Trends and Forecasts on Merchant Power Plants in India



Produced by: InfraInsights
Published:  September 20, 2013
Country:  India
Sector:  Energy
Pages: 80
Format: PDF


InfraInsights’ Research Report, “Trends and Forecasts on Merchant Power Plants in India”, is an indispensable source of information on the evolution of merchant power plants and the market in India and how it is expected to change in the future. The structural changes that were announced in the Electricity Act 2003 make Merchant Power Plants in India an attractive investment opportunity.  However, ever since CERC intervened to cap the prices of spot electricity, the overall business risk/reward scenario of the sector has tilted towards the risk side for the merchant power plant. This report provides a status check on the overall capacity that was planned, the actual capacity of merchant power that got commissioned, structural changes that were supposed to push growth, and the overall outlook on the merchant power sector in India. This report provides statistics, policy analysis, case studies on successful MPP projects, and provides a projection on planned MPP projects and merchant power prices.


Table of Contents:


1. Executive Summary

2. Research – Approach and Methodology

3. Trends Analysis up to 2012

  • Overall MPP market evolution
  • MPP Capacity addition (Planned Vs Actuals)
  • Cost of Generation
  • Policy & Regulations Evolution
  • Market Structure & Competitiveness
  • Competitiveness Landscape
  • M&A

4. Trends in Spot Electricity Market Price to 2012

  • Total Short-term Transactions of Electricity with Respect to Total Electricity Generation
  • Electricity Transacted through Trading Licensees and Power Exchanges
  • Price of Short-term Transactions of Electricity
  • Seasonal variations in spot market prices

5. Trends in Issues and Challenges faced by MPPs

  • Fuel Shortage
  • Volatility in Merchant Tariffs
  • Weak financial Position of Discoms
  • Risk to viability of business models
  • Other

6. Trends in De-risking Strategy taken by MPPs to Mitigate Business Risks

  • Cost Related
  • Revenue Related
  • Operations Related
  • Fuel Related
  • Grid Connection Related

7. Forecast to 2017

  • Capacity Addition till 2017
  • Emerging Policy & Regulations Regime
  • Emerging Market Structure
  • Spot Electricity Prices

8. Risk Profiling of Existing and Upcoming MPPs

  • Fuel Linkage
  • Technology Used
  • Water Availability

9. PESTEL Analysis

10. InfraInsights View Points


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