Power sectors in China and India

The Businessline has an article comparing power sectors in India and China, with suggestions about sectoral reforms, especially in generation.

In 2006, the China's energy generation grew by 13.5% to 283 million kW. The output touched 147 million kW in the first six months of 2007, 15.9% higher than in 2006. More than 80,000 MW of generating capacity was added by end-2006, of which, more than 52,800 MW using coal. The country’s total power generation capacity rose to 6,22,000 MW up from 5,37,000 MW in 2005 and in 2007 it touched 7,31,000 MW.

India and China were adding capacity at almost the same pace even as late as the eighties. In the late 1980s, India was adding about 4,500 MW a year. In the Seventh Plan, about 21,400 MW was added to take the total capacity to 63,985 MW. In the same period, China, whose grid size was twice ours, was adding around 9,000 MW a year — that is, a rate of growth more or less similar to India. But though during the Eighth, Ninth and Tenth Plans India doubled its capacity — 1,44,500 MW as on date — it was still only about 20% of China’s capacity.

The article traces this massive spurt in capacity addition to three factors
1. Bulk ordering of capital equipment - boilers, turbines etc - and standardization of equipment design
2. Indigenisation of the capital equipment by insisting on technology transfer, given the massive volumes being procured.
3. On the supply side, greater focus on long-term import of coal as well as developing coal mines within China.