Record power addition this fiscal

The current year will see record addition to the country's power generation capacity.

As much as 17,000 Mw is slated for commissioning during the year "" two and a half times more than the largest addition of 6,850 Mw achieved last year.

This represents as much as 13 per cent of the current capacity of 132,000 Mw in the country.

"Projects under construction, for which orders have been placed, total 49,175 Mw," Power Secretary Anil Razdan told Business Standard, adding, "It is a number we track weekly." 
 

PLUGGING DEFICIT
	Peaking  shortage	Energy  shortfall  (in %)
2006-07	-13.8	-9.6
2007-08	-8.0	-9.9
2008-09	-9.2	-6.7
2009-10	-8.1	-6.2
2010-11	-5.4	-2.3
2011-12	+0.6	+5.6

And if things move as planned "" "We want placement of all orders to be completed by December 2007," says Razdan "" the 11th Plan target of 78,577 Mw seems set to be realised.

Given that the final tally of generation in a plan is strongly linked to the orders placed in the first year, this number sets a very positive tone for the rest of the Plan.

The capacity addition this year will wipe out the energy shortfall in at least two of the five "power" regions of the country "" east and north east.

"The eastern region will be 11 per cent surplus by the end of the year, while the north-east region will be 2 per cent surplus," said a senior power ministry official.

Of course, the stellar performance is attributable to the poor showing in the last five years. Since only about half of the 41,000 Mw targeted capacity came up, the current year's numbers are swelled by spillovers from last year (2006-07).

Capacity addition envisaged next year is a tempered 7,250 Mw, while about 15,200 Mw is projected to come on stream in 2009-10. The target of 16,970 Mw for the fourth year of the Plan is higher than this year's target but is exceeded by the target of 22,372 Mw for the terminal year of the Plan.

By the end of the 11th Plan, the country is expected to have an energy surplus of 5.6 per cent and a peak-time surplus of 0.6 per cent.

This capacity may strain the associated resources of transmission and distribution.

According to the working group on power for the 11th Plan, the total fund required for the sector, including that needed for transmission, distribution and non-conventional energies, is almost $250 billion.