Iyb 2015 - Energy(f)

8/16/2019 Iyb 2015 - Energy(f)

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INDIA YEAR BOOK

SUMMARY 2016 –

ENERGY SECTOR

SYNERGY

IAS

©SYNERGY

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8/16/2019 Iyb 2015 - Energy(f)


2For Feedback, write to us at – [email protected]

Academically supported by ONLINE PROFESOR – WITH A SINGLE ‘S’

Energy Sector:Energy is an essential input for economic development and improving the quality of life. Development of

conventional forms of energy for meeting the growing energy needs of society at a reasonable cost is the

responsibility of the Government. There has been a capacity addition of 288665 megawatt as of 29/2/2016.

Fuel Megawatt Percentage

Coal 175858 60.92

Gas 24509 8.49

Oil 994 0.34

Hydro 42703 14.79

Nuclear 5780 2

Renewable Energy Sources 38822 13.45

Total !""#$$% &''('')

Ultra Mega Power Plants:

For meeting the growing needs of the economy, generation capacity is to double itself in every ten years in

next three decades at least. As such there is need to develop large capacity projects at the national level to

meet the requirement of different States. Development of Ultra Mega Power Projects (UMPPs) is one step in that

direction. These are very large sized projects, approximately 4000 MW each involving an estimated investment

of about 25,000 crores. The projects will substantially reduce power shortages in the country. The Central

Government has accordingly taken the initiative for facilitating the development of a few Ultra Mega Power

Projects of about 4,000 MW capacity each under tariff- based competitive bidding route using super critical

technology on build, own and operate basis.

8/16/2019 Iyb 2015 - Energy(f)




Salient features of the Ultra Mega Power Plant:

Sites :

Four UMPPs namely Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradeshand Tilaiya in Jharkhand have already been awarded to the successful bidders and are at differentstate of development. Mundra UMPP is fully commissioned and is generating electricity.A site at Husainabad, DeogharDistt has been identified for setting up of 2nd UMPP in Jharkhand.A site at Bijoypatna in Chandbali Tehsil of Bhadrak District for coastal location and another site atNarla&Kasinga sub division of Kalahandi District for inland location have been identified for settingup of additional UMPPs in Odisha.A site at Kakwara in Banka District has been identified for setting up of UMPP in Bihar.A site at Niddodi village in Karnataka has been identified for UMPP by CEA and Govt. of Karnataka.

Rural Electrification:

Rural electrification has been regarded as a vital programme for the development of rural areas. In 1947 only1500 villages were electrified in India and the per capita consumption was 14 units. There have been manyprogrammes which were launched to provide rural electrification. However, in the present context Decentralized

Distributed Generation Scheme of Ministry of Power and the Deen Dayal Upadhyay Gram Jyoti Yojana arethe important programs.

The Ultra Mega Power Projects would use Super Critical Technology with a

view to achieve higher levels of fuel efficiency, which results in fuel saving andlower green-house gas emissions

Integrated power project with dedicated captive coal blocks forpithead projects.

• Coastal projects to use imported coal.

8/16/2019 Iyb 2015 - Energy(f)




Deen Dayal Upadhyay Gram Jyoti Yojana

Decentralized Distributed Generation Scheme of Ministry of PowerDDG projects can be taken up under RGGVY in remote villages where grid connectivity is either not

feasible or not cost effective. The RGGVY in XI Plan has a financial outlay of Rs. 540 crores for implementationof DDG projects. Under DDG scheme of RGGVY, 90% of the project cost is provided as capital subsidy by theGovernment. Cost of spares for 5 years after commissioning (excluding cost of consumables and labour) is includedas project cost.

Urban ElectrificationThe Urban Areas are equally important from the context of power connectivity as maximum of the business

houses, industries are located in urban landscapes. To improve the electricity sector the government has launchedthe Integrated Power Development Scheme with the following features:

1

• Total Outlay of 75893 crores for rural electrification

• Small Hamlets have been included for the first time for electrification

2

• Feeder segregation for 24*7 power( To rural homes, small and medium industries)• This will result in enough power to farmers

3

• Remote villages will be connected through off grids and micro grid systems• Solar Installations by discoms to promote clean and green energy

1

• Total Outlay of 65424 crores for urban electrification• Smart metering for large consumers and Tampering proof meter for homes

2

• Comprehensive sub transmission and infrastructure development and upgradation in urban areas• Underground cabling and high tech GIS transformers in densely populated areas.

3

• IT implementayion for better costumer service.• Solar installations like roof top panels to be promoted.

8/16/2019 Iyb 2015 - Energy(f)




Coal SectorCoal Reserves in India estimated to be about 301.56Billion tones by the Geological Survey of India. The reservesare mainly located in Jharkhand, Odisha, Chattisgarh, West Bengal, Madhya Pradesh, Telengana andMaharashtra. The overall production was projected at 630.25MT showing a 9.1 % growth.

There have been numerous attempts by the ministry to revamp the coal sector as this sector had a triple impactof effect on economy, employment and energy due to the cancellation of 204 coal blocks .The following werethe steps taken to revamp this sector:

Energy from Renewable SourceIn the present context the total generation of renewable energy is 38822 MW which is 13.45 % of the totalinstalled capacity. The ministry has taken up a new initiative for implementation of wind resourcesassessment in uncovered /new areas with an aim to assess the realistic potential at 100m level in 500 new stationsacross the country under the National Clean Energy Fund. Biomass Gasifier based 1 megawatt power plant hasbeen commissioned in Haryana to meet the captive power needs and installation of 50 biomass gasifier andcombustion based power projects and cumulative installed capacity of 6.20 megawatt ,to meet the captivedemand for electricity and thermal applications are under installation in different states. National Biogas and

Manure Management Programme where the Biogas is obtained from biodegradable organic waste throughanaerobic digestion and enriched organic bio- manure is produced as byproduct from this process.

The Ministry of New and Renewable Energy organized the Re – Invest in 2015, The central theme of Re-Investwas to attract large scale investments for the renewable energy sector in India.

The following are the highlights of the summit:

Lower power tariff through liberal coal swaps from inefficient plants toefficient plants situated far from mines towards pit heads to reduce cost

Reduction in coal theft using RFID/GPS

Coal Price Rationalisation using using gross calorific value to rationalisecosts

Coal Project monitoring portal for quicker decision making , faster disputesettlement and accelerated reduction of bottlenecks

Improved coal Quality using compulsory crushing, washing and third partysampling.

8/16/2019 Iyb 2015 - Energy(f)




The government of India has achieved the following in the sector of green energy:

World's largest renewableenergy financing meet at 2

73 000 MW

70000 MW of renewableenergy financing

62000 renewable MW ofmanufacturing of the

renewable commitment

Highest ever increase insolar capacity 1112 MW

42% increase in the solarcapacity in 14-15

25 solar parks with 1000MW each

Coal cess increase from Rs50 - 200 for Ganga

rejuvenation

Accelerated winddepreciation for windpower restored for

development of wind sector

8/16/2019 Iyb 2015 - Energy(f)




Ujjwal Discom Assurance schemeUDAY is a path breaking reform for realizing the affordable and accessible 24x7 Power for All. The

weakest link in the value chain is distribution, wherein DISCOMs in the country have accumulated losses ofapproximately Rs. 3.8 lakh crore and outstanding debt of approximately Rs. 4.3 lakh crore. Financially stressedDISCOMs are not able to supply adequate power at affordable rates, which hampers quality of life and overalleconomic growth and development. In addition, default on bank loans by financially stressed DISCOMs has thepotential to seriously impact the banking sector and the economy at large. UDAY assures the rise of vibrant andefficient DISCOMs through a permanent resolution of past as well as potential future issues of the sector. Itempowers DISCOMs with the opportunity to break even in the next 2-3 years. This is through four initiativesnamely:

UDAYUnion government allowed state governments, which own the discoms, to take over 75 per cent of the debt and

pay back lenders by selling bonds. For the remaining 25 per cent dues, discoms have been allowed to issue

bonds. State governments will be incentivized by allowing them to borrow more through the bond market. The

Diagrams explains the course of action which is presumed to happen if the state takes over the debts of the

DISCOMS.

Uday

Improvingoperational

efficiencies ofDISCOMs;

Enforcing financialdiscipline on DISCOMsthrough alignment with

State finances

Reduction ininterest cost of

DISCOMs

Reduction of cost ofpower;

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Benefits of UDAY to the Government:Achievement of 24X7 Power for All;Power to 5 crore households without electricity;Energy security through coal and renewable;Reduce Current Account Deficit (CAD) from higher diesel import (current annual imports of around Rs.50,000 crore);

Meet ambitious renewable energy commitments as a responsible global citizen;Revive investments in power sector to create jobs.

Benefits of UDAY– Banks & Investors:Avoid banking contagion (Rs, 40,000 crore of repayments due to banks in 2015-16) which will createsignificant NPAs;Lower risk for existing investments and loans in power, coal and renewable sector;Lower capital adequacy;Increased procurement of power by DISCOMs revives existing power projects suffering from low PLFs;Reduce investment uncertainty across the sector.

Benefits of UDAY to the consumer:Availability of 24X7 power improving quality of life and efficiency;Lower cost of power -Typical 3,000 MW NTPC plant running at 60% Plant Load Factor (PLF) has a fixed

cost of Rs. 2.67 / unit, vs Rs. 1.80 at 90% PLF;Global competitiveness of industry.

Past

State take over ofdebts

-

Present

Enablingquarertly

increase in tariff

OperationalEfficiency and

low cost ofpower

Reduction ininterest cost

Future

Budget Disciple

Future lending bybanks

Reduction ininterest cost

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