1. OVER VIEW OF INDIAN POWER SECTOR INDIAN POWER SECTOR 27 th January, 2010

2. 2 DEMAND SUMMARY OF ALL INDIA FORECAST ( AS PER 17th EPS REPORT)

3. INSTALLED CAPACITY (MW) AS ON 31-12-2009 ( TYPE_WISE ) Total Installed Capacity = 1,56,092 MW Fossil fuel based capacity=99,862 MW (64%)

4. GENERATION - 2008-09 (BU) Total Generation = 746 BU Fossil fuel based Generation=590 BU (79%) * Estimated

5. Anticipated Power Supply Position during 11th Plan Period (PEAK)- Based on 62,374 MW Likely Addition in 11 th Plan Actual Power Supply Position for 2007-08 & 2008-09

6. Anticipated Power Supply Position during 11th Plan Period (ENERGY)- Based on 62,374 MW Likely Addition in 11 th Plan Actual Power Supply Position for 2007-08 & 2008-09

7. 7 Total: 62,374 MW LIKELY CAPACITY ADDITION IN 11 th PLAN (With High Degree of Certainty)

8. GENERATION CAPACITY ADDITION DURING 12 th & 13 th PLANS

9. LOW CARBON GROWTH STRATEGY 1.Promote Hydro Project Development  Facilitate Statutory Clearances of Projects identified for 12 th Plan to ensure placement of orders for main packages in 11 th Plan 2. Promote Renewable Energy  RPOs to be specified by SERCs  Trading of Renewable Purchase Certificates  Implementation of solar mission Solar Mission – MoP finalizing strategies for development of Solar Projects totaling 1000 MW through NVVNL by 2013. - 200 MW roof top solar by 2013 - SERCs to specify RPOs in respect of solar energy, MoP to make necessary modification in NEP/ Tariff Policy 3. Promoting New Gas based projects with a mix of indigenous Gas and imported RLNG with pooled pricing applicable to all the new and existing projects At least 27,000 MW Gas based capacity needs to be developed during 12 th and 13 th Plan.

10. LOW CARBON GROWTH STRATEGY Contd …… 4. Early notification of CEA regulation on construction of power plants indicating mandatory minimum efficiency levels 5. Retirement of Old and Inefficient Coal based Generating units –4000 MW each in 12 th and 13 th Plan. –List of projects to be retired during 11 th Plan has been finalised and 1100 MW already retired. 6. Implementation of National Enhanced Efficiency Renovation and Modernization Program. –To incentivise States, 50% of generation capability of the unit just before shut down for R&M may be compensated by way of additional allocation from unallocated quota during the normative period of shut down. –Low interest rate financing for enhanced efficiency based R&M.

11. 7. Adoption of Clean Coal Technology Target:12th Plan – At least 50% of Coal based capacity should be super critical 13th Plan – All coal based capacity should be super critical Action: (a)Creation of Indigenous manufacturing capacity for super critical equipment (b)Incentivising Indigenous Manufacturers to ensure transfer of Super Critical Technology (c)Bulk tendering for 11x660 MW Super Critical units with mandatory indigenous manufacturing in progress. To initiate Bulk Tendering for 800 MW size units shortly after finalising orders for 660 MW. (d)Bulk tendering for projects based on Ultra super critical technology with mandatory indigenous manufacturing by 2011-12. (e)MOEF to be advised not to clear any Coal based projects w.e.f. 01-04- 2012 on Sub-critical technology. No coal linkages for Sub-critical plants for 13 th Plan (f)Propose zero custom duty and excise duty on Super Critical Plans supplied by indigenous manufacturers. LOW CARBON GROWTH STRATEGY Contd ……

12. 8. Reduction of T&D losses to be accorded high priority –Franchise model to be promoted. –Implementation of R- APDRP to reduce technical and commercial losses. 9. Implementation of BEE Program  Implementation of ECBC in states  DSM in municipal, agriculture and buildings  Enforcement of energy intensity standards in Energy Intensive Industry and trading of emission reduction certificates.  CFL Bachat Lamp Yojna  Agriculture (Ag DSM) Pump efficiency improvement through ESCO.  Labeling of Appliances Labeling of Inverters on priority

13. THREE CAPACITY ADDITION SCENARIOS-12 th Plan BAU MODERATE OPTIMISTIC Hydro85001636021200 Nuclear4800 Renewable (Excluding Solar)15000 Solar020004000 Retirements of Old inefficient Units04000 Gas01300025000 Coal943006981053410 Sub-Critical681002801021410 Super Critical262004180032000 12th Plan (Total) (Conventional)107600106470106910

14. BAUMODERATEOPTIMISTIC Hydro85002500033540 Nuclear5000800013000 Renewable Excluding Solar1500016500 Solar0800016000 Retirements of old inefficient units04000 Gas01400020000 Coal605003520022400 Sub-Critical4450000 Super Critical160003520022400 13th Plan (Total) (Conventional)740008220088940 THREE CAPACITY ADDITION SCENARIOS-13 th Plan (All Figures in MW)

15. Weighted Average Emissions Fuel- Wise (tCO 2 /MWh) * During 2007-08 With Latest Technology Coal1.000.88 (Super Critical HR 2326) Gas0.460.34 (CCGT η - 53%) 0.25 (CCHP η - 70%) Oil0.71 DG Sets0.61 Bio MassCo2 Neutral * Values calculated on gross generation

16. Emission Factor (kg/kwh of CO2)

17. STUDY RESULTS Based on EGEAS Program run for projected load curves –Gas based generation @ 70% PLF in all scenarios –Renewables – Must run –Coal based generation operated on merit order

18. Note: Figures for 2004-05 and 2006-07 are actual

21. Anticipated Percentage Reduction of Emission Factor (Kg/Kwh) for Power Sector w.r.t. year 2004-05 End of 10th Plan (2006-07) (Actual) End of 11th Plan (2011-12) End of 12th Plan (2016-17) End of 13th Plan (2021-22) BAU 5.15.4 5.96.6 Moderate11.215.6 Optimistic15.720.3