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India likely to witness over 5% power shortage in FY15: CEA

09 Jun 2014 Evaluate

As per the Central Electricity Authority (CEA), India is likely to witness a power shortage of 5.1 percent compared to demand in the current financial year, with southern and north-eastern regions expected to witness high deficits. In its annual Load Generation Balance Report, the CEA highlighted that the peak power shortfall in southern region would be 12.7 percent, north eastern region (17.4 percent), eastern region (3.4 percent) and northern region (3.1 percent).

The CEA’s report stated that a power generation capacity of 17,800 MW comprising 14,958 MW of thermal, 842 MW of hydro and 2,000 MW of nuclear power stations would be installed in the country during the FY15. Further, the planning body for the power sector projected that gross energy generation in the country would be around 1,023 billion units from the power plants in operation and projects expected to be commissioned during this period.

In India, electricity is produced with the help of coal, crude oil, water and natural gas. The Indian power sector is the fifth largest and one of the most diversified sectors in the world with an installed capacity of around 230 GW, out of which coal-fired plants account for about 68 percent of India's installed electricity capacity. While, gas based installed capacity stands at nearly 8 percent at around 20 GW. In spite of large power capacity addition over the past six years, the country has been witnessing peak hour power deficit at around 3-5 percent due to high demand. 

Industrial production is likely to fall by 40 percent during June-July’ 2014 due to frequent power outages in north Indian states that are also coping with severe heat wave.  Acute fuels shortage particularly coal in the country has also become primary reason for power deficit in the country, forcing the domestic power manufactures to operate at low capacity.

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