Lighting up India

NUCLEAR CAPACITY BUILD UP 2007-2018.
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Faced with the need to massively expand its power generation capacity, India is pursuing all the options at its
disposal, finds a report from Business Monitor International.

India’s electricity sector is struggling to cope with current demand, which has been mushrooming as a consequence of high population growth levels and continued economic expansion.

This presents a major obstacle to the country's business environment and economic development, and cements existing regional wealth discrepancies. In response to the problem, utlities all over the country are busy growing their generation capacities.

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FEATURED COMMENT It is really interesting to watch the power generation sector in India. The amount of innovation and growth the sector i   1 Comments Read more comments »

Growing, but slowing
Power plants and transmission grids are estimated to account for the majority of energy and utilities infrastructure industry value in 2009/10 at 59 percent, or US$17.58 billion. The sector is forecast to increase its share in line with government announcements for heavy investment in to clean energy, including solar, wind and nuclear, all of which are capital intensive.

Water infrastructure industry value, on the other hand, will rise only moderately from an estimated $1.48 billion in 2009/10 to $3.27 billion in 2014/15. This represents approximately 2.5 percent of the total infrastructure industry value in India. Though there is great demand for water infrastructure in India, projects are scare and tend to be small in scale.

In 2009/10 energy and utilities infrastructure will account for around 59 percent of total infrastructure industry value, equal to $29.4 billion. The sector’s share is expected to decline; however, Business Monitor International (BMI) believes there is upside potential. Investment is being piled into the sector, with a large number of power plants being built and associated pipelines to supply fuel.

Energy and utilities industry value is anticipated to grow substantially over the midterm, reaching $73.49 billion by the end of 2014/15.

Feedstock mix for the energy fix Nuclear, solar, coal and gas are all set to be important elements of India’s future power mix as the country increases investment into energy and utilities infrastructure to meet demand and facilitate economic growth.

King coal
Coal is the undisputed leader in the power game. Coal-fuelled currently power plants generate more than half of India’s power. The fuel is indigenous to the country and, according to the BP Statistical Review, India had 58,600 million tonnes of proven coal reserves at the end of 2008.

In 2009, it is estimated to account for 55 percent of power generation. Coal-fired power generation is expected to show a substantial increase in absolute terms due to India's significant coal reserves and because coal projects tend to be much cheaper than power plants running on gas or other sources.