Energy Plan for India

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ENERGY PLAN FOR INDIA:

OVERVIEW OF THE COAL AND

RENEWABLE ENERGY SECTORS

Domakonda Akhileh Redd!

A thesis presented to the faculty of the School of Engineeringand Computing Sciences, New York Institute of Technology,

in partial fulfillment of the requirements for the degree of

aster of Science in Energy anagement!

"#$%

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Ta"le o# $on%en%

Pa&e

&ist of Ta'les (

&ist of figures (

Acknowledgement )

E*ecuti+e summary %

$! Introduction and ackground -

"! Energy .olicy /ramework $)

(! 0+er+iew of Energy Sector (1)! .ower Sector )"

%! Coal Sector 2#

2! 3enewa'le Energy Sector 1(

1! Challenges ---! Conclusion 4(

3eferences 4%

i'liography 415e'sites $#"

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LIST OF TABLES

$! Statewise Estimated 3eser+es of Coal in India 2(

LIST OF FIG'RES

$! Energy .roduction 6T0E7 comparison 'etween $44# and "##4 (4

"! Top Countries with highest Installed - .ower Capacity in "#$" )"

(! Top ten States 'y installed capacity, "#$" 6857 %#

)! /uel Consumption in 3ural and 9r'an India 6per $### people7 -(

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AC(NOWLEDGE)ENT

I would like to take this opportunity to thank professor 3o'ert N!

Amundsen, my thesis ad+isor for ha+ing pro+ided me with the wonderful

and useful ad+ices during my thesis work! Thank you for guiding us!

I would also like to thank my friends who were +ery supporti+e in

pro+iding me with useful data and information!

I would like e*press my deepest sense of gratitude for the people

who ha+e guided me and constantly 'een with me throughout thesis work!

5ithout their guidance, I could not ha+e accomplished all that has 'een

presented here after!

I highly appreciate all the help and support pro+ided 'y these people,

thank you so much!

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E*ecuti+e Summary

any policy reforms o+er the past "# years ha+e transformed

India:s Energy sector from a primarily go+ernment;owned system towards

one 'ased on market principles, offering equal chances to 'oth pri+ate

sector as well as pu'lic sector! .olitical complications, howe+er, 'locked

the complete li'erali


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ore dependency on imports is making India +ulnera'le to more

geopolitical risks, changing world market prices and se+ere international

competition! India should check its current energy policies in support of a

comprehensi+e and clear;cut policy that encourages economic and social

de+elopment through relia'le energy supplies! There are si* challenges

that needs to 'e checked to support a well;functioning and financially;

sound energy market in India, and they are>

The financial power of India:s power sector should 'e impro+ed> Energy

companies needs to 'e economically strong, with access to sufficient

financial resources! Their administrati+e independence from central or

state ministries is necessary for timely in+estment! Administration must 'e

a'le to freely operate 'ased on sound market analysis and economic

discussions! These companies should allow to cling to the latest energy

technology and impro+e their administrati+e e*pertise!

.ricing system in the power sector must ensure market situation> .resent

price setting mechanism, which in reality is determined 'y the

go+ernment, should 'e changed! Energy managers should 'e authori


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sustaina'le energy future! aking the necessary schemes, which may also

include mo+ing away from import su'stitution policy, will help in

attracting much needed financial in+estment and to compete

internationally for in+estment!

8rowth in effecti+e e*ercise of energy policies is needed 'y the

impro+ement of 'ureaucratic and managerial processes to ensure in time

completion of energy pro@ects! oreo+er, coordination 'etween central

and state go+ernments should 'e impro+ed!

Strong and consistent energy policy is important to design and direct

India?s energy sector and assure in+estment! India?s main policy goal to

pro+ide energy at afforda'le price to the poor should 'e followed

separately 'y go+ernment:s supporti+e programs, which should not hinder

the financial decisions and administrati+e practice of energy companies!

Strong political will is necessary successfully cope with energy sector

challenges> India should finish their unfinished energy reforms 'ased on

market principles!

Chapter $

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Introduction and ackground

A +ery quickly increasing demand for energy and growing concern

a'out economic and en+ironmental consequences call for effecti+e and

thorough energy administration! To apprehend the working of the energy

policy structure administrating India:s energy sector, it is important to

understand the policy o'@ecti+es and reference in which they are placed!

There are three main energy policy o'@ecti+es which are pursued 'y the

Indian go+ernment and they are>

Access to energy is the prime goal in India:s energy policy making, as

nearly $)thof the population lacks access to electricity! Energy safety is compelled 'y increasing dependence on imported fuels,

which is important to meet the India:s huge energy demand! India is working hard to the mitigation of the climate change, e+en though

remo+ing energy po+erty and assuring economic and social de+elopment

remains a top priority!

/ulfilling the a'o+e mentioned o'@ecti+es is not an easy task to

accomplish, as they can conflict against each other!

A strong and sustaina'le energy sector in India is crucial to

continue the acti+ity of Indian economy! This is also important to the

prosperity of the glo'al economy!

$!$ Country ackground

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India has the world:s second largest population of $!"1 'illion in

"#$% 6Current Census7$and world:s se+enth largest landmass! The Indian

su'continent is located in Southern Asia, 'ordering the Ara'ian Sea and

ay of engal! It is ethnically and religiously di+erse society with "(

official languages, while English is the secondary official language! India

has accomplished fast and remarka'le economic de+elopment in the past "

decades and 'ecame tenth largest economy in "#$$! 5ith its relati+ely

young population with an a+erage age of "2 years, India is e*pected to

take o+er China in terms of population 'y "#"%! Bence, India is arising as

one of the most acti+e economic powers of the world! Yet there are some

conflicts and complications that are assumed as considera'le challenges

that we need to o+ercome like> A democratic political system co;e*isting

with an economy with traces of socialism and a widening gap 'etween

ur'an and rural areas as well as among states!

*+, Poli%i$al S!%em

India is a federal democratic country 'ased on a parliamentary

system! The president is the head of the state and the prime minister is the

head of the go+ernment! India has a dual parliamentary system> The

council of states, or 3a@ya Sa'ha, with mem'ers chosen 'y state ministers

$! http>www!indiaonlinepages!compopulationindia;current;population!html

and regional assem'liesD and, the Bouse of .eople, or &ok Sa'ha, with

mem'ers elected 'y popular +ote! The .resident is the supreme

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commander of the armed forces and has the power to appoint the prime

minister and the council of ministers 'ased on ad+ice of the prime

minister! ay;to;day policy making is undertaken 'y the prime minister

who allocates positions within the ca'inet! The election cycle for

parliament is fi+e years!

The most important thing to appear in the last decade in India?s

politics is the switch from a one;party dominated go+ernment to a multi;

party coalition system! Since Independence in $4)1, The Indian National

Congress party portrayed a commanding role in politics until it was 'eaten

'y the hartiya =anata .arty 6=.7 in $444, a milestone in Indian politics!

Since $444, no party has 'een strong enough to form a ma@ority in &ok

Sa'ha on its own! Therefore, Congress and =. ha+e played ma@or roles at

the national le+el 'y forming and leading their own coalition! The

Congress party leading the 9nited .rogressi+e Alliance 69.A7D and, =.

leading the National emocratic Alliance 6NA7, and the ma@ority in the

.arliament at the moment! IN "#$) assem'ly elections, when =.;led

NA won the elections, the coalition go+ernment was consisting of ""

parties, while 9.A consisted of only $$ parties! These small parties ha+e

come out as an important part of India?s political outlook, 'ut are highly

di+ided with geographical, ethnic or on caste 'asis! They also aim to focus

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on regional and 'iased issues rather than national issues"! Still, state;'ased

parties usually ha+e large influence on national le+el politics 'eyond their

states!

(

As a federal union of states, India consists of "- states and se+en

union territories! The central go+ernment, is formed with e*ecuti+e,

legislature and @udiciary 'ranches! The states form their own e*ecuti+e

'ody under the Chief inister and legislati+e assem'ly and courts! The

union territories are go+erned 'y an administrator appointed 'y the

president and are under greater control 'y the central go+ernment! Indian

constitution di+ides the responsi'le areas 'etween central and state

go+ernment! Areas for which the constitution assigned shared

responsi'ilities are called concurrent list! As 'oth state and central

agencies are +ested with the power o+er the same su'@ect, this pro+ides the

possi'le cause for conflict! In case there is a conflict on a concurrent

su'@ect of national importance, the central law pre+ails o+er the state laws!

*+- E$onomi$ De.elo/men%:

5ith nominal 8ross omestic .roduct 68.7 of 9S ",#)1!-

"! The Economist newspaper, FElection trends in India: the general election has highlighted new

trends in politics in IndiaF, .u'lished on ay $$, "##4, we' page accessed on /e' $", "#$%

http>www!economist!comnode$(2(4#1#

(! ertrand &efe'+re and Cyril 3o'in, FPre-electoral Coalitions, Party System and Electoral

Geography: A decade of General Elections of India (1-!""#F, E;'ook accessed on /e' $(,

"#$% http>sama@!re+ues!org"14%

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'illion, India is the $#th largest economy in the world in "#$))! In terms of

.urchasing .ower .arity 6...7, India is ranked third after The 9nited

States of America and China with ... of 9S 1,"11!( 'illion %! Bowe+er,

India?s nominal per;capita income of 9S ),#11 remained much lower

than other large economies!

The Indian economy is changing towards a free market economy,

although with the footprint of a socialist economic model! oti+ated 'y

So+iet 9nion, after independence Indian policy makers introduced many

democratic aspects into the Indian economy, including central planning,

large pu'lic sectors, an import su'stitution way and strict go+ernment

orders, which led to high incompetence in the economy! Indian economic

growth stood still around (!% to )G per year until ma@or economic reforms

'egan in $44$2! The economy has ele+ated at an moderate proportion of

appro*imately 1G since "###! In 'etween, the international economic

collapse in "##-, the Indian economy rapidly 'ounced 'ack and increased

o+er 4G 'etween "##4 to "#$#!

In an array of economic reforms carried out, during the whole of

the $44#s and "###s, the most important is the industrial reform, or often

)! http>knoema!comnwnfkneworld;gdp;ranking;"#$%;data;and;charts!

%! http>www!statista!comstatistics"2(112gross;domestic;product;gdp;per;capita;in;india

2! ontek Singh Ahluwalia, FEconomic $eforms for nineties%, /irst lecture speech gi+en at

9ni+ersity of 3a@asthan, India in $44%, 5e' page accessed on /e' $(, "#$%http>planningcommission!go+!ina'outusspeechspemsamsa#((!pdf

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called New Economic .olicy, created in $44$! uring India?s 'alance of

payment emergency and following interference of International onetary

/und 6I/7, the Indian go+ernment released a statement on Industrial

policy, which led to> the elimination of the industrial accreditation for all

industriesD the sanction of /oreign irect In+estment 6/I7 up to %$G

foreign equity in high priority industriesD automatic consent for technology

agreements related to high priority industriesD reform and dispossession of

pu'lic sector companies, and the modification of India?s anti;competiti+e

law ; onopolies and 3estricti+e Trade .ractices Act

1

! Thereupon, all

through the $44#s, pri+ati


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Chapter "

Energy .olicy /ramework

The Indian 8o+ernment plays an important role in the energy

sector through state;owned companies, pu'lic policy and market

go+ernance! To hold the network dynamics in India?s energy policy

framework, understanding not only the indi+idual role of each ministry

and go+ernment agency 'ut also their communication and coordination

with other energy 'ased entities is essential! In addition, some of the main

ideas and themes that dri+e energy policy discussion in India should 'e

taken into consideration!

,+* Poli$! O"0e$%i.e

There are three ma@or energy policies that India follows and they

are> energy access, energy security and mitigation of climate change! All

of the three o'@ecti+es are closely related to each other, 'ut sometimes

clash with one other and are deri+ed from the reality of India! Bence, it is

challenging for India to maintain a 'alanced approach in chasing of all

three a'o+e mentioned policy o'@ecti+es!

,+*+* Ene1&! A$$e:

Appro*imately one;quarter of the population of India lacks access

to electricity! It is su'stantial to comprehend this distincti+eness of India?s

energy situation where most of the potential energy demand still remains

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unmet, unlike most de+eloped countries where energy demand has reached

or close to saturation stage! Indian go+ernment realiplanningcommission!nic!inreportsgenreprepintengy!pdf

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/rom this definition, India?s attention for energy security is threefold>

/irstly, India insists that energy is a help to all citi


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o'@ecti+es! They are implanted in certain Indian historical and cultural

traditions! /irst in the ranks, are the ideas of India:s first .rime inister,

=awahar &al Nehru, who was the key planner of India:s political and

economic format! Bis dream for pan;Asian agreement and the non;

alligned mo+ement in $4%#s and $42#s was 'ased on important

assumptions, including non;interference in internal affairs and equality

and mutual 'enefits! Be was also dedicated to ad+ocate self;dependence

and chose import su'stitution as an economic strategy!$#

,+,+* Sel# S2##i$ien$!

Self Sufficiency or energy independence is a common motif in the

energy policy dialogue in India$$

! This is a +alua'le approach in

understanding India:s path to energy security! Although, India has chosen

a game plan for supply or fuel +ariety to impro+e energy security, it has

esta'lished a stronger importance on ma*imum usage of domestic sources,

including hydrocar'on, thorium and renewa'les! In "##1, former .resident

r! A.= A'dul alam disclosed an am'itious plan to reali


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independence 'ased on hydro, nuclear and renewa'le energy, stating that

7We need %o &1ad2a%e #1om ene1&! e$21i%! %o ene1&!

inde/enden$e!J$"

Still, the quest for self;sufficiency led to IndiaQs ongoing o+er;dependence

on state owned 'usinesses in the energy sector, which was recogniarchi+e!financiale*press!comnewsits;a'out;time;india;gained;energy;independence;president;kalam"#")14

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,+,+- In$l2i.e De.elo/men%

The concept of inclusi+e de+elopment can 'e 'roadly defined asR8rowth

coupled with equal opportunitiesJ$(! Also called inclusi+e growth,

inclusi+e de+elopment came into sight frequently in recent policy

documents and policy discourse, which is deri+a'le to the e*panding

income equality in the country notwithstanding economic de+elopment!

,+- Poli$! #o1 Ene1&! E##i$ien$! and Demand Side

)ana&emen%

The significance of energy efficiency and emand Side

anagement has apparently appeared from the different supply scheme

and is emphasi


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unit produced, as it sa+es on production losses, transport, and transmission

and distri'ution losses! Thus a RNegawatt 6a negati+e egawatt7J,

produced 'y reduced energy need sa+es more than a egawatt generated!

In $44#s se+eral studies ha+e supposed the promising and cost

effecti+eness of energy efficiency and emand Side anagement in India!

In spite of these promising studies, the real implementation has 'een slow!

The -th/i+e Year .lan made an arrangement of IN3 $,### crores for

energy efficiency to contri'ute addressed energy sa+ings of %,### 5 and

2 million tons in the electricity and petroleum sectors respecti+ely!

Bowe+er, this money was not surely spent for this purpose! A re+iew of

-th fi+e year plan performance does not e+aluate actual costs and sa+ings

achie+ed! The 4th /i+e year plan proposed the passing of the Energy

Conser+ation Act and esta'lishing the ureau of Energy Efficiency!

The $#th

/i+e Year .lan introduces criterion of the hydrocar'on

sector against the rest in the world! It also standardi Site of

.lanning Commission of India7!

To sa+e .etroleum products .etroleum Conser+ation 3esearch

Association 6.C3A7 was esta'lished 'y inistry of .etroleum and

Natural 8as in $41-! The ureau of Energy Efficiency 6EE7 was

esta'lished under the Energy Conser+ation Act, "##$ with effect from $st

arch, "##" under the inistry of .ower 60.7! The aim of EE is to

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make policies and strategies on self;organi


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Boo% '1"an )a T1an/o1%: oost ur'an mass transport 'y supplying

quality ser+ices which may 'e partly financed 'y commanding congestion,

pollution and parking charges on those who use personal motor transport!

F2el E##i$ien% Vehi$le: .romote hy'rid +ehicles in India, which are

internationally already commercial! Also 'oost +ehicles to use ethanol

'lended fuels!

P1omo%e &1id in%e1$onne$%ion #o1 $o8&ene1a%o1: Implement

compulsory purchase of electricity at fi*ed prices from co;generators 'y

the grid to 'oost cogeneration!

A%%em/% E##i$ien% Li&h%in& Ini%ia%i.e:Applica'ility of efficient lighting

initiati+es should 'e launched in towns and cities! Ser+ices should include

warranties 'y manufacturers, deferred payment through utility 'ill sa+ings!

)akin& Ene1&! A2di% $om/2lo1! #o1 all load a"o.e * )W: Energy

Audit should 'e done frequently and should 'e made compulsory for

pu'lic 'uildings, large organi


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renewa'le is the high unit cost at present, correlated with other

con+entional sources! Still, unit cost of renewa'le energy, nota'ly solar

energy, are coming down and the minimal cost of con+entional energy

'ased on fossil fuel is likely to remain high and rise! These show us that

nearly in ne*t 1 to - years the unit price of these renewa'le energy sources

like wind and solar may come close to the unsu'sidi


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wind potential is mainly limited to the wind resource rich states of Tamil

Nadu, aharashtra, 8u@arat, arnataka, 3a@asthan, Andhra .radesh and

adhya .radesh! The states of 8u@arat and 3a@asthan ha+e e*cellent solar

radiation and the other suita'le places for solar power are Andhra .radesh,

Tamil Nadu, arnataka, adhya .radesh, aharashtra and 0rissa and so

on! &ikewise, small hydro power potential is mainly a+aila'le with the

Bimalayan states and north eastern states! The infrequent nature of Solar

and 5ind .ower in the a'sence of an adequate 'alancing mechanism

limits the fle*i'ility of the state grid to a'sor' this power! Pa2$i%! and Hi&h Co% o# 1emo.al in#1a%12$%21e: Application of

fluctuating renewa'le energy needs a potent transmission infrastructure

from remotely locating generating plants to the load centers! Additionally,

@oining geographically scattered renewa'le energy sources to lower the

fluctuation requires much larger, smarter and upgraded transmission

network!Admini%1a%i.e I2e:3enewa'le energy, particularly solar, is somewhat

costlier than con+entional power, thus making its acceptance 'y the cash;

star+ed utilities difficult unless it is incenti+i


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risk seen 'y financers for renewa'le pro@ects makes approach to low cost

and long term funding difficult!

The following are some of the new initiati+es in the area of

renewa'le energy>

Na%ional In%i%2%e #o1 Sola1 Ene1&!: The current solar energy center

would 'e changed into an autonomous institution for endea+oring applied

research, demonstration and de+elopment in solar energy including solar

hy'rid areas!

Na%ional Bioene1&! Co1/o1a%ion o# India: National io Energy

Corporation of India 6NECI7 will 'e set up to enforce 'ioenergy mission

including cook sto+e programme!

Rene3a"le Ene1&! De.elo/men% F2nd:In order to address the financing

cur' for the grid connected as well as off grid applications of renewa'les,

it is proposed to create a 3enewa'le Energy e+elopment /und! The fund

will stop the gap 'etween the sector financing needs and the amount that

falls short of the 'anks responsi'ility to their lending to this priority sector! Na%ional Bio8ene1&! )iion:iomass energy for electricity generation

has turned out to 'e one of the most attracti+e source of power which is

scala'le, has the largest potential for impro+ing energy access and which

can 'e linked to generating additional rural income! In +iew of the success

of such 'iomass 'ased off grid renewa'le models in rural areas of ihar, It

is proposed to launch the iomass ission with an o'@ecti+e to create a

policy framework for attracting in+estment and to and to aid 'risk

de+elopment of commercial 'iomass energy market 'ased on application

of e*cess;residues and de+elopment of energy plantations!

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Rene3a"le Po3e1 E.a$2a%ion In#1a%12$%21e:Special importance will

'e placed on creating e+acuation infrastructure and transmission facilities

for renewa'le power in a time 'ound manner to support the large

e*pansion in consumption and production of renewa'le power!

Na%ional Bioma Cook S%o.e P1o&1amme: The proposed initiati+e

plans to generali


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Impro+ements in wind tur'ine technology and its installations at

higher hu' heights are working towards introduction of higher capacity

tur'ines! At the higher hu' heights, wind potential is estimated to 'e

considera'ly higher compared to the normal wind tur'ines at )# ; 2;

meters hu' heights! It is estimated that a+erage capacity factor in 9SA has

shown an increase of "%G ; (#G o+er last $# years period!

,+ )ai.e Th12% To3a1d ,9;< Po3e1 #o1

Common )an

6An e;'ook released 'y inistry of .ower, Coal and New M

3enewa'le Energy under the leadership of Hon="le P1ime )ini%e1 Sh1i

Na1end1a )odi >ishowing new initiati+es and achie+ements for "#$(;

"#$%!7

)ain O"0e$%i.e:

Afforda'le, ")1 power to all households, industrial and commercial

esta'lishments!

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Adequate power to agricultural sector!

)a0o1 Ini%ia%i.e and A$hie.emen%:

A grant of IN3 $!$ &akh crore gi+en 'y central go+ernment for ")1

afforda'le power to rural and ur'an India!

There was an increase of $%!-G in thermal 'ased electricity generation in

=une ; No+em'er "#$) as compared to =une ; No+em'er "#$(!

An addition of %#G capacity from =une ; No+em'er "#$) as compared to

=une; No+em'er "#$(!

#G of defect de+elopment and $##G sa+ing the en+ironment!

ou'ling the coal production to $## crore tons 'y "#"#! 8eneration of $##,### 5 and 2#,### 5 of electricity from solar and

5ind energy respecti+ely 'y "#"#!

$ crore 'ul's in New elhi will 'e replaced with &E?s within $ year!

IN3 $# &akh Crore is to 'e in+ested in renewa'le energy sources!

ifferent states will get IN3 1 &akh Crores from coal auctions!

A grant of IN3 1,1## Crore from Central 8o+ernment for comprehensi+e

upgradation of New elhi?s power infrastructure!

Go.e1nmen% )a0o1 S%e/ %o3a1d Coal /1od2$%ion:

ou'ling India?s coal production in ne*t % years from %# crore tons

presently to $## crore tons 'y "#$4 ; "#"#, 'y following ma@or

in+estments>

$! A grant of IN3 %,### crores from central go+ernment for new

railway rakes and e*pediting ( railway lines 6"# crores tons7, for 'etter

e+acuation of coal!"! In+esting in technology, equipment moderni


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Crisis due to cancellation of "#) 'locks 'y hon?'le Supreme Court sol+ed

within $ month ; in future, 'locks to 'e gi+en to pri+ate parties, only 'y e;

auction to ensure full transparency!

Auctions process ensures that power prices do not go up, in fact will

mostly reduce!

Im/1o.emen% o# T1anmiion and Di%1i"2%ion S!%em:

Two schemes formulated, appro+ed and already 'eing implemented in

record % months ; Deen Da!al '/adh!a! G1am >!o%i Yo0ana

?DD'G>Y@ for rural areas and Integrated .ower e+elopment Scheme

6I.S7 for ur'an areas!

/armers to get power on a separate line!

/or rural homes and small scale industries, there will 'e a separate line for

")1 power!

)#,### 5 of rooftop solar will 'e set;up in % years!

New lines and high capacity transformers to ensure uninterrupted power

supplies in homes! All homes will ha+e meters, factories and large consumers will ha+e smart

meters in % years!

urnt out transformers and low capacity su'stitutions will 'e replaced

with modern equipment!

Central 8o+ernment will gi+e IN3 $#4,### crores grant for all a'o+e

works to states within ne*t ( years!

"# year plan for fully integrated transmission network M ")1 plan for

e+ery state is 'eing prepared!

&ong pending transmission pro@ects worth IN3 (%,### crores cleared!

Accelerated work on green energy corridors to carry the renewa'le energy

generated!

IN3 $#,### crores for - North;Eastern states for new power lines!

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G1id Se$21i%!:

Amendments to Electricity Act under appro+al of .arliament to tighten

grid security, to a+ert a "#$" like grid collapse and 'lackout!

FSpinning 3eser+eF 'eing created for meeting peak load shortages and

grid sta'ility! 6Spinning reser+e is the e*tra generating capacity that is

a+aila'le 'y increasing the power output of generators that are already

connected to the power system!7

IN3 -,2## crores 'eing spent for protection system for safety and security

of the grid!

Im/1o.emen% in P1i$in& S!%em:

Electricity Act 'eing amended to create competition and allow consumer

to choose supplier for lower tariffs and 'etter consumer ser+ice!

Clamping down on power theft and local theft will lead to lower tariffs!

Increased coal 'ased power generation will 'ring down tariffs!

Transparent auctions will see power tariffs come down! oreo+er, Coal

generating states stand to gain atleast IN3 1 &ak Crores through proceeds

from auctions and allotments of coal mines!

Supply of coal from nearest mines will reduce transportation costs 'y IN3

2,### crores, reducing tariffs! Already one e*change 'etween National

Thermal .ower Corporation 6NT.C7 and 8u@arat State 8o+ernment sa+ed

IN3 (## Crores for the customers!

0ld and inefficient plants will 'e replaced 'y modern plants to reduce coal

consumptions and therefore lower power tariffs!

Ene1&! Se$21i%!:

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5ith increased coal production, country will not 'e dependent on import

of thermal coal!

Buge thrust on Solar, 5ind and Bydel power!

Efforts to quickly restart hydro pro@ect stuck up for a long time ; like

Su'hansari 6&ower7, Teesta etc!

udget for renewa'le sector increased 'y 2%!-G in the first half itself

$! New scheme to install $##,### solar pumps for farmers and

drinking water schemes 'eing installed!"! Solar power plants on canals!

(! "#,### 5 solar power 'eing setup in "% ultra mega solar power

parks ; land for $$,### 5 in $2 parks already identified!

Accelerated epreciation 6A7 gi+en to 'oost wind power! 6Accelerated

epreciation refers to any one of the se+eral methods 'y which a company

depreciates a fi*ed asset in such a way that the amount of depreciation

taken year is higher during the earlier years of an assets life!7

New renewa'le energy policies 'eing announced to force solar and wind

power!

P1io1i%! #o1 Dome%i$ Pla!e1:

IN3 $##,### crores worth orders 'eing placed 'y National Thermal .ower

Corporation 6NT.C7, Coal India &imited, Energy Efficiency Ser+ices

&imited, powergrid Corporation etc! to 'oost local manufacturing!

&arge orders 'eing placed on local manufacturers for domestic solar and

wind energy to make them price competiti+e 'y increasing capacity and

getting world class technology!

efence esta'lishments will 'uy (## 5 solar plants!

31


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Bo1de1 and S/e$ial S%a%e:

8rant of IN3 4,-2% crores for upgrading and strengthening power systems

in - North;eastern states 6Arunachal .radesh, Sikkim, Assam, anipur,

eghalaya, i


33/101

In%e&1a%ed Ene1&! Poli$! ,:The Integrated Energy policy is the first

'road and complete energy policy 'y the Indian 8o+ernment and manages

all energy sectors! The .rime inister super+ised the .lanning

Commission Fto form an e*pert committee to prepare an integrated energy

policy linked with sustaina'le de+elopment that co+ers all sources of

energy and addresses all aspects of energy use and supply including

energy security, access and a+aila'ility, afforda'ility and pricing, as well

as efficiency and en+ironmental concerns!F$)

The committee was setup in

"##) and the draft report was released in "##2 and the ca'inet appro+ed

$)! .lanning Commission, 8o+ernment of India, FIntegrated Energy Policy, $eport of 'he Epert

Committee%.u'lished on #-;#4;"##2, New elhi, India, 5e' page accessed on /e' "", "#$%,

http>planningcommission!nic!inreportsgenreprepintengy!pdf

the report in ecem'er "##-!0ne of the ma@or important features of the Integrated Energy

.olicy is the focus on assuring the changeo+er to market economy where

pri+ate companies 'attle on a fair foothold with the pu'lic companies! It

emphasi


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The Indian go+ernment implements economic plans through fi+e;

year plans that are de+eloped, e*ecuted and monitored 'y the .lanning

Commission! 5hen it comes to energy, the fi+e;year plan has a direct

impact on energy sector de+elopment as it lays out energy demand

pro@ections and key issues! The first fi+e year plan was introduced in $4%$!

The first - fi+e year plans largely focused on growing the pu'lic sector

with huge contri'ution on 'asic and hea+y industries, particularly the

power sector!

8enerally, setting the 8. growth rate has 'een the central o'@ecti+e,

although official targets set in the fi+e year plan are often not achie+ed!

The a+erage annual growth rate for the $$thplan is e*pected to 'e -!"G as

compared to the official target of 4G!

Na%ional A$%ion Plan on Clima%e Chan&e

The National Action .lan on Climate Change 6NA.CC7 was

adapted under the direction and counseling of the Bon?'le .rime inister?s

Council on Climate Change and was launched in "##- to achie+e a

continuous growth that together approaches economic and en+ironmental

o'@ecti+es!$%

The NA.CC 'uilt through India?s awareness of the need of

inclusi+e and urgent initiati+es to sermon climate change and

en+ironmental issues at the national le+el!

34


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$%! .ress Information ureau, 8o+ernment 0f India, F. releases National Action .lan 0n

Climate ChangeF .u'lished on #2;(#;"##-, New elhi, India! 5e' page accessed on /e' "(, "#$%!

http>pi'!nic!innewsiteerelease!asp*KrelidL(4-44D

Cha/%e1 -

O.e1.ie3 o# %he Ene1&! Se$%o1

In "##4, India had the third largest energy demand in the world

after China and the 9SA and @ust ahead of 3ussia! As orld Energy

2&tloo/ (E2# !"11shows, India?s energy demand more than dou'led

from ($4 illion Tons of 0il Equi+alent 6T0E7 in $44# to 224 T0E

in "##4! Noticea'ly, India?s per;capita energy consumption is still at a

much lower le+el than that of de+eloped countries and e+en of some

de+eloping countries! India?s per capita energy consumption is #!%-

T0ECapita, compared to the world a+erage of $!-, 0EC 60rgani


36/101

signifies that India?s energy demand still has a long way to reach its

fullness!

-+* Ene1&! )i6

Energy mi* is an o+er+iew of a country?s reliance on each energy

source and indicates a good e*planation to a country?s energy challenges!

$2! International Energy Agency, Fey 5orld Energy StatisticsF, "#$) Edition, 0rganiwww!iea!orgpu'licationsfreepu'licationspu'licationkeyworld"#$)!pdf

since economic reforms in $44$, India has undergone through a significant

shift o+er its energy mi*! The most eminent change in the country?s energy

mi* later then, was the switch from 'iomass to other energy sources,

mainly coal! The contraction of 'iomass use coe*ist with India?s economic

de+elopment and increasing ur'ani


37/101

-+, Se$%o1al Ene1&! Demand:

Sectoral energy demand demonstrates the economic design of a

country! In $44#, 'uilding sector was India?s largest energy consumer,

representing )"G of India?s total primary energy demand, using 'iomass

as the main fuel! The contri'ution of 'uildings dropped to "4G in "##4

and will further decrease to $-G in "#(%! The industry sector used nearly

""G of total primary energy demand in $44# and will remain same until

"#(%!$1

The energy sector has 'een the dominant force 'ehind energy

demand growth in India! It?s portion increased from "(G to (-G of total

primary energy demand from $44# to "##4! This was deri+a'le to

towering demand for electricity for industry uses and

residentialcommercial acti+ities! 5ith this trend, the proportion of power

sector will continue growing to almost )"G in "#(%! The transport sector

showed -G of energy in $44# and will reach $)G in "#(%, a small 'ut

consequential gain, as 4#G of transport energy consumption will 'e 'ased

on oil!

-+- Ene1&! S2//l!

37


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Bousehold energy production in India grew from "4$ million tons

of oil equi+alent 6toe7 in "##4 at a compound annual growth rate

6CA837 of "!4G! iomass was the largest production source with )2G in

$44#, 'ut dropped to ((G in "##4! The highest production capacity 'oost

came from coal production, which increased from $#) toe in $44# to

")) toe in "##4 at a CA83 of )!2G! Coal has depicted nearly %#G of

$1! Sun;=oo Ahn and agmar 8rac .olicies,

.layers and IssuesF, "#$" Edition, International Energy Agency, .aris, /rance! Concerned referenceon page ")! 5e' .age accessed on /e' "1, "#$%!https>www!iea!orgpu'licationsfreepu'licationspu'licationIndiastudy/INA&5E!pdf

/ig $> Energy .roduction 6T0E7 comparison 'etween $44# and "##4

Source> IEA .u'lications, 9nderstanding Energy Challenges in India, "#$"

total domestic energy production! riskly de+eloping fuel is, natural gas,

which e*panded domestic energy production to (- toe in "##4 from $#

toe in $44# at a CA83 of 1G$-

!

-+9 Im/o1% De/enden$e

38


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As the ad+ancement in energy demand eclipsed domestic energy

production, India?s dependence on imported energy aggra+ated! In

'etween, $44# to "##4, as total energy imports increased from () toe to

"(2 toe, India?s import dependency increased from $$G to (%G! The

'iggest source of import increase was crude oil, showing 1#G of the total

increase! India imported only "$ toe of crude oil in $44#, 'ut its reliance

$-! Sun;=oo Ahn and agmar 8rac .olicies,

.layers and IssuesF, "#$" Edition, International Energy Agency, .aris, /rance! Concerned reference

on page "2! 5e' .age accessed on /e' "1, "#$%!https>www!iea!orgpu'licationsfreepu'licationspu'licationIndiastudy/INA&5E!pdf

on foreign crude oil was already high at 2$G! The definite portion of

imported crude oil reached $2" toe or -$G of India?s crude demand in

"##4! India only imports &N8 and not piped gas!

-+ Ca1"on Emiion

India was the third largest discharger of C0"in the world in "##4,

coming ne*t to China and 9SA and slightly ahead of 3ussia! It?s Car'on

emissions of %4( million tons C0"or "!-G of glo'al emissions in $44#,

almost tripled to $,%)- million tons C0"or %!)G in "##4, which increased

to "!2 'illion tons in "#$(! This increment is much taller than the world?s

a+erage, India?s emissions 'etween $44# and "##4 grew 'y Compound

Annual 8rowth 3ate of %!"G against $!1G for the world!

As per New .olicies Scenario 6N.S7, a new policy section released

under 5orld Energy 0utlook 65E07 "#$$, India?s car'on emissions rises

to (!% 'illion tons of C0"in "#(% at a Compound Annual 8rowth 3ate of

(!"G, accounta'le for -G of glo'al emissions of )( 'illion tons of C0 "!

39


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ischarge from coal com'ustion would 'e "!" 'illion tons of C0"or 2(G

of India?s total emissions!

Cha/%e1 9

Po3e1 Se$%o1

In India, electricity is still not accessi'le to the entire population,

almost "%G or "!1 'illion Indians lack approach to electricity! As such,

The power sector has 'een at the mean point of India?s energy policy! The

growth of the power sector is closely fi*ed with India?s energy policy

o'@ecti+es of uni+ersal energy access and energy security! India had

already 'uilt the world?s fourth largest installed capacity for power

generation as of "#$( and almost quadrupled electricity generation from

"-4 terawatt hour 6T5h7 to $$#"!4 T5h 6total annual generation of

electricity, including renewa'les and capti+e power plants!7$4

40


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Still, its per capita electricity consumption remains hardly at one fifth of

world a+erage and 1G of 0EC countries le+el, showing definitely the

steep degree of challenges faced 'y the Indian go+ernment in de+eloping

this important sector!

oreo+er, the power sector is a conclusi+e factor in the de+elopment of

India?s energy sector! In "##4, the power sector depicted (-G of T.E,

$4! http>www!tsp;data;portal!orgT0.;"#;CapacityOtspU+Chart

/ig "> Top Countries with highest Installed - .ower

Capacity in "#$" 6857

41


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Source> http>www!tsp;data;portal!orgT0.;"#;CapacityOtspU+Chart

this contri'ution is e*pected to increase to )1G in "#(% 65E0, "#$$7! /or

the a'o+e reason, this section 'egins with the power sector 'efore looking

at the other fuel sectors! It studies the ad+ancing efforts of the Indian

42


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go+ernment o+er the past "# years to make the power sector more

aggressi+e and open! Still, central and state go+ernments, makes a

compelling clout on this sector!

9+* Poli$! F1ame3o1k

India?s power sector had 'een a hulking system that was firmly

controlled and ruled 'y +ertically;unified state utilities until economic

reforms 'egan in $44$! The State Electricity oards 6SEs7 regulated the

entire electricity supply chain from generation, transmission to distri'ution

within a gi+en state! Ne+ertheless, a wry tariff arrangement and high

transmission and commercial losses resulted in near 'ankruptcy of the

SEs and lacking and capricious electricity supply!

9+*+* (e! Poli$ie

In the $44#s, a series of power sector reforms made the sector

more open and competing through free trade and 'acking of pri+ate

in+estment! In $44$, independent in+estment was granted for power

generation and distri'ution, while transmission remained closed for

pri+ate presence until $44-! The )e&a Po3e1 Poli$! *was 'rought in

to speed up the +enture in power generation 'y gi+ing plants with a'o+e

$,### 5 capacity additional incenti+es! The .ower Trading Company

was formed to act as an mediator 'etween the pri+ate mega power plants

and the SEs!"#

The Ele$%1i$i%! Re&2la%o1! Commiion A$% *

comprise of the Central Electricity 3egulatory Commission 6CE3C7 and

43


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em'olden the states to 'uild their own State Electricity 3egulatory

Commission 6SE3Cs7 to manage and @ustify tariffs! The significant policy

efforts in the power sector during the $44#s, still, had limited

accomplishments!

9+*+, Ele$%1i$i%! A$% ,-

This act constituted a com'ined policy framework for generation,

transmission and distri'ution, trading and consumption of electricity 'ased

on market 'ased mechanism!

"$

There were % main features of the act>

It em'olden more competition in the sector 'y un'inding SEs into

generation, transmission and distri'ution ser+ices!

Thermal generation and capti+e generation were de;authorised!

Impartial open approach in transmission was allowed to all generators to

assure fairness!

"#! inistry of .ower, 8o+ernment 0f India, FPolicy 3or Setting 4p 2f 5ega Power Pro6ects In

Pt SectorF, .u'lished on $$;$#;$44%, New elhi, India! 5e' page accessed on arch ", "#$%,

http>powermin!nic!in.olicy;Setting;ega;.ower;.ro@ects;.+t;Sector!

"$! inistry of &aw and =ustice, 8o+ernment 0f India 6ia The 8aaptel!go+!inpdfTheG"#ElectricityG"#Act"##(!pdf

Compulsory metering, harsh punishment of electricity theft and multi;year

tariffs were introduced to cur' financial losses of SEs!

The act included an acquisition agreement of renewa'le 'ased electricity!

The act also authori


45/101

programmes to carry out the directi+es of the electricity act "##(!""

It

focused on issues including rural electrification, reco+ery of cost of

ser+ices and targeted su'sidies and energy conser+ation! The Na%ional

Ta1i## Poli$! ,, aimed to 'olster the financial acti+ity of the sector and

to attract in+estments! It guaranteed a $2G rate of return on in+estment

from "##$ to "##) and $)G return for "##) onwards!"(

9+*+- 'l%1a )e&a Po3e1 P1o0e$% ?')PP@ ,

Started in "##% to e*pedite power capacity growth, 9..s are

coal;'ased power plant pro@ects with o+er )### 5 capacity using

supercritical technology and awarded through competiti+e tariff 'ased

""! inistry 0f .ower, 8o+ernment of India 6ia The 8a


46/101

procurement of land, acquiring coal 'locks, getting en+ironment, forest

and water appro+als and arranging the sale of power contract!

The first 9.. 'y TATA .ower in undra, 8u@arat, was

felicitated in "##1"%

leading to the authoriwww!powermin!nic!inwhatsnewpdfultraG"#megaG"#pro@ect!pdf

"%! hanu hushan and 3! rishnamoorthy, FAdoption of 'ariff for S&pply of Electricity from the

5&ndra 4ltra 5ega Power Pro6ect of Coastal G&6arat Power 0imitedF, .u'lished in "##1, Newelhi, India! 5e' page accessed on arch %, "#$%! http>cercind!go+!in#(#""##1No$-;

"##1!pdf

"2! usiness Standard Newspaper, F'A'A Power Commissions 5&ndra 45PP)s first "" 54nitF, .u'lished on #(;#4;"#$", New elhi, India! E;paper accessed on arch %, "#$%!

http>www!'usiness;standard!comarticlecompaniestata;power;commissions;mundra;umpp;s;

first;-##;mw;unit;$$"#(#4##$#)$!html

Year .lan proposed to electrify $,$%,### un;electrified +illages and "(!)

million .& households 'y "#$"! A large chunk of Indians without proper

supply of electricity fall under .&! ihar, 0rissa, =harkhand and 9ttar

.radesh, constitute 12G un;electrified +illages! 0+er half of all .&

households reside in Andhra .radesh, ihar, =harkhand, 0rissa and 5est

46


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engal! As of end of "#$$, almost 4$G of targeted +illages and 11G of

.& households respecti+ely had 'een electrified!

9+*+ *,%h Fi.e8Yea1 Plan

The Twelfth .lan must push for policy reforms in se+eral areas, the

most important of which are listed 'elow>

3esolution of fuel supply pro'lems related to a+aila'ility of coal and gas

for the plants e*pected to come on stream in the twelfth plan will 'e

critical! The introduction of open access must ha+e top priority! State

8o+ernments, SE3Cs and iscoms need to conform to the Electricity Act

"##( , which prohi'its tariff regulation for consumers of $ 5 and a'o+e!

These consumers must 'e free to purchase electricity through open access

in a competiti+e market!

There is a need to de+elop additional power markets and CE3C should

come out with a framework for implementation of such market! To

facilitate further de+elopment of power market, @urisdiction issues

regarding forward and future market products may 'e clarified in the

policy!

Spinning reser+es need to 'e facilitated for grid sta'ility at the regional

le+el to accommodate infirm renewa'le energy in@ection into the grid!

Suita'le incenti+es for low;cost transmission, linking the renewa'le

energy generation sources, de+elopment of smart grid for e+acuation and

transmission of renewa'le power and creation of spinning reser+es may 'e

done through the National Clean Energy /und!

47


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.ower procurement and allocation of must 'e done in line with the Tariff

.olicy and the Standard id ocuments 6S7 issued 'y 8o+ernment of

India under Electricity Act, "##(! The National Electricity .olicy, "##%

may need to 'e suita'ly amended to ensure State 8o+ernments a'ide 'y

these pro+isions!

Consumer 8rie+ance 3edressal /orum6C83/7 should 'e made a multi;

mem'er set;up comprising representation from all stakeholders!

9+, S2//l!

9+,+* In%alled Ca/a$i%! and Gene1a%ion

In "#$", total installed capacity in India was $44 85 and the

generated electricity 6e*cluding renewa'le7 was -12 T5h in /Y

"#$$$"!

"1

The total installed capacity for electricity generation in the

country has increased from $,)%,1%% 5 as on #(!($!"##2 to ",22,2))

5 as on #(!($!"#$(, showing a CA83 of 1!-)G!"-

oreo+er, there has

'een a growth in generating capacity of "1,(4$ 5 o+er the last one year,

hence, showing a growth of $$!)%G!"4

At the end of arch "#$(, thermal

power plants +aluated for 21!$2G of the total installed capacity in the

country, with an installed capacity of $,14,#1" 5! The share of nuclear

energy was only $!14G i!e! )!1- 85! Bydro power plants comes ne*t

with an installed capacity of (4,)4$ 5, accounting for $)!-$G of the

48


49/101

total installed capacity!(#

India yet had a shortage of 4!-G of electricity

supply during peak time in "#$# and "#$$, as only $$# 85 of demand

was met out of a peak demand of $"" 85!

9+,+, Re&ional Di%1i"2%ion o# Ca/a$i%!

There is a significant intensity of regional concentration of power

generation capacity in India! ost of the installed capacity is located in

"1! Central Electricity Authority, 8o+ernment of India, F2peration Performance of Generating

Stations in the Co&ntry &ring the year !"11-1!F, .u'lished in April, "#$", New elhi, India! 5e'page accessed on arch 2, "#$%! http>cea!nic!inreportsyearlyenergygeneration$$$"!pdf!

"-;"4! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergy

StatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page$"! 5e' page accessed on arch 2, "#$%!

http>mospi!nic!inmospinewuploadEnergystats"#$)!pdf

(#! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergyStatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page

$(! 5e' page accessed on arch 2, "#$%!


/ig(> Top ten States 'y installed capacity, "#$" 6857

Source> Central Electricity Authority, onthly 3eport; All India Installed Capacity;State wise,

"#$"

49


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the western region, portraying ("G of total capacity, (%G of coal and )%G

of gas 'ased capacity! aharashtra, which is the 'iggest economic state in

terms of 8. and depicts 4G of the Indian population, has "2 85 or

$(G of national capacity! It is followed 'y 8u@arat, also a western state,

which represents "" 85 or $$G of India?s total installed capacity!($

The

top $# states account for 1"G of total installed capacity! In comparison,

the north;east region, residing of 1 small states with (!-G of India?s

population, has a united "!) 85 or $!"G of India?s total capacity!("

North

($! Sun;=oo Ahn and agmar 8rac .olicies,

.layers and IssuesF, "#$" Edition, International Energy Agency, .aris, /rance! Concerned reference

on page (%! 5e' .age accessed on arch 2, "#$%!https>www!iea!orgpu'licationsfreepu'licationspu'licationIndiastudy/INA&5E!pdf

("! inistry of Bome Affairs, 8o+ernment of India, F.ro+isional .opulation Totals> Census "#$$F,

.u'lished on #(;($;"#$$, New elhi, India! 5e' .age accessed on arch $#, "#$%!http>censusindia!go+!in"#$$;pro+;resultsdatafilesindiapo+poputotalpresentation"#$$!pdf

Eastern Electric .ower Corporation &imited was chartered to start power

generation capacity in this region, 'ut it faced a peak shortage of $-!%G in

/Y "#$#"#$$, highest among regions!((

E+ery state has its own uncommon energy mi*, mainly got from its

own resource 'equest, e*isting infrastructure and policy initiati+es! /or

e*ample, 8u@arat has a comparati+ely large gas 'ased installed capacity,

computing for nearly a $) thof India?s total gas capacity! It is deri+a'le to

8u@arat?s closeness to important gas fields and &N8 terminals in Ba


51/101

engal and 1)G of 9ttar .radesh?s installed capacity are coal;'ased,

'espeaking their large coal reser+es, while )"G of .un@a'?s installed

capacity is Bydro 'ased with its plentiful of water resources! Tamil Nadu

has a high share of renewa'le 'ased installed capacity of almost )"G due

to the state go+ernments strong initiati+es on promoting renewa'le energy!

9+,+- Ca/a$i%! Ta1&e% and P1o0e$%ion

0.?s $"th /i+e Year .lan 6/Y. "#$";"#$17 aims to add up the

total power capacity to 12 85! ue to downturn in domestic gas

production, nearly $ 85 of gas capacity would 'e added, e+en though the

inistry of .ower affirm that nearly $( 85 of gas capacity are under

((! Central Electricity Authority, 8o+ernment 0f India, F&oad 8eneration alance 3eport> "#$$;$"F, .u'lished in ay, "#$$, New elhi, India! we' .age accessed on arch $#, "#$%!

http>large!stanford!educourses"#$"ph")$'ordia$docslg'rreport!pdf

construction and could 'e functional during the $"th /i+e Year .lan!

oreo+er, The fuel mi* for power generation would remain unaltered,

regardless of a'solute progress of capacity in e+ery fuel! 0nly with

significant enhancement of renewa'le, the coal share would decrease to

""G in "#(%! .resent contri'ution of $$G of gas 'ased power generation

would reach $)G ; $%G in "#(%!

9+,+9 O/e1a%ional E##i$ien$!

51


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India?s total electricity generation performance remains somewhat

low as compared to other countries! "#G of operational thermal power

units are more than "%years old and another )#G are more than $% years,

'ut less than "% years old!()

Nearly all of India?s coal fired power plants

are su'critical, with an a+erage efficiency of a'out ()G, compared to (1G

for su'critical plants in China and (4G for su'critical plants in 9SA!(%

India puts its first supercritical 22# 5 power plant 'y National Thermal

.ower Corporation 6NT.C7! into operation in "#$$! The $" th /i+e;year

.lan foresees a'out )#G of new coal power plants using supercritical

technology! Another prospect of India?s low operational efficiency is the

()! Central Electricity Authority, 8o+ernment of India, F8ational Perspectie Plan for $enoation,5oderni;ation and 0ife etension of 'hermal Power Stations: 4p to !"1www!cea!nic!inreportsreno+modernnationalplan!pdf

(%! International Energy Agency, Forld Energy 2&tloo/F, .u'lished in "#$$, .aris, /rance! 5e'

page accessed on arch $1, "#$%!https>www!iea!orgpu'licationsfreepu'licationspu'lication5E0"#$$5E!pdf

plant load factor 6.&/7, which in+ol+es the utili


53/101

to esta'lish a national grid through unification of its current regional grids,

which ha+e a different le+el of installed capacity and fuel

mi*! A well;unified national transmission grid is a key to assuring e+en

de+elopment among regions and optimum utili northern, north;eastern, eastern, southern and western

regions! Since August "##2, four regional grids ha+e 'een fully

(2! Central Electricity Authority, 8o+ernment of India, Fraft 8ational Electricity Plan, >ol&me

IIF, .u'lished on /e'ruary, "#$", New elhi, India! we' .age accessed on arch $1, "#$%!

http>www!cea!nic!inreportspowersystemsnep"#$"transmission$"!pdf

integrated(1

, with the e*ception of the southern grid that is to 'e

synchroni


54/101

The distri'ution sector in India is yet mostly regulated 'y state

companies and its amendment is critical for the financial growth of the

power sector! The Central 8o+ernment scooped out the State Electricity

oards in /Y "##$#", when some State Electricity oards skipped on

dis'ursement to NT.C and NB.C!

9+9+* A&&1e&a%ed T1anmiion and Comme1$ial ?ATC@

Loe

The economic crisis of state istri'uted Companies is mainly due

to ATMC losses! The ATMC comprise not only the technological losses

(-! Central Electricity Authority, 8o+ernment of India, Fraft 8ational Electricity Plan, >ol&me

IIF, .u'lished on /e'ruary, "#$", New elhi, India! we' .age accessed on arch $1, "#$%!http>www!cea!nic!inreportspowersystemsnep"#$"transmission$"!pdf

(1! 9we 3emme, Nathalie Trudeau, agmar 8rac

/raud transpired 'y unlawful tapping of transmission lines or damaging of

meters!

non or under 'illing in which distri'ution companies fail to 'ill the

consumers the proper amount!

non;payment in which consumers who are 'illed, fail to make a payment!

misclassification of consumers in which consumers are mistakenly

categori


55/101

The nation;wide ATMC were ($G in /Y "#$#$$!(4

&osses are +ery high

compared to the most efficient countries including South orea 6)G7,

=apan 6%G7, and other emerging economies such as ra


56/101

of di+erse qualities! The high e*pectation of production prospects from

India?s rishna 8oda+ari 'asins has diminished since "#$# after

production peaked, 'ut then declined nearly 'y half!)$

9++, P1i$in&

The dominant affair on pricing is its failure to send a appropriate

indication to suppliers and consumers to accomplish destined 'eha+ioral

de+elopment! oreo+er, present stiff pricing mechanism confines the

selection of protocol instruments for S! 9ntargeted allowance method,

)$! The Economic Times E;paper, F$eliance Ind&stries says +G-< Gas 2&tp&t to rop to !!


57/101

.ri+ate in+estment in India?s power sector is on the rise! Installed

capacity possessed 'y the pri+ate sector in "#$" was nearly %) 85 or

"1G of India?s total capacity 6including renewa'le energy sources7, which

is a considera'le 'oost among the $"G contri'ution or $1 85, 'y the end

of the $#th/i+e year plan! Almost, )(G of commercially owned capacity is

coal 'ased, with renewa'le and gas 'ased capacity representing (-G and

$"G respecti+ely! The minimal Thermal capacity e*pansion 'y the pri+ate

sector is almost "$!1 85 during the $$ th/i+e year plan, which is the

a'o+e the target of $1!( 85!

Still, the ma@or issue is the pro+incial accumulation of pri+ate

financing in a few states! .resently, )"G of all pri+ate power plants are

located in the western region! 8u@arat has "(G of pri+ate power plants,

making the pri+ate share almost %-G of its capacity! Eastern and north;

eastern regions, where power capacity e*pansions are needed, ha+e a share

of -G and #!#)G for eastern and north;eastern regions respecti+ely in

terms of pri+ate ownership! Con+enient incenti+es should 'e proposed to

pri+ate financers in these regions for a more fair 'oost of power capacity

in India!

57


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Cha/%e1

COAL SECTOR

ominant source of energy in India is coal, which depicts )#G of

India?s energy mi* in "##4, with the installed power capacity as "(2 85

or %2G and almost 1#G of produced electricity in "#$", coal is an

important mainstay of India?s energy supply!)"

As of "#$#, India has the

third largest hard coal reser+es, after the 9SA and China!)(

India was also

the world?s third largest coal producer and consumer in "#$$ after China

58


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and the 9SA, and is e*pected to 'ecome the second largest consumer 'y

"#"%, 'eating the 9SA!))

Accompanied 'y power demand desperately growing, so will

demand for coal! In addition, the coal sector remains the most regulated

and possi'ly least competent of all energy sectors in India! .resently, two

)"! 3an@an aner@ee, +ia Cornerstone> the 0fficial =ournal of the 5orld Coal Industry, FCoal-.asedElectricity Generation in IndiaF .osted on #);$$;"#$)! 5e' =ournal accessed on April %, "#$%!

http>cornerstonemag!netcoal;'ased;electricity;generation;in;india

)(! undesanstalt /ur 8eowissenschaften und 3ohstoffe, a 8erman /ederal Institute for8eosciences and natural resources 6837, FAnn&al $eport: $eseres, $eso&rces and Aaila*ility of

Energy $eso&rces !"11F, .u'lished in /e'ruary, "#$", Banno+er, 8ermany! Concerned 3eferenceon .age "%! 5e' page accessed on April 2, "#$%!

http>www!'gr!'und!deENThemenEnergieownloadsannualreport"#$$en!pdfD@sessionidL4"

1#"1"/(C%#E%/#)$-/A22/A$"!$cid"-)K'lo'Lpu'lication/ileM+L"

))! ritish .etroleum, F.P Statistical $eiew of orld EnergyF, .u'lished in =une, "#$", &ondon,

9! Concerned 3eference on .age ((;()! 5e' page accessed on April -, "#$%!http>www!'p!comcontentdam'ppdfStatistical;3e+iew;

"#$"statisticalre+iewofworldenergy"#$"!pdf

state;owned companies manage a near;ownership of India?s coal

production, depicting a portion of 4#G and lea+ing +ery less space for

pri+ate companies to compete! In addition, indigenous coal production has

'een deteriorating in last few years and was neglected to attain the

production marks of the $$thplan! ecause of coal supply deficiency,

India?s power plants are functioning at much cut down le+el than its

optimum le+el, creating deficit in electricity generation!

+* Poli$! F1ame3o1k

Coal details for o+er %#G of India?s energy utili


60/101

ecause rates were deregulated, the sector has turn into cost effecti+e,

generally, as a result of rate hikes and increased allotment of open cast

production! The sector has also reported enhancements in production, 'ut

regardless of these impro+ements, the coal sector is o+erall fee'le 'y

international standards! In the dearth of ri+alry, a'sence of standard

operations and li'erated control of its operations, Coal India &imited, is

perforated with superfluous manpower, opposite to international standards,

insufficient estimate formation , destitute accounting and economic

go+ernance system etc! 0ne of the positi+e news for Indian coal sector is

its flawless safety mark when compared to international e*perience!

+*+* (e! Poli$ie

India?s pri+ate coal mining companies were nationali


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capti+e production was e*tended to cement industry and coal washing,

later coal gasification and liquefaction in its amendment in "##1!)1

)%! inistry of Coal, 8o+ernment of India, F 'he Coal 5ines (8ationali;ation# Act, 1=7F,

.u'lished on #%;(#;$41(, New elhi, India! Concerned reference on page $, Chapter $! 5e' pageaccessed on April $(, "#$%!

http>www!coal!nic!insitesuploadfilescoalfileswe'formnoticesact$41(!pdf

)2! Capti+e Consumption means the consumption of goods manufactured 'y one di+ision or unitand consumed 'y another di+ision or unit of the same organi


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The New Coal istri'ution .olicy 6NC.7 was 'rought in to

e*pedite deli+ery of assured 'atch of coal to customer of core and non;

core sector at predetermined prices!)4 The important factor was the

addition of a /uel Supply Agreement 6/SA7 rule replacing the

interconnecting system! 9nder the lawful /SA, $##G of coal requisite for

power and fertili


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(-G of resources or 4( t is called pro+ed coal resources!%$It should 'e

noted that the FIndian classification system is primarily 'ased on

geological e+aluations without accessing quality, minea'ility or

e*tracta'ility of deposits!F%"

%#! F&ignite is raw coal with an energy content less than $2,%## =g, in comparison to hard coalthat has an energy content of more than $2,%## =g!F undesanstalt /ur 8eowissenschaften und

3ohstoffe, a 8erman /ederal Institute for 8eosciences and natural resources 6837, FAnn&al

$eport: $eseres, $eso&rces and Aaila*ility of Energy $eso&rces !"11F, .u'lished in /e'ruary,"#$", Banno+er, 8ermany! Concerned 3eference on .age "%! 5e' page accessed on April 2, "#$%!

http>www!'gr!'und!deENThemenEnergieownloadsannualreport"#$$en!pdfD@sessionidL4"

1#"1"/(C%#E%/#)$-/A22/A$"!$cid"-)K'lo'Lpu'lication/ileM+L"

%$! Central ine .lanning and esign Institute &imited, F4nited 8ations 3ramewor/

Classification of Coal $eso&rces 4nder CI0F, .u'lished 0cto'er, "#$", New elhi, India! 5e'page accessed on April "", "#$%!

http>www!unece!orgfileadminAenergyseppunfc9N/CwsIndia0ct"#$()t!"Ahmad!p

df

%"! Ananth .! Chikattur, FCoal Initiatie $eports: A $eso&rce and 'echnology Assessment of Coal

4tili;ation in IndiaF, .u'lished in 0cto'er, "##-, Bar+ard 9ni+ersity, Cam'ridge, A, 9SA!

Concerned reference on .age -! .age accessed on April "(, "#$%!http>www!c"es!orgdoc9ploadsindia;coal;technology!pdf

Ta'le $> Statewise Estimated 3eser+es of Coal in India as on #(;($;"#$"

and #(;($;"#$(

63


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Source> inistry of Statistics and .rogramme Implementation, 8o+ernment of India, EnergyStatistics, "#$)

64


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Coal deposits are primarily limited to eastern and south;central parts of

India! The states of =harkhand, 0disha, Chhattisgarh, 5est engal, Andhra

.radesh, aharashtra and adhya .radesh reports for more than 44G of

the total coal reser+es in the country! The state of =harkhand had the

highest percentage i!e "1G in the o+erall reser+es of coal in the country as

of #(;($;"#$( followed 'y state of 0disha i!e ")!1G! %(As of #(;($;"#$(,

the estimated reser+es of coal was "4-!4) t, an addition of %!)) t o+er

the last year! The estimated total reser+es of &ignite in "#$( was )(!"" t

against )$!42 t in "#$"!

%)

+- P1od2$%ion

5ith the world?s third 'est produced capacity in "#$#, India?s

indigenous coal production more than dou'led from "#% t in $44# to

%(" t in "#$# and has risen in recent years! The $$ th /i+e Year .lan

impro+ed coal production to 2-# t 'y /Y "#$$$", 'ut afterwards it was

corrected to 2"4 t as per $$thmedium;term appraisal!%%This was mainly

due to festering manufacture of coal 'y CI& whose production was

%(;%)! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergy

StatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page(! 5e' page accessed on April "), "#$%!


%%! .lanning Commission, 8o+ernment 0f India, F5id-'erm Appraisal for Eleenth 3ie ear Plan

!""=-!"1!F, .u'lished in "#$#, New elhi, India! Concerned 3eference on .age (#2, Chapter $%!we' .age accessed on April "), "#$%!

http>planningcommission!go+!inplansmta$$thmtachapterwisechap$%energy!pdf

65


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)(% t in /Y "#$$$" instead of the original target of %"# t!%2

.resently, ining in India is restricted to a depth of (##m e+en

though )#G of India?s reser+es are further down than this depth and as a

result almost 4#G of CI&?s coal mines are open cast! %10pencast mining

usually has less manufacturing cost and is less haplanningcommission!go+!ina'outuscommitteewrkgrp$"wgCoal$)#2!pdf

%-! .lanning Commission, 8o+ernment of India, F3aster, S&staina*le and 5ore Incl&sie Growth:An Approach to the 'welfth 3ie ear Plan (!"1!-!"1=#F, .u'lished in 0cto'er, "#$$, New elhi,

India! Concerned 3eference on page (1, Chapter (! 5e' page accessed on April "), "#$%!

http>planningcommission!go+!inplansplanrel$"appdrftappraoch$"plan!pdf

%4! .lanning Commission, 8o+ernment of India, Fraft $eport of the Epert Committee on

Integrated Energy PolicyF, .u'lished in "##%, New elhi, India! Concerned 3eference on page$$#, Chapter $$! 5e' page accessed on April "), "#$%!

http>planningcommission!nic!inreportsgenrepintengpol!pdf

companies ha+e 'egun to reesta'lish this technology in recent years!2#

66


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+9 Bene#i$ia%ion ?Wahin&@

Indian coal is generally of inferior quality, with a median heating

+alue of a'out ),%## kcalkg, compared to o+er 2,### kcalkg for most

internationally e*changed coal and high moisture during monsoon season!

It has a huge ash capacity, usually (#G to %#G, 'ut is little in Sulphur and

+ery less suita'le for iron and steel making!2$

ecause of this nature of Indian coal, 'eneficiation or washing is

essential to lower the ash capacity and make coal more appropriate for

customers! The washing of coal add more dependa'le quality and escalates

its energy efficiency of traditional crushed coal com'ustion 'oilers 'y

$#G! espite its ad+antages, not all coal is washed in India! CEA

announced a damage of 1!1 T5h or (%G of the coal 'ased production in

"#$#;$$ due to poor quality or wet coal!2"

2#! The Bindu Newspaper, FCoal India $eintrod&ces 0ongwall 5ining at 5oonidihF, .u'lished on

$";#(;"##-, New elhi, India! E;paper accessed on April "), "#$%!http>www!thehindu'usinessline!comtodays;papertp;economycoal;india;reintroduces;long;wall;

mining;at;moonidiharticle$2)"-%4!ece

2$! International Energy Agency, Forld Energy 2&tloo/ !""=: China and India InsightsF,.u'lished in "##1, .aris, /rance! Concerned 3eference on .age )-), chapter $2! 5e' page

accessed on April "), "#$%! http>www!worldenergyoutlook!orgmediaweowe'site"##-;

$44)weo"##1!pdf

2"! Central Electricity Authority, 8o+ernment of India, F2peration Performance of Generating

Stations in the Co&ntry d&ring the year !"1"-11F, .u'lished in April, "#$$, New elhi, India!Concerned 3eference on page $"! 5e' page accessed on April "), "#$%!

http>www!cea!nic!inreportsyearlyenergygeneration$#$$!pdf

+ Con2m/%ion

67


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The power sector de+oured o+er 1(G of India?s coal in "##4,

which raised noticea'ly from a portion of 2$G in $44$! The second largest

customer was the steel and iron industry, showing a'out 4G in $44$ and

2G in "##4! The cement customer was the third largest customer, using

2G of coal in $44$ 'ut only "G in "##4!

The estimated total consumption of raw coal 'y industry has

increased from )#1!#) t during "##%;#2 to %1#!"( t during "#$";$(

with a CA83 of )!(#G! Similarly, consumption of &ignite rose from

(#!"( t in "##%;#2 to )2!)$ t in "#$";$(, with a CA83 of %!%$G!

Consumption of &ignite is highest in electricity generation sector, which

accounts for -#!(-G!2(

+ I2e

++* De%e1io1a%in& Dome%i$ P1od2$%ion

uring the $$th /i+e Year .lan, India?s coal demand raised at

CA83 of -!%G! ut, CI&?s indigenous manufacturing has increased at a

2(! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergy

StatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page

)1! 5e' page accessed on April "), "#$%!http>mospi!nic!inmospinewuploadEnergystats"#$)!pdf

CA83 )G during the same period!2) There are two reasons for low

production rate>

68


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The stiff and sluggish method to acquire en+ironmental and land

permission from 0E/ 6inistry of En+ironment and forest7 and

state go+ernments acquired ample days on coal mining pro@ects!

CI&?s production was interrupted 'y its own mediocre producti+ity

'ecause of repeated strikes and resolute incorporation!

The production deficit would persist to 'e a genuine issue for the

power sector! /reshly, CI& was compelled to agree on the /SAs 6/uel

Supply Agreement7 with power companies for those plants to 'e

authoriplanningcommission!go+!ina'outuscommitteewrkgrp$"wgCoal$)#2!pdf

'uilds +arious comple* situations like>

Coal imports are not easy due to inadequate supporting

infrastructure!

69


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arious qualities of coal allow Indian power plants to mi*

imported coal with indigenous coal only upto $#G ; $%G!2%

The recent campaign of coal e*porting countries, including

Indonesia, towards outlawing the e*ports of lower +alue coal

signifies that India?s increasing coal imports re+eals the country

more to e*trinsic political risks and augments its situation on

energy security!

++- In#1a%12$%21e

India needs a well;unified infrastructure for its coal supply chain,

which comprises of railroads, importing ports and washeries! Slow

de+elopment of railways 'y Indian railways, a go+ernment cartel, to

connect mines, dispatch section and end;use destinations, has already

designed a considera'le o'stacle in coal supply in recent years!

++9 In.e%men%

The coal sector is the lone energy sector staying in reality sealed to

pri+ate financing! Two .u'lic Sector 9ndertakings, Coal India &imited

and Singareni Collieries Company &imited, e*clusi+ely ha+e an

ownership in coal production! The only sector open for pri+ate financing is

capti+e production! /I 6/oreign irect In+estment7 is granted only in

capti+e;mining related 'usiness> $##G /I is granted in capti+e mining

for power pro@ects and coal refining plants trading washed coal to raw coal

producersD /I up to 1)G is granted for other capti+e consumption! Still,

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pri+ate manufacturers are denied from trading refined coal in the open

market!

The most precarious condition in the coal sector is the lack of

pri+ate financing! 0nce CI& and SCC& fall to attain manufacturing goals,

there is no dependa'le alternati+e source to make up the losses other than

imports! Bence, the assistance from pri+ate coal mining companies with

technological competence and 'ackground would 'e +ital to support the

+olume of in+estment and production, particularly for underground mining

and geographically challenging areas!

Cha/%e1

Rene3a"le Se$%o1

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3enewa'le energy is 'ecoming more and more su'stantial part of

India?s energy mi*! 5ith gigantic possi'ilities, renewa'le energy is no

longer seen as a non;con+entional source to con+entional fossil fuels, 'ut

as a demanding aspect in quest of key policy o'@ecti+es!22 It impro+es

India?s energy security 'y e*panding its energy mi* and lowering import

relia'ility on fossil fuels! Solar energy, chiefly, is seen as ha+ing the

potential for India likely to achie+e Fenergy independence in the long

runF!215eakening climate change is also one of the reasons why India is

looking out to 'oost renewa'le energy!

Contri'ution of renewa'le energy in India?s energy mi*, including

'iomass, hydro and renewa'le sources, was almost "2G in "##4, of which

'iomass appraised for the largest share! India had the fifth 'est scope for

wind energy in the world in "#$$ and in "#$# India started an determined

program to actually amplify its capacity for solar energy!

22! inistry of New and 3enewa'le Energy, 8o+ernment of India, FStrategic Plan for 8ew and$enewa*le Energy Sector for the Period !"11-1=F, .u'lished on /e'ruary "#$$, New elhi, India!

Concerned 3eference on .age $1! 5e' .age accessed on #);"1;"#$%!

https>www!academia!edu)"21)4"Strategicplanmnre"#$$$1

21! .lanning Commission, 8o+ernment of India, Fraft $eport of the Epert Committee on

Integrated Energy PolicyF, .u'lished on ecem'er "##%, New elhi, India! Concerned 3eferenceis in Summary .age i*! 5e' .age accessed on #);"1;"#$%!

http>planningcommission!nic!inreportsgenrepintengpol!pdf

E+en though, equipped solar capacity remains +ery small, 'ut it has

encouraging possi'ility for growth! .ri+ate financing has 'een the main

reason for the de+elopment of renewa'le energy sources in India!

72


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+* Poli$! #o1 Rene3a"le and Non8Con.en%ional

Ene1&! So21$e

The pro'e of India:s primary energy 'alance shows that the

renewa'les account for a'out ((G of the primary energy consumption in

India! 0ut of this, the dominant contri'utor is con+entional 'io;mass that

is used for cooking followed 'y electricity generation from large hydro

plants! The definite share of modern renewa'les in India:s energy mi* is

significantly lower a'out "G of total!

etrimental local and glo'al en+ironment impacts 6like S0*, N0*,

and S. and greenhouse gas emissions7 correlated with fossil fuel use

ha+e resulted in a heightened significance on renewa'les! 3enewa'les can

'e used for space heating, cooling, water pumping, cooking and for almost

any end;use which is met 'y fossil fuels!

As the country is short of energy resources they need to de+elop all

energy sources including the renewa'le options is predominant! any

renewa'les ha+e high initial cost! 0f times, growth efforts ha+e 'een su';

critical and su'sidy dri+en de+elopment did not pro+ide incenti+e for

technical impro+ement or cost reduction!

The en+ironmental allowance for renewa'les should 'e funded 'y

a cess on non;renewa'les and fuels causing en+ironmental catastrophe! A

'onus on feed;in tariff may not 'enefit for a stand;alone plant in a remote

area! /or such a plant monetary incenti+e may not 'e required! The areas

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which do not ha+e electricity grids, there should 'e minimum clearances

or permissions for setting up a istri'uted 8eneration system! A

demanding pro'lem for a istri'uted 8eneration system in rural

electrification is the cost reco+ery and implementation mechanism!

ifferent administrati+e e*periments for application of istri'uted

8eneration system in different areas should 'e tried! The illage

.anchayat 6electi+e +illage council in India7 supported 'y the state energy

agency and technical e*perts should decide the appropriate technology

options 6like 'iogas, 'io;mass gasification etc!!!7 for the +illage!

The following specific policies to promote +arious

renewa'le energy sources are recommended>

)ini H!d1o:A meticulous analysis should 'e done to classify potential

sites! These classified sites should 'e auctioned! /or rural plants, the

administrators should 'e encouraged to supply power to meet other

requirements such as agro processing and milling!

Wind Po3e1:/or wind power, site selection is easier than hydro power

and wind power plants could 'e set;up on pri+ate land! So, there

may 'e need to sell;off only sites which are pu'lic property!

Bio8Dieel Ene1&! So21$e> The production of io;diesel needs to 'e

encouraged in such a way that does not include unnecessary su'sidy and

only financial production results! io;diesel makers also need some

guarantee from the market as well! io;diesel can 'e mi*ed upto $#G with

diesel without needing any change in +ehicle engines! 0il companies

should 'e enforced to 'uy io;diesel of recommended quality at the

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76/101

competing tender process for their in+estment 'y power distri'ution

companies!24The National Tariff .olicy "##2 ordered SE3Cs to fi* the

minimal percentage of state 3.0 and to set a preferred tariff for

renewa'le power in their states!1#

+*+, >a3aha1lal Neh12 Na%ional Sola1 )iion ?>NNS)@

,*

The =NNS was started in "#$# as one of eight missions under

National Action .lan on Climate Change! It has three e*ercises in phases

and they are as follows1$>

2-! inistry of New and 3enewa'le Energy, 8o+ernment 0f India, FAnn&al $eport !"1"-!"11F

.u'lished in "#$$, New elhi, India! 5e' .age Accessed on #);"-;"#$%! http>mnre!go+!infile;managerannual;report"#$#;"#$$ENcontent!htm

24 ; 1#! inistry of New and 3enewa'le Energy, 8o+ernment of India, F4ser G&ide for

$enewa*le Energy Sectors India Energy Sec&rity Scenarios, !"9=F, .u'lished in "#$(, New elhi,India! Concerned 3eference on .age % and 2! 5e' .age accessed on #);"1;"#$%!

http>indiaenergy!go+!indoc3Eocumentation!pdf

1$! inistry of New and 3enewa'le Energy, 8o+ernment of India, F4ser G&ide for $enewa*leEnergy Sectors India Energy Sec&rity Scenarios, !"9=F, .u'lished in "#$(, New elhi, India! 5e'

.age accessed on #);"1;"#$%! http>indiaenergy!go+!indoc3Eocumentation!pdf

.hase $> $!$ 85 of grid;connected . and #!" 85 of off;grid .

'y "#$(!

.hase "> ) 85 of grid;connected . and $ 85 of off;grid . 'y

"#$1! .hase (> "# 85 of grid;connected . and " 85 of off;grid .

'y "#""!

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To speed up the hike of solar capacity, the =NNS included a Solar

.urchase 0'ligation 6S.07 as part of the 3.0 and economic

encouragement, which includes monetary assistance and custom duty

e*emptions for Fspecific capital equipment, critical materials and

componentsF!1"It forecasts that solar power would attain grid;consistency

'y "#"" and coal thermal power consistency 'y "#(#! In this essence, the

modified National Tariff .olicy "#$$ which includes #!"%G of S.0 'y

"#$( and up to (G 'y "#""!1(The =NNS has an enthusiastic target to

change India into a glo'al ruler in solar production with a purpose of a )

85 to % 85 equi+alent of installed capacity 'y "#"#!1)

1"! inistry of New and 3enewa'le Energy, 8o+ernment of India, FDawaharlal 8ehr& 8ational

Solar 5ission, 'owards .&ilding S20A$ I8IAF, .u'lished in "##4, New elhi, India! Concerned3eference on page 4! 5e' .age accessed on #);"-;"#$%! http>www!mnre!go+!infile;

manager9ser/ilesmissiondocument=NNS!pdf

1(! inistry of New and 3enewa'le Energy, 8o+ernment of India, FAnn&al $eport !"11-1!F,.u'lished in "#$", New elhi, India! Concerned reference on page %% chapter 2! 5e' .age

accessed on #);(#;"#$%! http>mnre!go+!infile;managerannual;report"#$$;"#$"ENChapterG"#2chapter2!htm

1)! inistry of New and 3enewa'le Energy, 8o+ernment of India, FDawaharlal 8ehr& 8ational

Solar 5ission, 'owards .&ilding S20A$ I8IAF, .u'lished in "##4, New elhi, India! Concerned3eference on page 4! 5e' .age accessed on #);"-;"#$%! http>www!mnre!go+!infile;

manager9ser/ilesmissiondocument=NNS!pdf

+*+- Na%ional Clean Ene1&! F2nd ?,*@

y imposing a ta* of 3s! %#ton on coal consumed within the

country, the NCE/ was created in "#$# mainly for esta'lishing and

arranging of clean energy in the country!1%

+, S2//l!

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As affirmed 'y N3E, India?s total renewa'le capacity for power

production, not including solar is predicted at 4# 85 until "#("! 5ind

energy has the highest capacity at )4 85 and arnataka, 8u@arat and

Andhra .radesh, especially are enriched in wind energy resources! In case

of Solar, India is quite superior when it comes to generating power from

sun?s energy! 0n an a+erage, there are (## sunny days per year and annual

radiation of "##5m"!12 Now, renewa'le energy scenario in India, for

different sources of energy are>

H!d1o Ene1&!: Tum'ling rain could 'e a good sign for people to

know those places where water is quickly accessi'le to 'e used to

generate power from it! This type of power generated from water is

known as hydroelectric power! Bence, these power plants are then

started in those areas which ha+e hea+y rainfall! There are $"

1%! inistry of New and 3enewa'le Energy, 8o+ernment of India, F4ser G&ide for $enewa*le

Energy Sectors India Energy Sec&rity Scenarios, !"9=F, .u'lished in "#$(, New elhi, India! 5e'.age accessed on #);"1;"#$%! http>indiaenergy!go+!indoc3Eocumentation!pdf

12! 9me 3emme, Nathalie Trudeau, agmar 8rac


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composed 'y anaero'ic digestion of 'iomass and 'urned down to

generate heat! .resently, India has (241 5 installed capacity for

'iomass genration! /ollowing is a list of some states with most

capacity for 'iomass reduction> Andhra .radesh 6"## 57, ihar

6"## 57, 8u@arat 6"## 57, arnataka 6(## 57, aharashtra

6$### 57, .un@a' 6$%# 57, Tamil Nadu 6(%# 57, 9ttar

.radesh 6$### 57!1-

Sola1 Ene1&!:Since India is placed 'etween tropic of cancer and

equator, it has a median temperature of "% ; "1 degree Celsius!

India has an installed power production capa'ility of $2-2 5,

making 2th largest user in the glo'e! ain plants are s

Energy Plan for India

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