Fact Track-Power Distribution Sector in India

Transcription

1 June 2013 Fact Factor Report Series Copyright 2013, All rights reserved

2 Fact Track-Power Distribution Sector in India 2 Power Distribution Sector in India- An Overview Research Base AT&C Losses Over the past decade, the average Aggregate Technical & Commercial (AT&C) losses of distribution utilities has declined by more than 10% Distribution and Retail Supply is the most critical link in the electricity market, which interfaces with the end-customers and provides revenue for the entire value chain. It owes to the fact of sustenance of other elements in the sector such as generation, transmission, equipment manufacturing; which depends on its operational performance and commercial viability. However, despite of its critical importance, generation segment has always been on the agenda of the government, in light of high energy deficit, necessitating need of huge capacity addition. Exhibit 1: Recent Developments in Distribution Sector Lack of focus has resulted in poor operational and financial performance of the sector, thereby creating greater need of sector transformation, with high calls for private participation in terms of Private Franchising, Public-Private-Partnership (PPP), Equipment Suppliers. As a result, tremendous opportunities lie on fore in the sector, for various stakeholders. Recent developments in the sector such as Franchisees, Smart grid, Restructured-Accelerated Power Development Reforms Programme (R-APDRP) highlights the same. Exhibit 2: AT&C Loss Reduction INFOGRAPHIC R-APDRP Progress Smart Grid Implementation Reduction in AT & C Losses Reduction in AT&C Losses Improving Private Sector Participation through PPP Models, Distribution Franchisee Source: Research Source: Research Copyright 2013, All rights reserved

3 Research Case Fact Track-Power Distribution Sector in India 3 Reduction in AT&C Losses Over the past decade, the average Aggregate Technical & Commercial (AT&C) losses of distribution utilities has declined by more than 10%. The success owes to implementation of different schemes such as High Voltage Distribution System, Feeder Segregation etc. With reduction in the AT&C losses of discoms, the major obstacle in their performance, the sector has received a major boost. RAPDRP Progress R-APDRP was launched by Ministry of Power, GoI in July 2008 to reduce the AT&C losses to 15 percent. The scheme was taken up in two parts viz. Part-A and Part-B. Whereas Part-A was introduced to strengthen the reliability of distribution system with collection of base line data, establishment of Supervisory Control & Data Acquisition system (SCADA); Part-B focus has been towards overall strengthening of distribution network of state power utilities. Improving Private Participation Private participation in the sector increased by many folds after the success of Delhi privatization and then Bhiwandi Distribution franchisee. Whereas, on one hand, states such as Maharashtra, Uttar Pradesh, Madhya Pradesh, Jharkhand, Chhattisgarh have opted for distribution franchisee for their circles; on other hand new avenues in PPP model are also evolving at fast pace. This trend of increasing private sector participation is expected to unfold enormous opportunities for both existing and prospective players in distribution segment. Smart Grid implementation In line with envisaged benefits of smart grid and its implementation success overseas, India is putting in huge investments in smart grid industry, with power ministry leading with eight smart grid pilot projects worth INR 500 Crore. Out of these projects, a major pilot project has already been undertaken with investment layout of INR 100 Crore in select area under Bangalore Electricity Supply Company (BESCOM). The objective of the pilot projects is to build a distribution business that can undertake bilateral communication with end-consumers through smart devices. In regard to increasing investments, smart grid is expected to flourish in a large scale. Ministry of Power investing INR 500 Crores in Eight Smart Grid Projects Copyright 2013, All rights reserved

4 Fact Track-Power Distribution Sector in India 4 s Difference Exhibit 3: s Difference Research reports delivering domain knowledge, market insights & future outlook S Research Difference Germinates from minds that think fresh to evolve path finding guide for all stake holders through quality information & analyses Gist of the report in.pdf format for ready use Business Stakeholders/Partic ipants Free Author support on report & Competitive cost Customized Research Solution Experts Insights/ Market view Validated data & analysis Research & Services Framework Research Desk Opportunity mapping & Market sizing Research Reports First hand sector knowledge & inputs Primary research inputs from F2F interviews S Service Difference Emanates from seamless integration of domain expertise with first hand industry knowledge and customized research solutions at a very competitive cost Copyright 2013, All rights reserved

5 Research Objective Research Results Fact Track-Power Distribution Sector in India Research Objective & Results Fact Track-Power Distribution Sector in India 5 Exhibit 4: Research Objective & Results 1. AT&C Loss Track and Performance track of Distribution Utilities 1. Study for Investors 2. Study for Bulk Consumers 3. Study for Regulators 2. Status of grant of Open Access, Analysis of Tariff Structure & Cross Subsidy 3. AT&C Loss Track and Performance track of Distribution Utilities, analysis of consumer mix and per capita energy consumption Copyright 2013, All rights reserved 4. Study for Equipment Suppliers and Manufacturers 4. Analysis of Bidding Procedures, rating wise number of transformers. 5. Evaluation of types of meters and metering status. 6. Benchmarking major Operational & Financial Indices of Major States Research reports delivering domain knowledge, market insights & future outlook

6 Fact Track-Power Distribution Sector in India 6 Key Queries Resolved Research reports delivering domain knowledge, market insights & future outlook Exhibit 5: Key Queries Resolved Power Project Developers, Equipment Suppliers and Contractors Investors, Creditors Which distribution utility is best performing? What are the AT&C loss reduction trend? What are the Key Performance Indicators (KPIs) for a distribution utility? Research agencies, FI institutions Bulk Consumers Govt. & Regulatory Bodies What are the investment opportunities in the sector vis-à-vis financial performance of Distribution utilities? What are the various regulatory and policy framework driving the growth of the sector? What will be the fate of distribution utilities in the near future? Copyright 2013, All rights reserved

7 Must Buy For Must Buy For Fact Track-Power Distribution Sector in India Must Buy For Fact Track-Power Distribution Sector in India 7 Exhibit 6: Must Buy For Power Project Developers Equipment Suppliers and Contractors Bulk Suppliers Policy Makers Energy Sector Professionals Energy Trading Companies Equipment Manufacturers FII s/banks Government bodies Educational Institutions NGOs IT Service Providers Consultants Research firms Research Bodies/Institutes Industry associations Engineering Firms Copyright 2013, All rights reserved Research reports delivering domain knowledge, market insights & future outlook

8 Contents & Coverage Fact Track-Power Distribution Sector in India 1. Executive Summary 2. Fact Track: A Know How 3. Importance of Fact Track for Distribution Utilities 4. Advantage 5. Approach 6. Methodology 7. Fact Track of Northern Region 7.1 Delhi 7.2 Haryana 7.3 Rajasthan 7.4 Uttar Pradesh 7.5 Punjab 8. Fact Track of Eastern Region 9. Fact Track of Western Region 9.1 Maharashtra 9.2 Chhattisgarh 9.3 Madhya Pradesh 9.4 Gujarat 10. Fact Track of Southern Region 10.1 Karnataka 10.2 Tamil Nadu 10.3 Andhra Pradesh 11. s Findings 12. Recommendations 13. Contact Us 8.1 West Bengal 8.2 Orissa Copyright 2013, All rights reserved