India’s Electricity is set to see a huge boom as the 8-9% economic growth rates require massive amounts of energy.India is planning to nearly treble its electricity capacity to almost 450 GW by 2020 from around 160 GW now which means a yearly addition of nearly 23 GW in the next decade.Currently India’s Electricity comes mostly from Coal and Hydro Based Energy.Almost 50% of Energy Requirements and 53% of the Electricity is generated from Coal.Despite Coal being the the Dirtiest Form of Energy,India has got little choice in the matter.Most of India’s upcoming Electricity Plants are based on Coal.Hydro Energy is generated mostly from India’s Northern Himalayan States.Renewable Energy forms only 7.7% of the Capacity with around 11 GW of the 16 GW from Wind Energy.Nuclear Energy is around 3% of the total capacity at around 4.5 GW.Here are the list of the major power utilities in the country which is currently dominated by the state run PSUs.However the next decade should see the rise of private electricity companies.
1) NTPC with around 33 GW of power generation capacity is India’s largest power utility by far and is planning to more than double that capacity to 75 GW by 2017 .The company mainly depends on coal and gas based power but is diversifying into gas,hydel,nuclear and solar power as well.It is one of the best run state owned companies and has executed well in building as well as running old plants.The company is one of the most valuable companies in terms of market cap as well wit ha market cap of nearly $35 billion.
2) NHPC – State owned like NTPC,this hydro power focused power company came out with an IPO with much fanfare.However slow implementation and lower profits have resulted in the stock prices declining a lot.However the company aims to double its electricity generation of 5 GW in the next 5 years or so by focusing on hydel generation in the Northern states of India.
3) Tata Power – The largest private utility in India has ambitious plans to grow like the other private sector companies in India.The company has interests in electricity distribution as well.Tata Power has a presence in thermal, hydro, solar and wind areas of power generation, transmission and retail with a capacity of nearly 3 GW.Tata Power is building numerous power plants and transmission projects in JV.
4) Reliance Power – Reliance Power part of the ADAG Group came out with the biggest IPO of its time before the Lehman crisis.The company part of the ADAG Group has the most ambitious expansion plans in the country.The company is raising huge amounts of capital from Chinese banks and placed the largest power equipment order with Dongfang Electric.The company is currently constructing 3 4000 MW projects and has plans of building 35 GW capacity with a mix of hydel,gas and coal based plants.The company also win a solar thermal project in JNNSM bidding.
5) Adani Power – Power Limited is part of Adani Group with capacity of 1980MW.The company currently operates India’s only super-critical power plant in Gujarat. The company is currently implementing 16500 MW at different stages of construction..The company is currently implementing thermal projects of 3300MW at Maharastra and 1320MW at Rajasthan.The Adani Group has bought coal mines outside the country and with its port and shipping companies forms an integrated coal to power story.
6) Damodar Valley Corporation – DVC is a state owned organization with interests in flood control, irrigation, generation, transmission and distribution of electricity located in the Damdoar Valley in the east of the country.There are hydro-electric power stations at Tilayia, Maithon and Panchet, with total installed capacity of 144 MW.DVC operates thermal power stations at with total capacity of 2745 MW. DVC is expanding its thermal power capacity and with the completion of its present plans by 2012 it would be generating more than 11000 MW of power
7) Lanco Infratech – Lanco is fast emerging Andhra Pradesh based Group and has become a top private sector power developer with 2 GW capacity and another 18 Gw under development.Lanco through its step down Australian subsidiary, Lanco Resources Australia, has acquired Griffin Coal Mining Company and Carpenter Mine Management.
8) SJVN – SJVN is the second largest hydel power company in India which is a JV between the Indian government and the Himachal Pradesh state.The company owns the largest hydro plant in India the Nathpa Jhakri Hydroelectric 1500 MW Power Project .The company is trying to expand like NHPC but has been facing execution problems.
9) Nuclear Power Corporation of India( NPCIL) – Another state owned company,NPCIL is focused on generating Nuclear Power.The company operates around 4.5 GW of Nuclear Capacity in 6 locations.The company is expected to expand hugely in the future with India planning to add around 2 GW of Nuclear Power over the next decade.
10) CLP Power – CLP India Private Ltd. is a wholly owned subsidiary of CLP Holdings, a leading investor-operator in the Asia Pacific energy sector.CLP is also the largest foreign investor in Wind Power in India with over 450MW of wind power projects which are spread across 5 states. This apart, it is also in the process of developing a 1320MW coal firedpower plant located at Jhajjar, Haryana, which is due for commissioning in Dec 2011.It also owns a gas power plant in Gujarat.
11) Neyveli Lignite Corporation -Neyveli Lignite Corporation is a PSU like NTPC and is also involved in lignite mining company in India. The company is mainly based out of the southern state of Tamil Nadu and mines some 24 million ton of lignite per year with an installed capacity of 2490 MW<
12) Torrent Power – Like Adani Power,it is a Gujarat based company with interest in both transmission and generation.Torrent has a generation capacity of 1647.5 MW and distributes power in Ahmedabad, Gandhinagar, Surat, Bhiwandi and Agra.It is expanding in Gujarat and Uttar Pradesh.
Other Private Groups that are setting up big power capacities are JSW Energy,Sterlite Energy,GVK Energy,Moser Baer,Welspun Energy,Essar Energy,GVK Power.There are also state owned and run Power Generation Companies Punjat State Power,Haryana Power Generation,Gujarat State Energy etc.Orient Green Power,Greenko are green focused utilities with big expansion plans.
India’s Massive Super-critical Mega Coal Plant and China’s Wind Farms get Rejected by stricter UN CDM panel for Carbon Credits Eligibility
“Orient Green Power” IPO Analysis- Focused Renewable Energy Utility with Fast Growth Plans however Execution is the Question