present in the fuel (fuel NOX).
In general, higher the combustion temperature the higher NOx is produced. Some of NOx is
oxidised to NO3, an essential ingredient of acid precipitation and fog. There were no existing
norms for control of NOx. However, new norms notified by Ministry of Environment, Forest
and Climate Change has stipulated norms for NOx control, which are discussed later in the
chapter.

10.1.1.2 Sulphur Oxide

The combustion of sulphur contained in the fossil fuels, especially coal and oil is the primary
source of SOX. About 97% to 99% of SOX emitted from combustion sources is in the form of
Sulphur Di-oxide which is a critical pollutant, the remainder is mostly SO 3, which in the
presence of atmospheric water is transformed into Sulphuric Acid at higher concentrations,
produce delirious effects on the respiratory system. The SOx emissions are controlled by
providing tall height stack for dispersion. Higher size units of 500 MW and above were also
required to keep space provisions for future installation of Flue Gas de-sulphurisation (FGD)
system when required. In specific cases, installation of FGD system has been stipulated by
MOE&F while granting environmental clearance. The new norms notified by Ministry of
Environment, Forest and Climate Change has stipulated emission norms for SOx which are
discussed later in the chapter.

10.1.1.3 Green House Gases

A number of gases like CO2, Methane, nitrous oxide(N2O), Chlorofluorocarbons and water
vapour are called Green House Gases. Carbon dioxide is released primarily through the
burning of fossil fuels. It is generated by combustion of coal and hydrocarbons. Methane is
released through the decomposition of organic matter (marshes, cattle raising, rice flakes
etc.) and the use of fossil fuels.

10.1.1.4 Particulate Matter

The terms particulate matter, particulates, particles are used interchangeably and all refer to
finely divided solids dispersed in the air through chimney or stack of power stations. Norms
have been stipulated by Ministry of Environment, Forest and Climate Change for control of
Suspended Particulate Matter and are more stringent for new power plants.

10.1.1.5 Carbon Monoxide

It is a colourless, odourless flammable and toxic gas. It has ability to react with haemoglobin
in the blood and reduce the oxygen absorbing capacity of the blood. It is generated by

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incomplete combustion of coal and hydrocarbons. The most significant source of CO is

automobiles.

10.1.1.6 Mercury Emissions

Emissions of mercury from thermal power stations are a subject of increasing concern
because of its toxicity, volatility, persistence, long range transport in the atmosphere. Once
released into the environment, mercury contaminates soil, air, surface and ground water. The
mercury emitted from coal-fired power plants originates from the mercury present in the
coal. Typically, mercury is present in the coal in the tens of parts-per-billion range. Burning of
enormous quantity of coal for power generation makes it the largest anthropogenic source
of mercury emissions.

10.1.2 Water Pollution

Water pollution refers to contamination of natural water, whereby its further use is impaired.
The contamination could be caused by the introduction of organic or inorganic substances in
the water or due to change in the temperature of the water.

In thermal power stations the source of water is river, lake, pond or sea from where water is
usually taken. There is possibility of water being contaminated from the source itself. Further
contamination or pollution could be added by the pollutants of thermal power plant waste as
inorganic or organic compounds.

The types of water pollution & its sources are given in Table 10.1.
Table 10.1
Types of Water Pollution & its Sources

Type Sources
(i) Thermal pollution - Discharges from condenser
(ii) Carryover of ash to water bodies - Ash pond overflow, ash handling area
drainage
(iii) Acid or alkaline effluents - DM water treatment plant, chemical storage
area & lab
(iv) Leaching and water percolation - Ash dumps, ash ponds
(v) Heavy metals - Air heater wash, wash water from boiler fire
side clearing
(vi) Toxic substances, high total dissolved solids - Boiler blowdown
(TDS) , Phosphates high alkaline,
ammonia
(vii) sludge and oil - Drains from fuel oil area, tube oil area,
transformer oil off
(viii) Cyanide and other chemicals - Radio graphic lab
(ix) Bacteriological pollution - Sanitary & domestic waste

The effects of water pollutants are manifold and depend on the type and concentration.
Some of these are given below in Table 10.2.

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Table 10.2
Effects of Water Pollution

Pollutants Effects
a Soluble organic as represented by Deplete oxygen in surface water, Fish
BOD( Biological Oxygen Demand) killing, the growth of undesirable
aquatic life and odours
Certain organics can be bio-magnified in
the aquatic food chain
b Suspended solid Decrease water clarity and hinder
photosynthesis, form sludge deposits
which changes eco-system results.
c Chloride Salty taste in water
d Acidic, alkaline and toxic substances Cause fish killing also can cause
imbalance in stream eco-system
e Disinfectants Cl2, H2O2 Killing of micro-organisms
f Ionic forms Fe, Ca, Mg, Mn, Cl and SO4 Changed water characteristics, staining
hardness, salinity

All discharge from thermal power stations to water bodies is made after treatment as per the
environmental standards prescribed by MOE&F. Further, ash ponds are High Density
Polyethylene (HDPE) lined to prevent leaching etc. Also zero discharge system with no
discharge to water body are envisaged at many stations installed up to 31.12.2016 and
mandatory zero waste discharge for TPPs installed after 01.01.2017

10.1.3 Fly Ash Generation

Indian coal is of low grade with ash content of the order of 30%-50 % in comparison to
imported coals which have low ash content of the order of 10%-15%. Large quantity of ash is
thus being generated at coal/lignite based Thermal Power Stations in the country, which not
only requires large area of precious land for its disposal but is also one of the sources of
pollution of both air and water. To reduce the requirement of land for disposal of fly ash in
ash ponds and to address the problem of pollution caused by fly ash, Ministry of Environment,
Forests and Climate Change has issued various Notifications on fly ash utilization, first
Notification was issued on 14th September, 1999 which was subsequently amended in 2003,
2009 and 2016 vide Notifications dated 27th August, 2003, 3rd November, 2009 and 25th
January, 2016 respectively. The Notification of 3rd November, 2009 prescribes targets of Fly
Ash utilization in a phased manner for all Coal/Lignite based Thermal Power Stations in the
country so as to achieve 100% utilization of fly ash.
The MoEFCC Notification of 25th January, 2016 stipulates mandatory use of flyash based
products in all Government schemes or programmes e.g. Pradhan Mantri Gramin Sadak
Yojana, Mahatma Gandhi National Rural Employment Guarantee Act, 2005, Swachh Bharat
Abhiyan, etc.
The latest MoEFCC notification dated 31.12.2021 stipulates 100 per cent utilisation of fly ash
generated by coal or lignite based thermal power plant in an eco-friendly manner namely: (i)
Flyash based products viz. bricks, blocks, tiles, fibre cement sheets, pipes, boards, panels; (ii)

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Cement manufacturing, ready mix concrete; (iii) Construction of road and fly over
embankment, etc. The notification also mandates that if the coal or lignite based thermal
power plant has not achieved at least 80 per cent ash (fly ash and bottom ash) utilisation in
the first two years of a three years cycle, then an environmental compensation of Rs. 1000
per ton on unutilised ash shall be imposed for non-compliant thermal power plants.

10.1.4 Land Degradation

The thermal power stations are generally located on the non-forest land and do not involve
much Resettlement and Rehabilitation problems. However, it's effects due to stack emission
etc., on flora and fauna, wild life sanctuaries and human life etc. have to be studied for any
adverse effects. One of the serious effects of thermal power stations is land requirement for
ash disposal and hazardous elements’ percolation to ground water through ash disposal in
ash ponds.

10.2 STEPS TAKEN BY THERMAL POWER STATIONS TO REDUCE

EMISSIONS FROM POWER PLANTS

Following steps are presently being taken by power utilities to reduce the pollution from
thermal power stations:
 PM Emissions: - High Efficiency Electrostatics Precipitators (ESP) are installed
in the power station to arrest fly ash and reduce suspended particulate matter
within the prescribed emissions norms. A PM norm stipulated by MOEF& CC
are generally adhered to by coal based power stations. However, depending
upon the local condition, Pollution Control Board or other implementing
agencies within the provision of Environment Protection Act has stipulated
more stringent norms.
 NOx Control: - Low NOX burners are being used in the power station for NOx
control through primary combustion control. Further, NOX emission norms as
specified by MoEFCC notification dated 7.12.2015 is required to be met by
TPPs and as amended.
 SOx Control – Indian coal used in the thermal power station generally has low
sulphur content about 0.3% to 0.5% and SO2 control is being achieved as per
new norms specified by MOEF &CC notification dated 07.12.2015.
 Liquid Effluent Discharge: - Effluent Treatment Plant is being installed to
control parameters like pH, Free available Chlorine Suspended solids, Oil &
Grease, Copper, Iron, Zinc, TDS & Total Suspended Solids. Many power stations
have achieved zero liquid discharge. Most of the power plants are adhering to
the norms stipulated.
 Fly Ash Utilization: - The steps have been taken by Thermal Power Stations to
ensure 100% utilization of ash generated by them. The Fly ash collected in the
dry form is being used for brick making, coal mines backfilling, road
construction and cement manufacturing. Data of 202 coal based thermal
stations, with an Installed capacity of 209990.50 MW, consuming coal of
686.34 Million tonnes and generating Fly Ash of 232.56 Million tonnes were

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analysed in 2020-21 by CEA. The analysis shows that country has achieved Fly
Ash Utilization of 214.91 Million tonnes with percentage utilization of 60.97 %
(However, the actual utilization of fly ash may vary from station to station). Fly
ash utilisation in various sectors is shown in Exhibit 10.1

Exhibit 10.1.
(All figures in %)

Major Modes of Fly Ash Utilization during the Year

2020-2021 Cement
30%
Reclamation of Low
Lying Area
18%

Mine Filling
Ash Dyke Raising 7%
9% Bricks & Tiles
0%

Unutilized Fly Ash

9%
Roads & Flyovers
17% Others
Hydro Power Sector 9%
Agricultur… Concrete 0%
1%
Unutilized Fly Ash Others Hydro Power Sector Concrete

Agriculture Roads & Flyovers Ash Dyke Raising Reclamation of Low

Lying Area
Cement Mine Filling Bricks & Tiles

 Mercury emissions:
India has signed Minamata convention on legally binding instrument to protect human health
& environment from adverse effects of Mercury in September 2014. Article 8 of the Minamata
convention pertains to reducing mercury emissions to the atmosphere through measures to
control mercury emissions from coal based power stations. The studies carried out by CIMFR,
Dhanbad on mercury content in Indian coal has estimated mercury emission factor of coal as
0.14 g/tonne or 14ppm. Control systems provided for NOx and SOx (SCR and FGD) along with
ESP also offer the co-benefit of mercury emissions control. MOEF & CC vide notification dated
07.12.2015 has put limit of mercury emission from thermal power plants.

10.3 NEW EMISSION STANDARDS FOR THERMAL POWER PLANTS

MOEF&CC has notified new Environment norms for Thermal power station including Emission
and specific water consumption on 7th December,2015. The Table 10.3 and 10.4 show the
new environmental norms for thermal power stations which are to be complied at different
time schedule.

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Table 10.3
New Environmental Norms for Thermal Power Stations
Emission TPPs (units) TPPs (units) installed TPPs (units) to be
parameter installed before after 31st December installed from 1st
31st December, 2003 and up to 31st January 2017
2003 December 2016

Particulate Matter 100 mg/Nm3 50 mg/Nm3 30 mg/Nm3

Sulphur Dioxide 600 mg/Nm3 for 600 mg/Nm3 for units 100 mg/Nm3
(SO2) units less than less than 500MW
500MW capacity capacity

200 mg/Nm3 for 200 mg/Nm3 for units

units 500MW and 500MW and above
above capacity capacity
Oxides of 600 mg/Nm3 450* mg/Nm3 100 mg/Nm3
Nitrogen (NOx)
*Vide MOEF & CC notification dated 19.10.2020. As per notification dated 31.3.2021 of MoEFCC emission norms
are to be implemented by 2022 to 2024 based on location of the power plant.

Table 10.4
MoEFCC WATER NORMS FOR THERMAL POWER PLANTS

S No. MoEFCC WATER NORMS FOR THERMAL POWER PLANTS

1. All plants with Once Through Cooling (OTC) shall install Cooling Tower (CT)
and achieve specific water consumption of 3.5 m3/MWh within 2 years of
notification.
2 All existing CT based plants shall reduce specific water consumption up-to
maximum of 3.5 m3/MWh within a period of 2 years of notification.
3. New plants to be installed after 1st January 2017 shall have to meet
specific water consumption of 3.0* m3/MWh and achieve zero water
discharge.
*Vide notification dated 28.06.2018

10.4 IMPLICATIONS OF NEW EMISSION STANDARDS ON POWER

SECTOR
After notification of new environmental norms in December, 2015, a detailed phasing plan,
for installation of FGD to be completed till 2024 was prepared by CEA in consultation with
all stake- holders and was sent to MoEFCC in June,2017. However, subsequently, time line
was squeezed by MoEFCC to comply by December, 2022.

CEA started monitoring the implementation of measures to comply with new norms. More
than 90% TPPs are installing wet lime stone based FGD system as it is economical. Major

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issues/challenges being faced during the implementation of FGD system in thermal power
plant are as under:

1. Till the end of 2015 no SO2 norms were applicable, thus FGD manufacturing capacity
was almost non-existent in the country.

2. FGD technology being new to our country, there are at present limited vendors with
limited capacity to supply FGD components. Therefore, there is an availability
constraint.

3. A sudden surge of demand has arisen as all thermal generating units, about 470
running units of 180 GW capacity, have to implement FGD system in one go. Proper
planning was not there for development of infrastructure to meet the demand surge.

4. Although India has the manufacturing capability of 70% FGD components, it depends
on the imports from other country as manufacturing capacity is insufficient to cater
to huge demand in a short period of time.

5. Balance 30% of FGD component is not manufactured in India. Thus, import from
other countries is the only option and to create a manufacturing capability of these
items in India would take few years.

6. A huge foreign exchange for importing technology, equipment and skilled manpower
from other countries shall be required.

7. Impact of Covid-19 pandemic on planning, placing of order, supply chain of

equipment and installation of FGD is severe.

To overcome all the above issues/challenges being faced by power industry, CEA prepared
a paper on location specific norms for thermal power plants and suggested a graded action
plan for FGD implementation in TPP. The action plan was approved by MOP and forwarded
to MOEF&CC for consideration in January, 2021. The summary of the action plan is as given
below

1. The target should be uniform ambient air quality across the country and not the
uniform emission norms for thermal power plants. Implementation of uniform
emission norms in TPPs located in different atmosphere may result in different
ambient air quality.

2. Thermal power plants located in an area, where quality of air is very good in terms
of SO2 level, can be exempted from immediate installation of additional equipment
to control SO2 emission from stack. A large number of thermal power stations are
located in remote locations away from towns with little habitations around. Thermal
power plants located in remote locations, ambient air quality (AQI) can be made as
the guiding factor for formulating emission control. This may avoid installation of
additional emission control equipment without compromising the ambient air
quality.

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3. To explore such a feasibility, the 24hr avg.(max) SO2 ground based measured levels
(CPCB, 2018 data) were categorized into 5 distinct levels:

i. Level I : >40 µg/m3

ii. Level II : 31-40 µg/m3

iii. Level III : 21-30 µg/m3

iv. Level IV : 11-20 µg/m3

v. Level V: 0-10 µg/m3.

4. To achieve tangible results, the SO2 emission control equipment in the thermal
power plants located in level-I should have to be installed on priority basis. The
regions as identified under level-II can be covered subsequently under the next
phases seeing the performance of FGD system in Level-I. Presently no action is
required for the plant located in region under level III/IV/V as the SO2 level in ambient
air of these area is very less and as per CPCB the quality of air is good in regards to
SO2 level.

5. Graded action plan will help in utilizing the resources in effective manner and it will
help in fine tuning the technology for local conditions. If the process of emission
control is completed in 10-15 years’ time frame, and consider thermal power plants
located in critically polluted areas in first phase, it will help in developing indigenous
manufacturing base, skilled manpower in the country which shall take care of the
local operating conditions.

Thereafter, MOEFCC notified G.S.R.243(E) dated 31.03.2021, that the emission compliance
would mean all the plant emission norms (2015) for PM/SO2/NOx are to be met by the
specified timeline (Table II), any deviation in the above norms beyond the timeline would be
liable for the levy of emission compensation (EC) as detailed in Table10.5.

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Table 10.5

S.No. Category Location/Area Timeline for Compliance

Non retiring Units
Retiring Units
(2) (3) (4) (5)
Category A Within 10 km radius of Upto 31st Upto 31st
National Capital Region December 2022 December
or cities having million 2022
plus population.
2 Category B Within 10 km radius of Upto 31st Upto
Critically Polluted December 2023 31st
Areas or Non- December
attainment cities. 2025
3 Category C Other than those Upto 31st Upto
included in category A December 2024 31st
and B December
2025

Based on the 31st March 2021 notification, MOEF&CC has constituted a task force comprising
of representative from MOEF&CC, MOP, CEA and CPCB to categorize the thermal power
plants in above mentioned three categories. The finalization of aforementioned
categorization is still under progress and expected to complete very soon. CEA has prepared
“A review report on new SO2 norms” and submitted to MOP.

For implementing NOx control, coal based power stations have to carry out combustion
modification/to install Selective Catalytic Reduction (SCR) as NOx emissions are in range of
600-1000 mg/NM3. The main challenge with SCR is that they have not been proven for high
ash Indian Coal. Also space constraint/layout constraints is also expected to be a major
challenge for installation of SCR. Also for operating SCR, large amount of Ammonia will be
required involving challenges in transportation and storage of Ammonia due its toxic nature.
Apart from all the issues and challenges, availability of vendors to supply SCR in such a large
quantity will be the main constraint.

10.5 CARBON EMISSIONS FROM POWER SECTOR

The world over consumption of fossil fuel is the primary contributing factor in the build-up of
atmospheric concentration of GHGs like carbon dioxide resulting in Global warming. As per
UN Human Development Report 2020, the per capita carbon dioxide emission in India is
among the lowest and is estimated to be around 2.0 metric tonnes as compared to the world
average of 4.6 tonnes per capita and 16.6 tonnes per capita for USA (Table 10.6).

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Table 10.6
Per capita emission of CO2 of different countries
Country CO2 emission Per
capita(production) in the 2018
(tonnes of CO2)
India 2.0
USA 16.6
Australia 16.9
U.K 5.6
Japan 9.1
China 7.0
World 4.6
Source: UNDP Human Development report 2020

About half of total carbon dioxide from India is estimated to be generated from power sector.
The other major contributors of CO2 emission in our country are transport and industrial
sector. CEA is annually estimating the amount of CO2 emissions from grid connected power
stations. The total amount of CO2 emission from grid connected power stations in the year
2020-21 has been estimated at 910.01 million tonnes. Year wise carbon di-oxide emissions
from Indian power sector during the last 6 years are given in Table 10.7.

Table 10.7
Total Absolute Carbon Di-oxide Emissions of the power sector
(2015-16 to 2020-21) in Mtonnes CO2

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

India 846.26 888.34 922.18 960.89 928.14 910.01
Source: CEA CO2 baseline database for the Indian power sector version 17. October 2021

In the year 2020-21, the weighted average CO2 emission rate from grid connected power
stations (excluding captive power stations and stations on islands and from Renewables) is
0.79 kgCO2/kWhnet. Year wise weightage average emission factors are shown in Exhibit 10.2.

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Exhibit 10.2
Weighted Average Emission factor in tCO2/MWh(net)
0.9

0.85
Tonne CO2/MWh(net)

0.82 0.82 0.82 0.82

0.8 0.79 0.79

0.75

0.7
Year

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Source: CO2 baseline database for power sector

The CO2 emission from gas based power stations is almost half of that is generated by coal
based power stations. The weighted average CO2 emissions for various fossil fuels used in
Indian power stations for the year 2020-21 are shown in Table 10.7.

Table 10.8
Weighted average specific emissions for fossil fuel-fired stations in FY 2020-21, in
tCO2/MWhnet
Coal Diesel Gas* Lignite
0.97 0.58 0.42 1.30
* Only gas-fired stations that do not use any other fuel. Stations that use naphtha,
diesel or oil as a second fuel are excluded from the weighted average.

The weighted average emission rate of coal and lignite based generation is 0.97 kg CO2/
kWhnet and 1.30 kg CO2/ kWhnet respectively during the year 2020-21. However, the average
emission rate from coal based stations has been on declining trend due to the fact that more
number of efficient supercritical technology based units are getting commissioned and also
due to introduction of Perform Achieve and Trade (PAT) scheme which aims at improving the
efficiency of power plants.

The Exhibit 10.3 shows the declining trend of average CO2 emission rate from coal based
power stations.

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Exhibit 10.3

AVERAGE EMISSION RATE FROM COAL BASED POWER STATIONS IN

KgCO2/kWhnet

1.01
KgCO2/kWh

0.99

0.98 0.98 0.98

0.97 0.97

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Year

10.6 PROJECTIONS OF CARBON EMISSIONS IN 2026-27 AND 2031-

32
On the basis of generation from each fuel source including renewables, carbon footprint i.e.
projected carbon emissions and the emission factors considering base year of 2020-21 have
been worked out.
Emissions factors (gCO2/MJ) as given for Indian Coal/Lignite in the Initial National
Communication and for Imported Coal Gas/Oil/Diesel/Naphtha as given by Inter Government
Panel on Climate Change (IPCC 2006) have been considered for estimating Carbon emissions
from various fuels. The methodology as given in CO2 Baseline Database for the Indian Power
Sector User Guide published annually by CEA has been followed in arriving the carbon
emissions.

The total CO2 emissions projected will increase from 910 Million tonnes in 2020-21 to 1030
Million tonnes in the year 2026-27 and 1180 Million tonnes in 2031-32 and are shown in
Exhibit 10.4.

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Exhibit 10.4

Total Projected CO2 Emission (MT)

1400
1180
1200
1030
928
CO2 Emission (MT)

1000 910

800

600

400

200

0
2019-20 2020-21 2026-27 2031-32
Actual Year Estimated

The average emission factor kgCO2/kwh from the total generation including renewable
energy sources in base case scenario has been estimated and are shown in Exhibit 10.5.

Exhibit 10.5

Average CO2 Emission Rate(Kg CO2/kWh)

0.8
CO2 Emission rate in (kg CO2/kWh)

0.668 0.658
0.7
0.6 0.524
0.5 0.441

0.4
0.3
0.2
0.1
0
2019-20 2020-21 2026-27 2031-32
Actual YEAR Estimated

It may be seen that the average emission factor is expected to reduce to 0.524 kg CO2/kWh
in the year 2026-27 and to 0.441 kg CO2/kWh by the end of 2031-32.

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10.7 INITIATIVE OF GOVERNMENT OF INDIA TO REDUCE CARBON

EMISSIONS

Mitigation of CO2 emission is an important agenda on international level. Improving efficiency

of thermal power stations is one of the effective methods to reduce CO 2 emissions which is
being achieved by various schemes introduced by Government of India like Perform Achieve
and Trade Scheme under National Mission on Energy Efficiency and adopting super
critical/ultra-super critical technology for coal based generation. Also efficiency improvement
measures through Renovation and Modernization (R&M) of old and inefficient units is
undertaken and units in which R&M is not possible are being considered for retirement.
Thrust is being given for increasing the share of non-fossil fuel (renewable, hydro etc.) based
generation in the energy-mix to reduce the CO2 emissions from power sector.

10.8 COUNTRY’S STAND ON CLIMATE CHANGE- INDCs

Under the Copenhagen Accord, India had pledged to reduce its CO 2 intensity (emissions per
GDP) by 20 to 25 percent by 2020 compared to 2005 levels. Also in October,2015, India had
submitted its Intended Nationally Determined Contribution (INDC) to UNFCCC. The key
elements are:

 To reduce the emissions intensity of its GDP by 33% to 35 % by 2030 from 2005 level.
 To achieve about 40 percent cumulative electric power installed capacity from non-
fossil fuel based energy resources by 2030, with the help of transfer of technology and
low cost international finance including from Green Climate Fund (GCF).
 To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through
additional forest and tree cover by 2030.

However, during the COP26 summit held in November 2021 in Glasgow, Honourable Prime
Minister of India has announced five key aspects of India’s commitment ‘Panchamrit’, to
combat the Global Climate change challenge, detailed below: -

 To achieve 500GW of non-fossil fuel-based capacity by the year 2030

 To meet 50 percent of Energy requirement from Renewable sources by 2030
 To reduce the total projected carbon emissions by one billion tonnes till 2030
 To reduce carbon intensity of the Indian economy by 2030
 To achieve the target of Net Zero by the year 2070

10.8.1 Share of Non-fossil fuel in total Installed Capacity

As on 31stMar, 2022, share of non-fossil fuel based capacity (Hydro + Nuclear + RES) in the
total installed capacity of the country is likely to be around 40%. It is expected that the share
of non-fossil based capacity will increase to 57.5% by the end of 2026-27 and may likely to
further increase to 68.4% by the end of 2031-32. Details of expected installed capacity and %
share is shown in Table 10.8.

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Table 10.9
Installed capacity and share of non-fossil fuel
Year Installed Installed Installed %of Non-fossil
Capacity (GW) Capacity of Capacity of fuel in
Fossil fuel Non-Fossil** Installed
(GW) fuel (GW) Capacity
Mar,2022 399.5 236.1 163.4 40.9%
March,2027 622.9 264.6 358.3 57.5%
March,2032 865.9 274 591.9 68.4%
** Non Fossil Fuel – Hydro, Nuclear and Renewable Energy Sources

Note: The actual % may change to the extent of the quantum of capacity materialising
and actual retirement taking place during 2022-27 and 2027-32.

10.9 CONCLUSIONS

 Government of India has taken various measures to reduce environmental emissions from
thermal power stations. This includes improving efficiency of power generation,
notification of stricter environment norms and retiring old and inefficient plants, Perform
Achieve and Trade scheme etc.
 The average CO2 emission rate from coal based stations in the country has been on
declining trend indicating improvement in efficiency of power generation from coal based
power plants.
 During 2020-21, the country has achieved Fly Ash Utilization of 107.77 Million tonnes with
percentage utilization of 60.97%.
 The total CO2 emissions projected will increase from 910 Million tonnes in 2020-21 to
1030 Million tonnes in the year 2026-27 and 1180 Million tonnes in 2031-32.
 The average emission factor is expected to reduce to 0.524 kg CO2/kWh in the year 2026-
27 and to 0.441 kg CO2/kWh by the end of 2031-32.
 The share of non-fossil based capacity will increase to 57.5% by the end of 2026-27 and
may likely to further increase to 68.4% by the end of 2031-32 from around 40% as on
Mar’2022.
 Indian coal used in thermal power station generally has low sulphur content about 0.3%
to 0.5% and SOx control is being achieved as per new norms specified by MoEFCC
notification.

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CHAPTER 11
Technological Advancements and
Research & Development

11.0 INTRODUCTION
India has witnessed a phenomenal growth in the Power Sector in terms of electricity
generation, capacity addition as well as development in Transmission and Distribution (T&D)
systems over the last decades. This has been possible with the introduction of enabling
policies and regulatory changes favourable for a competitive environment encouraging the
growth. Measures like participation of the private investment in the Power Sector, adoption
of state-of-the-art technologies, thrust on improvement in the efficiency of the existing plants
and setting up of new plants with improved efficiency have acted as catalysts to the growth
of the Sector. Concerted efforts have also rendered improvement in electricity connectivity
within the country and also with the neighbouring countries for cross border transmission of
electricity.
The Government of India has paid higher attention on supply of electricity at an affordable
price, and to deliver it in an efficient and sustainable manner to the consumers without
causing adverse impact on the environment. In order to provide clean energy to the
consumers, an ambitious target of 500 GW from non-fossil fuel based capacity by 2030 has
been set by the Government of India. Minimal reliance on import of products and maximal
indigenous development are the top priorities of the Government to lead the nation towards
being “Aatma Nirbhar” or “self-reliant”. To materialize the above visions effectively and
efficiently, synergetic research and development (R&D) efforts are required in all the areas of
power sector like generation, transmission, distribution, trading and utilization and to ensure
the safety, security, reliability and stability of the grid.
The research efforts should be directed towards Introduction of novel smart technologies and
improving the efficiency of the Indian power system.
This chapter review the technological advancements and recommends the areas of Research
and Development (R&D) to be taken up during 2022-27 and roadmap for future R&D
initiatives in the Power Sector in the next 10 years.
The Report has been divided in five parts viz.
i. Existing R&D facilities and research programs in Power Sector,
ii. Technological Advancements,
iii. Research and Development,
iv. Initiatives proposed for improving R&D In the Power Sector, and
v. Recommendations.

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11.1 REVIEW OF EXISTING R&D FACILITIES AND PROGRAMMES IN

POWER SECTOR
11.1.1 Facilities for Research in Power Sector
R&D activities in the power sector are presently being pursued by different institutes under
the control of the Organizations /Ministries in the Central Sector, State Sector and Private
Sector. The organizations may be the Central Government Ministries/Departments,
Autonomous Bodies, Central Public Sector Undertakings (CPSUs), Academic Institutes, R&D
organizations, Private Sector organizations etc. The following Institutions are actively engaged
in R&D in the power sector:
 Ministry of Power (MoP), Ministry of New and Renewable Energy (MNRE),
Department of Science and Technology (DST), Ministry of Human Resource
Development (MHRD) now known as Ministry of Education, etc.
 Central Power Research Institute (CPRI).
 Electrical Research & Development Association (ERDA).
 Academic Institutions like Indian Institute of Science (IISc), Indian Institute of
Technologies (IITs), National Institute of Technologies (NITs), Engineering colleges and
other Institutions.
 CPSUs like BHEL, NTPC-NETRA, NHPC, SJVNL, POWERGRID, THDC etc.
 National Institute of Wind Energy (NIWE), Chennai.
 National Institute of Solar Energy (NISE), Delhi.
 Gujarat Energy and Technology Research Institute (GETRI), Vadodara.
 R&D laboratories/institutions like CSIR, CMET, and TERI working on energy related
areas.
Apart from the above, Private sector organizations like Adani Power, TATA POWER, Reliance
Energy, L&T, TERI, GE, Siemens etc. also undertake research in the areas of their interest in
the Power Sector.
Central Electricity Authority (CEA) promotes research in the matters affecting the generation,
transmission, distribution and trading of electricity.
The research arms of major CPSUs aim at introduction and absorption of new technologies
primarily through project routes. Major manufacturers like BHEL, ABB, GE etc., have their own
R&D set up, focusing on product development. As in recent years, the Power Sector is
adopting the Information Technology (IT) advancements, it is suggested that the IT product
development should incorporate development, security, and operations (DevSecOps) theme.
Cyber Security by design should be imbibed in all technological developments undertaken by
the above stated organizations. It is expected that all organizations involved in Research &
Development must have a cyber security cell inbuilt to take care of cyber security needs in
the present scenario.
11.1.2 Schemes for funding research in Power Sector
The Ministry of Power is promoting Research and Development for the Indian Power Sector
through CPRI, under the “R&D schemes of Ministry of Power being implemented through

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CPRI”. Ministry of Power funds these schemes, CPRI and CEA monitors and co-ordinates the
three R&D schemes viz:

(i) R&D under National Perspective Plan (NPP)-under which projects with industry
collaboration are funded
(ii) Research Scheme on Power (RSoP) under which R&D projects from IISc, IITs, NITs,
CSIR, Utilities and other reputed institutes are funded, and
(iii) In-House R&D (IHRD) scheme for in-house R&D projects at CPRI for Augmentation
of Research and testing facilities, improvements/new techniques in
testing/diagnostic methods/research studies, product/Process Improvements,
and for improvement in product standardization.

Besides In-house R&D, CPRI also undertakes sponsored research projects from manufacturers
and other agencies in different areas of specialization.
Research in specific topics pertaining to energy domain are also assisted by various Ministries
like Ministry of New and Renewable Energy (MNRE) assisting projects related to renewable
energy generation, Department of Science & Technology (DST) assisting basic and applied
research in energy domain.
Department of Science and Technology (DST) has initiated the smart grids R&D programs
which includes national, bilateral and multilateral collaboration under Clean Energy Research
Initiative (CERI) scheme. DST has supported four international research programs in this
endeavour:
I. Bilateral
(i) Joint Virtual Clean Energy Centre (India-UK)
Towards the joint commitment to clean energy led low carbon economy, DST and
UK together have set up virtual Joint Clean Energy Centre on Clean Energy. This
centre focuses on integration of intermittent clean energy with storage for stable
power supply at grid as well grid isolated communities.
(ii) Joint Clean Energy Research and Development Centre on Smart Grids and
Energy Storage (India-US)
The Indo-US Joint Clean Energy Research and Development Centre (JCERDC) is a
joint initiative of the Ministry of Science and Technology, Government of India
and the US Department of Energy. The overall aim of the JCERDC is to facilitate
joint research and development on clean energy by teams of scientists,
technologists and engineers from India and the United States, and related joint
activities, needed to deploy clean energy technologies rapidly with the greatest
impact. To achieve this objective, the Indo-US JCERDC has supported a project
which is multi-institutional network project viz. US-India collaborative for smart
distribution system with storage (UI-ASSIST). The overarching objective of this
project is to evolve the future distribution grid that will allow the increased
penetration of Renewable Energy Sources (RES) and Energy Storage Systems (ESS)
and to demonstrate the Distribution System Operator (DSO) functions for optimal
utilization and management, interfaced with the micro grids in rural, urban and
semi-urban settings.

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(iii) Integrated Local Energy Systems (India-EU)

This joint initiative between India and EU aims to develop and demonstrate novel
solutions, integrating all energy vectors like electricity, heating, cooling, water,
wastes, etc., including possibilities offered by batteries and electric vehicles,
interconnect them and optimize joint operation with increased share of
renewables and higher energy efficiency. The system developed will be robust,
replicable, scalable, sustainable and cost effective with low maintenance and less
skilled manpower dependent. Supported two projects which focuses on
integration of a number of energy sources/vectors with or without local grid
connectivity, the demo units are proposed in different locations covering rural,
semi-urban and urban environments and varied climatic conditions with
additional services.
II. Multilateral
(i) Mission Innovation Programme on Smart Grids
DST supported nine Smart Grids Projects in collaboration with twenty Mission
Innovation member countries which focusses on integration to conventional grid,
transition from conventional vehicle to electric vehicle, financial and market
strategies considering renewable penetration and cyber physical systems in smart
grids.
Inter-ministerial collaborative research schemes like Uchchatar Avishkar Yojana (UAY) and
Impacting Research Innovation and Technology (IMPRINT) have been initiated by the Ministry
of Human Resource Development (MHRD) for focused research on identified themes in the
energy domain. Under UAY, projects to promote innovation of a higher order that directly
impacts the needs of the industries are taken up while the projects on socially relevant science
and engineering challenges are taken up under the IMPRINT Scheme. Now under revised
scheme (i.e. IMPRINT-2), the UAY has been subsumed into IMPRINT Scheme and is being
implemented through Science and Engineering Research Board (SERB) under DST. The
scheme would be co-chaired jointly by the MHRD and the DST.
The Utilities and manufacturers also take up research projects through their Institutional
funds. Some of these projects are carried out in collaboration with academia.

11.2 TECHNOLOGICAL ADVANCEMENT

Continued and sustained efforts through involvement of various science and technology
laboratories like CPRI, CSIR and Government bodies like DST, DSIR and MNRE, along with
academic institutions have enabled promotion of technology in India. A strong research
ecosystem is in the making in India by forging a closer relationship between the industry and
academia through various research platforms.
In order to come up with a comprehensive list of R&D areas to be taken up in the coming
years, the R&D activities and infrastructure developed by CPSUs, CPRI and MNRE during the
12th plan and 3-year action plan period were reviewed and the thrust areas investigated for
research were noted.
The thrust areas which are relevant and require further research have been recommended
for investigation during the years 2022-27. In addition to this keeping in mind the future of
the Power Sector, new R&D areas have also been proposed for investigation.
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The following are the advancements that have happened in the technological landscape of
the Power Sector:

11.2.1 Advancement in Generation Technologies

11.2.1.1 Thermal Power Generation Technologies
 Material and metallurgical developments
 Developments in material for Construction of the parts/components/equipment of the
plant
 Technology for latest site survey, site selection tools, and for construction of the power
plant
 Ultra-Supercritical Power Plants (USC)
 Advance Ultra Supercritical Power Plants (A-USC)
 Energy Conservation and Efficiency enhancement
 Digital Technologies for Thermal Power Plants
 Flexible operation of the Thermal Power plants
 Integrated Gasification Combined Cycle (IGCC) power plants
 Air Pollution Control technologies
 Selective Catalytic Reduction (SCR) for NOx removal,
 Electrostatic precipitator (ESP) that uses electrostatic force to remove dust,
 Flue Gas Desulphurization (FGD) unit that removes sulphur dioxide from the flue
gas, and
 CO2 Removal Technology.
 Ash treatment facilities and recovery of rare earth elements (REE) and useful minerals
from fly ash for quality bricks.
 Technologies to mitigate “blackouts”.
 Technologies to reduce transmission and distribution (T&D) losses.

11.2.1.2 Hydro Power Generation Technologies

 Material and metallurgical developments for manufacturing of the
parts/components/ equipment of the plant.
 Technology for latest site survey, site selection tools, and for construction of the power
plant
 Pumped Storage Power Plants (PSPs)
 Power plant renovation and modernization
 Operation and Maintenance services with digital solutions
 Remote monitoring services
 Short term generation forecasting

11.2.1.3 Solar Technologies

 Concentrated Solar Plants (CSP)
 Photovoltaic solar plants - rooftop/ground mounted/floating
 Energy yield prediction
 Site Selection
 Plant design
 Permits, licensing and environmental considerations

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 EPC Contracts
 Construction
 Operation and Maintenance (O&M) services with digital solutions
 Plant instrumentation and control system
 Plant upgrade technologies
 Power plant assessment and engineering
 Predictive management of fluids in solar energy plants:
 Which helps sustain the life-time of a heat transfer fluid (HTF)
 Which avoids costly and unnecessary interruptions to operations through pre-
planned maintenance
 Remote monitoring services
 Technologies for disposal after end of life.

11.2.1.4 Other forms of energy generation

 Biomass combustion or co-firing
 Municipal solid waste incineration
 Removal of waste heat and energy generation from the conversion of water-to-steam-
to-electricity
 Natural-gas-fired fuel cells
 Emergency backup generators, usually fuelled by gasoline or diesel fuel
 Tri-generation or Combined Cooling Heat and Power (CCHP).

11.2.1.5 Wind Power Technology (offshore /onshore)

 Integration of wind, wave, tide and solar energy in coastal and near shore regions.
 Ocean temp gradients for power and desalination
11.2.1.6 Geothermal technology
Geothermal energy is one of the promising energy resources in India, especially in the
Himalayan region. In addition to power generation, geothermal energy can cater to space
and process heating requirements and improve the energy resilience of this region. A
review of international best practices indicate the medicinal value and energy/mineral
recovery potential of this resource.

11.2.1.7 Tidal Power generation

 Marine and hydrokinetic (MHK) technology (These devices capture energy from the
natural motion of ocean water, such as waves or tides)

11.2.1.8 Energy Storage System

 Concentrated Solar Power (CSP) thermal energy storage - in molten salt form
 Battery energy storage systems (BESS)
 Pumped hydro storage, where water is pumped uphill into a reservoir and released to
power turbines when needed
 Compressed air energy storage (CAES)
 Advanced batteries
 Supercapacitors, Capacitors Energy Storage System (CESS)

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 Superconducting energy storage

 Mechanical Energy Storage System (MESS)
 Magnetic Energy Storage System (MESS)
 Gravitational Energy Storage System (GESS)
 Thermal Energy Storage Systems (TESS) for cooling and heating using phase change
material
 Flywheels
 Fuel Cells

11.2.2 Advancement in Transmission Technologies

11.2.2.1 Gas Insulated Switchgears
 Non-flammable gas insulated transformer
 Advanced Site Assembly (ASA) transformer
 Small, light-weight, easy-to-handle polymer-type arrester
o silicone direct moulding type
o composite insulating tube type

11.2.2.2 Voltage and Reactive Power Control

 Flexible AC Transmission System (FACTS)
o Shunt devices like static VAR compensator (SVC). A Static VAR
Compensator (SVC) is a fast acting power electronic device used to
dynamically control the voltage in a local area or at an interface point.
 Thyristor controlled reactors (TCR),
 Thyristor switched reactor (TSR),
 Thyristor switched capacitors (TSC).
o Static Synchronous Compensator (STATCOM), which are mainly used for
voltage control and reactive power flow control;
 Static Synchronous Compensator (STATCOM)
 Voltage Source Converters (VSC)
 Insulated Gate Bipolar Transistor (IGBTs)
 Integrated Gate Commutated Thyristors (IGCTs).
o Series devices like Thyristor-Controlled Series Compensation (TCSC), and
Static Synchronous Series Compensator (SSSC), Thyristor Controlled Phase
Angle Regulator (TCPAR)
o Series-shunt device such as Unified Power Flow Controller (UPFC)

11.2.2.3 Frequency Converter (FC) systems

11.2.2.4 HVDC system for improving the power transmission efficiency and
enhancing the interconnection of asynchronous grids
 Voltage Sourced Converter (VSC) with state-of-the-art Modular Multilevel
Converter (MMC) technology
 Line-Commutated Converter (LCC) for long-distance large-capacity transmission

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11.2.2.5 HVDC Power Transmission

 Mass Impregnated HVDC Cables
 Extruded Cross Linked Poly Ethylene (XLPE) High Voltage Direct Current
(HVDC) Cables
 HVDC underground and submarine cables
 Line Commutated Converter (LCC) technology
 Voltage Source Converter (VSC) technology
 Insulated Gate Bipolar Transistors (IGBT), which provide the switching
between HVAC and HVDC systems.
 DC Gas insulated lines

11.2.2.6 HVAC Power Technologies

11.2.2.7 HVAC / HVDC Hybrid System
 HVAC / HVDC system interaction
 Hybrid HVAC / HVDC overhead lines
11.2.2.8 Electronic Devices And Components
11.2.2.9 Gas insulated lines
11.2.2.10Overhead Lines
 Overhead lines (OHL)
 Aluminum Conductor Steel Supported (ACSS),
 Aluminum Conductor Composite Core (ACCC),
 Aluminum Conductor Composite Reinforced (ACCR)
 Aluminum Conductor Steel Reinforced (ACSR)
 High Temperature Conductors (HTC),
 Real Time Thermal Rating (RTTR)
11.2.2.11HVAC cables
 Onshore cable technology
 Offshore cable technology
 HVAC extruded insulation cables for the submarine connections.

11.2.2.12HVAC Substations, breakers, bus bars, disconnectors and power

transformers.
11.2.2.13Control and Monitoring Devices
 Power control devices: Flexible AC Transmission Systems (FACTS), phase-shifting
transformers (PST)
 Monitoring devices and systems: Wide Area Measurement System (WAMS),
Phasor Measurement Units (PMU), Synchrophasors
 WAMS- The main application of synchrophasors is in the field of system
monitoring with Wide Area Monitoring Systems (WAMS).
 PMU - A Phasor Measurement Unit (PMU) measures the electrical waves
on an electricity grid to determine the health of the system.

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 WAPS- Wide Area Protection Systems (WAPS). The main benefits of

synchrophasors are for on-line monitoring, protection systems and off-line
analysis.

11.2.2.14Control and Monitoring System

 Next generation Energy Management System (EMS)
 Real-time monitoring and control system
 Advanced Analytics and forecasting
 Disaster Management System
11.2.2.15 Development of 1200 kV transmission technologies:
 1200 kV sub-station, circuit breakers, shunt reactors and controlled shunt reactors for
dynamic reactive power compensation.
 Development of High Energy (55 MJ) ZnO blocks for lightning arrestor of class 5 duty
is required for dissipation of high energy.
 Development of operating mechanism for 1200 kV dis-connector is essential in the
light of Ultra High Voltage (UHV) transmission system technology.
 GIS for HVDC system in order to overcome space limitations.
 DC Cables
 New type and configuration of towers to reduce the height and right-of-way (RoW).
 Rupture proof tank for transformer and reactor
 Development of faster and cost effective Pressure Relief Device (PRD)
 Development of insulated cross arm towers for optimizing RoW requirement.

11.2.3 Energy Distribution

11.2.3.1 Inclusion of distribution automation
Detailed investigations and developments are in progress on power distribution systems and
the monitoring of apparatus. These are on:
a. “Digital Technology” based on the application of semiconductor high-speed elements
b. Intelligent substations applying IT (information technology)
c. System configurations aimed at high-speed communication.
Incorporated in these are demands for the future intelligent control of substations,
protection, monitoring, and communication systems that have advantages in terms of high
performance, functional distribution, information sharing and integrated power distribution
management also closely knit for cyber security requirements. Such technologies include:

 Intelligent/Digital Substation
i. Concept of Intelligent/digital Substations
ii. Apparatus Monitoring System (AMS)
iii. Protection and Control
 Latest Protection and Control System
i. Trends in Protection and Control Systems
ii. Unified Protection and Control Unit
iii. Remote Control Functions by Web Correspondence

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iv. Connection between Protection/Control Equipment and Apparatus

 Advanced Equipment and Components
i. Power Electronics
ii. AC and DC Lines and Cables
iii. Fault Locators
iv. IoT Devices

 Distribution Transformers - Potential for Future Deployment

 Sensing, Measurements, Communications, and Controls:

i. Data Acquisition systems (DAS)

ii. Supervisory Control and Data Acquisition (SCADA) systems
iii. Remote terminal Units collecting field data via communication systems
iv. Advance Distribution Management System (ADMS)
v. Intelligent Electronic Devices (IEDs),
vi. Global Positioning System (GPS) signals.
vii. Geographical Information System (GIS)
viii. Outage Management System (OMS)
ix. High-bandwidth communication
x. Smart meters
xi. Advanced Metering Infrastructure (AMI)
xii. Two-way communications and 4-quadrant metering
xiii. Integrated Communications
xiv. Advanced Control Methods - Potential for Future Deployment

 Improved Decision-Support Tools (IDST)

i. System Operations
ii. Grid visualization.
iii. Decision support.
iv. Demand based supply, production and distribution through integrated
EMS.
v. Systems operator training.
vi. Potential for Future Deployment.

11.2.3.2 Applications of artificial intelligence (AI)/Machine Learning (ML)

11.2.3.3 Cybersecurity
 Accelerating research, development and demonstration of resilient energy
delivery systems
 Evaluation of IOT and SCADA upgrades with a security first mind-set
 R&D on the adaptability of Information security controls for the energy utility
industry given in ISO 27019:2017 in ICS of Power Utilities.
 For every Power Utilities, Integrated Security Operation System (I-SoC) need
to be in place for visibility of Security in IT-OT integrated environment and

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application of appropriate security controls to protect them from cyber-

attacks.
 Secured data and device interoperability.

11.2.3.4 Microgrids and Virtual Power Plants

 Distributed Power Generation (DPG).
 Microgrids (MG)
 Virtual Power Plants (VPP)
 Smart Grids (SG)
i. Controls
ii. Automation
iii. Grid Integration
iv. Development of new equipment to penetrate Renewable Energy into
conventional grids.

11.2.3.5 Software for grid management

11.2.3.6 Social media presence and automated messaging
11.2.3.7 Standards development for data interoperability, cybersecurity, IoT,
and field devices communication.

11.3 Research and Development

It is observed that India has been at the forefront of technology deployment but not very
much on development. With the technological advancements happening across the globe at
a very fast pace, it is of utmost importance to identify the right technologies at an early stage,
tailor them to Indian needs and research on them in India so that the same can be imbibed in
the Indian Power System at an early stage. In view of the “Digital India” and “Swachh Bharat”
missions led by the Government of India, special emphasis has to be given for areas of
immediate importance right from “cyber security” up to “waste to energy”. The adoption of
technology should be seen with the cyber security threats involved and their possible
mitigation.
All efforts are to be directed towards realization of an “Aatma Nirbhar Bharat (self-reliant
India)”, thus the R&D outcome should lead to indigenization of the major
equipment/components in Power Sector.
The focus areas of research for the Power Sector for the next five years have been categorized
into five different conventional categories, viz. Generation, Transmission, Distribution,
Renewables including Microgrid, Smart Grids and reducing adverse effects on Environment
and Cyber Security.
The category wise details of the thrust areas of research are as follows:
11.3.1 Electricity Generation (Conventional Sources)
The major challenge to the power sector is to optimally make use of the generation resources
so that there is no short fall from the generating end as well as to provide reliable and cost-
effective power supply to the customers. Efforts are to be made to achieve the above goal in
a sustainable manner without causing harm to the environment.

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Generation sector is in the midst of a paradigm shift. With the capacity addition of renewable
energy (RE) in India the thermal power plants are forced to operate in cyclic manner and with
frequent ramp up and ramp down. Also, most of the thermal power plants are forced to
operate at part load for substantial period. All these indicate that novel technologies and
strategies have to be devised to make the thermal power plants more flexible and extract
maximum benefit from both renewable as well as conventional plants in a sustainable manner
in future.
At present although solar, wind and other sources of renewable energy have gained
momentum; still the thermal power generation caters to majority of the load demand. RE
plants are dependent on the various factors like wind speed and solar irradiance, and are not
available for long periods at a stretch. During the period of absence of renewable energy,
dependence would be exclusively on conventional power sources or energy storage. Hence,
it is important to focus on improving the conventional generation system, including aspects
like better plant design, increasing efficiency, improvement in fuel quality and waste heat
recovery. Although RE are a good support for the energy security as deployment of RE leads
to saving of equivalent fossil fuels, the role of the conventional plants in meeting the peak
and seasonal demands cannot be undermined. Following are the different technologies with
proposed prototypes and pilot plant demonstration for implementation:
11.3.1.1 R&D for Thermal Power Generation
Some of the important areas of R&D in Thermal Power generation are identified as follows:
11.3.1.1.1 IGCC Technology
Integrated Gasification Combined Cycle (IGCC) integrates a coal gasifier, a gas clean up system
and gas turbine in a combined cycle mode where coal is gasified with either oxygen or air. The
resulting synthesized gas (or syngas) consisting of primarily hydrogen and carbon monoxide
is cooled, cleaned and fired in a gas turbine. The technology has shown capability of power
generation at higher efficiency and lower emission levels with respect to pulverized coal
combustion technologies as demonstrated in the USA, Netherland and Spain.
Research in IGCC technology may be focused to open up new product areas along with
electricity generation like liquid fuel generation, hydrogen production, pre-combustion CO2
capture and integration of fuel cell which may provide future options of zero emission coal
technologies with higher efficiency.
11.3.1.1.2 Carbon Capture and Utilization Techniques
The impending danger of climate change and pollution is very much evident today. Carbon
dioxide is one of the main greenhouse gases that are the cause for global warming and climate
change. One of the primary sources of the increase in atmospheric CO2 is the combustion of
fossil fuels.
The development and installation of technologies for reducing the carbon intensity of existing
power plants is an important area and requires focused research efforts. Carbon Capture
(post-combustion) and Utilization (CCU) coupled with fossil energy-based power plants is
considered as a key technology with significant potential to mitigate carbon emission while
limiting climate change.
Despite the fact that various carbon capture techniques have gained maturity in the past,
there are many challenges associated with it such as high cost, large scale deployment, etc.

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Further, the technologies for conversion of CO2 to useful products is also very costly and
proprietary of few companies around the world. Significant efforts are required for the
development and indigenization of above mentioned technologies and should be a priority
area for research in the Power Sector.
Cost effective capture of CO2 and its conversion to ‘value added’ products should be taken in
a focused manner so that the entire initiative first becomes self-sustainable and thereafter
create new revenue stream for power stations. In this regard, it is suggested to develop,
design and setup reasonable scale demonstration plant in following domain:
 Liquid Fuel equivalent by catalytic hydrogenation of power plant CO2 : Likely products
– Methanol (Petrol equivalent), Di-Methyl Ether (Diesel equivalent)
 High value chemicals by reformation of power plant CO2: Likely products – Olefins,
Formaldehyde, Formic acid, Acetic acid etc.
 Carbon Black by catalytic reduction of power plant CO2 : Likely products – Carbon
black, Carbon nano tubes, Carbon nano particles etc.
 Carbonated Fly Ash Aggregate, Concrete from power plant CO2 : Likely products –
Fast curing concrete (21 hours instead of 21 days), Coarse aggregate.
 Photo-Bio-Reactor for synthesis of power plant CO2 to high value human grade
nutrients: Likely products - Beta Protein, Omega 3 Fatty Acid (Veg Fish Oil), Laminaria
- Anti Ageing cosmetic.
11.3.1.1.3 Ash Utilization Technologies
Fly ash is a by-product of power generation with coal. Combustion of coal in thermal power
plants produces either fly ash or bottom ash. Ash Disposal is a major problem because of the
sheer magnitude of its quantity produced from thermal power generating stations. It is also
a serious threat to environment as it adversely affects the flora and fauna. Disposal in the
form of slurry requires large area of land as well as water, which are scarce commodities now
a days.
Sustainable method for 100% ash utilization is the key concern of thermal power sector. Over
the years many new technologies for ash utilization have been developed but still full
utilization of ash is a distant goal. Following research studies should be conducted for
development of new segments having long term potential of ash utilization:
a) Development of Construction materials:
i. Like bricks etc.
b) Development of other products: Recovery of valuable minerals and treat fly ash
suitable for quality ceramics and other products.
c) New technology advancement for High Volume Ash utilization such as
i. Fly ash and Pond Ash to Controlled Low Strength Material (CLSM)
ii. Geo Polymeric (GP) Concrete road with GP aggregate
iii. Use of Coarse Fly Ash for cement production
iv. Development of Angular shaped fly ash aggregate
11.3.1.1.4 Technologies for conservation of water in Thermal Power Plants
Various Innovative technologies are the need of the hour for reducing water requirement in
power plants as well as improving the quality of water used to prevent long term damage of
the components due to water. Following new areas should be implemented:

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i. Application of advance technologies for water treatment and handling in Thermal

Power plants
ii. Desalination of sea water to be used in thermal power plants
iii. High Water and energy recovery from waste water system
iv. Electrochemical process for descaling
v. Custom Non-Chemical Solution for water treatment: Ozone (O3) and Ultra-violet
(UV) treatment
vi. Advanced technologies for treatment of waste water and water for emerging
pollutants and gelogenic contaminants as a part of the thermal power plants
vii. Advance chemistry for water conservation: higher cycles of concentration (COC)
formulation of cooling water system
11.3.1.1.5 Waste Heat Recovery Systems for enhancing the power plant efficiency
The thermal power plants operating on Rankine power cycle normally achieve power
generation efficiency in the range of 35–40% depending on various site conditions,
turbine inlet steam conditions and design of equipment etc. Balance of the heat input is
essentially lost as condenser losses (about 48–50%) and boiler exhaust gas losses (about 6–
7%) besides other nominal losses viz. radiation losses, un-burnt carbon losses etc. In a 500
MW unit, about 25 MW of thermal heat would be available if the flue gas temperature is
dropped, say, from 140°C to 110°C. The major challenge in low temperature heat recovery
system is the requirement of large heat transfer area and thus additional pressure drops,
which increases the cost of the system. Use of waste heat recovery system, though desired
for obvious cost benefits, is equally important for environmental protection since lower
quantity of fossil fuels shall be burnt for same quantum of useful energy.
Efforts are being made in developing technologies where waste heat can be gainfully
recovered and applied to:
(i) Produce refrigeration/air-conditioning using Vapour Absorption/Adsorption
Machines (VAM) based on Li–Br, Ammonia absorption system.
(ii) Plant cycle efficiency improvement using condensate pre-heating and fuel oil heating
(iii) Produce electric power independent of the main plant turbo-generator (TG) set using
aqua-ammonia Cycle or Organic Rankine Cycle.
(iv) Flue Gas Desalination of sea water
(v) Flue Gas Blow down recovery.

11.3.1.1.6 Advanced surface engineering technologies for higher life expectancy of

Thermal plant components
The surface engineering technologies are becoming essential in critical applications of power
plants involving wear, erosion as well as corrosion. Thus the immediate technological
requirements to be addressed in respect of damage tolerance capacity of materials are
development of high temperature wear and erosion resistance materials for thermal
components (Burner, liner and shield).

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11.3.1.1.7 The other important areas where research advancement/ assessment is

required for Thermal Power Generation include the following:
 Identifying the impact of cyclic loading on power plant components due to increased
renewable penetration in the grid.
 Online coal sampling.
 Technological advances in syngas cleaning especially at higher temperature in IGCC
(Integrated Gasification Combined Cycle) technology.
 Improvement of Electrostatic Precipitator (ESP) performance.
 High temperature wear and erosion resistance of thermal components (Burner, liner and
shield etc.)
 Design and Development of Last Stage Steam Turbine Blades and balancing of flue gas
flow inside boiler for Improved Performance.
 Boiler combustion Computational Fluid Dynamics (CFD) modelling of sub and Supercritical
boilers.
 Development of nano particles for application in high thermal coefficient lubricants,
additives in water to reduce evaporation losses.
 Advanced non–destructive testing/non-destructive examination (NDT/NDE) based
diagnostics and inspection tools for condition assessment of plant components such as in-
situ inspection of Low Pressure (LP) Turbine Blades by Ultrasonic Phased Array.
 Establishment of advanced facilities for coal combustion/blended coal combustion
evaluation studies.
 Development of technologies for on-line measurements of coal flow, fineness, heating
value, and balancing for combustion optimization in utility boilers, sensor systems for
online fuel calorific value and un-burnt carbon in ash measurement.
 Robotic Inspection of inaccessible/congested/hazardous areas inside boilers and other
enclosures.
 New improved methods of prevention of scaling on turbine blades and piping system in
thermal power plants.
 Application of nano technologies in thermal power plant
 Application of latest technologies such as Drone/ Light Detection and Ranging (LiDAR),
Robotics, in power plants mission control technologies including control/mitigation of
Nitrous Oxides (NOx), Sulphur Oxides (SOx) emissions.
 Feasibility study on Co-firing of Biomass in conventional thermal plants
 Development of non-air gasifiers like steam gasifiers
 Quantitative and Qualitative analysis of deposit, solvent selection and post operational
chemical cleaning recommendations for boilers.
 Robotic Inspection of Low Temperature Super Heater (LTSH) tubes without lifting tube
panels.

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 Alloy analysis for identification of material mix-up in boiler, turbine auxiliary etc.
 Condition assessment of super heater/re-heater tubes of ageing boilers through
accelerated creep testing.
 Metallurgical Failure analysis of pressure parts components
 Wear debris analysis – lubricating oils of rotating components.
 Analysis of deposits of boiler, condenser, effluents, ash, cooling waters, coal, etc. using
equipment like atomic absorption spectroscopy (AAS), X-ray diffraction (XRD), Ion
Chromatography (IC), Total Organic Carbon (TOC), Energy Dispersive X-Ray Analyzer
(EDX) , etc.
 Monitoring of ion exchange resins and activated carbon for capacity and kinetics from
stations
 Diagnosis of vibration problems of rotating machines
 Condition Monitoring and life assessment of high voltage transformers through dissolved
gas analysis, Polarization and Depolarization Current (PDC) measurement, recovery
voltage method (RVM) measurements and Furfural content and degree of polymerization.
 Specialized analytical support for characterizing the turbine deposits, corrosion products,
heavy metals in effluents, etc.
 Switchyard condition assessment by early detection of incipient faults.
11.3.1.2 R&D initiatives for Hydro Power Generation Sector
India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of
exploitable hydro-potential on global scenario. As per assessment made by CEA, the total
hydroelectric potential from large hydro (above 25 MW) is 2,35,590.6 MW. Out of this pump
storage potential is 90,270.6 MW and balance hydroelectric potential is 1,45,320 MW.
Research in the area of Hydro-electric power generation should get prime focus and issues
such as widening of operating ranges for turbines, development of suitable coatings to avoid
silt erosion, transient operation of turbines etc. should be minutely studied.
The following are the broad R&D areas to be explored:
1. Cavitation/Vortex rope mitigation
2. Silt erosion and corrosion
Following areas are identified which can be addressed by further research and development:
 New superior silt erosion resistant and anti-acidic materials for water carrying/under-
water components/parts/equipment such as hydro turbine blades, runner, guide vanes,
water conductor system etc.
 Application of GIS/GPS in River Flow Discharge Measurement, flood forecasting
for generation planning.
 Application of short term weather forecast in generation planning
 Analysis and Monitoring of cavitation phenomenon in Turbines.
 Rock Stabilization techniques for large size caverns.
Following are the areas where technological advancement should be considered:

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 Integrated operation of cascade hydro power projects.

 Tunnel construction techniques/methodology in Soft Rocks/Fragile Himalayan
Geology for safe and expeditious construction.
 Measures to tackle Bad Geology during Excavation of Tunnels and Construction
of Dam Foundation as seepage control measure for construction of Dam.
 Indigenous development of variable speed drives for PSPs.
 Analysis of measures to increase service life for Silt Flushing Gates, Numerical
Flow Simulation, Performance Optimization of Hydro Plant components and for
Improving De-silting Chamber Efficiency using Computational Fluid Dynamics (CFD).
 Indigenous development of software on O&M methods including High Risk
Predictive Maintenance based on past experiences and specific to HEPs.
 Indigenous development of software for control and protection system of Hydro Power
plant against cyber-attacks on the infrastructure. (It may be made common for entire
Power System)
 Development of coating materials or metal alloys for underwater parts which are resistant
to acidic water prevalent in North-Eastern Part of India.
 Use of nanotechnology to optimize and upgrade the control & protection system. (It may
be made common for entire Power System)
 A strategic start-up and shutdown technique of the Francis turbine may be developed
considering transient dynamic behaviour and runner blade loading during no-load
run/run-away, load rejection, and start-up as well as shutdown of the turbine.
 Indigenous development of PTFE (Polytetrafluoroethylene) material for Bearings and high
grade quality XLPE compound for electric cables.
 Indigenous development of CRGO Steel and Resin Insulated Paper (RIP)/Resin Insulated
Synthetic (RIS) conductor bushing. (It may be made common for entire Power System)
 Research in the area of developing compact generators and transformers.
 Generator modernization to increase efficiency.
 Site assembly and acceptance testing of 400 kV and above generator-transformers (GTs).
 Monitoring system for on-line measurement of turbine efficiency
 Construction methodology for arch dams.
 The causes of pressure recovery loss near the best efficiency point in draft tube.
 Indigenous development of Splitter Runner for higher capacity turbines.
 Optimization of movement of guide vanes during turbine start-up after emergency
shutdown of the Francis turbine.
 Indigenous development of Computational Fluid Dynamics (CFD) tools for optimization
of hydro turbine design for enhanced efficiency and minimize cavitation.

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11.3.2 Thrust areas of research for Power Transmission

The R&D in power transmission shall focus on a reliable, safe and efficient systems for transfer
of electricity. While utilities/organizations shall give more impetus on demonstration and
evaluation of new technologies through pilot projects, manufacturing organizations shall give
more stress on development of new technologies/products. The areas of focus for research and
development have been highlighted as follows:
11.3.2.1 New designs for Transmission Towers and Conductors
Transmission towers and conductors play major role in power transfer. To meet the growing
demand for power in urban and industrial areas there is a need for transfer of huge quantum
of power from generating stations. Due to the constraints in getting environmental
clearances, and acquiring right of way (RoW), introduction of compact transmission lines is
an alternative choice to conventional ones. The compact transmission lines have the
advantage of reduced RoW and reduced tower dimensions.
Re-conductoring of existing lines with High Temperature and Low Sag (HTLS) conductor is a
viable option to increase the power transfer capacity. Design aspects of compact towers and
feasibility study of different types of HTLS conductors are to be explored for implementation.
The growing concerns about environmental impact of transmission line construction and
protest against siting of towers added with the requirement of reducing tower material,
necessitates new tower designs with reduced right of way and slimmer structure.
 Development of high temperature electrical conductors for transmission lines is
essential, keeping in view of bulk power transfer. The major challenges are to
overcome the transmission losses, increase the power transmission on the existing
lines and the development of more efficient power conductors for new lines. The
development of efficient power transmission system seems to have the major stake
in the future of transmission system and will become the national priority keeping in
view of the current scenario.
11.3.2.2 HVDC transmission
Considering the implementation of High Voltage Direct Current (HVDC) transmission,
indigenous manufacture of equipment may be required. The research focus will cover the
following aspects:
1. DC electric field, corona studies on equipment and electrodes;
2. Performance of bushings under DC electric stress.,
3. Effects of DC stress on transformer insulation,
4. Ageing studies,
5. Development of diagnostic tools,
6. Overhead transmission Lines,
7. Bushings and transformers,

Some of the other potential areas of research are as follows:

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 Voltage Sourced Converter (VSC) based HVDC transmission has become an attractive
option for bulk power transfer between meshed grids. The advantages of VSC based HVDC
transmission are high controllability of active and reactive power at the converters
terminal and the ability to improve the stability.
 High Speed Grounding Switches (HSGS) for HVDC systems are required to connect the
station neutral to the station ground, if the ground electrode path becomes
isolated.
 The concept of transformer less HVDC transmission.
 To adopt the VSC based HVDC transmission technology, High Speed Grounding Switches
for HVDC systems and to absorb the concept of transformer less HVDC transmission
system in power sector, pilot project study is required to be undertaken to gain the
experience for wider acceptability and implementation.
11.3.2.3 Development of controllers for Flexible Alternating Current Transmission
System (FACTS) devices.
Application of FACTS devices in Indian power system is proposed, extensively supported
through system studies. Research in the direction of developing indigenous development
of FACTS devices and its controls is essential and the objective is to design, develop
controls for FACTS devices such as: Static Compensator, HVDC, multi-terminal HVDC,
switchable shunt reactors, series and shunts HVDC taps, Unified Power Flow Controller
(UPFC), Interline Power Flow Controller (IPFC), and static synchronous compensator
(STATCOM), Static Synchronous Series Compensator (SSSC) and deploy in the network.
The controller performance is to be studied in real time.
There is a need to develop controller for controlled switching of circuit breakers,
which is used to close or open the contacts of circuit breaker by time dependent control
of trip coils, to eliminate undesirable transients. Substantial research in this direction is
required.
11.3.2.4 Design and development of equipment for 1200 kV UHV AC System
Power sector growth necessitates development of indigenous technology for absorption in to
network at higher voltage levels, mainly to strengthen the system and power evacuation. The
key equipment to aid in 1200 kV UHV transmission systems should be indigenously developed.
11.3.2.5 Design and development of seismic resistant substation
It is necessary to maintain reliability and safety of electrical equipment after an earthquake.
This depends on the seismic response of individual substation components such as
transformer, bushings, switchgear etc.

11.3.2.6 Exploring features of technologies like Machine Learning and Artificial

Intelligence, Big data, Internet of Things, Cloud computing, Block chain etc. for
application in power system operation and monitoring
In the current era of Industry 4.0, where the influence of IT and communication technology
has been making a big change in the lives of citizens, capabilities of Machine Learning and
Artificial Intelligence, Big Data, capacity of Internet of Things, power of cloud computing,

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security of block chain architecture etc. needs to be explored and applied in the power
transmission system to make it more secure, efficient and reliable.
11.3.2.7 Explore alternative fluids for transformer oil like nano-doped oil and
environmental friendly fluids
Nano-fluids are a class of fluids having stable suspensions of nanoparticles, with sizes typically
less than 100 nm. Nano-particles when mixed in transformer oil could improve various
electrical and thermal properties as found from various research studies. Such promising
nano-material doped oils could be developed further for improving the operational
performance of transformers. In addition, biodegradable alternatives to transformer oil like
natural esters could also be developed to make transmission system environment friendly.
11.3.2.8 Explore environmental friendly dielectric gas as an alternative to SF6 gas
SF6 being a greenhouse gas leaves significant impact on environment in case of release
into atmosphere due to leakages. Development of environment friendly alternatives to
SF6 gas could be taken up to reduce the effect on environment caused by transmission
system equipment.
11.3.2.9 Development of Inspection Robot for monitoring and maintenance of
Transmission Lines and Substations
A remote controlled transmission line inspection and maintenance robot, which crawls
along the high voltage line conductors autonomously and relay data to the control module
as well as do minor maintenance tasks on line, could help in efficient management of the
transmission system. Likewise, an autonomous substation robot, which could perform
regular inspection for any damages in switchyard equipment and components, could also
be developed. Use of such robots will also allow utility staff to access areas in transmission
lines and substations that are manually difficult to inspect. Cyber Security due to this
feature may be kept in perspective before implementation.
11.3.2.10Development of transformer inspection robot
For a human being to enter inside the confined space of transformer for inspecting the
internal components of transformer is a dangerous task. This human inspection requires
significant downtime due to the lengthy process of draining oil and refilling again after
inspection. A transformer inspection robot will help immediate inspection of the
transformer after taking outage thus saving cost and time.
11.3.2.11Development of real-time wide area protection system with Phasor
Measurement Units (PMUs)
Currently, synchro phasor measurements are used mainly for power system monitoring,
model validation, post-event analysis, real-time display etc. However, synchro phasors
have a greater potential than monitoring and visualization. Real time synchro phasor
measurements can be utilized in control and protection schemes, called as Wide Area
Monitoring, Protection, and Control Systems. These schemes will take action for
protection and control of power system using synchro phasor measurement on real time
basis thus providing fast and automated solution for grid operations. In addition, it will be
helpful in real time power swing detection, fault detection, voltage stability, power
oscillation damping and network islanding schemes. Reliable transmission of data from
PMUs to the control station must be ensured.

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11.3.2.12Other major areas of Research and Development in Transmission domain are

mentioned below:
 System Security and Operator Training software and simulation tools.
 Gas Insulated Transmission Lines (GITL).
 Extra High Voltage (EHV) Cables and submarine cables for bulk power transmission.
 Superconducting Magnetic Energy Storage System (SMES).
 Alternate Fault Current Limiters
a. Superconducting Fault Current Limiter development and field trial
Superconducting fault current limiting devices rely on the property of
superconductor element to undergo transition from superconducting state to
resistive state on subjecting to current above its critical level. When installed in
grid and once subjected to fault conditions, the rise in current above critical
level is due to the system fault current, which forces the Superconductor to
transit to its high resistance state, and in turn limits the fault current causing it.
They have the ability to reduce fault current levels within the first half cycle of
fault current level, which results in an increased transient stability of power
system. These devices are self-regulating in the event of fault and are fail safe,
development of which could be a much-needed breakthrough in fault current
limitation techniques.
b. Solid State Fault Current Limiter development: Solid State Fault Current Limiter
uses power electronics based system to detect and limit the fault currents in
the system. As soon as fault current happens, before the first peak, the device
dynamically inserts additional impedance into the line thus limiting the fault
current to the desired level so that circuit breakers can then interrupt current.
The device rely on the fast acting capabilities of components like thyristors for
its near instantaneous operation.
 High quality pressboard insulation for transformers
 Resin Impregnated Paper (RIP)/Resin Impregnated Synthetic (RIS) bushing.
 SF6 filled large capacity power transformer technology.
 GIS mapping of transmission assets.
 Reduction of Transmission and distribution (T&D) losses
 Transformer-less HVDC transmission.
 Development of Emergency Restoration System (ERS)
 Reduction of Electromagnetic interference with Television (TV) and Communication
signals.
 Biodegradable Insulating Oil for Transformer, lubricating oil for Turbo-Generator.
 High-voltage recovery transformers,
 Use of Robotics and unmanned aerial vehicles (UAV e.g. DRONE) in construction,
supervision, operation and maintenance of power system equipment in difficult and
inaccessible areas.
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 Development of outer sheath of overhead conductors

 Development of techniques for large scale Renewable Energy integration
 Development of adaptive protection system against bi-directional power flow
 Development of cyber secure monitoring and control system
11.3.2.13Indigenous development of following technologies may also be taken up which
will make India self-reliant:
 High Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission System
(FACTS) components
 Digital substation components including Non-conventional Instrument transformers
(Optical Current Transformers / Voltage Transformers)
 Phasor Measurement Unit and Phasor Data Concentrator for Wide Area Monitoring
System
 Implementation of latest technologies like Virtual Distributed Network (VDN) may be
explored for safeguarding and securing the communication in power sector.
11.3.3 Thrust areas of Research for Power Distribution
Distribution system is the most important part of the whole chain of Power System as it is
directly connected to the consumers. A large share of system losses occur in distribution
circuits and a significant amount of power system investment goes in the purchase and
installation of distribution hardware. In recent times, the development of smart grid and the
use of roof top solar power, storage and adoption of electric vehicles (EV) will herald a new
way distribution networks to function.
The distribution sector requires priorities in research and development since the efficiency,
financial viability and losses in the distribution system affect the reliability and quality of
power supply along with economic viability of the total power sector as a whole. The R&D in
distribution system should be based on the following objectives:
 Providing 24x7 reliable, quality and economic power to all consumers
 Minimum technical and commercial losses
 100% metering, billing and collection by use of meters in pre-paid mode to do away
with manual metering, billing and collection deficiencies.
 Using Information Technology for data acquisition, data analysis and control for better
management and planning of the system.
 More consumer satisfaction/faster disposal of the Consumer Grievances
The existing Distribution system needs careful attention in many areas such as reduction in
losses, 100% metering, billing and collection efficiency, distribution automation, smart
metering, harmonics reduction, Demand Side Management (DSM), integration of solar roof
top systems, Microgrids, energy storage systems etc.
Smart grid represents a vision for a digital upgrade of power distribution system to both
optimize present operation as well as to open up new avenues for alternative energy
production. Improvement in reliability of distribution network can be achieved with

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deployment of Supervisory Control and Data Acquisition (SCADA) System/Distribution

Management System (DMS)/ Advance Distribution System Management (ADSM) for remote
monitoring and control of various network elements, obviating need for manned substations.
DMS/ADSM extends the monitoring and control functionality of SCADA to distribution
transformers. Remote Terminal Units (RTU) and Fault Passage indicators (FPIs) are installed
at substations.
Some of the important areas for research in the Distribution sector is as follows:
11.3.3.1 Distribution Automation (DA)
The research and development work in Distribution sector should be aimed at developing
indigenous know-how of full scale distribution automation system, which can cover from
primary substations to consumer level intelligent automation. The future research initiatives
for power distribution automation may be:
 Customer level intelligent automation system
 Computer aided monitoring and control of distribution transformers
 Substation and feeder level automation
 Data communication system for Distribution Automation
 Development and Standardization of Distribution Automation software
Also, IEC 61850 compliant relays and sensors for distribution automation are required to be
developed for future smart grids.
11.3.3.2 Feeder Load Characteristics
Individual feeder loads differ widely in their behaviour. A methodology needs to be evolved
for studying feeders in order to characterize them. The technique should be relatively simple
and trade off accuracy against effort involved, since any distribution entity has a large number
of feeders, and needs to accurately predict their contributions to the total load curve for the
next day, so as to contract for energy supplies from generation companies.
11.3.3.3 Security and Protection
In conventional distribution schemes, loads are protected mainly through over-current relays
and fuses. A smart grid has the facility to provide more sophisticated protection. In addition,
the ability to operate the feeder through remote control opens up the possibility of load control
in response to under-frequency conditions and voltage collapse.
11.3.3.4 Mobile Substation development
Disasters like earthquake, cyclone, flood, fire in substations and transformers, sabotage
attempts etc. can have impact on power transmission and distribution system availability.
When disruption is prolonged, a Mobile Substation, which can be moved from one location
to another, could play a critical role in re-establishing the grid connection by acting as an
emergency restoration system, by circumventing damaged substation equipment, allowing
time for conventional restoration works.
11.3.3.5 Underground substations for Space Constraint Areas
Building new transformer substations in inner-city zones or expanding existing facilities is a
challenging task due to the lack of space. There is an increasing demand for compact and

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discreet transformer substations in city environments for urban development projects and
other densely populated areas around the globe.
11.3.3.6 Development of Digital Energy meters (IEC 61850-9-2 compliant)
World is moving with fast pace towards digitization. In the transmission system, digital
substation with process bus is gradually moving from pilot stage to commercial installations.
Non-Conventional (Optical) Instrument Transformers (NCIT) are being adopted in substations
due to its superior characteristics over conventional measuring transformers. However,
absence of digital energy meters is restricting the penetration of NCITs and thereby digital
substations. As there are only limited suppliers for IEC 61850 compliant digital energy meters
world over, with the growing adoption of Full Digital substation technology, an IEC 61850
sampled values based Energy Meter is required to be indigenously developed. This will further
pave way for adoption of NCIT and digital substations.
11.3.3.7 Development of smart grid applications
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 and control the
power flow or curtail the load to match generation on real-time basis.
The smart grid enables increased predictability and control of generation and demand
through consumer involvement, thus bringing flexibility in both generation and consumption,
enabling the utility to better integrate intermittent renewable generation and reducing costs
of peak power. A smart grid is cost-effective, responsive, and engineered for reliability of
operations.
Development of Smart Grid attributes in distribution like Advanced Metering Infrastructure
(AMI), Outage Management System (OMS), Supervisory Control and Data Acquisition, Peak
Load Management, Integration of Distributed Generation, etc. could be taken up which will
make distribution system more resilient and reliable. Smart Grid facilitates bidirectional
communication between utility and consumers resulting consumer participation in the
energy management process.
The following are thrust areas identified under four different themes for smart grid
implementation:
11.3.3.7.1 Operation, Control and Protection
 Operation and control of large, medium and small scale renewable energy sources
 Protection technologies for AC and DC smart grids
 Wide area monitoring, protection and control (WAMPC)
 Energy management techniques including ADSM.
 Supervisory control of network with multiple micro and nano grids
 Network analysis and optimal power flow
 Modelling and simulation of large power grids (including cyber systems)
 Seamless Grid operation involving Transmission System Operator (TSO) and
Distribution System Operator (DSO).
 Forecasting of renewable and loads

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11.3.3.7.2 Information & Communication Technology (ICT) and Cyber security

 Reliable wired and wireless communication technologies, communication security
testing
 Interoperability (data and device) and ICT architecture
 Audit and validation tools for cyber security features
 Home Area Network (HAN), Wide Area Network (WAN), and Internet of things
(IoT) in distribution system
 Threat models and Cyber security
 Information privacy and handling challenges
 Cloud Computing, data storage and big data analytics
 Cybersecurity standard as well as standard operating procedure (SOP)
development and adoption
 Cybersecurity compliance procedure development (Device and system)
 IoT device security development
 Data protection system
 Multi-layer Data Abstraction Mechanism development
11.3.3.7.3 Devices and Technology (Converters)
 Fault ride through enhancement of converter interfaced to renewable energy
sources
 Optimal design of flexible power converters
 Coordination and control of multiple converters and modular multi-level
converters
 Converter technologies for HVDC and MVDC systems
 Multi-functional hardware and smart grid enablers
 Smart and unified control of converters
 Hot swappable converters for smart grids
 Standardization of voltage and power levels
 Network voltage regulation and power quality
 Use of wide band gap devices - Gallium nitride (GaN) and silicon carbide (SiC)
11.3.3.7.4 Distributed Energy Resources, Storage and Deployment Issues
 Policy, regulatory and market design issues
 Demand side management with optimization and forecasting techniques for
storage and renewable energy source (RES)
 Inertial issues of renewable energy resources with stochastic behaviour
 Optimal mix, siting and sizing of energy storages at various levels of network
Some other focused areas of research in smart grid are as follows:
11.3.3.7.5 Advanced metering infrastructure (AMI)
Advanced metering infrastructure (AMI) is an integrated system of smart meters,
communications networks, and data management systems that enables two-way
communication between utilities and customers. Smart meters help DISCOMS reduce
aggregate technical and commercial (AT&C) losses, improve their financial health, incentivize
energy conservation, enhance ease of bill payments, consumer satisfaction and ensure billing
accuracy by getting rid of manual errors in meter reading. There is continuous need for
innovation in smart metering and advance metering infrastructure. The existing system needs

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to be overhauled to support a completely digitized ecosystem that will also take the country
into the future in terms of smart grid feasibility.
The following deployment and Research areas can be explored for making AMI systems
manageable:
 Smart Meter with multiple communication systems as option at time of
procurement and field placement
 NBIoT / LPWA/LoRaWAN based AMI deployment. Narrowband Internet of
Things (NBIoT) is a Low Power Wide Area Network (LPWAN).
 Head End System (HES) with multiple Meter interoperability both
communication and manufacturing heterogeneity
 Technologies for reliable information exchange between DISCOMs and
customers
 Head End system interoperability with Meter Data Acquisition System (MDAS).
 Reliability of information exchange between DISCOMs and Customers is a
cause of concern.
11.3.3.7.6 Intelligent Universal Transformers
The intelligent universal transformer concept involves a state-of-the-art power electronic
system and is not a transformer device in the traditional sense. It would be designed to
replace conventional transformers with a power electronic system that steps voltage as
traditional transformers do, but can also manage and control consumer demand and power
flows, and compensate for reactive power.
11.3.3.7.7 R&D in power semiconductor devices
The power electronic devices for grid applications must be extremely reliable; Research is
required for development of power electronic devices which will have higher reliability and
security. It should focus on various applications such as smart inverters/converters for RES
integration, automotive and industrial applications, solid state transformers and breakers,
consumer electronics etc.
11.3.3.7.8 Reduction of harmonics and electromagnetic interference
Development of switching strategies that minimize harmonics or different converter
topologies, such as multilevel converters that minimize the generation of harmonics, is
required. In addition, research may focus on the ability to switch at higher switching
frequencies which will enable harmonics to be more easily filtered out with smaller capacitor
and/or inductors.
11.3.3.7.9 Development of advanced control systems for multiple converters
There might be multiple power converters connected to the T&D system. These converters
might induce circulating current in one another, and/or their functions might compete with
one another. Presently, limited research has been done on controlling multiple power
converters. More advanced control systems must be developed to better utilize multiple
converter systems tied to the grid.

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11.3.3.7.10 Development of test-bed for power electronics components and systems

The demonstration phase of advanced technologies is typically a cautious attempt by the
utility industry to operate in a field environment, but it can be quite expensive and of little
value if the technology is not fully evaluated because it is operated in a low-impact location
or not placed into full service. Since many demonstrations do not provide a full spectrum of
events that a device or system might see over the course of its life, the credibility of the
technology may require many expensive demonstrations and years of field testing to gain the
confidence of the utility/industry. Thus, the expensive and lengthy technology
demonstrations must be resolved by providing a full-power (high-voltage and high-current)
testing environment that can fully test and evaluate a range of early prototypes to near-
commercial distribution technologies. This process would reduce the lead time to
implementation.
11.3.3.7.11 Automatic Fault Detection and self-healing
Compared to the conventional impedance based or travelling wave based fault location
methods, artificial intelligence based fault location methods may have better adaptability,
which may be examined. With the ever increasing computation and communication abilities,
artificial intelligence based fault location will play a more significant role for automatic fault
detection in future. Advanced machine learning methods may have a better performance
than the methods used currently. Thus, research on development of artificial intelligent
/machine learning algorithms may be considered for future research for fault detection, fault
localization, faulted area isolation, and power restoration in the electrical distribution system.
11.3.3.7.12 Demand Response and Peak Load Management
The electric power industry considers demand response programmes as an increasingly
valuable resource option. One of the goals of the Smart Grid research is to develop grid
modernization technologies, tools, and techniques to utilize demand response and help the
power industry design, test, and demonstrate integrated national
electric/communication/information infrastructures with the ability to dynamically optimize
grid operations and resources and incorporate demand response and consumer participation.
It provides an opportunity for consumers to play a significant role in the operation of the
electric power grid by reducing or shifting their electricity usage during peak periods in
response to time-based rates or other forms of financial incentives.
11.3.3.7.13 Cloud Interoperability
Interoperability within the context of Cloud Computing means enabling the Cloud Computing
Ecosystem whereby individuals and organizations are able to widely adopt Cloud Computing
technology and related services in such a fashion that multiple Cloud platforms can exchange
information in a unified manner and ultimately work together seamlessly. Utilities have to
deal with lot of data for day to day requirements. Either they have to establish or maintain
their data centres or use cloud services. In this context, cloud services and interoperability
will be a necessity in future and appropriate technologies may be developed for the same. In
a hybrid cloud / ICT infrastructure, ensuring security requirement in CASB (Cloud Access
Security Broker) platform for facilitating iSoC (integrated Security Operations Centre) needs
attention. Implementation of Cloud Controls and concept of data localization must be
ensured.

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11.3.3.7.14 Public perception and reaction to Electrical Hazards

Very little research has been done on consumers’ reactions to blackouts, whether caused by
natural disasters, equipment failure, or terrorism. The goal of the research work would be to
study the perception and various reactions of general public in the event of a blackout and
develop protocols for the DISCOMs for responding effectively to major disruptions of the
power supply. The research may lead to development of technology/software so that the
consumers could be kept informed and made aware of constructive steps undertaken. This
will help to minimize public unrest.

11.3.4 Thrust areas of research for Renewable Energy

Hydrocarbon resource limits are bound to force the world away from fossil fuels in coming
decades. In addition, the environmental and health burdens arising out of the use of
hydrocarbons may force mankind towards clean energy systems. Therefore, there is need for
electric power industry to look at other technologies of power generation through solar, wind,
biomass, municipal solid waste, agro-residue based plants, small hydro, fuel cells, geothermal
etc.
Technologies related to wind, biomass, solar, small hydro, geo-thermal, fuel cells, Waste
to Energy (WtE) need to be identified. Research to focus on grid connectivity of large wind
mills, self-healing wind connected micro grids, distributed generation and large use of
ethanol/methanol for energy products. Development of micro and mini grids and larger
penetration of renewable energy is an important area of research. Further, some of the
research areas are as follows:
11.3.4.1 Renewable Energy Integration
With the rapid growth of variable renewable energy mainly from solar photovoltaic and wind,
innovative technologies and operation modes to support renewable energy grid integration
into the electric distribution and transmission system is need of the hour. A systems approach
is being used to conduct integrated development and demonstrations to address technical,
economic, regulatory, and institutional barriers for using renewable and distributed systems.
The goal of Renewable energy integration is to develop advance system design, planning, and
operation of the electric grid to reduce carbon emissions, peak load management, support
achievement of renewable portfolio standards for renewable energy and energy efficiency,
support reductions in oil use by enabling plug-in hybrid electric vehicle (PHEV) operations with
the grid and support protection of critical infrastructure in highly constrained areas of the
electric grid.
11.3.4.2 R&D in renewable energy may be carried out on the following
thrust areas:
 Development of micro grids and suitable control mechanism - integration of
renewable energy into the grid.
 Interconnection of Micro grids at distribution voltage level and control of power flow
between micro grids.
 Energy storage: electrical and thermal storage with enhanced charge-discharge
efficiencies and new technology routes like sand, concrete, particle storage media,

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magnetic, electro-static, compressed air energy storage, concentrated solar PV

storage etc.
 Development of Solar PV and Wind forecasting technologies
 Solar PV performance and degradation studies
 Indigenous development of cost effective floaters for floating solar PV (FPV) plants.
 Identification of best-suited technology for maximum solar PV generation.
 Indigenous development of wet and dry robotic cleaning system for PV modules.
 Development of super hydrophobic coatings for PV modules.
 Utilization of Unmanned Aerial Vehicles (UAVS) Drone, Light Detection and Ranging
(LiDAR) for PV Plant inspection.
 Utilization of concentrated solar thermal (CST) energy for cooking systems,
desalination and cooling systems.
 Development of solar thermal and fossil fuel based hybrid power plants.
 Development of solar thermal collectors, tracking mechanism, receiver coatings,
thermal heat storage configurations and control system for heating, cooling etc.
 Synchronization of roof top solar and micro generation to the grid.
 Reactive power management at the level of micro grid and distribution system and its
contribution towards the stability of the grid.
 Impact of climate, weather, geography, seasonal and other factors on renewable
energy generation.
 Impact of socio-economic factors and life style of society at different strata on the
usage pattern of energy at distribution level.
 Suitability of Pico hydropower in isolated hilly areas/villages of India.
 Fuel cell development.
 Electric Mobility issues – development of super-efficient batteries with fast charging
capabilities suitable for transport application.
 Indigenization of Concentrated Solar power technology
 Increased use of Floating Solar Photo Voltaic
 Building integrated Photo voltaic
 Application of nano technologies for power plant applications
 Bio Mass and Bio Fuel for energy generation
 Waste to energy conversion
 Mechanism for safe disposal, reuse, recycling and reclamation of useful material of
solar PV panels, storage batteries and other material to counter the related
environmental pollution.

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 Impact of large scale integration of renewables into the Grid

 Road top/Canal top solar plants
 Development of methodology/equipment to detect micro cracks in solar cells
 Smart utilization of solar and wind farm inverters as FACTS devices in grid integrated
renewable energy
 Large-scale thermal energy storage
 Technologies to reduce demand on the power system like efficient lighting, efficient
space conditioning (building heating/cooling), efficient domestic water heating
 Virtual Power Plants
 Electric Vehicles :
o Impact of large-scale EV charging on Power Quality
o Smart charging of EVs with renewables and V2G/V2H in micro grid
o Participation planning of EVs in smart grids for demand response
o Battery Safety by Early Examination, Prediction and Prevention of failure for
Future Electric Powered Vehicle
11.3.4.3 Indigenous development of following technologies may also be
taken up which will make India self-reliant:
 Indigenous manufacturing of bidirectional EV chargers
 Indigenous manufacturing of EV Supply Equipment (EVSE)
 Indigenous development of connected car technology and protocols for EV Supply
Equipment (EVSE) and V2G/V2H
 Indigenous manufacturing of distribution power electronic devices
 Indigenous manufacturing of Energy Storage Systems including the battery Energy
storage system (BESS).
 Recycling of batteries, solar panels and blades of wind turbines as well as other power
sector residue. These need to be recycled and useful material reclaimed.
11.3.4.4 Development of Energy Storage Systems
Energy storage systems provide a wide array of technological approaches to managing our
power supply in order to create a more resilient energy infrastructure and bring cost savings
to utilities and consumers. However, existing ESS technology faces challenges in storing
energy due to various issues, such as charging/discharging, safety, reliability, size, cost, life
cycle, and overall management like disposal and recycling after useful life. Development of
Battery Energy Storage System at grid level based on different technologies like Advanced
Lead Acid, Lithium Iron Phosphate etc. could be taken up. Battery system may be useful for
applications like frequency regulation, energy time shift, dynamic frequency regulation,
voltage/reactive power support, renewable energy capacity firming etc. However, these
aspects need to be further researched.

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11.3.4.5 Development of Super Capacitor

Super capacitors are an alternative to batteries, which gets charged much faster and have
more charging / discharging cycles possible in comparison to batteries. Even though they have
much lesser storage capacities than batteries, they can be used in critical applications, which
involve frequent charge and discharge cycles, extreme operating temperatures, or rapid
discharge of high amounts of energy.
11.3.4.6 Superconducting Magnetic Energy storage system development
Superconducting magnetic energy storage (SMES) system stores electrical energy in the form
of magnetic field created by the flow of direct current in a superconducting coil, which has
been cryogenically cooled to a temperature below its superconducting critical temperature.
As the superconducting coil has negligible resistance, there will be no losses of stored energy.
SMES is a highly efficient grid-enabling storage device that stores and discharges large
quantities of power almost instantaneously with unlimited number of charging and
discharging cycles possible. Its applications include system stability improvement and
effective damping, power quality improvement, load levelling, spinning reserve, protection of
critical loads etc. which could be much needed energy storage device for integration of
renewable energy.
11.3.4.7 Other storage technologies
11.3.4.7.1 Research and Development in Hydrogen Technologies
Hydrogen is the most abundant element on earth, but it doesn't typically exist by itself in
nature and must be produced from compounds that contain it. Hydrogen can be used for
diverse energy solutions such as electricity production from the fuel cell, energy storage, etc.
The hydrogen can also be converted into hydrogen based fuels, including methane, methanol,
etc. and can be used for transportation purposes. Owing to its clean combustion characteristic
and zero carbon footprint, hydrogen has the potential to be the fuel of the future. Going
forward, a developed hydrogen economy provides for a cleaner environment ensuring
national energy security.
Currently, Hydrogen is primarily produced from fossils fuels, especially natural gas. Hydrogen
can also be produced from coal, biomass and water. Most of the hydrogen production at
present is fossil-based which leads to significant emission of CO2 to the atmosphere. As the
cost of renewable electricity is decreasing, the same can be used to produce hydrogen
through electrolysis of water. Hydrogen can also be produced directly from sunlight and
biomass. Electrolytic hydrogen produced from green power, instead of conventional grid
electricity, and hydrogen produced from other cleaner mechanisms have been termed as
“Green Hydrogen”. The production of green hydrogen should be the primary focus of
research in the coming years.
In spite of recent advances in the production of hydrogen, the cost of each component of
hydrogen technology is much higher than the conventional fossil fuel-based economy.
Research and development is extremely important for reducing the cost, improving the
performance, and increasing the reliability of fuel cells, electrolyzer, storage, and transport
components, etc. It is essential to promote Pilot/large-scale integrated demonstration project
for a complete hydrogen ecosystem. This would provide data for safe handling, O&M, and
identifying gaps/concerns in terms of cost, reliability, safety, standards of performance
(SOPs), and training. Hydrogen is the foundation on which success of several initiatives are

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critically dependent viz CO2 utilization, waste to hydrocarbon, energy storage, green transport
etc. The domain of hydrogen has multiple facets to work on, but the one’s relevant for power
sector are brought out below:
 Development of electrolyzers :
• High Temperature Solid Oxide Steam (HT-SO-S) Electrolyzer: Hydrogen
production from electrolyser route is seriously energy intensive i.e 50-55
kWh/Kg H2. Compared to these, HT-SO-S Electrolyzer are ~30% efficient. The
technology is at nascent stage – and therefore it is time that India makes a
foray into it.
• Sea / Hard Water Electrolyzer: 10 kg DM water is required for production of 1
kg Hydrogen. Tomorrow, when huge quantum of hydrogen production is
envisaged, 10X quantity of DM water shall be required. Considering this,
development of Sea/Hard Water Electrolyzer may be contemplated.
 Development of various novel techniques for hydrogen storage and compression
• Metal Hydride based Hydrogen Compression and Storage: Hydrogen is the
smallest molecule – therefore its storage and compression is highly energy
intensive. Also, due to the very small molecular size – precision manufacturing
and maintenance of hydrogen compressors makes it quite expensive. Metal
Hydride is a non-moving unit and it practically takes care of all of the above
issues.
 Development of technologies for the production of hydrogen directly from sunlight and
biomass
 Low cost green hydrogen production on a large scale
 Prevention of catalyst poisoning in case of catalytic conversion for large scale hydrogen
production
 Substitute for expensive catalysts in case of green hydrogen production processes
 Reducing cost of catalyst, membrane and components of fuel cell
 Catalytic reformation of SynGas to Hydrogen: Development of this process shall open
door for utilization of Municipal Solid Waste (MSW), Agri Waste/Agri Residue, Coal Mill
Reject and other carbonaceous material for distributed/centralized hydrogen
production. Also development of efficient gasification (oxy, steam or plasma gasification
in absence of nitrogen) shall be an important building block in this direction.
11.3.4.8 R&D for mitigation of adverse effects on Environment
The need for electricity generation to be clean and safe has never been more obvious.
Environmental and health consequences of electricity generation are important issues,
alongside the affordability of the power which is produced. Production of electricity from any
form of primary energy has some environmental effect. The power sector in India is one of
the main sources of CO2 emission in the country.
There are various technologies and processes that have substantial potential to reduce GHG
emissions, for instance, coal and biomass gasification technology; gas turbine technology;
power generation with solar thermal and photovoltaic technology, fuel cells, etc. Clean coal

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technologies and renewable energy usage have been adopted in India as methods of best
approach to tackle climate change.
Apart from the above-mentioned measures, further steps can be implemented for reduction
of CO2 emissions. These are research and development; information and education (for
awareness); economic measures; regulatory measures; and voluntary agreements. Each step
offers advantages and drawbacks and has different effects on CO2 reduction. Low carbon
generation options, such as carbon capture and storage (CCS), nuclear and renewable
technologies, are needed to substantially reduce emissions. Due to the high ash content of
Indian coal, oxy fuelling and post combustion CO2 capture would appear to be suitable options
for India. Pre-combustion capture in a coal fired IGCC plant would require the adaptation of
the technology to the Indian coal quality, or the use of imported coal. Retrofitting coal power
plants with CO2 capture technologies and new plants with CCS may be a good option for the
country like India.
Developments of following technology ready methods are being tried:
1. Use of CO2 for reduction in pH of ash water
2. CO2 capture by Modified Amine Solution
3. Development of Pressure Swing Adsorption (PSA) process for CO 2 capture and
conversion of CO2 into useful products
PSA is a technology used for separation of some gas species from a mixture of gases under
pressure according to the species' molecular characteristics and affinity for an adsorbent
material. Special adsorptive materials (e.g., zeolite) are used as a molecular sieve,
preferentially adsorbing the target gas species at high pressure. The process then swings to
low pressure to desorb the adsorbent material.
Clean environment mechanism at thermal power stations, creating data base for ash
quality, advanced ash management schemes, sustaining coal based power generation
considering new and emerging environmental issues, effects of electromagnetic waves on
human beings with specific reference to up-gradation of transmission voltages, eco-design
and energy efficient power transformers, development of waste water treatment and
recycling technologies, emission control technologies for NOx, SOx and mercury are some of
the areas where R&D activities are required for improvement of environment and for
sustainable development.
11.3.5 Cyber Security of Power Systems
With the integration of communication and information technology in power system, it
becomes essential to address the issues related to cyber security. Establishment of Safe,
Secure and Resilient information infrastructure against cyber threats in all the three segments
of the Power System viz. Generation, Transmission and Distribution of Power is the need of
the hour. Cyber Security breach of the systems deployed in Power Sector may impact the
stability of Grid as well as Public Safety. Therefore, the aspect of Cyber Security should be
included in designing, installation, operations and maintenance of the systems in all
organizations of the Sector. Cyber Security in all above verticals must include Security-by-
design and not by retrofitting. Thus, research shall focus towards Critical Information
Infrastructure (CII) protection in Power Sector and on proprietary protocols in the field of

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power systems to secure the systems in better ways. The following are some of the areas for
research and technological advancement:
 Establishment of cyber security test bed for the following:-
o Validation and testing of cyber security aspects in Intelligent Electronic Devices
and Network Devices, with respect to IEC 61850-based communication within
a substation.
o Validation and testing of cyber security aspects in smart meters and AMI
o Validation and testing of cyber security aspects in OT applications such as
SCADA, EMS, DMS/ADMS, OMS
o Validation and testing of cyber security aspects in IoT devices
o Validation and testing of cyber security aspects in WAMS devices and systems
o Facility/ Lab for Security labeling and certification of power equipment by an
appropriate authority at national level.
o Identification and assessment of presence of embedded Malware/Trojan in
potential vulnerable devices/systems used in power transmission or
distribution system.
o Detection and development of mitigation strategy for various cyber-attacks
including exercises of Red and Blue teams for updating new threat vectors
regularly. Also, suggested to have “Cyber Range Facility” having capabilities to
simulate OT / ICS.
 Stronger “Role Based Access Control (RBAC)” mechanism at Industrial Control Systems
(ICS)
 Multi-factor authentication mechanism needs to be explored at device and
application level.
 Centralized, dedicated Security Operation Centre (SOC) and the facility and
deployment of SOAR for automated response in case of cyber-attacks. Automation in
generation of advisories for the detected cyber threats and vulnerabilities in real time.
 Removal of the old and unsupported Operating Systems (OS) and deployment of new
Operating Systems may be taken into consideration in a phased manner, in order to
mitigate the cyber risk. The efforts should be made to migrate from Windows based
systems to more secure Linux/Unix based systems.
 Phasing out of Legacy system with or without indigenous in-house research and
development of relevant technologies and equipment.
 Protection of PMUs from cyber-attacks especially GPS spoofing attacks.
 Detection and prevention of false data injection attacks in smart grid.
 Decision support tool for prediction and prevention of catastrophic failure from cyber
attacks.
 Data security protocols for power systems.
 Cyber security for Substation Automation (especially for SCADA) in Power
Transmission/Distribution
 Wide Area Monitoring System (WAMS)
 Security of Wireless Network Communication Infrastructure in Power Sector
 Design and Development of best strategies for detection, mitigation and control of
Supply Chain exploitation on SCADA/Industrial Control Systems (lCS, DCS) and Smart
Grid utilities of the Power Sector.

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 As power utility control systems will be operational for 24x7, most of the time
updating patches is a very difficult task and requires OEMS' support since some patch
updates requires rebooting of the system which is not desirable and also these
patches needs to be tested in offline with the applications before deploying in
operational systems. Online testing and deployment of patches need attention.
 R&D projects on “Evaluation of Quantum Computing” may be considered. The Power
grid infrastructure in today's time is vulnerable towards security breaches. If utilities
don’t apply quantum encryption to the grid, hackers will be easily able to penetrate it.
Adding quantum keys to encryption could make it possible to create hack-resistant
algorithms. R&D on the same may be very useful as futuristic approach towards cyber
security.
 Exploring secure IT-OT convergence
 Model ICT architecture needs to be developed which can be used as a framework in
power system
 A guideline needs to be developed for internal/third-party cyber forensic audit at a
regular interval
 A guideline needs to be developed for ensuring various cybersecurity compliances
such as IEC27001, IEC62351, NERC CIP.
 Standard operating procedure (SOP) needs to be developed for device or application
integrations
 Multi-level data abstraction needs to be explored
 Development of cyber-resilient redundant and distributed architecture
 Development of a directory of best practices for making cyber secure power system
operation.
 Explore ethical hacking as a strong measure to secure the system.

In addition to the above, the following may also be taken into account to aid in research on
cyber security of Power Sector:
 Identification of Critical Information Infrastructure (CII) and Non-CII elements in the
streams / utilities and appropriate planning for allocation of resources.
 Establishment of Cyber Security (CS) structure in organizational working hierarchy (Chief
information security officers (CISO) and teams for Cyber Security. A clear governance is
required to ensure that ICS cybersecurity efforts will be successful in the long run.
 Empowerment to Sectoral CERTS to meet cyber security needs.
 Identification of gap areas in cyber security posture of CII elements. This could ideally be
achieved by doing holistic Vulnerability/Threat/Risk (V/T/R) analysis of Critical elements
and interdependent systems.
 Shifting of Web Based Scheduling systems from Internet to Private Intranet.
 Threat analysis and penetration testing needs to be undertaken before commissioning
the elements of power system, which are vulnerable to cyber-attacks.
 Cyber Security capacity development of the manpower and testing facilities.
 A minimum baseline cyber security to be formulated and applied in all the streams.
 Situational awareness & Information Sharing of cyber incident with relevant agencies.
 Defense in-depth approach security and electronic security perimeter has to be devised
 Networking Segmentation /zoning/ Demilitarized zone implementation to be followed at
levels of OT & IT interfaces connecting points

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 Exploring the option of virtual machines, tokenized system, Virtual Private Network
(VPN) in day to day operation
 Adopt best IT practices in OT systems.

11.3.6 AREAS FOR R&D TO BE TAKEN UP DURING 2027-32

In order to have a long term vision for the Power sector of India, it is necessary to identify some
of the promising technologies and keep a track on the adoption of the technologies by various
sectors. Accordingly, small scale feasibility studies can be taken up on the following topics
during the year 2022-27 and based on the results research projects may be formulated for
being taken up during 2027-32:
• Quantum Computing in Power Sector
• Edge analytics in Power Sector
• Gravity based energy storage
• Lithium-Air Batteries
• Aluminium-Air Batteries
• Distance Wireless Charging
• Printable Batteries
• Energy Harvesting Using Thermal Gradients
• Augmented Reality in Power Sector
11.4 INITIATIVES Proposed for improving R&D in the Power sector
11.4.1 Management of Technology and Innovation
As number of research activities are being carried out simultaneously in the power sector, it is
of utmost importance to maintain a robust knowledge management portal to keep a track on
the findings of the research projects and bring out the best results into prominence for further
refinement and subsequent adoption in the Power Sector.
A national level ‘Digital Database of R&D projects’ of all nationally funded major projects may
be created which in turn will not only help in the realization of the R&D objectives but also
keep a track of the technology landscape in the country. A suitable online R&D management
system also needs to be in place, primarily at CPRI, and also across the other national R&D
centres of importance for managing the research projects.
11.4.2 Strengthening of the R&D Infrastructure
R&D Infrastructure at National Level needs strengthening in terms of facilities especially for
type testing of prototypes with a view to minimize development / commercialization cycle.
A national audit may be conducted through industry and utility forums to identify the gaps
and efforts should be made to bridge the gaps.
11.4.3 R&D programmes
The R&D programme of the Ministry of Power being implemented through CPRI has been of
great benefit to the Academia, Utilities and Industry in the Power Sector. The schemes have
helped in building R&D infrastructure in many organizations over a period of time and enabled
training of manpower for applied research. Collaborative research projects from Academia,
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Industry and Utility may be encouraged under the programmes. CPRI and CEA may also
propose various research projects of national importance and execute them in a collaborative
manner.
11.4.4 Periodic Call for focused Research projects on a thrust area
Under the RSoP and NPP schemes of MoP proposals are invited on the thrust areas of
research. Beside the regular proposals, CPRI may identify specific themes like “E-cooking”,
“Light Emitting Diode”, “Cyber Security” in the recent past, and separately advertise for
research proposals on those themes to targeted research groups. This will help in covering
the research topics of importance where previously very less proposals may have been
received.
11.4.5 Mission Mode projects in Power Sector
In order for the power sector to leapfrog in the technology advancement, research on two
main aspects may be carried out as mission mode projects:
1. Research on Disruptive technologies for Power Sector
2. Research promoting Indigenous manufacturing of technologies for Power Sector
A breakthrough in the disruptive technologies like ‘Wireless power transmission’, ‘High
Temperature Superconductors”, New and cost effective storage technology etc. will bring the
nation to the forefront of technology development. Such technologies can transform the
Power Sector landscape of the country and transform India from a technology adopting
nation to a technology exporting nation. CPRI in association with CEA may take the lead role
in initiating mission mode research projects on such technologies in a collaborative manner.
It is also necessary to build competence within the country to manufacture the power
equipment imported from abroad. Such initiatives may be taken up by CEA with the
prominent Indian Manufacturers to lead the way towards creation of manufacturing hubs for
specific equipment within the country. Initiatives such as these will reap benefits in the long
run towards making India a self-reliant nation.
11.4.6 Competence mapping in Power Sector
India has one of the largest skilled manpower in the world consisting of national and
international level experts. There is a need to scientifically measure the competence level and
areas of the experts and the organization to classify the country’s expertise level on various
aspects of the Power Sector. This would help in deploying the right scientific input to a given
R&D project. The ‘measurement matrix for competence mapping’ has to be created and the
experts and expert organizations are to be evaluated against the norms stipulated. This will
help in creating a ‘knowledge bank of country’s expert resources’, rather than arbitrarily
rating the country’s expertise and the experts in various areas. The up-gradation of
knowledge level through training could thus be more structured and measured. India’s key
technical competence areas, the competence level of various R&D organizations, the
competence level of the experts, etc. can be documented for improvement purpose.
11.4.7 Revised norms for acceptance of products indigenously
developed under research projects
In the context of Power Sector, many indigenously researched and developed products,
especially those involving substantial developmental investment, face entry barrier in the

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form of qualification requirements pertaining to equipment performance over a minimum

period specified by end users.
There is need for enunciation of a clear policy / guidelines to provide incentives for the
commercialization of products developed through indigenous R&D efforts. Procurement
process may be adjusted for adoption of new technology in an easier way. The incentive could
be among others, in the form of excise duty exemption at least for a period of five years from
the date of commercialization. Approval for testing/trials for newly developed product shall
be encouraged through speedy approvals by customer and CEA.
11.4.8 Policies for R&D
 Developing integrated R&D plans based on a multi-disciplinary approach. A well-
integrated R&D plan would ensure that proposed programs are appropriate, reflect
current and planned resource endowments, and involve communities in discussions of
energy policy;
 Removing fossil fuel subsidies to balance the energy pricing mechanism in order to attract
or drive private capital to the energy industry;
 Developing skills and capacities to create a knowledge workforce leads to success of
energy efficiency programs, proper operation and maintenance of clean technologies;
 Providing as much certainty as possible concerning long-term (e.g. 5 to 10 years) funding
for R&D
 Monitoring and evaluating R&D programs enables timely adjustments to funding levels
and strategies when necessary
11.4.9 Institutional and funding framework for R&D
Government should fund the R&D programme through schemes such as “R&D Schemes of
MoP being implemented through CPRI”. The projects can also be carried out in collaborative
mode with participation from CPSUs, Industry and academic institutes and utilities.
CPRI, NTPC, NHPC, SJVNL, THDCIL, POWERGRID, DISCOMs, BHEL, CSIR laboratories,
Government funded R&D Institutions, IITs, NITs may execute the projects identified, which
shall be coordinated and managed by CEA and CPRI on behalf of MoP.
Government should continue to support CPRI through capital grants. The regional
laboratories of CPRI can help India’s small and medium entrepreneurs to produce globally
competitive electrical products. This will be a major initiative to boost our “Make in India”
programme.
Policy to earmark a larger percentage of profit after tax (PAT) by PSUs as part of CSR should
be considered to provide the much needed impetus to R&D in Power sector. It may be worth
creating a large corpus funds for R&D in power through CSR funding from various
organizations in power sector.

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11.5 RECOMMENDATIONS
Followings are the important recommendations of this sub-group:
1. Collaborative research projects having high impact on the Power Sector may be taken
up with Industry, Academia, and Research Labs. Such projects should have specific
deliverables which can be immediately implemented on field.
2. Short-term R&D Projects on specific priority areas as identified by Utilities/Industry for
adoption in the major domains may be taken up every year.
3. The focus of research should be on product development and the Industries should be
encouraged to become product oriented rather than service oriented.
a. Our country has a vast talent pool and very capable research groups. Efforts
should be made to identify potential research groups working on the same
areas and initiate joint projects and startups to achieve specific targets.
b. Promote a culture for research, IPR creation and commercialization within the
CPSUs/ research organizations under the MoP, through conduct of ‘In-house’
Awareness Programmes, Workshops, etc.
c. Specific mission mode projects are required to be identified which can be
taken up during the next five years. To this end the following could be done:
i. One or two brainstorming meetings/conclave/workshops should be
organized twice every year to identify research problems that are of
interest to the industry and review the ongoing one.
ii. Industries may come up with focused project write ups identifying
contemporary problems as well as the impending research
requirements, which could then be communicated to experts in
IITs/NITs/other engineering institutes to elicit project proposals from
these institutes
iii. Industry should be associated in evolving and designing these R&D
projects and steering the execution of the same, as applicable (e.g., by
way of mentoring and field visits by experts from industry etc.).
iv. Obtaining the patents and converting the patents/prototype to
commercialization need to be promoted.
v. Periodic review of i-STEM (Indian Science Technology and Engineering
facilities Map) data base w.r.t power sector to be conducted
vi. Technology Readiness level assessment and associated blue print for
funding priorities and methodologies
vii. Collaboration amongst IITs, other higher educational Institutes,
Industry, R&D centers and BIS for standardization of new technologies
be developed
viii. An apex committee at CEA level may be formulated for granting
approvals related to foreign procurement for R&D projects thus
smoothening current guidelines necessitating approvals from Ministry.

4. The right balance should be maintained between exploratory research and research
leading to product development. The allocation of R&D funds among these two
categories should be decided at the beginning of each financial year. The quantum of
allocation between the two categories could be reviewed periodically and readjusted.

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5. A central agency to facilitate the collaboration among different research bodies and
research groups working on the same/similar themes be created.
6. A cadre of R&D professionals need to be created/maintained. Researchers be given
opportunities to higher education and exposure to training and testing methods. They
need to keep themselves updated in the areas of their research and also interact with
other groups where their research efforts could be made use or they can acquire the
research expertise from other group of different area.
7. There is a need to review the method of induction of the professional into the research
bodies. The training of new professional and refresher training of seniors, especially
for R&D management should be taken care of.
8. Analytics and Data Science (AI/ML, Big Data) domain is a horizontal cognitive layer that
works primarily on huge amounts of data. Internet of Things generates huge amount
of data that can be consumed by Analytics and Data Science practitioners and
solutions. A common Research, Design and Engineering lab that works on data across
all sub-sectors is recommended for this domain. This lab can work with various
stakeholders on specific data science related problem statements.
9. Information security (e.g. block chain) and cybersecurity domains are horizontal
technology layers that are relevant to all phases of a project, viz, product/ project
design, procurement, installation & commissioning, operations & management,
supply chain etc. Research on Cyber security of Power Systems should be taken up by
a common Research, Design and Engineering lab that works across all sub-sectors. This
lab can work with various stakeholders on problem statements, specifically focused
on design and engineering of systems, networks, applications etc. This lab will also
work with the AI/ML and Data Science lab for application of AI/ML in Information &
Cyber security.
10. In order to support high value projects, inter-departmental funding from Ministry of
Power, Department of Science & Technology, NITI Aayog etc. may be encouraged. If
possible a corpus can be created with CSR contributions from various power sector
organizations for promoting R&D and commercialization activities.

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CHAPTER 12
HUMAN RESOURCE DEVELOPMENT

12.0 INTRODUCTION
Trained Manpower is an essential prerequisite for the rapid development of all areas of the power
sector. The trained manpower comprises of skilled engineers, supervisors, managers, technicians
and operators. Power sector is poised for massive growth in generation and commensurate
growth in transmission and distribution infrastructure.
Manpower development including training facilities shall be proportional to this capacity addition
requirement. The technical knowledge acquired needs to be supplemented with applied
engineering in various fields of power generation, transmission and distribution. All these skills
need to be regularly updated to cope with rapidly advancing technology.

12.1 MANPOWER ASSESSMENT

12.1.1 Norms for Manpower Requirement

The Norms have been taken from National Electricity Plan 2017-22 Volume I-Generation (Notified
in 2018). The norms have been arrived at by considering both contractual and non contractual
manpower. These norms are given in Table 12.1 below:
Table 12.1
Norms for Manpower Requirement
(Man/MW)

S No Particulars Technical Non-Technical

1 Thermal Generation 0.486 0.144
2 Solar 0.550 0.165
3 Wind 0.321 0.096
4 Biomass 0.486 0.144
5 Hydro Generation 1.341 0.405
6 Nuclear 1.098 0.468
Note: Norm for manpower considered is including regular as well as contractual employment. These norms are average
of all sizes of generation capacity. HHowever, value changes with project site and size, higher the plant size lower is the
Man/MW ratio. Further Man/MW ratio may further get reduced with increase in level of automation.

12.1.2 Manpower requirement during the years 2022-27

For a capacity addition of 2,28,541 MW considered (including renewables of 1,87,909 MW and

33,632 MW thermal (coal & gas)) in 2022-27, the manpower requirement shall be of the order
of 167.65 thousand out of which 128.25 thousand will be technical and 39.40 thousand will be

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non-technical. The details of the same are given in Table 12.2 and Table 12.3 below:
Table 12.2
Capacity addition during 2022-27

Particulars Total (MW)

Thermal 33632
Nuclear 7000
Hydro 10951
Solar 132080
Wind(On shore) 40500
Biomass 2318
Pump Storage Plants 2060
Total 228541

Table 12.3
Manpower required for Capacity Addition of 2,28,541 MW envisaged during 2022-27
(Figures in Thousands)
Technical Non-Technical Total
Thermal 16.35 4.84 21.19
Nuclear 7.69 3.28 10.96
Large Hydro 14.69 4.44 19.12
Small Hydro 0.00 0.00 0.00
Solar 72.64 21.79 94.44
Wind (on-shore) 13.00 3.89 16.89
Biomass 1.13 0.33 1.46
PSP 2.76 0.83 3.60
TOTAL 128.25 39.40 167.65
Note : Manpower requirement for Transmission and Distribution will be covered in Vol. II of NEP

12.1.3 Manpower requirement during the period 2027-32

For a capacity addition requirement of 2,43,042 MW (including renewables of 2,24,908 MW)

during 2027-32, the manpower requirement shall be of the order of 188.04 thousands out of
which 143.70 thousands will be technical and 44.34 thousands will be non-technical. The details of
the same are given in Table 12.4 and Table 12.5 below:

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Table 12.4
Capacity addition during 2027-32

Particulars Total (MW)

Thermal 9434
Nuclear 8700
Hydro 10888
Solar 147400
Wind(On-shore) 43100
Wind(Off-shore) 10000
Biomass 1500
Pump Storage Plants 12020
Total 243042
Table 12.5
Manpower required for the Capacity Addition of 2,43,042 MW envisaged in 2027-32
(Figures in Thousands)
Technical Non-Technical Total
Thermal 4.58 1.36 5.94
Nuclear 9.55 4.07 13.62
Large Hydro 14.60 4.41 19.01
Small Hydro 0.00 0.00 0.00
Solar 81.07 24.32 105.39
Wind(onshore) 13.84 4.14 17.97
Wind(offshore) 3.21 0.96 4.17
Biomass 0.73 0.22 0.95
PSP 16.12 4.87 20.99
TOTAL 143.70 44.34 188.04
Note : Manpower requirement for Transmission and Distribution will be covered in Vol. II of NEP

12.2 TRAINING NEED ASSESSMENT

12.2.1 Training Strategy

To fulfil the above needs, training to the power sector personnel is required in the following
categories:

i) O&M Training to all existing employees engaged in O&M of generating projects (Thermal,
Hydel, Gas) and Transmission & Distribution System as per statutory requirements under the
Gazette Notification of September 2010 issued by CEA ranging from 4 Weeks to 30 Weeks.

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This inter-alia includes the following:

• Classroom Training
• Simulator Training for Thermal and Hydel
• On-Job Training

i) Induction level training for new recruits Technical & Non-Technical is considered a must in the
power sector
ii) Refresher/Advanced training of 5 Days in a year to all existing personnel of varying degrees in
various specializations in line with National Training Policy for Power Sector.
iii) Management training of 5 Days in a year to the Senior Executives/Managers in India/Abroad
in line with National Training Policy for Power Sector.
iv) Training for personnel from retiring units found suitable for re-engagement.

The most important component of the strategy should be “Training for All” irrespective of the
level in the hierarchy. At least one-week of training in a year must be provided to every
individual. Five days training per annum per technical person based on National Training
Policy is being implemented selectively at some utilities. This needs to be strictly
implemented.

12.2.2 Recommendations for Capacity Building

❖ O&M Training
As per the Gazette Notification No. CEI/1/59/CEA/EI (Measures relating to Safety and Electric
Supply) Regulations, 2010 and amendment thereof, if any, issued by CEA, Engineers,
Supervisors and Technicians engaged for O &M of Power Projects (Thermal, Hydel, Gas) and
T&D have to mandatorily undergo training ranging from 4 weeks to 30 weeks.
❖ On-Job Training Facility
On-Job training is also now mandatory for all trainees who are being given training in O
& M of Generation Projects (Thermal, Hydel, Gas) and Transmission & Distribution. This
training varies from 2 weeks to 16 weeks.
❖ Induction Training
Induction training to all technical personnel is a must.
❖ Refresher/Advanced Training
Refresher/Advanced Training must be arranged for each individual on promotion, which
calls for performing new/different roles and working conditions.
A mix of Technical, Commercial and Management capabilities of 1 week is proposed.
❖ Training of Personnel engaged in the thermal plants to retire for their
re-engagement in new power plants
Manpower engaged in the plants to be retired needs to be reoriented / retrained in the

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modern thermal technology for engaging them in new power plants planned to be
commissioned in 2022-32.
❖ Management Training
Continuous development of Executives/Managers, especially at the transition period of
their career and in the context of constantly changing business environment and the
Regulatory aspects is of utmost importance. Aspects of Commercial and Regulatory affairs
of the power sector should be taught to the executives. Also, Executives in Finance and
Management with non-technical background should be provided technical orientation
through suitable training programs. For this a training of 1 week is proposed.
❖ Simulator Training
As per the Gazette Notification No. CEI/1/59/CEA/EI (Measures relating to Safety and Electric
Supply) Regulations, 2010, Simulator training of 2 weeks & 1 Week is a must for operation
and maintenance personnel of Thermal and Hydro plants respectively. This is included in
O&M training above. For safe and efficient functioning of manual and automatic equipment,
personnel have to be trained on Simulators. Load Dispatch System Operators may also be
imparted training on Simulators.
❖ Training in Renewable Sources of Energy
Since it is envisaged that about 234,639 MW of Renewable Energy is added in 2022-27 and
195,179 MW in 2027-32, it is proposed that specialized training of at least 1-2 months should
be given in various renewable energy technologies like solar, wind, bio-mass, small hydel
etc. Grid connectivity of Renewable energy sources may also be given importance in
training.
❖ Training in Demand Side Management, Energy Efficiency and Energy Conservation
Training for Energy Managers and Energy Auditors, Industry personnel, Operators, Farmers
should also be provided in respect of DSM, Energy Conservation & Energy Efficiency. Energy
Conservation should also be a part of course curriculum for students.
❖ Power System Operators Training
System Planners, Operators & Engineers should be given regular refresher training and the
new entrants should be given exhaustive training of 3 months. This training shall be required
to be given to about 250 – 300 trainees every year during the years 2022-27.

❖ Capacity Building under DDUGJY & IPDS

Capacity Building of various GOI schemes such as DDUGJY and IPDS scheme is recommended
for the employees of Power Distribution Utilities.

❖ HRD and Technical Competence building due to Technology Advancement and

R&D
There is a need to match the growth rate, Technology Advancement and R&D needs of both
skilled manpower as well as highly qualified research personnel to sustain a steady growth
in technology development. Thus, emphasis needs to be laid upon skill development of such

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Manpower.
❖ Introduction of Training on Attitudinal Changes / Behavioral Sciences
It is highly recommended to introduce training on Attitudinal Changes / Behavioral Sciences
in the curriculum of induction level training as well as re-training programs. After
undergoing such training, the personnel develop a sense of belongingness to the
organization.
In addition to Technical Skills, Power Professionals need to have Life Skills like
Communication Skills, Time Management, Team Work, Technical Writing, Morals & Ethics
etc.
❖ Training in Information Technology & Cyber Security
Information technology has pervaded all facets of life. Adequate training according to the
job requirement should be provided in the field of information technology & cyber security.
Use of IT should be promoted and maximum number of personnel should be made
computer literate.

❖ Training of Non-Technical Officers and Staff

Training of non-technical officers and staff should be done in regular intervals in the
functional skills/management areas in association with the concerned Institutes as per
needs.

❖ HRD and Capacity Building for Power Generating Stations

It is proposed to have a capacity building program for the Executives, Engineers, and
Operators of Power Stations in both State and Central Sectors in the areas of DSM, Energy
Management and Energy Audit during the years 2022-2 7 and 2027-32.

❖ Training for Nuclear Power Personnel

Due to stringent safety requirements and other national and international regulations,
every person working in Nuclear Power Sector is exposed to specialized training. To meet
the multi-disciplinary needs, the Department of Atomic Energy (DAE) has built in-house
training facilities both for professionals and non-professionals.

❖ Training Abroad
Live liaison should be made with the concerned authorities to depute the eligible personnel
for training in the developed countries to keep them abreast of the latest global
developments.

❖ Hot Line Maintenance Training

There is a great demand from various Utilities for Hot Line Maintenance Training. There is
an urgent need for augmentation of Training Capacity as this type of Training is presently
being imparted by only two institutes in the country.

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❖ Training through Distance learning education, E-Learning & Web based Training
Since it may not be possible for all the persons engaged in Construction and O&M of Power
Projects, knowledge upgradation & training is suggested through correspondence and also
by way of Web based Training and also through e-learning.

❖ Need for written Training Policy by every Utility

Every Utility of Central Sector, State Sector & Private Sector should have a written Training
Policy indicating how the organization proposes to meet its Training needs.

❖ Adoption of ITIs
More than sixty (60) nos. of ITIs have been adopted by CPSUs wherein about 18,000
technicians pass out every year from these institutions. Such initiatives by CPSUs under their
CSR activities may be encouraged.

❖ Provision for Training budget

In line with the National Training Policy for the Power Sector, every organization should
have a training budget starting at least equal to 5% of the annual salary budget.

12.3 RECOMMENDATIONS
• All the organizations under central/ state/private sector are required to impart training to
their personnel at the institutes recognized by the Government(CEA/MoP) as mandated in
Regulation 6 & 7 of CEA (measures relating to safety and electric supply) Regulations 2010.
• It is proposed that all Central Sector Utilities, State Sector Utilities and IPPs provide O&M
and refresher training as per the norms stipulated in Regulation 6 & 7 of CEA (measures
relating to safety and electric supply) Regulations 2010.
• NPTI has been entrusted with the role and responsibility as a National Apex Body for
training by the Government of India (Gazette Notification July 3, 1993) and it runs the
training programmes for the power sector personnel as mandated in the Regulations 6 & 7
of CEA Regulations 2010. NPTI’s expertise in the training activities may be utilized by all
Utilities / Industries of Power Sector to meet their mandatory requirement of Induction
training to their new entrants as well as refresher training to their existing personnel which
would, apart from meeting their training requirement, ensure effective utilization of the
huge infrastructure available with the NPTI.
• Power sector training in the areas of Smart Distribution, Smart Transmission and Smart
Generation may also be strengthened in coordination with NPTI in order to accommodate
emerging areas. This will help prepare competent man power for upcoming Renewable
Installations of 175 GW in Solar, Wind, Small Hydro, etc.
• In compliance with the National Training Policy (NTP) of Ministry of Power, all organizations
need to allocate training budget at least equal to 5% percent of the salary budget exclusively
for funding training activities.

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Chapter 13
Energy Storage Systems
13.0 Introduction
Indian power sector is poised to witness significant capacity addition from renewable energy
sources resulting in increase of variable renewable energy (VRE) penetration. The cost economics
also indicate that the share of RE based capacity addition in future is expected to increase in the
total capacity addition. However, this large-scale addition of RE capacity would require additional
flexible generation in the system to balance the grid.

Apart from significant addition of RE generation, a considerable increase in electrical peak

demand is also expected in coming years. However, as peak VRE generation does not coincide
with the peak demand in the Indian power system, this expected increase in peak demand may
also pose a challenge of resource adequacy (along with flexibility) during peak demand hours.
Energy storage systems can prove useful in combating the challenges posed by integrating
intermittent generation sources and grid stability issues by ensuring quality of supply on real time
basis by storing excess generation over different time horizons (minutes, days, weeks)
Many grid scale energy storage systems are commercially available worldwide which includes
Pumped storage plants, Battery energy storage systems, etc. However, many energy storage
technologies like Molten rocks, flywheel, Super capacitors, Green Hydrogen are in nascent stages
of development and projections in respect of costs, technical characteristics are not yet firmed
up. The effectiveness of an energy storage facility is determined by its response to changes in
demand, the rate of energy lost in the storage process, its overall energy storage capacity, and
recharging time
This chapter talks about techno economical parameters of the energy storage system used in the
generation expansion-planning studies and gives a brief of the storage solutions that are at
nascent stages.

13.1 Energy Storage Overview

Electrical energy storage systems are utilized to exchange power with the grid and can be
categorized based on the energy form ultimately stored. There are several different types of
energy storage technologies, broadly classified as - mechanical, thermal, electrochemical,
electrical and chemical storage systems. Mechanical storage technologies include Pumped
Storage Hydro (PSH), Compressed Air Energy Storage (CAES) and Flywheels. Thermal storage
includes ice-based storage systems, hot and chilled water storage, molten salt storage and rock

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storage technologies. Within the electrochemical category, which includes technologies that use
different chemical compounds to store electricity, the most common are lead acid batteries, high
temperature sodium batteries, flow batteries, zinc-based batteries and Li-ion batteries. Electrical
storage systems also include supercapacitors and Superconducting Magnetic Energy Storage
(SMES), while chemical storage typically utilizes electrolysis to produce hydrogen as a storage
medium which can subsequently be converted to energy in various modes including electricity
(via fuel cells or engines), heat and transportation fuel (power–to-gas). The classification of
Energy Storage Technologies are shown in Exhibit 13.1

Exhibit 13.1

Chemical
Mechanical Electrochemical Thermal Electrical
(Hydrogen)

Pumped Lead acid, Li- Sensible - Power-to-

ion, NaS, Na- Molten salt, Supercapacitors Power (Fuel
Storage Hydro NiCl2 chilled water Cells, etc)

CAES Flow batteries - Latent - Ice SMES

(Compressed Vanadium storage, Phase (Superconducting
Power-to-Gas
Air Energy redox, Zinc- change magnetic coil
Storage) bromine materials Energy Storage)

Thermochemical
Flywheel
storage

Each technology type has different individual performance metrics for characteristics such as
energy efficiency, power-to-energy (P/E) ratio, cycle life, depth-of-discharge (DOD), self-
discharge, energy density, space footprint, and suitability for various size ranges (in MW and
MWh). The individual performance characteristics of any particular type of energy storage makes
it more or less suitable for a particular application.
Technologies for electricity storage are further divided into power-intensive storage services and
energy intensive storage services.
 Power-intensive services are provided by delivering large amounts of power for time
periods on the scale of seconds or minutes, and thus, they are characterized by a high
ratio of power to energy (short discharge times) and fast response. Used in power system
for balance of frequency and voltage or providing power quality.
 Energy-intensive services are used for storing large amounts of energy in order to match
demand and supply, energy arbitrage or reducing congestion in the network. These

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technologies are characterized by a lower ratio of power to energy (long discharge times)
and used on an hourly to seasonal basis.
The global deployment of various storage technologies is illustrated in Exhibit 13.2. The most
adopted storage technology is either pumped hydropower storage (approx. 90%) or
electrochemical-based storage (approx. 7.5%) to absorb variable renewable energy either locally
(behind the meter) or at the grid level (in front of the meter). While other types of storage like
flywheels, molten salt, and compressed-air energy storage are also commercially exploited but
their proportion is very low in energy storage options worldwide. Besides, there are some
upcoming options like Hydrogen energy which can prove to be a game changer in the whole
gamut of energy storage system (ESS).
Exhibit 13.2

Energy Storage Techniques World Over in % 2020

PSP
1.8
Molten Salt
0.4
Other energy storage
7.5 0.6
90.3 6.9
Li-ion

Other electrochemical
storage

Source: RENEWABLES 2021 Global Status Report

13.2 Energy Storage Technologies

13.2.1Pumped Hydro Storage System
While many forms of energy storage systems have been installed globally, Pumped Storage Plants
(PSP) are playing an increasingly important role in providing peaking power and maintaining
system stability in the power system of many countries. Pumped storage technology is the long
term technically proven, cost effective, highly efficient and flexible way of energy storage on a
large scale to store intermittent and variable energy generated by solar and wind. PSPs improve
overall economy of power system operation and reduce operational problems of thermal
stations during low load period. The other advantages of pumped storage technology are
availability of spinning reserve at almost no cost to the system and regulating frequency to meet
sudden load changes in the network. Also, PSPs provide environmentally friendly large storage

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capacity compared to other storage options. It also has the ability to provide ancillary benefits
such as flexible capacity, voltage support and Black start facility etc. The life of pumped storage
projects is same as hydro projects i.e. 40 years. The Efficiency of PSP is in the range of 70 % to 80
%, due to the losses in the process of pumping water up into the reservoirs. Pumped storage
technology has advanced significantly since its original introduction and now includes adjustable
speed pumped turbines which can quickly shift from motor, to generator, to synchronous
condenser modes, for easier and more flexible operation of the Grid.

A relatively new approach for developing pumped storage projects is to locate the reservoirs in
areas that are physically separated from the existing river systems. These projects are termed as
“closed-loop” pumped storage because they have minimal to no impact on the existing river
systems. After the initial filling of the reservoirs, the only additional water requirement is the
make-up water required to offset evaporation or seepage losses. By avoiding the existing
complex aquatic systems entirely, these types of projects can greatly reduce the most significant
aquatic impacts associated with project development.

13.2.1.1 Status of Development of Pumped Storage Plants in India

In India, the state of West Bengal has been a frontrunner in the promotion of pumped storage
technology. Purulia project in West Bengal with a capacity of 900 MW, set up in 2007, is running
successfully. As on 31.03.2022 there are 8 number of PSP projects in the country totaling to 4746
MW, out of which projects with a capacity of 3306 MW are working in the pumped mode
currently. Balance capacity is currently not operating in pumped mode due to delay in
construction of the tail reservoir or due to vibration related issues in the system.

Central Electricity Authority (CEA) has identified a PSP potential of 96,529.6 MW in different parts
of the country. Region-wise, the western region has the highest PSP potential at 37,845 MW due
to the topographical features.

The following PSP projects are under construction (as on 31.03.2022):

 Tehri Stage II - 1,000 MW located in Uttarakhand implemented by THDC limited.

 Koyna Left Bank - 80 MW in Maharashtra being implemented by the Water Resources
Department of Maharashtra; and
 Kundah Pump Storage Project Stages I, II, III and IV (500 MW) in Tamil Nadu being
implemented by TANGEDCO.

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13.2.2 Battery Energy Storage System

A battery energy storage system (BESS) is an electrochemical device that charges (or collects
energy) from the grid then discharges that energy at a later time to provide electricity or other
grid services when needed. Several battery chemistries are available or under investigation for
grid-scale applications, including lithium-ion, lead-acid, redox flow, nickel cadmium, Sodium-
sulfur. Battery chemistries differ in key technical and each battery has unique advantages and
disadvantages.
Battery technologies available and their relative advantages are given in Table 13.1:
Table 13.1

Technology Round- trip- Life span Advantages

efficiency
Lithium-ion 95% 10 - 15 years High specific energy and high load
capabilities with power cell
Sodium-Sulfur battery 75-85 % 10 - 15 years Low-cost potential: Inexpensive raw
storage materials and sealed, no-maintenance
config
Nickel Cadmium 60 - 80 % 10 - 15 years Rugged, high cycle count with proper
Battery maintenance
Vanadium Redox flow 70-75% 5 - 10 years Long service.
Batteries Versatility

Lead-acid Batteries 60 - % 3 - 6 years Low-cost and simple manufacture

Low cost per watt-hour
Source: Handbook on energy storage system by ADB, Dec 2018

13.2.2.1 COMPONENTS OF BESS

The battery system consists of the battery pack, which connects multiple cells to appropriate
voltage and capacity; the battery management system (BMS); and the battery thermal
management system. The BMS protects the cells from harmful operation, in terms of voltage,
temperature, and current, to achieve reliable and safe operation and balances varying cell states-
of-charge (SOCs) within a serial connection. The Battery thermal management system controls
the temperature of the cells according to their specifications in terms of absolute values and
temperature gradients within the pack.

The inverter system also called Power Conversion System converts the DC power to AC power
while discharging and converts AC power to DC power while charging the batteries.

13.2.2.2 KEY CHARACTERISTICS OF BESS

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 Rated power capacity is the total possible instantaneous discharge capability (in kilowatts
[kW] or megawatts [MW]) of the BESS.
 Energy capacity is the maximum amount of stored energy (in kilowatt-hours [kWh] or
megawatt-hours [MWh])
 Storage duration is the amount of time storage can discharge at its power capacity before
depleting its energy capacity. For example, a battery with 1 MW of power capacity and 4
MWh of usable energy capacity will have a storage duration of four hours.
 Cycle life/lifetime is the amount of time or cycles a battery storage system can provide
regular charging and discharging before failure or significant degradation.
 Self-discharge occurs when the stored charge (or energy) of the battery is reduced
through internal chemical reactions, or without being discharged to perform work for the
grid or a customer.
 State of charge, expressed as a percentage, represents the battery’s present level of
charge and ranges from completely discharged to fully charged. The state of charge
influences a battery’s ability to provide energy or ancillary services to the grid at any given
time.
 Round-trip efficiency, measured as a percentage, is a ratio of the energy charged to the
battery to the energy discharged from the battery.

13.2.2.3 Lithium-ions batteries

Lithium-ion batteries are perhaps the most promising for both small and large-scale electricity
storage in power generation. They currently offer superior performance and have dominated the
market globally. For Li-ion batteries applications industry is currently in the process of improving
capacity, power, size, reliability and safety for applications involving both electrical vehicles and
power generation. Due to technological innovations and improved manufacturing capacity,
lithium-ion chemistries have experienced a steep price decline since inception. The cost
trajectory of Battery Energy Storage system in future years is projected to decline as per
Bloomberg NEF projections shown in Exhibit 13.3

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Exhibit 13.3

Battery Cost Trajectory in $/kWh

250
208
200 175
161
148
135
$/kWh

150 122
109
95 89 83
100 77 72 68
50
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Year

Source: Bloomberg NEF

13.2.3 Compressed Air Energy Storage System (CAES)

This is an emerging technology. The principle is on the basis of conventional gas turbine
generation. CAES decouples the compression and expansion cycle of a conventional gas turbine
into two separated processes and stores the energy in the form of the elastic potential energy of
compressed air. In low demand period, energy is stored by compressing air in an air tight space
(typically 4.0~8.0 MPa) such as underground storage cavern. To extract the stored energy,
compressed air is drawn from the storage vessel, mixed with fuel and combusted, and then
expanded through a turbine. And the turbine is connected to a generator to produce electricity.
The waste heat of the exhaust can be captured through a recuperator before being released to
the atmosphere

A CAES system is made of above-ground and below-ground components that combine man-made
technology and natural geological formations to accept, store, and dispatch energy. There are six
major components in a basic CAES installation including five above-ground and one under-ground
components:

 The motor/generator that employs clutches to provide for alternate engagement to the
compressor or turbine trains.
 The air compressor that may require two or more stages, intercoolers and after-coolers,
to achieve economy of compression and reduce the moisture content of the compressed
air.
 The turbine train, containing both high- and low pressure turbines.

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 Equipment controls for operating the combustion turbine, compressor, and auxiliaries
and to regulate and control changeover from generation mode to storage mode.
 Auxiliary equipment consisting of fuel storage and handling, and mechanical and electrical
systems for various heat exchangers required to support the operation of the facility.
 The under-ground component is mainly the cavity used for the storage of the compressed
air.

CAES has a long storage period, low capital costs but relatively low efficiency. The typical ratings
for a CAES system are in the range 50 to 300 MW and currently manufacturers can create CAES
machinery for facilities ranging from 5 to 350 MW. The round cycle efficiency of CAES is
approximately 55 % (electricity to electricity). The CAES plant can provide significant energy
storage (in the thousands of MWhs) at relatively low costs (approximately (in 2003 USD)
$400/kWac to $500/kWac). The plant has practically unlimited flexibility for providing significant
load management at the utility or regional levels. (As per Technology Data – Energy storage, First
published in 2018 by the Danish Energy Agency and Energinet)

13.2.4 Hydrogen

Hydrogen could provide additional utility-scale energy storage options and unique opportunities
to integrate the transportation and power sectors. Although hydrogen is currently a high-cost
option, it offers some advantages over competing technologies, owing to the fact that it has a
high storage energy density and a potential for co-firing in a combustion turbine with natural gas
to provide additional flexibility for the storage system.

Hydrogen technologies have the potential to provide spatial redistribution of energy or storage
on the week-month timescale that is required for balancing the output from wind generation
unlike CAES, batteries and PSP that allow the temporal shifting of electrical energy over time
periods of hours to a few days.

Power-to-gas (P2G) refers to the process of converting excess electrical energy into storable
chemical energy in the form of either hydrogen or grid-compatible methane – a key form of
‘sector coupling’. Surplus electricity is used to power hydrogen production via water electrolysis.
The resulting gas may then be stored and used when required, for instance by a fuel cell, or
undergo further processing to produce methane, also known as synthetic natural gas (SNG).
Equally, it can then be converted back to electricity or used to displace demand for natural gas in
the heating (and power) sector, or indeed for transport. There are two commercially available
processes for water electrolysis: alkaline electrolysis cells (AEC) and polymer electrolyte

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membranes (PEMEC); while solid oxide (SOEC) offers the possibility of high efficiency but are still
at a development stage.

To promote hydrogen the Union Budget for 2021-22 has announced a National Hydrogen Energy
Mission (NHM) that will draw up a road map for using hydrogen as an energy source. The budget
allocates Rs.1500 crore for renewable energy development including hydrogen.

The development of hydrogen infrastructure is an important barrier to the widespread uptake of

H2FC technologies. Developing a cost-efficient infrastructure from these options that may evolve
over time with developing demand is a significant challenge. Producing cost-competitive low-
carbon hydrogen at a range of scales is arguably the greatest barrier to developing the hydrogen
energy system. The efficiency and energy consumption of hydrogen production pathways is given
in Table 13.2.

Table 13.2

Efficiency (LHV) Energy requirement (kW h per kgH2)

Methane reforming 72% (65–75%) 46 (44–51)
Electrolysis 61% (51–67%) 55 (50–65)
Coal gasification 56% (45–65%) 59 (51–74)
Biomass gasification 46% (44–48%) 72 (69–76)
Source: Energy Environ. Sci., 2019, 12, 463

13.2.5 FLY WHEELS ENERGY STORAGE SYSTEM(FESS)

Flywheel energy storage systems are comprised of a rotating cylinder (i.e., the flywheel rotor),
balanced in a vacuum over an electricity-producing stator via magnetically levitated bearings. The
rotor in many flywheels was often made of steel, but some newer, higher speed flywheels use
fibre composite materials able to store more energy per unit of mass. Flywheels store kinetic
energy in the cylinder that spins in a nearly frictionless environment. To charge the flywheel, a
small electric motor using electricity from an external source brings the cylinder up to an
extremely high speed—up to 60,000 rotations per minute. As the rim in the flywheel spins faster,
it stores energy kinetically in the rotating mass, with a small amount of power used to maintain
the operating speed. When energy is needed, the flywheel is slowed and the kinetic energy is
converted back to electrical energy.

Flywheels are used in applications where a large amount of power is needed over a short
timeframe. While they are generally charged using power from the grid, they can go from a

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discharged to a fully charged state within a few seconds. According to the various Energy Storage
Association, flywheels generally require low maintenance. Some flywheel technologies can
undergo more than 100,000 full discharge cycles or more without performance impacts.

The main characteristics of flywheels are a high cycle life (hundreds of thousands), long calendar
life (more than 20 years), fast response, high round trip efficiency, high charge and discharge
rates, high power density, high energy density and low environmental impacts. The state of
charge can be easily measured from the rotational speed and is not affected by life or
temperature. The technology is capable of transferring large amounts of power in seconds, with
a high roundtrip energy efficiency in the range of 90%–95%. FESS consist of a spinning rotor, MG,
bearings, a power electronics interface, and containment or housing.

Flywheels can have power densities up to five to ten times that of batteries. Due to their relatively
lower volume requirements and longer working life, they can replace batteries in certain
applications, including in transportation and space vehicles. Flywheel self-discharge at a much
higher rate than other storage mediums and flywheel rotors can be hazardous, if not designed
safely. The charge holding ability of flywheels and thus the losses in currently available flywheels
are high. These losses are mechanical (drag, bearing, friction), electrical (hysteresis, eddy current,
copper), and power converter-related (switching and conduction).

13.3 Battery Energy Storage System Modelling

The cost of Battery Energy Storage system has been estimated after consultation with the various
battery manufactures/suppliers. The cost of battery energy storage system considered in the
modeling studies includes cost of battery, inverter, Battery and Energy Management Systems and
other costs (cabling and installation costs). The size of the battery estimated by the model is
based on 100% depth of discharge. The actual size of the battery catering to 90% depth of
discharge may be more by about 11%. Therefore, for modelling purpose the capital cost of the
battery has been increased by 11% to account for the 90% depth of discharge. The O&M cost for
the battery energy storage system has been considered as 2%. The cost trajectory for 5-hour BESS
has been considered to be reducing from Rs. 9.3 Cr/MW to Rs. 5.24 Cr/MW in 2029-30 as shown
in Exhibit 13.4. The cost of BESS has been projected assuming levying of Custom duty of 22 % on
imported Battery component and a GST of 18 % on system installation.

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Exhibit 13.4

BESS Estimated Cost Trajectory*(Rs Cr/MW)

10

9
Rs Cr/MW

4
2022 2023 2024 2025 2026 2027 2028 2029 2030

*5-hour BESS

13.4 Energy Storage Requirement

Generation Expansion planning studies detailed in chapter 5 indicate that the total non-fossil
fuel-based capacity to meet the projected demand in 2026-27 is about 358 GW which includes
267 GW from variable renewable energy sources (VRE) (Solar &Wind). The non-fossil fuel-based
capacity is likely to increase to 592 GW in 2031-32, which includes 467.4 GW of VRE based
installed capacity. As per the generation planning studies PSP based storage capacity of about
6.81GW with 46.65 GWh of storage is required the by the year 2026-27 to fulfill the storage
requirement of the Grid. The storage capacity requirement increases to 70.38 GW (18.82 GW PSP
and 51.56 GW BESS) with storage of 392.78 GWh (135 GWh from PSP and 257.78 GWh from
BESS) by the year 2031-32. It is seen that 5-hour BESS system is found to be operating
prominently in single cycle mode throughout the year.

PSP projects along with the storage hours considered for the generation expansion planning
studies for the period 2022-27 and 2031-32 are listed in Annexure 13.1. The capital cost and all
technical parameters of the Pumped Storage plants viz. storage size, open or closed loop, year of
commissioning have been considered as per the latest data furnished by the project developer.

Hourly Dispatch studies were carried out along with generation expansion studies for finding out
the optimal requirement of BESS which ensures grid stability, efficient utilization of storage and
minimal curtailment of RE sources. Since the studies have been carried out on regional basis, it
was observed that the BESS requirement is predominant in the NR region as compared to other
regions. This is due to the fact that the Northern Region peak coincides with the All-India Peak.

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The Storage requirement in terms of percentage of peak demand and energy demand for the
years 2026-27 and 2031-32 is given in Table 13.3

Table 13.3
Year Storage in Storage in
terms of terms of
percentage of percentage of
Peak Demand Energy
Requirement
2026-27 2.5% 0.93 %
2031-32 19.41% 5.61 %

The daily operation of BESS and hourly dispatches from all other generation sources on a typical
peak day in 2031-32 is shown below in Exhibit 13.5 and Exhibit 13.6:
Exhibit 13.5

Generation Dispatch On Peak Demand Day in

2031-32
450000

400000
BIOMASS
350000
BESS
300000
PV
250000
WIND
200000 PSP
150000 HYDRO

100000 GAS

50000 COAL
NUCLEAR
0
DEMAND

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Exhibit 13.6

The Storage (BESS and PSP) is being charged primarily during the solar hours and is used to
meet peak demand as well as demand in late night and early morning hours.
13.5 Conclusions
 In view of large amount of Variable RE based generation likely to be integrated in the grid
in the future, Energy storage technology is found to be useful in maintaining grid stability
and reliability by storing excess generation over different time horizons (minutes, days,
weeks) and meeting the peak demand which is not coincidental with the peak RE
generation.
 Many storage technologies like Flywheel Energy Storage Systems, Compressed Air
Storage Systems, Hydrogen, etc are in nascent stages of development and their techno
economical details for commercial usage are not yet firmed up.
 As per the hourly studies run along with generation expansion planning studies, the
Storage capacities (BESS and PSP) is seen to get charged primarily during the solar hours
and is used to meet peak demand as well as demand in late night and early morning hours.
 As per the generation planning studies PSP based storage capacity of about 6.81GW with
46.65 GWh of storage is required the by the year 2026-27 to fulfil the storage
requirements of the Grid. The storage capacity requirement increases to 70.38 GW (18.82
GW PSP and 51.56 GW BESS) with storage of 392.78 GWh (135 GWh from PSP and 257.78
GWh from BESS) by the year 2031-32.
 The Union Budget for 2021-22 has announced a National Hydrogen Energy Mission (NHM)
that will draw up a road map for using hydrogen as an energy source.

ENERGY STORAGE SYSTEM 13.13

 Central Electricity Authority Draft National Electricity Plan

ANNEXURE-13.1

LIST OF PUMPED STORAGE PLANT CONSIDERED FOR THE GENERATION EXPANSION PLANNING
STUDIES FOR THE PERIOD 2022-27 AND 2031-32
(All Figures in MW)
STORAGE TOTAL
NAME OF
S.NO. STATE SECTOR ORGANISATION HOURS CAPACITY
PROJECT
(MW)
ANDHRA GREENKO 10
PINNAPURAM PRIVATE 1200
1 PRADESH ENERGY
MADHYA GREENKO 7.22
MP 30 PSP PRIVATE 1440
2 PRADESH ENERGY
SHARAVATHY KARNATAKA KPCL 6
STATE 2000
3 PSP
SAUNDATTI KARNATAKA GREENKO 11
PRIVATE 1260
4 PSP ENERGY
UPPER ODISHA OHPCL 5
STATE 600
5 INDRAVATI
6 TURGA PSP WEST BENGAL STATE WBSEDCL 5 1000
CHITRAVATHI ANDHRA NREDCAP 5.6
STATE 500
7 PSP PRADESH
ANDHRA APGENCO 8
UPPER SILERU STATE 1350
8 PRADESH
GANDIKOTA ANDHRA NREDCAP 5.38
STATE 1000
9 PSP PRADESH
ANDHRA NREDCAP 5.6
OWK PSP STATE 800
10 PRADESH
SILLAHALLA TAMIL NADU TANGEDCO 6
STATE 1000
11 PSP
12 UPPER KOLAB ODISHA STATE OHPCL 6 320
13 KODAYAR PSP TAMIL NADU STATE TANGEDCO 6 500
14 BALIMELA PSP ODISHA STATE OHPCL 6 500
ANDHRA NREDCAP
KURUKUTTI PSP STATE 7 1200
15 PRADESH
KARRIVALASA ANDHRA NREDCAP
STATE 7 1000
16 PSP PRADESH
ANDHRA NREDCAP
SOMASILA PSP STATE 6 900
17 PRADESH
YARRAVARAM ANDHRA NREDCAP
STATE 7.25 1200
18 PSP PRADESH
TOTAL 17770

ENERGY STORAGE SYSTEM 13.14