Thermal Power in India, Market Outlook to 2020, 2012 Update - Capacity, Generation, Regulations, Power Plants, Companies

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1 - Capacity, Generation, Regulations, Power Plants, Reference Code GDPE5096IDB Publication Date SEPTEMBER 2012 Page(1)

2 Table of Contents 1 Table of Contents 1 Table of Contents List of Tables List of Figures 9 2 Executive Summary India Thermal Power Installed Capacity Expected to Grow in Future Thermal Power Generation Expected to Grow in Future The Global Thermal Power Market Scenario - Robust Growth to Continue 12 3 Introduction Thermal Power Markets: Technology Types Coal Fired Power Plants Gas Fired Power Plants Oil Fired Power Plants Co-Firing Power Plant Supercritical and Ultra-supercritical Generation 15 4 Global Thermal Power Market Scenario: Global Thermal Power Market, Installed Capacity and Generation, India Power Market Scenario Overview India Power Market, Cumulative Installed Capacity and Generation by Fuel Type, MW, India Thermal Power Market, India Thermal Power Market, Historical and Forecast Installed Capacity and Power Generation, India Thermal Power Market, Market Share of Top Power Equipment Manufacturing, Page(2)

3 Table of Contents 7.1 India Thermal Power Market, Market Share of Steam Turbine Manufacturing, India Thermal Power Market, Market Share of Gas Turbine Manufacturing, India Thermal Power Market, Market Share of Heat Recovery Steam Generator (HRSG) Manufacturing, India Thermal Power Market, Market Share of Steam Turbine Manufacturing, India Thermal Power Plants India Thermal Power Market, Top Thermal Power Plants (Active), India Thermal Power Market, Top Thermal Power Plants (Upcoming), India Thermal Power Market, Regulatory Scenario, Major Policies India Thermal Power Market, Regulatory Scenario, Overview India Thermal Power Market, Regulatory Scenario, Regulatory Framework India Thermal Power Market, Regulatory Scenario, Major Policies Electricity Sector Reforms and Electricity Act of The National Electricity Plan India Thermal Power Market, Regulatory Scenario, Major Initiatives Restructured Accelerated Power Development and Reforms Program (R-APDRP) Twelfth Five year plan Targets India Thermal Power Market Deals Scenario India Thermal Power Market Deals Volume versus Value Analysis, India Thermal Power Market, Deals by Type, Power Market, India, Major Deals, Asset Finance NTPC Limited Company Snapshot Key Information Company Overview NTPC Limited Business Description 57 Page(3)

4 Table of Contents Business Overview NTPC Limited Major Products and Services SWOT Analysis Overview NTPC Limited Strengths NTPC Limited Weaknesses NTPC Limited Opportunities NTPC Limited Threats NTPC Limited Locations and Subsidiaries Head Office Other Locations & Subsidiaries Maharashtra State Power Generation Co., Ltd Company Snapshot Key Information Company Overview Maharashtra State Power Generation Co., Ltd Business Description Business Overview Maharashtra State Power Generation Co., Ltd Major Products and Services SWOT Analysis Overview Maharashtra State Power Generation Co., Ltd Strengths Maharashtra State Power Generation Co., Ltd Weaknesses Maharashtra State Power Generation Co., Ltd Opportunities Maharashtra State Power Generation Co., Ltd Threats Maharashtra State Power Generation Co., Ltd Locations and Subsidiaries Head Office Other Locations & Subsidiaries Damodar Valley Corporation Company Snapshot Key Information Company Overview Damodar Valley Corporation Business Description Business Overview Damodar Valley Corporation Major Products and Services 77 Page(4)

5 Table of Contents 13.5 SWOT Analysis Overview Damodar Valley Corporation Strengths Damodar Valley Corporation Weaknesses Damodar Valley Corporation Opportunities Damodar Valley Corporation Threats Damodar Valley Corporation Locations and Subsidiaries Head Office Gujarat State Electricity Corporation Limited Company Snapshot Key Information Company Overview Gujarat State Electricity Corporation Limited Business Description Business Overview Gujarat State Electricity Corporation Limited Major Products and Services SWOT Analysis Overview Gujarat State Electricity Corporation Limited Strengths Gujarat State Electricity Corporation Limited Weaknesses Gujarat State Electricity Corporation Limited Opportunities Gujarat State Electricity Corporation Limited Threats Gujarat State Electricity Corporation Limited Locations and Subsidiaries Head Office Torrent Power Limited Company Snapshot Key Information Company Overview SWOT Snapshot Torrent Power Limited Business Description Business Overview Torrent Power Limited Major Products and Services SWOT Analysis Overview Torrent Power Limited Strengths 93 Page(5)

6 Table of Contents Torrent Power Limited Weaknesses Torrent Power Limited Opportunities Torrent Power Limited Threats Torrent Power Limited Locations and Subsidiaries Head Office Other Locations & Subsidiaries CESC Limited Company Snapshot Key Information Company Overview SWOT Snapshot CESC Limited Business Description Business Overview CESC Limited Major Products and Services SWOT Analysis Overview CESC Limited Strengths CESC Limited Weaknesses CESC Limited Opportunities CESC Limited Threats CESC Limited Locations and Subsidiaries Head Office Other Locations & Subsidiaries Appendix Abbreviations Market Definitions Power Installed Capacity Electricity Generation Electricity Consumption Thermal Power Plant Hydropower Plant Nuclear Power Renewable Energy Resources Coverage 111 Page(6)

7 Table of Contents 17.4 GlobalData s Methodology Secondary research and analysis Primary Research and Analysis Disclaimer List of Tables Table 1: Thermal Power Market, Global, Thermal Installed Capacity (MW) and Thermal Power Generation (GWh), Table 2: Power Market, India, Cumulative Installed Capacity by Fuel Type, MW, Table 3: Power Market, India, Annual Power Generation by Fuel Type, GWh, Table 4: Thermal Power Market, India, Cumulative Installed Capacity, MW, Table 5: Thermal Power Market, India, Power Generation, GWh, Table 6: Thermal Power Market, India, Market Share of Top Power Boiler Manufacturing, Table 7: Thermal Power Market, India, Market Share of Top Gas Turbine Manufacturing, Table 8: Thermal Power Market, India, Market Share of Top Heat Recovery Steam Generator (HRSG) Manufacturing, Table 9: Thermal Power Market, India, Market Share of Top Steam turbine Manufacturing, Table 10: Thermal Power Market, India, Leading Active Thermal Power Projects, Table 11: Thermal Power Market, India, Leading Upcoming Thermal Power Projects, Table 12: Thermal Power Market, India, Financing Trends, Deal Value ($m) and Volume (Number), Table 13: Thermal Power Market, India, Deals by Type (%), Table 14: NLC To Invest $1.9 Billion In Coal Fired Power Plant In Uttar Pradesh, India 41 Table 15: TNEB To Invest $1.6 Billion In Tuticorin Super Critical Power Project In Tuticorin District, Tamil Nadu 42 Table 16: Ascol To Acquire 74% Stake In IL&FS Tamil Nadu Power For $774 Million 43 Table 17: Government Of Tamil Nadu To Invest $657 Million In The Reconstruction Of Ennore Thermal Power Project In Tamil Nadu, India 44 Table 18: Petronet LNG To Invest $606.7 Million In Kochi Gas Based Power Project In Kerala, India 45 Table 19: OPG Power To Invest $529.5 Million In Thermal Power Plants In India 46 Table 20: Neyveli Lignite Announces Project Financing Of $479 Million For Neyveli Lignite Thermal Power Station III In India 47 Table 21: Neyveli Lignite To Invest $458.6 Million For Expansion Of Thermal Power Station-II In Tamil Nadu, India 49 Table 22: Essar Steel Holdings To Sell Minority Interest In Essar Power For $94 Million 50 Table 23: CEA To Invest $5,402 Million In Junagadh Coal Power Project In Gujarat, India 51 Table 24: NTPC To Invest $5,032 Million For Power Project In Andhra Pradesh, India 52 Table 25: BSEB To Invest $3,293 Million For Rajauli Thermal Power Plant In Bihar, India 53 Table 26: BSEB To Invest $3,293 Million For Rajauli Thermal Power Plant In Bihar, India 54 Table 27: Adani Power Announces Project Financing Of $2,719 Million For Bhadreshwar Coal Fired Power Plant In Gujarat, India 55 Table 28: Lanco Infratech To Invest $2,562 Million In Raigarh Coal Power Project In Chattisgarh, India 56 Table 29: NTPC Limited, Key Facts 57 Table 30: Major Products and Services 59 Table 31: NTPC Limited, SWOT Analysis 60 Page(7)

8 Table of Contents Table 32: NTPC Limited, Subsidiaries 66 Table 33: Maharashtra State Power Generation Co. Ltd., Key Facts 67 Table 34: Major Products and Services 69 Table 35: Maharashtra State Power Generation Co. Ltd., SWOT Analysis 69 Table 36: Maharashtra State Power Generation Co. Ltd., Subsidiaries 74 Table 37: Damodar Valley Corporation, Key Facts 75 Table 38: Major Products and Services 77 Table 39: Damodar Valley Corporation, SWOT Analysis 78 Table 40: Gujarat State Electricity Corporation Limited, Key Facts 83 Table 41: Major Products and Services 85 Table 42: Gujarat State Electricity Corporation Limited, SWOT Analysis 85 Table 43: Torrent Power Limited, Key Facts 90 Table 44: Major Products and Services 92 Table 45: Torrent Power Limited, SWOT Analysis 92 Table 46: Torrent Power Limited, Other Locations 97 Table 47: Torrent Power Limited, Subsidiaries 98 Table 48: CESC Limited, Key Facts 99 Table 49: Major Products and Services 101 Table 50: CESC Limited, SWOT Analysis 102 Table 51: CESC Limited, Other Locations 106 Table 52: CESC Limited, Subsidiaries 107 Table 53: Abbreviations 108 Page(8)

9 Table of Contents 1.2 List of Figures Figure 1: Thermal Power Market, India, Cumulative Thermal Installed Capacity, MW, 2000, 2011, Figure 2: Thermal Power Market, India, Power Generation, GWh, 2000, 2011, Figure 3: Thermal Power Market, Global, Thermal Power Generation, GWh, 2000, 2011, Figure 4: How a Thermal Power Plant Works 13 Figure 5: Thermal Power Market, Global, Thermal Installed Capacity (MW) and Thermal Power Generation (GWh), Figure 6: Power Market, India, Cumulative Installed Capacity by Fuel Type, MW, Figure 7: Power Market, India, Annual Power Generation by Fuel Type, GWh, Figure 8: Thermal Power Market, India, Cumulative Installed Capacity, MW, Figure 9: Thermal Power Market, India, Power Generation, GWh, Figure 10: Thermal Power Market, India, Market Share of Top Power Boiler Manufacturing, Figure 11: Thermal Power Market, India, Market Share of Top Gas Turbine Manufacturing, Figure 12: Thermal Power Market, India, Market Share of Top Heat Recovery Steam Generator (HRSG) Manufacturing, Figure 13: Thermal Power Market, India, Market Share of Top Steam turbine Manufacturing, Figure 14: Thermal Power Market, India, Financing Trends, Deal Value ($m) and Volume (Number), Figure 15: Thermal Power Market, India, Deals by Type (%), Page(9)

10 Thermal Installed Capacity (MW) Thermal Power in India, Market Outlook to 2 Executive Summary 2.1 India Thermal Power Installed Capacity Expected to Grow in Future Thermal power in India has been an important source of power generation accounting for 77.8% of the power generated in From 2000 to 2011, thermal installed capacity increased from 81,730 MW in 2000 to 141,697 MW in 2011 and is expected to increase to 221,382 MW by Thermal installed capacity of India increased at a CAGR of 5.1% during the period , and is expected to increase at a CAGR of 4.5% during the period Figure 1: Thermal Power Market, India, Cumulative Thermal Installed Capacity, MW, 2000, 2011, , , , ,000 50, Source: GlobalData, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates Page(10)

11 Power Generation (GWh) Thermal Power in India, Market Outlook to 2.2 Thermal Power Generation Expected to Grow in Future The share of thermal power generation in the total energy mix is expected to decline from 80% to 71% over the forecast period However India power market will continue to be dominated by thermal power accounting for majority of power generation. Over the period , thermal power generation is expected to grow at a CAGR of 4.7% to reach 1,268,707 GWh. Driven by increasing environmental awareness the renewable power in India is set to grow over the forecast period. Over the historic period , the renewable power generation grew at a CAGR of 27.5% from 3,443 GWh in 2000 to reach 49,923 GWh in Over the forecast period , the renewable power generation in India is expected to grow at a CAGR of 15.6% from 57,998 GWh in 2012 to reach 184,664 GWh by Figure 2: Thermal Power Market, India, Power Generation, GWh, 2000, 2011, ,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Source: GlobalData, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates Thermal Hydro Nuclear Renewable Page(11)

12 Thermal Power Generation (GWh) Thermal Power in India, Market Outlook to 2.3 The Global Thermal Power Market Scenario - Robust Growth to Continue Economic and industrial growth all over the world has led to a sharp rise in energy demand. The rise in energy demand is likely to continue in the near future. To meet this demand, thermal power has become a viable option for power generation. Over the period , the global thermal power generation grew from 9,538,749 GWh in 2000 to 14,724,889 GWh by 2011 at a CAGR of 4%. It is further expected to grow at a CAGR of 3.2% over the forecast period Figure 3: Thermal Power Market, Global, Thermal Power Generation, GWh, 2000, 2011, ,000,000 20,000,000 15,000,000 10,000,000 5,000, Source: GlobalData, Power etrack, Capacity and Generation Database (May 30, 2012) Note: Figures from 2011 onwards are estimates Page(12)

13 3 Introduction 3.1 Thermal Power Markets: Technology Types In a fossil fuel power plant, the chemical energy stored in fossil fuels such as coal, fuel oil, natural gas or oil shale is converted into electrical energy for continuous use and distribution across a wide geographic area. Each fossil fuel power plant is a highly complex, custom-designed system. The following figure illustrates how the conversion from coal to electricity takes place. Figure 4: How a Thermal Power Plant Works Source: Tennessee Valley Authority The first conversion of energy takes place in the boiler. Coal is burnt in the boiler furnace to produce heat. The heat from the coal combustion boils water in the boiler to produce steam, which pushes the turbine blades to rotate the turbine before being condensed and pumped back into the boiler to repeat the cycle. The rotation of the turbine rotates the generator rotor to produce electricity. Page(13)

14 3.1.1 Coal Fired Power Plants Chunks of coal are crushed and heated in a furnace to produce steam from water. Though coal is the cheapest fuel available, it causes the maximum amount of pollution Gas Fired Power Plants Natural gas, because it is a cleaner fuel to burn, is being widely used to produce power. The recent rise in environmental concerns has led to the popularity of natural gas as a fuel for power. Moreover, natural gas-fired power plants are also cheaper and easier to build Oil Fired Power Plants Oil is used primarily for transportation and in homes, but a small proportion of oil is also used for producing electricity. Three technologies are used to convert oil into electricity: Conventional steam Oil is burned to heat water, which in turn produces steam Combustion turbine Oil is burned under pressure to produce hot exhaust gases which spin a turbine to generate electricity Combined-Cycle Technology Oil is first heated in a turbine, using the heated exhaust gases to generate electricity. After these exhaust gases are recovered, they heat water in a boiler, creating steam to drive a second turbine Co-Firing Power Plant Co-firing refers to burning two or more fuels together to generate electricity. Generally coal is combined with biomass, wood and agricultural waste to reduce the amount of greenhouse gases released. Co-firing can take place in existing coal plants with little or no modifications required Direct Co-firing Direct co-firing is the simplest, cheapest and most common method, in which biomass fuel and coal are burned together in the same furnace Indirect Co-firing In indirect co-firing, a gassifier is used to convert solid biomass into a clean gas fuel. This gas fuel is further cleansed of impurities and burned in the same furnace as the coal. With indirect co-firing, a wider range of biomass can be used as fuel to produce electricity Completely Separate Biomass Boiler It is possible to increase the steam pressure of the coal power plants by using the thermal energy produced by a separate biomass-fired boiler. Here, coal and biomass are fed into separate boilers and the steam generated is jointly fed to the common turbine. Page(14)

15 3.1.5 Supercritical and Ultra-supercritical Generation Conventional power plants boil water to produce sub-critical steam while supercritical power generation uses supercritical steam. At supercritical pressures, water is heated directly to produce steam, skipping the boiling point temperature. Due to the improved thermodynamics of expanding at higher temperatures and pressures through steam turbines, power generation becomes more efficient, using less coal. Ultra-supercritical steam generation is currently the most advanced and efficient way of producing electricity by coal. The unit operates at sub-critical pressure and at advance steam temperatures of 1,100 degrees Fahrenheit, thus increasing the efficiency of the plant. Fossil fuels like natural gas, coal, liquid fuels and other petroleum forms are expected to continue supplying the majority of energy used worldwide. Presently, fossil fuels provide for the majority of the world s energy demand and this percentage has remained more or less constant in the last ten years. Among the fossil fuels, dependence on coal for energy production is expected to increase from 2000 to 2020, followed by natural gas. Page(15)

16 Thermal Installed Capacity (MW) Thermal Power Generation (GWh) Thermal Power in India, Market Outlook to 4 Global Thermal Power Market Scenario: Global Thermal Power Market, Installed Capacity and Generation, A majority of thermal power plants are fed by coal as it is very abundant, and is more economical than oil or natural gas. However, many countries are switching over to Combined Cycle Gas Turbine (CCGT) technology, which uses natural gas as fuel, due to concerns regarding environmental pollution. Global thermal power installed capacity grew from 2,292,149 MW in 2000 to 3,577,712 MW in 2011 at a CAGR of 4.1%. Global thermal power generation grew from 9,538,749 GWh in 2000 to 14,724,889 GWh in 2011 at a CAGR of 4%. During the forecast period, capacity is expected to grow from 3,746,709 MW in 2012 to 4,691,657 MW in 2020 at a CAGR of 2.9%. Similarly, global power generation is expected to grow from 15,495,599 GWh in 2012 to 19,984,059 GWh in 2020 at a CAGR of 3.2%. Figure 5: Thermal Power Market, Global, Thermal Installed Capacity (MW) and Thermal Power Generation (GWh), ,000,000 25,000,000 4,500,000 4,000,000 20,000,000 3,500,000 3,000,000 15,000,000 2,500,000 2,000,000 10,000,000 1,500,000 1,000,000 5,000, , Thermal Installed Capacity (MW) Total Power Generation (GWh) Source: GlobalData, Power etrack, Capacity and Generation Database (May 30, 2012) Note: Figures from 2011 onwards are estimates Page(16)

17 Table 1: Thermal Power Market, Global, Thermal Installed Capacity (MW) and Thermal Power Generation (GWh), Year Thermal Installed Capacity (MW) Thermal Power Generation (GWh) ,292,149 9,538, ,373,704 9,816, ,478,601 10,269, ,589,039 10,813, ,686,631 11,261, ,787,844 11,803, ,929,288 12,355, ,051,595 13,149, ,154,113 13,275, ,270,070 13,086, ,419,965 13,931, ,577,712 14,724, ,746,709 15,495, ,911,877 16,304, ,067,409 17,092, ,235,663 17,916, ,334,155 18,400, ,417,265 18,776, ,504,216 19,174, ,595,267 19,579, ,691,657 19,984,059 CAGR (%) CAGR (%) CAGR (%) Source: GlobalData, Power etrack, Capacity and Generation Database (May 30, 2012) Note: Figures from 2011 onwards are estimates In recent years, rising power demand and significant economic development across the world has led to increased thermal power generation. However, the fall in electricity demand due to the economic recession resulted in sharp fall in the growth rate of electricity consumption in 2008 and The year 2009 recorded a decline in terms of power generation. However, thermal power generation picked up in 2010 and is expected to continue increasing from 2011 onwards with the increase in demand and the construction of various new power plants throughout the world. Page(17)

18 5 India Power Market Scenario 5.1 Overview Electricity consumption has grown rapidly in India in period due to population growth and economic development. Continued economic and population growth will lead to increased electricity demand in the future and more supply will need to be added in order to meet this increased demand. Traditionally, thermal fuel sources, coal, oil and gas, have been the main contributors to the power mix. However, India has limited fossil fuel reserves and is thus dependent on imports of gas, and crude oil as well as more recently, coal. During the forecast period, the nuclear and renewable energy sectors are expected to experience the highest growth in new installed capacity, as the government increases its focus on clean energy sources for generating electricity. During the 12th five year plan period, the government aims to add around 76,000 MW of capacity. The government is showing increasing interest in attracting foreign players to augment the power sector. Hence, increasing participation by the private sector is expected in the future. During the 12th five year plan period ( ), considerable generation capacity additions are expected to come from private participants alone. 5.2 India Power Market, Cumulative Installed Capacity and Generation by Fuel Type, MW, In the year 2000, thermal power had constituted 72.7% (81,730 MW) of the total installed capacity in India. Hydropower constituted 23.6% or 26,505 MW, while renewable energies constituted 2.3% or 2,603 MW. Over the historic period , thermal power, hydro power and renewable grew at a CAGR of 5.1%, 4.3% and 26.2%, respectively.. The country had a total installed capacity of 208,537 MW in Out of this, thermal had the highest share of 67.9% or 141,697 MW, followed by hydropower and renewable power with share of 20.2% and 9.8% respectively. During the forecast period, , thermal power installed capacity is expected to increase from 155,878 MW in 2012 to 221,382 MW in 2020, at a CAGR of 4.5%. It is expected to constitute 55.4% of total installed capacity in During the same period, hydro power and renewable energy installed capacity is expected to grow at a CAGR of 5.8% and 16.1%, respectively. Page(18)

19 Installed Capacity (MW) Thermal Power in India, Market Outlook to Figure 6: Power Market, India, Cumulative Installed Capacity by Fuel Type, MW, , , , , , , , ,000 50, Thermal Hydro Nuclear Renewables Source: GlobalData, Power etrack, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates Page(19)

20 Table 2: Power Market, India, Cumulative Installed Capacity by Fuel Type, MW, Year Thermal Hydro Nuclear Renewable Total Installed Capacity (MW) ,730 26,505 2,603 1, , ,819 27,708 2,603 1, , ,118 28,430 2,603 2, , ,623 31,104 2,603 2, , ,233 31,786 2,603 3, , ,682 33,961 3,003 5, , ,538 35,618 3,493 7, , ,412 36,862 3,695 9, , ,013 39,078 3,695 11, , ,592 39,620 3,897 14, , ,414 40,409 4,099 16, , ,697 42,143 4,301 20, , ,878 45,730 6,135 23, , ,059 49,076 6,605 28, , ,240 52,176 6,605 34, , ,421 55,030 8,782 40, , ,602 57,643 11,876 46, , ,783 60,765 15,567 53, , ,912 64,121 17,167 61, , ,647 67,717 24,084 69, , ,382 71,557 28,254 78, ,497 Source: GlobalData, Power etrack, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates The electricity generation in India increased from 502,478 GWh in 2000 to 896,312 GWh in 2011, registering a CAGR of 5.4%. It is estimated that total generation in the country will increase at a CAGR of 6.3% during ; increasing from 1,097,754 GWh in 2012 to 1,786,818 GWh in By 2020, it is estimated that the thermal power sources will continue to dominate the country s generation mix, with a share of 71%, followed by renewable power sources (10.3%), and the remaining by hydro power (11.1%). Page(20)

21 Power Generation (GWh) Thermal Power in India, Market Outlook to Figure 7: Power Market, India, Annual Power Generation by Fuel Type, GWh, ,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , , Thermal Hydro Nuclear Renewables Source: GlobalData, Power etrack, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates Page(21)

22 Table 3: Power Market, India, Annual Power Generation by Fuel Type, GWh, Year Thermal Hydro Nuclear Renewables Total Power Generation (GWh) ,358 76,457 14,220 3, , ,299 80,052 17,320 4, , ,855 82,218 17,490 4, , ,477 90,181 16,360 6, , ,100 92,238 15,040 8, , ,200 98,733 15,730 11, , , ,574 15,590 16, , , ,540 15,750 21, , , ,454 13,170 26, , , ,998 14,740 33, , , ,420 20,480 38, , , ,678 28,948 49, , , ,442 30,949 57,998 1,097, , ,830 35,089 68,530 1,222, ,027, ,496 34,381 80,992 1,289, ,104, ,106 43,083 94,600 1,396, ,158, ,010 54, ,404 1,483, ,164, ,423 71, ,096 1,531, ,208, ,551 83, ,277 1,614, ,238, , , ,070 1,691, ,268, , , ,664 1,786,818 Source: GlobalData, Power etrack, Capacity and Generation Database (July 10, 2012) Note: Figures from 2011 onwards are estimates Page(22)

23 6 India Thermal Power Market, India Thermal Power Market, Historical and Forecast Installed Capacity and Power Generation, Figure 8: Thermal Power Market, India, Cumulative Installed Capacity, MW, Source: GlobalData, Power etrack, Capacity and Generation Database (July 11, 2012) Note: Figures from 2011 onwards are estimates Page(23)

24 Table 4: Thermal Power Market, India, Cumulative Installed Capacity, MW, Year Coal Gas Oil Total Thermal Capacity (MW) Source: GlobalData, Power etrack, Capacity and Generation Database (July 11, 2012) Note: Figures from 2011 onwards are estimates Page(24)

25 Figure 9: Thermal Power Market, India, Power Generation, GWh, Source: GlobalData, Power etrack, Capacity and Generation Database (July 12, 2012) Note: Figures from 2011 onwards are estimates Page(25)

26 Table 5: Thermal Power Market, India, Power Generation, GWh, Year Coal Gas Oil Thermal (GWh) Source: GlobalData, Power etrack, Capacity and Generation Database (July 12, 2012) Note: Figures from 2011 onwards are estimates Page(26)

27 7 India Thermal Power Market, Market Share of Top Power Equipment Manufacturing, India Thermal Power Market, Market Share of Steam Turbine Manufacturing, 2011 The figure below shows the market share of power boiler manufacturers in Bharat Heavy Electrical Limited (BHEL) was the major player accounting for 58% of the market revenues. This was followed by Mitsubishi Heavy Industries with 27% of the market share. Shanghai Electric Group Company Ltd and Foster Wheeler AG accounted for 10% and 5% of market revenues respectively. Figure 10: Thermal Power Market, India, Market Share of Top Power Boiler Manufacturing, 2011 Shanghai Electric Group Company Ltd. 10% Foster Wheeler AG 5% Mitsubishi Heavy Industries, Ltd. 27% Bharat Heavy Electricals Limited 58% Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(27)

28 Table 6: Thermal Power Market, India, Market Share of Top Power Boiler Manufacturing, 2011 Company Market Share (%) Bharat Heavy Electricals Limited 58 Mitsubishi Heavy Industries, Ltd. 27 Shanghai Electric Group Company Ltd. 10 Foster Wheeler AG 5 Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) 7.2 India Thermal Power Market, Market Share of Gas Turbine Manufacturing, 2011 In 2011, Mitsubishi Heavy Industries, Ltd. was the leading supplier of gas turbines in India with market share of 39%. BHEL was at second position with a market share of 28%. General Electric Company and Siemens AG held 17% and 16% market share respectively. Figure 11: Thermal Power Market, India, Market Share of Top Gas Turbine Manufacturing, 2011 Siemens AG 16% General Electric Company 17% Mitsubishi Heavy Industries, Ltd. 39% Bharat Heavy Electricals Limited 28% Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(28)

29 Table 7: Thermal Power Market, India, Market Share of Top Gas Turbine Manufacturing, 2011 Company Market Share (%) Mitsubishi Heavy Industries, Ltd. 39 Bharat Heavy Electricals Limited 28 General Electric Company 17 Siemens AG 16 Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) 7.3 India Thermal Power Market, Market Share of Heat Recovery Steam Generator (HRSG) Manufacturing, 2011 In 2011, Greens Holdings Ltd was the major supplier of HRSGs in India with market share of 42%. This was followed by CMI Limited with a market share of 35%. BHEL accounted for 23% of the total HRSG market revenues in Figure 12: Thermal Power Market, India, Market Share of Top Heat Recovery Steam Generator (HRSG) Manufacturing, 2011 Bharat Heavy Electricals Limited 23% Greens Holdings Ltd 42% CMI Limited 35% Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(29)

30 Table 8: Thermal Power Market, India, Market Share of Top Heat Recovery Steam Generator (HRSG) Manufacturing, 2011 Company Market Share (%) Greens Holdings Ltd 42 CMI Limited 35 Bharat Heavy Electricals Limited 23 Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(30)

31 7.4 India Thermal Power Market, Market Share of Steam Turbine Manufacturing, 2011 BHEL accounted for 40% of steam turbine market revenues in This was followed by BGR Energy Systems with a market share of 31%. Mitsubishi Heavy Industries had a market share of 19%. Toshiba Corporation and Shanghai Electric Company accounted for 7% and 3% of the market revenues. Figure 13: Thermal Power Market, India, Market Share of Top Steam turbine Manufacturing, 2011 Shanghai Electric Group Company Ltd 3% Toshiba Corporation 7% Mitsubishi Heavy Industries, Ltd 19% Bharat Heavy Electricals Limited 40% BGR Energy Systems Limited 31% Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(31)

32 Table 9: Thermal Power Market, India, Market Share of Top Steam turbine Manufacturing, 2011 Company Market Share (%) Bharat Heavy Electricals Limited 40 BGR Energy Systems Limited 31 Mitsubishi Heavy Industries, Ltd 19 Toshiba Corporation 7 Shanghai Electric Group Company Ltd 3 Source: GlobalData, Power etrack, Equipment Markets Database (13 July, 2012) Page(32)

33 8 India Thermal Power Plants 8.1 India Thermal Power Market, Top Thermal Power Plants (Active), 2011 The cumulative installed capacity of the top 10 active thermal power plants in India was 21,820 MW in This was 15.4% of the thermal installed capacity of the country in All the power plants are coal-fired. The Talcher Kaniha Coal Fired Thermal Power Plant, situated in Odisha is the largest coal fired power plant in the country. The plant has a total installed capacity of 3,000MW and was commisssioned in Table 10: Thermal Power Market, India, Leading Active Thermal Power Projects, 2011 Plant Name Plant Type State or Province Fuel Category Capacity (MW) Year Online Owner Name Talcher Kaniha Coal Fired Thermal Power Plant Steam Turbine Odisha Coal 3,000 Feb-1995 NTPC Limited Korba Super Thermal Power Station Steam Turbine Chhattisgarh Coal 2,600 Mar-1983 NTPC Limited Rihand Coal Fired Power Plant Steam Turbine Uttar Pradesh Coal 2,500 Mar-1988 NTPC Limited Chandrapur Super Thermal Power Station Steam Turbine Maharashtra Coal 2,340 Aug-1983 Maharashtra State Power Generation Co. Ltd. Farakka Coal Fired Thermal Power Plant Steam Turbine West Bengal Coal 2,100 1-Jan-1986 NTPC Limited Simhadri Coal Fired Thermal Power Plant Steam Turbine Andhra Pradesh Coal 2,000 Feb-2002 NTPC Limited Sipat Coal Fired Thermal Power Plant Stage I Steam Turbine Chhattisgarh Coal 1,980 Jun-2011 NTPC Limited Dadri Coal Fired Power Plant Steam Turbine Uttar Pradesh Coal 1,820 Oct-1991 NTPC Limited Vijayawada Thermal Power Station Steam Turbine Andhra Pradesh Coal 1,760 1-Nov-1979 Raichur Thermal Power Station Steam Turbine Karnataka Coal 1,720 Mar-1985 Source: GlobalData, Power etrack, Power Plants Database (July 13, 2012) Andhra Pradesh Power Generation Corporation Limited Karnataka Power Corporation Limited Page(33)

34 8.2 India Thermal Power Market, Top Thermal Power Plants (Upcoming), 2011 The figure below shows the upcoming thermal power plants in India. Among these, the largest power plant will be gas fired Bharuch Thermal Power Plant with an installed capacity of 7,200 MW. Rest all upcoming power plants are coal fired. The total installed capacity of the upcoming thermal power plants will be 43,160 MW. Table 11: Thermal Power Market, India, Leading Upcoming Thermal Power Projects, 2011 Plant Name Bharuch Thermal Power Plant Plant Type State or Province Fuel Category Capacity (MW) Year Online Owner Name Combined Cycle Gas Turbine (CCGT) Gujarat Gas 7,200 - Bedabahal Ultra Mega Power Plant Steam Turbine Odisha Coal 4,000 - Bhadrak Ultra Mega Power Plant Steam Turbine Odisha Coal 4,000 - Girye Ultra Mega Power Project Steam Turbine Maharashtra Coal 4,000 - Husseinabad Ultra Mega Thermal Power Plant Steam Turbine Jharkhand Coal 4,000 - Lodhva Ultra Mega Power Plant Steam Turbine Gujarat Coal 4,000 - Bharuch Power Limited Power Finance Corporation Limited Coastal Maharashtra Mega Power Ltd. Jharkhand State Electricity Board Pudimadaka Coal Fired Power Plant Steam Turbine Andhra Pradesh Coal 4,000 - NTPC Limited Surguja Ultra Mega Power Project Steam Turbine Chhattisgarh Coal 4,000 - Vadarevu Ultra mega Power Project Steam Turbine Andhra Pradesh Coal 4, Andhra Pradesh Power Generation Corporation Limited Barethi Super Thermal Power Project Steam Turbine Madhya Pradesh Coal 3,960 Oct-2015 NTPC Limited Source: GlobalData, Power etrack, Power Plants Database (July 13, 2012) Page(34)

35 9 India Thermal Power Market, Regulatory Scenario, Major Policies 9.1 India Thermal Power Market, Regulatory Scenario, Overview India has a population of over a hundred billion people and is one of the fastest developing countries in the world. Yet, about 44% of households are deprived of electricity. Growth of the power sector in India, since its independence, has been noteworthy. However, the demand for power has constantly outstripped supply, mainly due to inadequate power capacity and high power transmission and distribution losses. Realizing the importance of electricity, the government of India has set a target of supplying electricity to every household by This requires various tasks such as capacity generation, expansion of the grid network, and reducing power transmission and distribution losses. 9.2 India Thermal Power Market, Regulatory Scenario, Regulatory Framework The Ministry of Power is primarily responsible for development and regulation of the power industry in the country. Some of the major tasks of the ministry include formulation and implementation of energy policies, and, the administration and enactment of legislation with regard to thermal, hydro power generation, transmission and distribution. Apart from this, the ministry also monitors the implementation of power projects. The Central Electricity Authority (CEA) performs an advisory role to the Ministry of Power. CEA assists the ministry on technical and techno-economic matters. CEA is responsible for advising or directing the central government on various subjects such as formulation of plans and policies for electricity, defining technical standards and safety requirements of the power plants and the grid, promoting research, and collection and recording of data. The Central Electricity Regulatory Commission (CERC) and the state level regulatory commissions work under the Ministry of Power to look after, and implement the Central and State level tariffs, policies, transmission of electricity, licensing of transmission and distribution, dispute handling, etc. 9.3 India Thermal Power Market, Regulatory Scenario, Major Policies Electricity Sector Reforms and Electricity Act of 2003 Power sector reforms in India began in the early part of the 1990s. The Government of India (GOI), through an amendment of the Electricity Supply Act (1948), allowed the entry of private players for power generation as Independent Power Producers (IPP). In the next phase of reforms, in order to bring about cohesiveness in the power sector regulatory scenario, a Common Minimum Action Plan for Power (CMNAPP) was prepared in This paved the way for the setting up of regulatory commissions at the state and central levels. The GOI passed the Electricity Regulatory Commissions (ERC) Act in 1998 and established the CERC. Various states have also established their own regulatory commissions or have notified the establishment of such commissions. The Electricity Act, 2003 is currently the umbrella act under which the Indian electricity sector operates. The National Electricity Policy (NEP) was formulated under this act in Page(35)

36 Electricity Act of 2003 Electricity Act came into affect from 2 nd June, The act aimed to open up the electricity market which was previously characterized by long term power purchase agreements and inability of distribution companies and customers to choose their suppliers. Some of the important features of the act were de-licensing power generation and captive generation, non discriminatory open access in transmission sector from the very beginning and open access in distribution in a phased manner. Under this act electricity generation has been de-licensed and techno-economic clearance from CEA is not required, except for hydropower plants above certain capital investment. The generating company can sell electricity to any licensees or where allowed by state regulatory commissions, directly to customers. The act did away with the approval required from State Electricity Boards (SEBs) or regulatory commission for setting up of captive power plants. After the enactment of the act there has been a renewed interest in captive power generation as the surplus power generated from these plants can be directly fed to the grid as Electricity Act provides open access in a non-discriminatory way The National Electricity Plan A National Electricity Plan is drawn up every five years that aims to assess demand for electricity and plan for capacity addition. Though the plan is drawn for a five year period, the plan perspective is for 15 years. The planning is done by the CEA in conjunction with the central and state government agencies. The plan includes Short and long term demand forecasts for different regions in India Identification of regions or locations where capacity additions are required keeping in view various techno-economic parameters, environmental considerations, and rehabilitation and resettlement issues. Integration of new generating centers with the national grid, including development of the grid. Survey of different technologies available for efficient generation, transmission and distribution. Choice of fuel for power generation based on economy, energy security and environmental considerations. Page(36)

37 9.4 India Thermal Power Market, Regulatory Scenario, Major Initiatives Restructured Accelerated Power Development and Reforms Program (R-APDRP) The Accelerated Power Development Reforms Program (APDRP) was initiated in 2002 to assist states in strengthening and upgrading the sub transmission and distribution systems of high density load centers. The program is aimed at reducing aggregate technical and commercial (AT&C) losses. It is also targeted at improving the reliability and quality of the power supply. R-APDRP was introduced in 2008, to place more focus on actual and provable performance in terms of AT&C loss reduction. Execution was taken up in two parts. Part A includes projects for the establishment of baseline data, IT applications for energy accounting and the auditing and establishment of IT based consumer service centers. Part B includes projects for renovation, modernization and strengthening of the distribution projects. Under Part A, 599 projects were approved at a cost of $391.7m (INR 19,477m). Part-A of R-APDRP is currently in the implementation stage in many states. Part A is to be completed after three years of sanctioning. As of now, no project has completed three years post sanctioning. However, State Procurement Policy and procedure has delayed the appointment of IT implementing agencies (ITIA) in some states Twelfth Five year plan Targets The Power Ministry has proposed the addition of around 76,000 MW of capacity in the twelfth five year plan ( ). Out of this, 63,000 MW is expected to come from coal fired power plants. Adequate supply of coal is an important factor between Considerable demand of coal will be met through imports. The government also has plans to increase the domestic production of coal. Page(37)

38 Deal Value ($m) Deal Volume Thermal Power in India, Market Outlook to 10 India Thermal Power Market Deals Scenario 10.1 India Thermal Power Market Deals Volume versus Value Analysis, The thermal deal value increased from $5,490m in 2004 to $91,988m in 2007 before declining to $64,619m in The deal value peaked with $145,875m in 2010 before declining in The number of deals increased steadily over the period increasing from 27 in 2004 to 194 in The number of deals signed declined to 188 and 91 in 2010 and Figure 14: Thermal Power Market, India, Financing Trends, Deal Value ($m) and Volume (Number), , , , , ,000 60, , , Source: GlobalData, Power etrack Deals Database (July 11, 2012) Page(38)

39 Table 12: Thermal Power Market, India, Financing Trends, Deal Value ($m) and Volume (Number), Year Deal Value ($m) Deal Volume , , , , , , , , , Source: GlobalData, Power etrack Deals Database (July 11, 2012) Page(39)

40 10.2 India Thermal Power Market, Deals by Type, In 2011 and 2012 (till date), 97.7% of the deals signed were of Asset finance type accounting for $68,448m. The remaining 2.3% constituted of Debt Offerings ($1,056.4m), Private Equity ($426.6m), Acquisitions ($94m), Equity Offerings ($28.3m) and Venture Financing ($4.4m). Figure 15: Thermal Power Market, India, Deals by Type (%), Others 2.3% Asset Finance 97.7% Source: GlobalData, Power etrack Deals Database (July 13, 2012) Table 13: Thermal Power Market, India, Deals by Type (%), Deal Type Deal Value ($m) Share (%) Asset Finance 68, Others 1, Source: GlobalData, Power etrack Deals Database (July 13, 2012) Page(40)

41 10.3 Power Market, India, Major Deals, Asset Finance NLC to Invest $1.9 Billion in Coal Fired Power Plant in Uttar Pradesh, India Table 14: NLC To Invest $1.9 Billion In Coal Fired Power Plant In Uttar Pradesh, India Deal Type Asset Finance Deal Sub Type Self Funded Deal in Brief Neyveli Lignite Corporation Limited (NLC), a mining and power generation company, announced an investment of INR100,000m ($1,913.28m) in the construction and development of coal fired power plant at Ghatmapur in Kanpur district of Uttar Pradesh, India. The total installed capacity of the project will be 1,980 MW. The investment per MW will be approximately $0.97m. In connection to the transaction, the company has initiated the process for entering into memorandum of understanding with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) for setting up the plant through a 50:50 joint venture. NLC has received approval from the government of India for joint venture. The UP government has given principle approval to allocate 2,500 acres of land and also 80 cusecs of water. Deal Information Deal Status Announced Announced Date 12-Apr-2012 Information Owner/Sponsor Company Information Company Name Neyveli Lignite Corporation Limited Business Description Neyveli Lignite Corporation Limited (NLC) is a mining and power generation company. The company is the largest open-cast Mechanized Lignite Mine in India. NLC is engaged in producing about million tonnes of lignite annually and has an installed capacity of more than 2,740 MW for power generation. The company operates four mines, namely, Mine-I (8.30 million tones per year (MTPA)), Mine-IA (2.719 MTPA), Mine-II (11.71 MTPA) and Barsingsar Mine (0.409 MTPA). NLC operates four power plants, namely, Thermal Power Station-I (600 MW), Thermal Power Station-I Expansion (420 MW), Thermal Power Station-II (1,470 MW) and Barsingsar Thermal Power Plant (250 MW). In addition, the company is also engaged in providing consultation services to companies in mining and power sectors. The company is headquartered in Chennai, India. Deal Financials Deal Value Local (mn) 100,000 Deal Value (US$ m) 1, Page(41)

42 TNEB to Invest $1.6 Billion in Tuticorin Super Critical Power Project in Tuticorin District, Tamil Nadu Table 15: TNEB To Invest $1.6 Billion In Tuticorin Super Critical Power Project In Tuticorin District, Tamil Nadu Deal Type Asset Finance Deal Sub Type Self Funded Deal in Brief Tamil Nadu Electricity Board Limited (TNEB Ltd) announced an investment of INR80,000m ($1,612.6m) in the construction of tuticorin super critical power project in Udangudi, Tuticorin District, Tamil Nadu. The total installed capacity of the project will be 1,600 MW, comprising two units of 800 MW each. The investment per MW will be approximately $1m. The project will be developed with super critical technology to obtain benefits under clean development mechanism (CDM). The project will have its own coal jetty with transportation of coal through pipe conveyor system to the project. In 2007, Bharat Heavy Electricals Limited (BHEL) and TNEB have formed a joint venture company known as Udangudi Power Corporation Limited, to implement the project. Due to absence of long term coal linkage necessary for the project, and non-receipt of no objection certificate from environmental ministry and lack of cooperation from the BHEL, the state government itself would implement the project. Jayalalitha, chief minister of Tamil Nadu, said, " I have decided to implement it as a state government project which will allocate the entire estimate of INR80,000m as share capital to the Tamil Nadu Electricity Board (TNEB) which will implement it." Deal Information Deal Status Announced Date Announced 24-Feb-2012 Information Owner/Sponsor Company Information Company Name TNEB Ltd Business Description TNEB Ltd (TNEB) formerly Tamil Nadu Electricity Board, is primarily involved in the generation, transmission and distribution of electricity to Tamil Nadu. The company is authorized to work as the State Transmission Utility. It has power generation from the various sources including thermal stations, hydro stations, non conventional sources, and gas turbine power stations. TNEB is headquartered in Chennai, Tamil Nadu, India. Deal Financials Deal Value Local (mn) 80,000 Deal Value (US$ m) 1, Valuation Multiples Information Powerplant Valuation Multiple Capacity MWH Transaction Implied Value $ / MW (Bcf) Ethanol Information Type (Bcf) Acquired Capacity (Million Liters) Production Transaction Implied Values (US$/Liters per day) Page(42)