India becomes Net Exporter of Electricity for the first Time

• As per Central Electricity Authority first time India has turned around from a net importer of electricity to Net Exporter of electricity. 
• During the current year 2016-17 (April to February 2017), India has exported around 5,798 Million Units to Nepal, Bangladesh and Myanmar which is 213 Million units more than the import of around 5,585 Million units from Bhutan.
• Export to Nepal and Bangladesh increased 2.5 and 2.8 times respectively in last three years.
• Ever since the cross border trade of electricity started in mid-Eighties, India has been importing power from Bhutan and marginally exporting to Nepal in radial mode at 33 kV and 132 kV from Bihar and Uttar Pradesh.
• On an average Bhutan has been supplying around 5,000- 5500 Million units to India.
• India had also been exporting around 190 MW power to Nepal over 12 cross border interconnections at 11kV, 33kV and 132 kV level. T
• The export of power to Nepal further increased by around 145 MW with commissioning of Muzaffarpur (India)– Dhalkhebar(Nepal) 400kV line (being operated at 132 kV) in 2016.
• Export of power to Bangladesh from India got further boost with commissioning of 1st cross border Interconnection between Baharampur in India and Bheramara in Bangladesh at 400kV in September 2013.
• It was further augmented by commissioning of 2nd cross border Interconnection between Surjyamaninagar (Tripura) in India and South Comilla in Bangladesh.
• At present around 600 MW power is being exported to Bangladesh.
• Export of power to Nepal is expected to increase by around 145 MW shortly over 132 kV Katiya (Bihar)– Kusaha (Nepal) and 132 kV Raxaul (Bihar)– Parwanipur (Nepal).
• A few more cross border links with neighbouring countries are in pipe line which would further increase export of Power.

Analysis:

• India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, and agricultural and domestic waste.
• Electricity demand in the country has increased rapidly and is expected to rise further in the years to come.
• In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.
• Indian power sector is undergoing a significant change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India. The Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing at both the market and supply sides (fuel, logistics, finances, and manpower).
• Total installed capacity of power stations in India stood at 315,426.32 Megawatt (MW) as of February 28, 2017.
• The Ministry of Power has set a target of 1,229.4 billion units (BU) of electricity to be generated in the financial year 2017-18, which is 50 BU’s higher than the target for 2016-17. The annual growth rate in renewable energy generation has been estimated to be 27 per cent and 18 per cent for conventional energy.
• The Government has added 8.5 GW of conventional generation capacity during the
• Under the 12th Five Year Plan, the Government has added 93.5 GW of power generation capacity, thereby surpassing its target of 88.5GW during the period.
• The Indian power sector has an investment potential of Rs 15 trillion (US$ 225 billion) in the next 4–5 years, thereby providing immense opportunities in power generation, distribution, transmission, and equipment.
• The government’s immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019. This means doubling the current production capacity to provide 24x7 electricity for residential, industrial, commercial and agriculture use.
• The Government of India is taking a number of steps and initiatives like 10-year tax exemption for solar energy projects, etc., in order to achieve India's ambitious renewable energy targets of adding 175 GW of renewable energy, including addition of 100 GW of solar power, by the year 2022. The government has also sought to restart the stalled hydro power projects and increase the wind energy production target to 60 GW by 2022 from the current 20 GW.

By: Vishal