New Era, New Targets
The
major focus in India for producing power (Energy) till now has been
conventional sources of energy particularly coal and hydro-power plants. The
energy-mix is heavily skewed towards conventional sources of energy. With
rising energy needs and threat to energy security along with global
environmental concerns, the focus is now been shifting towards renewable
sources of energy.
The renewable sources of energy has high potential in terms
of both clean environment as well as cost-benefit analysis over conventional
sources of energy in the long run. Almost all conventional sources of energy
are based on heavy fossil fuel consumption. Fossil fuels are limited and scarce
and also now runs the risk of being exhausted. This creates a big energy
insecurity with the rising demand for energy in a developing country like
India. The best strategy is to diversify the energy generation and tap
non-exhausting renewable sources of energy. Fossil fuel based energy generation
not only depletes the nation's stock of fossil fuel but also creates pollution
and is costly. But in tapping renewable sources of energy will not just
diversify our energy sources but will also provide a clean, economic and
abundant energy which will be also affordable. Renewable sources of energy
mainly includes – Solar, Wind, Small Hydro, Waste to Energy, Bio energy.
Advocacy for renewable energy also came from United Nations,
through its ‘United Nations Framework Convention on Climate Change’ in pursuance
of which India adopted National Action Plan For Climate Change ( NAPCC). This
action plan has 8 core mission. Among them 2 missions ie. ‘National Solar
Mission’ and ‘National Mission for Enhanced Energy effeciency’ has been launched in India.
Around 23 % of rural India continues to use Traditional
Fuels such as firewoods, Crop residue and dungcakes. This too have
environmental and health concerns as their combustion releases poisonous
gasses. It also brings hardship on rural women and girls as they spend
substantial time on collecting this fuel. In recent years decentralised clean
energy sources have increased and use of portable solar cookers is catching up.
This is important part of government agenda of ‘Inclusive and Sustainable
development’.
India has an estimated renewable energy potential of about
900 GW from commercially exploitable sources viz. Wind – 102 GW (at 80 meter
mast height); Small Hydro – 20 GW; Bio-energy – 25 GW; and 750 GW solar power,
assuming 3% wasteland.
On the global platform, India has committed itself to a
greater ambitious target of achieving 175 MW of electricity through clean
renewable means. The breakup of the
ambitious target is as follows:
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Renewable
Energy Target (2022)
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Solar Energy
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Ultra Mega Park Solar Projects
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40 GW
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Rooftop Solar Projects
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40 GW
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Utility Scale Solar Projects
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20 GW
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Total Solar Target
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100 GW
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Wind Energy
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60 GW
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Bio Mass
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10 GW
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Small Hydel Projects
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5 GW
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Total
Renewable Energy Target
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175
GW
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Recently, record low solar and wind power tariffs in latest
biddings have added another positive dimension to the sector. Bidders quoted a
price of Rs.3.46 per kWh for 1 GW wind tender and Rs.2.97 per kWh for setting
up of 750 MW solar power plant in Rewa. It made wind and solar competitive
energy source. Lower clean energy tariffs will pose major challenge to fossil
fired power. The Ministry of New and Renewable Energy (MNRE) has set another
record in the wind power capacity addition by adding over 5400 MW in 2016-2017
against the target of 4000 MW.
According to latest statistics, under the scheme of setting
up of 1000 MW Grid connected Solar PV power projects by CPSUS and Government
organization with VGF( Viability Gap Funding), Total VGF of Rs.450.55 cr has
been released so far. Rs.90 Cr will be released soon to take total release to
549.55 cr.
Of the total sanctioned capacity of 1037.26 MW to 15 CPSUs/
Government organization within sanctioned funds of Rs.1000 crore for the
scheme, solar projects of 441.50 capacity have already been commissioned so
far.
Implementing pilot projects for development of grid
connected solar PV power plants on canal banks and canal tops, 50 MW canal tops
and 50 MW canal bank solar PV projects have been allotted to eight states. .
The Government has set a target of 175 GW renewable
power installed capacity by the end of 2022. This includes 60 GW from wind
power, 100 GW from solar power, 10 GW from biomass power and 5 GW from small
hydro power.
A target of 16660 MW grid renewable power (wind 4000 MW,
solar 12000 MW, small hydro power 250 MW, bio-power 400 MW and waste to power
10 MW), has been set for 2016-17. Besides, under off-grid renewable system,
targets of 15 MW eq. waste to energy, 60 MW eq. biomass non-bagasse cogeneration,
10 MW eq. biomass gasifiers, 1.0 MW eq. small wind/hybrid systems, 100 MW eq.
solar photovoltaic systems, 1.0 MW eq. micro hydel and 100,000 nos.
The Biomass Cook stove division of MNRE, under the Unnat
Chullha Abhiyan (UCA) is also providing improved stoves kitchens of Midday
(MDM) scheme, forest rest houses, families in rural areas, dhabas, units
etc.
The Biogas Technology development division, installed 84,882
of biogas plants during 2014-15 and 74,705 plants in 2015-16 and 47,304 in
2016-17 so far. There are as many 49.5 lakh biogas plants are there in the
country. Officials say total estimated biogas generation is about 4 lakh cubic
meters per day, replacing annually estimated 44.10 lakh numbers of LPG
cylinders of domestic size.
A Rs.38,000 crore
Green Energy Corridor is being set up to ensure evacuation of renewable energy.
Many other parallel initiatives were also taken. These
include: amendments in the tariff policy for strong enforcement of Renewable
Purchase Obligation (RPO), for providing Renewable Generation Obligation (RGO);
provision of roof top solar and 10 percent renewable energy as mandatory under mission
Statement and Guidelines for development of smart cities; amendments in
building bye-laws for mandatory provision of roof top solar for new
construction or higher FAR; raising tax free solar bonds; making roof top solar
a part of housing loan, ;compulsory net-metering; raising funds from bilateral
and international donors, creation of Surya Mitras for installation and
maintenance of the solar projects.
Power Sector: Outlook
Total installed capacity of power stations in India stood at 315,426.32 Megawatt (MW) as of February 28, 2017.
The Ministry of Power has set a target of 1,229.4 billion units (BU) of electricity to be generated in the financial year 2017-18, which is 50 BU’s higher than the target for 2016-17. The annual growth rate in renewable energy generation has been estimated to be 27 per cent and 18 per cent for conventional energy.
The Government has added 8.5 GW of conventional generation capacity during the April 2016-January 2017 period. Under the 12th Five Year Plan, the Government has added 93.5 GW of power generation capacity, thereby surpassing its target of 88.5 GW during the period.
Around 293 global and domestic companies have committed to generate 266 GW of solar, wind, mini-hydel and biomass-based power in India over the next 5–10 years. The initiative would entail an investment of about US$ 310–350 billion. Between April 2000 and December 2016, the industry attracted US$ 11.4 billion in Foreign Direct Investment (FDI).
Government Initiatives
The Government of India has
identified power sector as a key sector of focus so as to promote sustained
industrial growth. Some initiatives by the Government of India to boost the
Indian power sector:
- The Union Cabinet, Government of India has given its
ex-post facto approval for signing of a Memorandum of Understanding (MoU)
on Renewable Energy between India and Portugal, which will help strengthen
the bilateral cooperation between the two countries.
- The Ministry of New and Renewable Energy plans to
introduce a fixed-cost component to the tariff for electricity generated
from renewable energy sources like solar or wind, in a bid to promote a
green economy.
- The Union Cabinet has approved the ratification of
International Solar Alliance's (ISA) framework agreement by India, which
will provide India a platform to showcase its solar programmes, and put it
in a leadership role in climate and renewable energy issues globally.
- The Government of India plans to introduce a scheme to
encourage setting up of biomass plants across the country, which will
generate electricity and also help dispose of agricultural waste in a
carbon-neutral manner to help tackle growing pollution.
- The Government of India plans to rationalise various
categories of electricity consumers across states, which is expected to
bring transparency and efficiency in billing, improve tariff collection
and improve the health of distribution companies in the country.
- The Government of India plans to set up a US$ 400
million fund, sourced from The World Bank, which would be used to protect
renewable energy producers from payment delays by power distribution
firms, while at the same time protecting the distribution firms from the
shrinking market for conventional grid-connected power, caused by wider
adoption of roof-top solar power generation.
- The Ministry of Power plans to set up two funds of US$
1 billion each, which would give investment support for stressed power
assets and renewable energy projects in the country.
- Govt. of India has launched an online portal for star
rating of mines, which will bring all mines to adopt sustainable
practices, and thereby ensure compliance of environmental protection and
social responsibility by the mining sector.
- The Ministry of New and Renewable Energy (MNRE), which
provides 30 per cent subsidy to most solar powered items such as solar
lamps and solar heating systems, has further extended its subsidy scheme
to solar-powered refrigeration units with a view to boost the use of
solar-powered cold storages.
- There has been an inauguration of the Tarang
(Transmission App for Real Time Monitoring & Growth) mobile app and
web portal for electronic bidding for transmission projects, which is
expected to enhance ease, accountability, transparency, and boost investor
confidence in power transmission sector.
- The Ministry of Shipping plans to install 160.64 MW of
solar and wind based power systems at all the major ports across the
country by 2017, thereby promoting the use of renewable energy sources and
giving a fillip to government's Green Port Initiative.
- The Government of India and the Government of the
United Kingdom have signed an agreement to work together in the fields of
Solar Energy and Nano Material Research, which is expected to yield high
quality and high impact research outputs having industrial relevance,
targeted towards addressing societal needs.
- The Ministry of Petroleum and Natural Gas is seeking to
enhance India's crude oil refining capacity through 2040 by setting up a
high-level panel, which will work towards aligning India's energy
portfolio with changing trends and transition towards cleaner sources of
energy generation.
- The Government of India plans to start as many as
10,000 solar, wind and biomass power projects in next five years, with an
average capacity of 50 kilowatt per project, thereby adding 500 megawatt
to the total installed capacity.
- Government of India has made a goal to provide
electricity to every home in India by 2020, while also focussing on
ensuring the cost of power is affordable to everyone.
- Government of India has asked states to prepare action
plans with year-wise targets to introduce renewable energy technologies
and install solar rooftop panels so that the states complement
government's works to achieve 175 GW of renewable power by 2022.
- The Government of India announced a massive renewable
power production target of 175,000 MW by 2022; this comprises generation
of 100,000 MW from solar power, 60,000 MW from wind energy, 10,000 MW from
biomass, and 5,000 MW from small hydro power projects.
The government’s immediate goal is to generate two trillion units (kilowatt hours) of energy by 2019. This means doubling the current production capacity to provide 24x7 electricity for residential, industrial, commercial and agriculture use.
