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In Jan 2006 the total global installed generation capacity stood at 4,012 GW, which included 2,752 GW of thermal, 777 GW of hydro, 377 GW of nuclear and 107 GW of other capacities (geothermal, solar, wind and wastes). Among the countries, USA leads with an installed generation capacity of 964.8 GW in Jan 2006, followed by China (517.6 GW), Japan (251.3 GW), Russia (218.4 GW) and India (143.8 GW).

Thermal generation continues to account for the maximum share in the global installed capacity; during the last decade, thermal capacity grew at a CAGR of 3.49% with coal-based plants having a major share in this capacity. There has been a significant increase in the share of oil and gas and in the share of thermal energy in overall power generation.

Coal is abundantly available in India and in other countries like the US and China and hence, finds its maximum usage in these countries. Moreover, high prices of oil and natural gas make coal an economical source for power generation. The main drawback of using coal, however, is that coal-fired stations have a very high rate of greenhouse gas emissions. It is due to this reason that major power consuming countries around the world are focusing on the use of technologies with less green house gas emissions.

Hydro generation has the second-highest share in the global installed capacity. During the last decade, hydro generation capacity grew at a CAGR of 2.07%. When compared to thermal power, hydro power is more environment-friendly in nature. China has the largest installed capacity and share for hydro power owing to vast hydro resources available within the country. China plans to expand its hydro capacity going forward with the world’s largest hydro power project, Three Gorges Dam in China is at the intermediate level of completion. Hydro potential in India, however, is much higher than what has been exploited upto now. Environment issues and large capital required to set up a hydro power plant continue to hinder this segment’s growth within India.

Nuclear generation capacity grew at a compounded annual growth rate (CAGR) of 0.62% over the last decade. Concerns of waste disposal, plant safety and high capital costs were the main factors that hindered faster growth in this segment. In the last few years, major coal-consuming nations like China, the US and India are switching to nuclear generation due to climate change. India, which ranks sixteenth in the world in terms of nuclear generation capacity, plans to add more nuclear generation capacity after the US deal and the Nuclear Suppliers Group (NSG) clearance.

Electricity Production

Over the last 10 years, electricity production grew at a CAGR of 3.39%. In 2006, 18,014.67 bn kWh of electricity was generated in the world. The fuel mix comprised of 66% thermal energy, 17% hydro energy, 15% nuclear energy and 2% other sources of energy (geothermal, solar, wind, wood and waste). Over the years, the generation pattern at the regional level has witnessed a shift owing to an increase in the share of Asian and North American nations in the total global generation.

India’s comparison with East Asian Countries

In India and East Asian countries, electricity demand has grown rapidly over the last 2 decades with primary growth drivers being economic development and rise in population, particularly in case of China and India. Coal is the major source of electricity production in these regions, but many countries are adopting alternative sources of generation given the rise in energy security threat. The power industry in most Asian nations is either regulated by the Government or is moving towards privatisation for better performance.

Power production is high in China, India and Japan and over the years, it has increased significantly in these countries; however, power consumption has either been increasing at the same rate or at a faster rate in these countries. China, for instance, is the largest producer in Asia and is the second-largest producer in the world but it still faces power shortage due to its sharply rising consumption needs. In 1990, China’s generation was 590.3 bn kWh and up to 2006 it increased to 2,717.5 bn kWh representing a CAGR of 10%. In the meanwhile, its consumption grew simultaneously from 549.3 bn kWh to 2,528.9 bn kWh, also representing a CAGR of 10%. In India, power generation grew at a CAGR of 6.0% from 275.5 bn kWH in 1990 to 703.3 bn kWH in 2006, while consumption grew by 5.5% from 219.9 bn kWH in 1990 to 517.21 bn kWH in 2006. Population growth, higher income levels and higher use of electrical appliances due to lifestyle changes are the factors that have contributed to India’s increasing power consumption levels.

Source of Electricity Generation

Electricity generation in India and East Asian countries comprises of a mix of thermal, hydro, nuclear and renewable energy sources. In 2007, the share of electricity produced from thermal sources in China was around 83.5%, in India it was 77.6%, in South Korea 66%, and in Japan it was 68%. In the same year, the contribution of hydro sources to total electricity generation in China was 14.1%, in India’s it was 18.2% each, in Japan it was 6.9%, and in South Korea it was only 1%. The contribution of nuclear energy in the electricity generated in China and India was around 2% each whereas in South Korea and Japan it was 33% and 23.2% respectively.

All sources of generation have witnessed growth in India and East Asian countries, but thermal energy sources have maintained a dominant position in generation. Coal has been the major thermal source because of its widespread availability in the region and easier accessibility than hydro and other sources. Coal will continue to be the preferred choice in India and East Asia in the future. However, countries like South Korea, Japan and Taiwan, which are not so wellendowed in natural resources, will continue looking at nuclear generation to produce electricity; in fact, these countries have achieved growth in these segments — Japan’s nuclear installed capacity is the third-largest in the world.