Installed Capacity of Electricity Generation by Fuel Type - Statistics Project Example

Installed capacity of electricity generation by fuel type Electricity generation is the process of converting non-electrical energy to electricity. For electric utilities, it is the first process in the delivery of electricity to consumers. The other processes, electric power transmission and electricity distribution, are normally carried out by the electrical power industry. Electricity is most often generated at a power station by electromechanical generators, primarily driven by heat engines fueled by chemical combustion or nuclear fission but also by other means such as the kinetic energy of flowing water and wind. There are many other technologies that can be and are used to generate electricity such as solar photovoltaic and geothermal power. The World net electricity generation nearly doubles in the reference case, from 17.3 trillion kilowatthours in 2005 to 24.4 trillion kilowatthours in 2015 and 33.3 trillion kilowatthours in 2030. In general, growth in the OECD countries, where electricity markets are well established and consuming patterns are mature, is slower than in the non-OECD countries, where a large amount of demand remains unsatisfied. The International Energy Agency has estimated that nearly 32 percent of the population in the developing non-OECD countries (excluding non-OECD Europe and Eurasia) do not yet have access to electricity—a total of about 1.6 billion people. With the strong economic growth projected for the developing non-OECD nations, substantial increases in electricity generation will be needed to meet demand in the residential, commercial, and industrial sectors.  Although the non-OECD nations consumed 24 percent less electricity than the OECD nations in 2005, total non-OECD electricity generation in 2030 is projected to exceed OECD generation by 46 percent. In the developing countries, strong economic growth translates to growing demand for electricity. Increases in per capita income lead to improved standards of living, rising consumer demand for lighting and appliances, and growing requirements for electricity in the industrial sector. As a result, total non-OECD electricity generation (The figure has been taken from International Energy Outlook 2008) Electricity generation in the nations of OECD Europe Electricity generation in the nations of OECD Europe increases by an average of 1.4 percent per year in the IEO2008 reference case, from 3.3 trillion kilowatthours in 2005 to 4.0 trillion kilowatthours in 2015 and 4.7 trillion kilowatthours in 2030. Because most of the OECD Europe countries have relatively stable populations and mature electricity markets, most of the growth in electricity demand is projected to come from those with more robust population growth (including Turkey, Ireland, and Spain) and from the newest OECD members (including the Czech Republic, Hungary, and Poland), whose economic growth rates exceed the OECD average through the projection period.  (The figure has been taken from International Energy Outlook 2008) Net electricity generation in Middle East Despite short-term supply issues in some Middle Eastern countries, natural gas is expected to remain the region’s largest source of energy for electricity generation throughout the projection (Figure 63). In 2005, natural-gas-fired generation accounted for 56 percent of the Middle East region’s total power supply. In 2030, the natural gas share is projected to be 65 percent, as the petroleum share of generation falls over the projection period. Petroleum is a valuable export commodity for many nations of the Middle East, and there is increasing interest in the use of domestic natural gas for electricity generation in order to make more oil assets available for export.  The Middle East is the only region in the world where petroleum liquids are expected to continue accounting for a sizable portion of the fuel mix for electricity generation. The Middle East region as a whole relied on oil-fired capacity to meet 36 percent of its total generation needs in 2005, and petroleum liquids are projected to continue providing 29 percent of the total in 2030. The rich petroleum resources in the Middle East are expected to allow nations of the region to continue using oil for electricity generation, even as high world oil prices result in the displacement of oil in other regions. Oil-fired generation in the Middle East is projected to increase by an average of 1.6 percent per year from 2005 to 2030.  (The figure has been taken from International Energy Outlook 2008) Electricity generation in India India is presently the sixth-greatest electricity generating country and accounts for about 4% of the world's total annual electricity generation. India is also currently ranked sixth in annual electricity consumption, accounting for about 3.5% of the world's total annual electricity consumption. Overall, India's need for power is growing at a prodigious rate; annual electricity generation and consumption in India have increased by about 64% in the past decade, and its projected rate of increase (estimated at as much as 8-10% annually, through the year 2020) for electricity consumption is one of the highest in the world. An historical summary of electricity generation and consumption in India is shown in Table   1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Net Generation    hydroelectric    nuclear    geo/solar/wind/biomass    conventional thermal 396.0 71.9 6.5 0.5 317.2 412.6 68.2 7.4 0.8 336.1 441.1 73.9 10.4 0.9 355.8 470.7 82.2 10.6 1.0 376.8 504.3 79.9 11.4 2.3 410.7 529.1 73.7 14.1 2.9 438.5 548.0 73.0 18.2 3.9 453.0 563.5 63.5 17.8 4.1 478.2 556.8 68.5 16.4 4.2 467.7 558.33 73.77 17.77 n/a 466.82 587.37 84.50 16.84 n/a 486.03 Net Consumption 369.8 385.2 411.6 439.0 470.1 493.4 510.9 525.4 519.0 n/a n/a For the year 2005 the figures for electricity are as under; Net generation 661.64(Billion Kilowatt-hours) Net consumption 488.53(Billion Kilowatt-hours) Installed capacity 137.578 (Gwe) Source: http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=IN Electricity generation capacity of Pakistan Electricity generation capacity of Pakistan is 19,342 MW. During the year 2004-05 the power system of Pakistan generated 85,629 million kWh of electricity of which almost half (50.8%) was by natural gas. The rest was from hydro (30.0%), oil (15.8%), nuclear (3.3%) and coal (0.2%). Power sector in Pakistan Fuel/Technology Installed capacity on 30-6-2005 Electricity generation during year 2004-05 MW Million kWh Hydro 6,494 25,671 Oil/Gas 12,273 56,988* Coal 150 175 Nuclear 425 2,795 Total 19,342 85,629 Source: HDIP (2005) For the year 2005 the figures for electricity are as under; Source: http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=IN North Africa  Data regarding net generation of electricity, net consumption and installed capacity for the year 2005 in North Africa is as under: Serial no. Name of the country Net generation of electricity (Billion Kilowatt-hours) Net consumption (Billion Kilowatt-hours) Installed capacity (Gwe) 1. Algeria 31.91 27.52 6.47 2. Egypt 102.45 84.49 18.5 3. Libya 21.15 18.18 4.71 4. Morocco 21.37 20.67 5.076 5. Sudan 3.94 3.3 0.801 6. Tunisia 12.85 11.17 3.251 7. Western Sahara 0.09 0.08 0.58 Source: http://tonto.eia.doe.gov/country/country_energy_data.cfm?fips=IN. Sub-Sahara Africa Electrification is at an embryonic stage throughout the continent, and particularly in the countries south of the Sahara. Only six countries in sub-Saharan Africa have an installed capacity exceeding I GW. The largest energy market in the region is ESKOM's Southern African Electricity grid, which links South Africa and many of its neighbouring states. This grid, which has an installed capacity of some 36 000 MW, supplies the so-called "independent" territories within South Africa, as well as Botswana, Lesotho, Mozambique, Namibia and Swaziland. It is also indirectly linked to Zambia and Zimbabwe. The latter two countries have interconnecting grids, and Zambia also has links with Zaire. Kenya has a link with Uganda.   The electric power supply industry in the region is almost invariably government owned, highly centralized and politically regulated. Although the region has no shortage of the resource base for economic power generation and supply, there has been a deterioration in the performance of the electric power utilities, and a depression of the electricity markets of the region in the 1980s.   Total installed capacity in the region amounts to some 55,000 MW with South Africa alone having some 36,000 MW. With the exception of South Africa, the infrastructure is still largely characterized by: (The figure has been taken from International Energy Outlook 2008) ELECTRICITY PRICES: The consumer price of electricity in the Netherlands is one of the highest in Europe. In 2007, electricity only costs more in Denmark and Italy. Consumers in the ten new member states pay less for their electricity on average than those in the EU 15 countries. Electricity prices for consumers in Europe Prices of electricity in Europe are subdivided into three parts as (a) cost of energy (b) network charges, and(c) taxes, levies and surcharges. The prices are represented with the help of the following graph,  ELECTRICITY PRICES IN MIDDLE EAST: Electricity is one of the most capital-intensive industries in the world. In addition, since it cannot be stored economically in large quantities, reserve capacity has to be built to meet peak demand conditions that occur on just a handful of days in the year. The Middle East is no exception to these trends. Rapid load growth in the electricity sector, caused by population growth and economic development, is requiring governments in the Middle East to invest billions of dollars in enhancing the capacity for generating, transmitting and distributing electricity. Over the last decade, the region has experienced sustained growth rates in electricity consumption of over 6% per year with some economies such as Jordan, Lebanon and the UAE experiencing even higher growth rates.  ELECTRICITY PRICES IN INDIA: The electricity sector in India is predominantly controlled by government sector entities via central public sector corporations, such as: National Hydroelectric Power Corporation, National Thermal Power Corporation and various state level corporations (state electricity boards - SEBs). The transmission and distribution is managed by the State Electricity Boards (SEBs) or private companies. The current per capita power consumption is about 612 KWH per year while the world average is 2,596 KWH From March 1,2008 and electricity prices for consumers using more than 300 kilowatt hours per month have increase from seven leks (0.058 Euro) per kWh to 12 leks (0.099 Euro) per kWh. ELECTRICITY PRICES IN Pakistan The electric power sector in Pakistan is operated by the Water and Power Development Authority (WAPDA), and the Karachi Electricity Supply Corporation (KESC), with additional generation contribution from Independent (private) Power Producers (IPPs). WAPDA is responsible for supplying power to all of Pakistan, with the exception of Karachi, which is supplied by KESC. Currently, 15 IPPs operate in Pakistan under a Build-Own-Operate (BOO) basis. The National Electric Power Regulatory Authority (NEPRA) regulates the power sector in Pakistan, which includes power generation, transmission and distribution. NEPRA is also responsible for determining electricity rates in Pakistan. Fossil fuel reserves are diminishing rapidly across the world, intensifying the stress on existing reserves day-by-day due to increased demand. Not only that, fossil fuels, presently contributing to 80% of world primary energy, are inflicting enormous impacts on environment. Energy sector has a key role in this regard since energy during its production, distribution and consumption is responsible for producing environmentally harmful substances. It has been found that solar energy is a much more economical choice for Pakistan as compared to wind energy-respective costs for solar and wind energy are (US cents/kWh) 20 and 77. This is due to the fact barring the four monsoon months, the average wind speed for the remaining 8 months does not cross an economic threshold. On the contrary, it was found that solar energy has a fairly stable and consistent availability. Electricity Price in North and Sub Sahara Africa The typical annual average insulation in North Africa is 0.25 kW per square meter, these averages out night and day and seasonal changes. Therefore in one year a PV cell module rated at US$1 per peak watt (US$1000 per peak kW) will generate: 365 days x 24 hours x 0.25 kW/sq.m average insolation = 2190 kWhs of electricity per $1000 of module cost.   In addition to the cost of the PV cell module there are the costs of the support structure for the module and the wiring and controls needed to run the module and collect the electricity generated, these costs are usually called balance of system costs or BOS costs. For hydrogen production there is no need for an expensive current inverter to be included in the BOS costs because the electrolysis of water requires direct current and PV cells produce direct current. Also land values in desert areas can be set at zero. The BOS costs for PV electricity for hydrogen production would be an extra US$500 per peak kW So the capital cost of a 1.0 kW peak module plus BOS costs is US$1500 Current PV cells have a life of 20 years so the capital plus interest cost of a 1 kW peak module plus BOS costs would be of the order of US$150 per year (depending on interest rates). As already explained a 1 kW peak cell will produce 2190 kWhs of electricity in one year in North Africa, therefore the cost of the electricity will be approximately: US$150 x 100 / 2190 = 6.8 cents per kWh.   = 4.3 pence per kWh. The spark spread is calculated on the basis of theoretical gas income of a gas fired power plant for electricity generation , the fuel is gas and is used through the purchase of the input for generation of electricity . All other related cost for the maintenance , operation and capital is included in the overall cost of the output that is electricity. The term dark spread is the difference between cash stream used for the purchase of fuel that is coal, for the generation of electricity in coal fired power plants. The cost of the electricity is similarly calculated on the basis of the prices of coal as input for electricity generation as available in the energy market. Many of the world’s countries are using gas as well as coal as fuel for generation of electricity for their domestic uses. The price of the electricity is determined by considering all the options available for generation of electricity in the country. The composition of the type of fuel used for electricity generation is essential for determining the price for marketing and supply to the customers. Spark-spreads – the gap between fuel and power prices, the term ‘spark-spread’ refers to the income of a power plant from selling a unit of electricity, having bought the fuel required to produce this unit of electricity have not been found. Conclusion Electricity generation remained 16424 billion Kilowatt Hours in the year 2004 and the current socio economic uplift and steady progress at the global level has shown that the trend will continue in the coming two decades. In the year 2020 it is expected that 24959 billion Kilowatt Hours electricity will be required to cater the needs of the customers and similarly in the year 2030, an electricity to the tune of 30364 billion Kilowatt Hours will be required. Electricity generation will be a mixture of its basic sources. The current trend as based on oil, nuclear renewable natural gas and coal will continue however a steady increase will be observed in the production of electricity through natural gas and coal, the later will be the major contributor in the electricity generation. References: 1. Bassett Glenn, (1992) Operations Management for Service Industries: Competing in the Service Era: Quorum Books: Westport, CT. 2. Beach Lee Roy, (1996) Decision Making in the Workplace: A Unified Perspective: Lawrence Erlbaum Associates: Mahwah, NJ. 3. Casson Mark, (2001) Information and Organization: A New Perspective on the Theory of the Firm: Oxford University Press: Oxford, England. 4. Ford B. John, D. Honeycutt & Simintiras C. Antonis, (2003) Sales Management: A Global Perspective: Routledge: London. 5. Imundo L. V. (1980). The effective supervisor’s handbook. New York: AMACOM 6. Minkin Lewis, (1991) The Contentious Alliance: Trade Unions and the Labour Party: Edinburgh University Press: Edinburgh. 7. Tracy Lane, (1994) Leading the Living Organization: Growth Strategies for Management: Quorum Books: Westport, CT. 8. International Energy Agency, World Energy Outlook 2006 (Paris, France, November 2006), p. 431. 9. Global Insight, Inc., “OPA Recommends Canadian Province of Ontario Keeps Coal-Fired Power Plants Open Until 2014”, web site www.globalinsight.com. 10. Hydro Quebec Production corporate web site, Eastmain-1-A Powerhouse and Rupert Diversion: Information Document, web site www.hydroquebec.com/en/. Read More