Ref: MPML/PMS/111/2008
Date : Jun 05 , 2008
India's Power Demand To Rise
"If India continues to grow at an average rate of 8% for the next 10 years, power demands may rise from the present 120 giga watt (GW) to 315-335 GW by 2017, 100 GW higher than current estimate"
"Consumer demand across rural and urban sectors is growing at 14% over the next 10 years, whereas India's GDP growth is just 8% a year."
"When the demand rises to 335 GW, India's power sector will have to generate 415-440 GW for plant availability adjustments and 5% spinning reserves."WITH soaring crude oil prices, the time has come for the Indian power sector to explore substitutes. If India continues to grow at an average rate of 8% for the next 10 years, power demands may rise from the present 120 giga watt (GW) to 315-335 GW by 2017, 100 GW higher than current estimates, states a sixmonth long study 'Powering India: The Road to 2017'. The McKinsey & Company's Electric Power and Natural Gas Practice study shows a radical approach to increase power capacity.
India is gradually progressing towards a service-led economy from an agrarian economy, says the study. Supply and production have increased but demand has doubled. According to the study, the demand can only be met through a five to 10-fold rise in power production.
This means investments in the power sector will increase over $600 billion (Rs 24 lakh crore) in the next 10 years.
Consumer demand across rural and urban sectors is growing at 14% over the next 10 years, whereas India's GDP growth is just 8% a year.
The second reason is the government's plan to provide electricity to everyone by 2012. This means 23 million below-poverty line (BPL) households should be added in the power grid.
The third reason is the 24X7 supply of electricity to consumers and the industrial demand to switch to expensive diesel-based power.
When the demand rises to 335 GW, India's power sector will have to generate 415-440 GW for plant availability adjustments and 5% spinning reserves. Adding 300 GW by 2017 will mean increasing the annual capacity by 30 GW against the current growth capacity of 9 GW.
(Source: - Economis Times)