Page 7 - Transitions in Indian Electricity Sector- A Report by TERI
P. 7
TRANSITIONS IN INDIAN E LECTRICITY SECTOR 2017–2030
1. Introduction
1.1 The structure and complexion of the power sector in India has undergone radical changes in recent years in the
context of various reform measures introduced by the government and evolving socio-economic conditions.
Substantial growth in installed generating capacity, transmission, and distribution system coupled with open
access, power trading, and power exchanges have led to reduction in energy and peak shortages and surplus
generation capacity. A competitive power market is evolving and there is increased focus on access, efficiency,
quality, and affordability of supply and on decarbonizing the sector. While these are noteworthy efforts, the
per-capita consumption of electricity in the country (1,075 units in 2015–16) remains much less than the
world average. For example, as per IEA statistics, per-capita consumption of electricity in India in 2011–12 was
884 units compared to the world average of 3,024 units. Of late, we are also witnessing a rather paradoxical
situation of stranded generation capacity and pockets of shortages.
1.2 The electricity consumption in Exhibit 1.1: Sector-wise Electricity Consumption Pattern
the country presents a picture of
steady growth over the years. The 40% 37% 38% 38% 38% 37% 36%
relative consumption of various 35%
consumptioncategorieshasshown 34% 35% 36% 36% 35% 35% 35%
changes. During the period from
2001–02 to 2014–15, there was an 33%
increase in the share of domestic
consumption (25% to 27%) as well Share of electricity consumption (in %) 30% 25% 25% 25% 25% 24% 24% 24% 25% 25% 25% 25% 26% 27% 27%
as commercial consumption (7% 25%
to 10%) and a decline in agricultural
20% 25% 25% 24% 23% 22% 22% 21% 20% 21% 20% 21% 21% 20% 21%
15% 9% 9% 9% 9% 9% 10% 10% 10% 10% 10% 10% 10%
10% 9% 9%
5% 7% 7% 8% 8% 8% 8% 7% 7% 8% 8% 8% 8% 8%
8%
consumption (25% to 21%). The 0%
share of industrial consumption,
after witnessing an increase (33%
to 38%) during 2001–12, reduced Agriculture Commercial Domestic Industrial Others
and has remained around 35%
(2012–13 to 2014–15). Exhibit 1.1 presents the share of electricity consumption in major consumption
categories from 2001–02 to 2014–15. Electricity consumption pattern in the country is set to witness further
transition because of Government Initiatives, such as ‘Power for All’, ‘E-mobility’, ‘Make in India’, Demand Side
Management, Energy Efficiency, and Energy Conservation measures.
1.3 The electricity generation in the country has also witnessed increased growth during the last few Plan periods
with CAGR of 5.16% in 10th Plan (2002–07), 5.77% in 11th Plan (2007–12) and 6.0% in 12th Plan (2012 to
2015–16). The generation mix has also been witnessing a change with increasing penetration of renewables;
the contribution of renewables becoming noticeable during the last five years and constituting about 5.5% of
the total generation in 2015–16 (Exhibit-1.2).
1.4 The supply side scenario in India is set to witness a major transition in view of India’s recent climate pledge
underlining the country’s commitment to a growing role for low-carbon sources of energy, led by solar and
wind power. The energy choices in the country in the coming years are to be governed by INDC commitments,
energy security, long-term sustainability, enhanced electricity access, reliability of power, and environmental
and social considerations. Target of achieving 175 GW of renewable energy up to 2021-22 which is now seen as
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1. Introduction
1.1 The structure and complexion of the power sector in India has undergone radical changes in recent years in the
context of various reform measures introduced by the government and evolving socio-economic conditions.
Substantial growth in installed generating capacity, transmission, and distribution system coupled with open
access, power trading, and power exchanges have led to reduction in energy and peak shortages and surplus
generation capacity. A competitive power market is evolving and there is increased focus on access, efficiency,
quality, and affordability of supply and on decarbonizing the sector. While these are noteworthy efforts, the
per-capita consumption of electricity in the country (1,075 units in 2015–16) remains much less than the
world average. For example, as per IEA statistics, per-capita consumption of electricity in India in 2011–12 was
884 units compared to the world average of 3,024 units. Of late, we are also witnessing a rather paradoxical
situation of stranded generation capacity and pockets of shortages.
1.2 The electricity consumption in Exhibit 1.1: Sector-wise Electricity Consumption Pattern
the country presents a picture of
steady growth over the years. The 40% 37% 38% 38% 38% 37% 36%
relative consumption of various 35%
consumptioncategorieshasshown 34% 35% 36% 36% 35% 35% 35%
changes. During the period from
2001–02 to 2014–15, there was an 33%
increase in the share of domestic
consumption (25% to 27%) as well Share of electricity consumption (in %) 30% 25% 25% 25% 25% 24% 24% 24% 25% 25% 25% 25% 26% 27% 27%
as commercial consumption (7% 25%
to 10%) and a decline in agricultural
20% 25% 25% 24% 23% 22% 22% 21% 20% 21% 20% 21% 21% 20% 21%
15% 9% 9% 9% 9% 9% 10% 10% 10% 10% 10% 10% 10%
10% 9% 9%
5% 7% 7% 8% 8% 8% 8% 7% 7% 8% 8% 8% 8% 8%
8%
consumption (25% to 21%). The 0%
share of industrial consumption,
after witnessing an increase (33%
to 38%) during 2001–12, reduced Agriculture Commercial Domestic Industrial Others
and has remained around 35%
(2012–13 to 2014–15). Exhibit 1.1 presents the share of electricity consumption in major consumption
categories from 2001–02 to 2014–15. Electricity consumption pattern in the country is set to witness further
transition because of Government Initiatives, such as ‘Power for All’, ‘E-mobility’, ‘Make in India’, Demand Side
Management, Energy Efficiency, and Energy Conservation measures.
1.3 The electricity generation in the country has also witnessed increased growth during the last few Plan periods
with CAGR of 5.16% in 10th Plan (2002–07), 5.77% in 11th Plan (2007–12) and 6.0% in 12th Plan (2012 to
2015–16). The generation mix has also been witnessing a change with increasing penetration of renewables;
the contribution of renewables becoming noticeable during the last five years and constituting about 5.5% of
the total generation in 2015–16 (Exhibit-1.2).
1.4 The supply side scenario in India is set to witness a major transition in view of India’s recent climate pledge
underlining the country’s commitment to a growing role for low-carbon sources of energy, led by solar and
wind power. The energy choices in the country in the coming years are to be governed by INDC commitments,
energy security, long-term sustainability, enhanced electricity access, reliability of power, and environmental
and social considerations. Target of achieving 175 GW of renewable energy up to 2021-22 which is now seen as
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