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Showing posts from March, 2026

Basic characteristics of Indian Economy

The economy is a mixed, developing economy characterized by  low per capita income, heavy population pressure, and a high dependence on agriculture . Key features include significant income inequality, widespread unemployment/underemployment, low capital formation, and a growing yet underdeveloped infrastructure, marking its transition from a traditional to a modernizing economy. Key Characteristics of any country's Economy: Low Per Capita Income:  Despite being a large economy, the average income per person remains low compared to developed nations. Predominance of Agriculture:  Agriculture supports a large percentage of the population (approx. 60-70%) but contributes a lower proportion to the total GDP, indicating low productivity. Heavy Population Pressure:  A high population growth rate puts immense pressure on infrastructure, natural resources, and social services. High Poverty and Inequality:  Significant disparities exist in income distribution between ur...

Various PPAs used in Power or Energy Sector

Please find some of the different types of PPAs (Power Purchase Agreements) that are used in the power or energy sector in the electricity market is as follows:  Types of PPAs in the Power Sector A. Based on Contracting Structure 1. Utility / DISCOM PPA (Regulated PPA) Long‑term agreements (15–25 years) between generators and DISCOMs/State utilities. Tariff discovered through competitive bidding (per Electricity Act 2003 & CERC/APERC guidelines). 2. Corporate / C&I PPA For large commercial & industrial consumers. Two models: On‑site PPA (solar rooftop, captive behind‑the‑meter) Off‑site PPA (open-access RE with banking/wheeling arrangements) 3. Captive PPA (as per Electricity Rules, 2005 – Captive Rules) Consumer owns ≥26% equity in generating plant & consumes ≥51% power annually. Exempt from CSS, AS, some grid charges (state-specific). 4. Group Captive PPA Multiple corporate consumers form an SPV. Same rules as captive—each consumer should own equity proportion...

Key National Initiatives Strengthening Indian Power Distribution Sector

Major national‑level initiatives aimed at strengthening DISCOMs and GENCOs, improving sector liquidity, and enhancing operational and financial sustainability. Executive Summary – Key National Initiatives Strengthening India’s Power Distribution Sector The Government of India has implemented a series of structural, financial, and technology‑driven reforms to improve the operational efficiency and financial viability of DISCOMs and GENCOs. These initiatives collectively aim to reduce AT&C losses, ensure timely payments, modernise networks, attract private investment, and enhance long‑term sector sustainability. 1. Supply‑Side Reforms to Enable Low‑Cost Power Procurement Ultra Mega Power Projects (UMPPs) Launched to develop ~4000 MW supercritical thermal plants through tariff‑based competitive bidding to deliver low‑cost power at scale. PFC incorporates SPVs for each UMPP to manage approvals, conduct bidding, and transfer a “de‑risked project” to the successful developer. Multiple ...

What is the formula for calculating HT/LT ratio ?

  The HT/LT Ratio is a simple distribution‑network metric used to understand how much of the DISCOM’s energy sales (or revenue base) comes from High Tension (HT) consumers versus Low Tension (LT) consumers. ✅ Formula for HT/LT Ratio 1) Based on Energy Sales (most common): HT/LT Ratio  =  HT Energy Sales (MU)  LT Energy Sales (MU)  HT/LT Ratio = LT Energy Sales (MU)  HT Energy Sales (MU) ​ 2) Based on Number of Consumers (less common): HT/LT Ratio  =  Number of HT Consumers  Number of LT Consumers  HT/LT Ratio = Number of LT Consumers  Number of HT Consumers ​ 3) Based on Revenue Contribution (used in some utilities): HT/LT Ratio  =  HT Revenue  LT Revenue HT/LT Ratio = LT Revenue  HT Revenue ​

How the FSA (Fuel Supply Agreement) Coal Price is considered ?

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Reading the FSA Coal Price: A Consultant's Framework for Fuel-Cost Modelling, Bankability and Post-Reform Strategy in India How Fuel Supply Agreement pricing anchors project economics — and why the September-2025 tax reform and the Revised SHAKTI Policy have changed the base case. RenewConnect   ·   Research & Insights      |      Independent analysis · figures illustrative unless sourced Executive Summary ▪      The FSA price is the base case, not the whole case. A Fuel Supply Agreement with Coal India Limited (CIL) or Singareni fixes a low-volatility, notified-price fuel cost that lenders treat as bankable — but delivered cost is driven as much by statutory levies and rail freight as by the coal itself. ▪      Levies plus logistics are the real swing factor. Royalty, DMF and NMET, GST, sizing charges and freight commonly account for 45–55% of the landed cost at the plant gate, s...