SWOT ANALYSIS ON POWR GENERATION AND DISTRIBUTION

Karan.S.Sahni

Agenda

� Overview

� Exploration

� Refinery and Pipelines

� Natural Gas

� New and Renewable Energy

� Power

� Types of power generation

� SWOT ANALYSIS

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Overview

World Overview

� 35% of world energy need is supplied by crude oil, 25% by coal and 21% by gas.

� Most of the reserve is concentrated in the Middle-east region . (IRAN ,EGYPT, SUADI ARABIA,IRAQ,ISRAEL,ETC.)

� World Primary Energy Sector growing at 2%

India Overview

� 54% Coal, 32% Oil, 9% Natural Gas

� India is the 5th largest energy consumer

� India has vast potential in the Exploration Sector.

� Indian Primary Energy Sector growing at 5%

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REFINING - World Consumption Pattern

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At current rate of consumption & production, oil in India would last only for about 20 to 25 years.

PIPELINES - Crude and LPG Pipe Lines

� GAIL owns and operates 6700 km. of natural gas transmission network which is over 82% of the total pipeline infrastructure in the country

� Increasing urbanization and greater concern for environment and safety, the share of pipeline transportation is likely to increase in India

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� About 50-60% of the primary transportation of petroleum products in developed countries is done through pipelines

� Pipeline network of Indian Oil has grown to 9273 km with a capacity of about 62 million metric tonnes per year.

PIPELINES - Transportation

USA

� Share of pipeline transportation in India much lower as compared to USA.

� Total POL pipeline length currently under operation in India – 12,204 kms

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INDIA

kms

� POL pipelines under implementation – 5,561 kms (Investment of USD 1.5 ban)

GAS SECTOR INFRASTRUCTURE:CURRENT AND FUTURE –A COMPOSITE PICTURE

TOTAL INVESTMENT – US$ 9 Billion (Rs.40000 Cr – NEXT 5 YRS )

JAGDISHPUR

PHOOLPUR

BHATINDA

BAREILLY

DISPUR

DELHI

AGARTALA

KANPUR

LUCKNOW

PATNA

AHMEDABAD

RAJKOT

KOTA

MATHANIA

GWALIOR

UJJAIN

AGRA

GAYA

BOKAROVARANASIJHANSI

DAHEJ I & II10 mmtpa*

HAZIRA

AURAIYA

BHOPALVIJAIPUR

INDORE

India plans to bring 200 of its cities under the gas pipeline network by 2020.

India at present uses around 150 million cubic meter of gas a day.

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LNG

Existing (7.5 MMTPA)

Transmission PipelinesExisting (6,300 Kms)

Upcoming (16.25 MMTPA , US$ 2 Billion)

Planned (8,400 Kms, US$ 5 Billion)City Gas/ CNG

Existing (10 cities)Planned (40 cities, US $ 2 Billion)

Gas By Sea Receipt (Likely Location)LNG Terminal

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

JAMNAGAR

BARODASURAT

AHMEDABADKOLKATAHAZIRA

2.5 mmtpa A 1 BLOCK, MYANMAR

COIMBTORE

MANGLORE

MUMBAIBHUBANESHWAR

KRISHNAPATNAM

NELLORE

CHENNAI

TUTICORIN

TIRUCHCHIRAPALLI

PUNE

BHARUCH

HASANBANGLORE

KOLHAPUR HYDERABADSOLAPUR

RAJAMUNDRYVIJAYAWADA

DAMRA

DABHOL5 mmtpa

COCHIN5 mmtpa KANJIRKKOD

KAKINADA

INDORE

GOA

CUTTACK At present economic growth rate, consumption to increase 3 fold by 2012.

RENEWABLE ENERGY - Solar Power

� Location advantage

� Average annual temperature – 25-27 degree centigrade

� South-East coast has the highest temperature

� Major players PV cell - Central Electronics Ltd., BHEL

� Reliefs offered by Government on SPV manufacturers and users of SPV based products

- No excise duty for manufacturers

- Low import tariff for several raw materials and components

- Soft loans to users, intermediaries and manufacturers

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RENEWABLE ENERGY - Hydro power

� Good indicator: High annual rainfall

� The dominant annual rainfall is located on the north-eastern part of India: Arunachal Pradesh, Assam, Nagaland, Manipur and Mizoram

� Good water management and storage needed.

Advantages

� Start up and shut down quick and economical

� Long and productive lives Eg. Bhakra Nangal dam

Proposed Hydro Power projects in India

� Rampur Hydropower Project

� Vishnugadh Pipalkoti Hydropower Project

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Only 20% of thepotential is currentlybeing utilized (18000MW out of 90000 MW)

RENEWABLE ENERGY - Wind Energy

� Wind energy is plentiful, renewable and clean. Therefore, it is considered by experts to be more environmentally friendly than many other energy sources.

� Wind Energy Potential In India

Sl. No. StateGross Potential

(MW)(a)

Technical Potential(MW)

(b)

Installed Capacity(MW)

(c)

1. Andhra Pradesh 8275 1920 121.1

2. Gujarat 9675 1780 667

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3. Karnataka 6620 1180 847

4. Kerala 875 605 2.0

5. Madhya Pradesh 5500 845 58

6. Maharashtra 3650 3040 1485

7. Orissa 1700 780 2

8. Rajasthan 5400 910 470

9. Tamilnadu 3050 1880 3460

10. West Bengal 450 450 1.6

11. Other States - - 0.5

Total 45195 MW 13390 MW 7114 MW

Source : M N E S

RENEWABLE ENERGY - Wind resource in India

Major Player

�Suzlon

- Started in 1995

- Ranked 5th in terms ofglobal market share

- 50% market share in India

- Suzlon is in the process of

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- Suzlon is in the process ofdeveloping Asia’s largest windpark in Maharashtra (1,000MW ).

�Other major players – Vistas,Emerson and GE wind energy

India is second largest exploiter of Wind Energy –1000 MW

RENEWABLE ENERGY - Biomass and Bio-fuel

BIOMASS

� 4th world ranking in power generation

� Various Applications:

- Power Generation

- Biomass gasification for heating

- Cooking

BIOFUEL

� Bio-fuel initiative using- Atrophy

- Sugarcane Molasses

� Supreme Court of India ruling -compulsory blending of 10% ethanol

� Technology� Top 3 States in biomass potential

- Andhra Pradesh, Bihar, Gujarat

� Technology

� Initiatives - SBI, Indian Railways, AP Government Agreement with Reliance Industries

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SWOT ANALYSIS

� Major Strengths

� Population in India is biggest strength .

� Low labour cost as compared other countries.

� Never ending demand

� India ranks 5th in windmill power sectorIndia ranks 5 in windmill power sector

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� Major Weaknesses

� Still 19% villages haven’t seen what is electricity

� State Electricity Board are in a weak financial position .

� Raw materials & Components used as for power generation (Thermal)are scarce .

� Theft of electricity is one of the major concern for this Industry .

� Political Interference is more .

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� Major Opportunities

� Setting up a world’s largest 3,300 MW gas-based power project at the Dhirubhai Ambani Energy City at Dadri in Uttar Pradesh.

� Various projects in generation, transmission, distribution and trading of power.

� Lowest level of Per Capita power consumption in India Planning to set up � Lowest level of Per Capita power consumption in India Planning to set up a dry transformer plant ranging between 100 KVA to 3000 KVA .

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� Major Threats

� From the competitors and government controlled organizations

� Outsourcing of key raw materials and Components

� Raw materials used are subject to heavy price volatility.

� Limited experience in designing and manufacturing 220 KV class

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