Outsoucing Power Sector
Outsoucing Power Sector
Outsoucing Power Sector
Energy) and Pratik Kadakia (Practice head Chemical & Energy) from the Tata Strategic
Management Group
Indian power sector is witnessing significant capacity addition by the private sector. Facing an acute
Introduction
are contributing to growth of power O&M services
shortage of trained technical manpower, new private players may find it difficult to efficiently run
Globally, the electrical power industry has changed
market globally.
the power plants on their own. Such players are increasingly thinking about outsourcing and this
radically over the last two-three decades as a
trend is increasingly becoming visible. Can outsourcing of power O&M activities become a
result of regulatory and technological changes.
We could expect to observe a similar trend in
significant opportunity going forward? Views shared by Shardul Kulkarni (Principal
This has allowed many new investors (mostly in
India. Apart from the global drivers such as cost
Energy) and Pratik Kadakia (Practice head Chemical & Energy) from the Tata Strategic
the private sector) to enter the market. In the
and risk mitigation, there are certain India specific
Management Group
modern competitive industry, asset owners face
drivers which make the case for outsourcing
risks and uncertainties related to plant Operation
power plants.
The
first
phase
of
growth
in
Total
capacity 1
173
191
209
231
255
through
enhanced
Page 1
Apart
from
the
few
established
IPPs
like
outsource
O&M
activities
going
forward.
O&M services
Other
imports
12%
China
38%
Domestic
50%
Total: ~92 GW
Source: Secondary research, Analysis by Tata Strategic
7.0
5.8
IXth Plan
Xth Plan
XIth Plan
quickly
presence.
Page 2
in
the
Also,
absence
the
cost
of
of
significant
such
local
services
volumes.
Magnitude of Opportunity
Conclusion
A wave of O&M outsourcing is quite visible in
providers.
There
are
obvious
challenges
of
Mindset to outsource
Complete
outsourcing
of
O&M
activities
is
Page 3
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