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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
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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
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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
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-+, 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!
"$! inistry of &aw and =ustice, 8o+ernment 0f India 6ia The 8aaptel!go+!inpdfTheG"#ElectricityG"#Act"##(!pdf
Compulsory metering, harsh punishment of electricity theft and multi;year
tariffs were introduced to cur' financial losses of SEs!
The act included an acquisition agreement of renewa'le 'ased electricity!
The act also authori
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programmes to carry out the directi+es of the electricity act "##(!""
It
focused on issues including rural electrification, reco+ery of cost of
ser+ices and targeted su'sidies and energy conser+ation! The Na%ional
Ta1i## Poli$! ,, 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
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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
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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$$$"!pdf!
"-;"4! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergy
StatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page$"! 5e' page accessed on arch 2, "#$%!
http>mospi!nic!inmospinewuploadEnergystats"#$)!pdf
(#! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergyStatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page
$(! 5e' page accessed on arch 2, "#$%!
http>mospi!nic!inmospinewuploadEnergystats"#$)!pdf
/ig(> Top ten States 'y installed capacity, "#$" 6857
Source> Central Electricity Authority, onthly 3eport; All India Installed Capacity;State wise,
"#$"
49
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the western region, portraying ("G of total capacity, (%G of coal and )%G
of gas 'ased capacity! aharashtra, which is the 'iggest economic state in
terms of 8. and depicts 4G of the Indian population, has "2 85 or
$(G of national capacity! It is followed 'y 8u@arat, also a western state,
which represents "" 85 or $$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 $-!%G in
/Y "#$#"#$$, highest among regions!((
E+ery state has its own uncommon energy mi*, mainly got from its
own resource 'equest, e*isting infrastructure and policy initiati+es! /or
e*ample, 8u@arat has a comparati+ely large gas 'ased installed capacity,
computing for nearly a $) thof India?s total gas capacity! It is deri+a'le to
8u@arat?s closeness to important gas fields and &N8 terminals in Ba
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engal and 1)G of 9ttar .radesh?s installed capacity are coal;'ased,
'espeaking their large coal reser+es, while )"G of .un@a'?s installed
capacity is Bydro 'ased with its plentiful of water resources! Tamil Nadu
has a high share of renewa'le 'ased installed capacity of almost )"G due
to the state go+ernments strong initiati+es on promoting renewa'le energy!
9+,+- Ca/a$i%! Ta1&e% and P1o0e$%ion
0.?s $"th /i+e Year .lan 6/Y. "#$";"#$17 aims to add up the
total power capacity to 12 85! ue to downturn in domestic gas
production, nearly $ 85 of gas capacity would 'e added, e+en though the
inistry of .ower affirm that nearly $( 85 of gas capacity are under
((! Central Electricity Authority, 8o+ernment 0f India, F&oad 8eneration alance 3eport> "#$$;$"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$!
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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
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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
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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
7/24/2019 Energy Plan for India
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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
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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$eliance Ind&stries says +G-< Gas 2&tp&t to rop to !!
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.ri+ate in+estment in India?s power sector is on the rise! Installed
capacity possessed 'y the pri+ate sector in "#$" 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 $$ th/i+e year plan, which is the
a'o+e the target of $1!( 85!
Still, the ma@or issue is the pro+incial accumulation of pri+ate
financing in a few states! .resently, )"G of all pri+ate power plants are
located in the western region! 8u@arat has "(G of pri+ate power plants,
making the pri+ate share almost %-G of its capacity! Eastern and north;
eastern regions, where power capacity e*pansions are needed, ha+e a share
of -G and #!#)G for eastern and north;eastern regions respecti+ely in
terms of pri+ate ownership! Con+enient incenti+es should 'e proposed to
pri+ate financers in these regions for a more fair 'oost of power capacity
in India!
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Cha/%e1
COAL SECTOR
ominant source of energy in India is coal, which depicts )#G of
India?s energy mi* in "##4, with the installed power capacity as "(2 85
or %2G and almost 1#G of produced electricity in "#$", coal is an
important mainstay of India?s energy supply!)"
As of "#$#, India has the
third largest hard coal reser+es, after the 9SA and China!)(
India was also
the world?s third largest coal producer and consumer in "#$$ after China
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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
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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 $> Statewise Estimated 3eser+es of Coal in India as on #(;($;"#$"
and #(;($;"#$(
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Source> inistry of Statistics and .rogramme Implementation, 8o+ernment of India, EnergyStatistics, "#$)
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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 $$thmedium;term appraisal!%%This was mainly
due to festering manufacture of coal 'y CI& whose production was
%(;%)! inistry of Statistics and .rogramme Implementation, 8o+ernment 0f India, FEnergy
StatisticsF, .u'lished in "#$), Twenty /irst Issue, new elhi, India! Concerned 3eference on page(! 5e' page accessed on April "), "#$%!
http>mospi!nic!inmospinewuploadEnergystats"#$)!pdf
%%! .lanning Commission, 8o+ernment 0f India, F5id-'erm Appraisal for Eleenth 3ie ear Plan
!""=-!"1!F, .u'lished in "#$#, New elhi, India! Concerned 3eference on .age (#2, Chapter $%!we' .age accessed on April "), "#$%!
http>planningcommission!go+!inplansmta$$thmtachapterwisechap$%energy!pdf
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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 "), "#$%!
http>planningcommission!nic!inreportsgenrepintengpol!pdf
companies ha+e 'egun to reesta'lish this technology in recent years!2#
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+9 Bene#i$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$#$$!pdf
+ Con2m/%ion
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The power sector de+oured o+er 1(G of India?s coal in "##4,
which raised noticea'ly from a portion of 2$G in $44$! The second largest
customer was the steel and iron industry, showing a'out 4G in $44$ and
2G in "##4! The cement customer was the third largest customer, using
2G of coal in $44$ 'ut only "G in "##4!
The estimated total consumption of raw coal 'y industry has
increased from )#1!#) t during "##%;#2 to %1#!"( t during "#$";$(
with a CA83 of )!(#G! Similarly, consumption of &ignite rose from
(#!"( t in "##%;#2 to )2!)$ t in "#$";$(, with a CA83 of %!%$G!
Consumption of &ignite is highest in electricity generation sector, which
accounts for -#!(-G!2(
+ I2e
++* De%e1io1a%in& Dome%i$ P1od2$%ion
uring the $$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"#$)!pdf
CA83 )G during the same period!2) There are two reasons for low
production rate>
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The stiff and sluggish method to acquire en+ironmental and land
permission from 0E/ 6inistry of En+ironment and forest7 and
state go+ernments acquired ample days on coal mining pro@ects!
CI&?s production was interrupted 'y its own mediocre producti+ity
'ecause of repeated strikes and resolute incorporation!
The production deficit would persist to 'e a genuine issue for the
power sector! /reshly, CI& was compelled to agree on the /SAs 6/uel
Supply Agreement7 with power companies for those plants to 'e
authoriplanningcommission!go+!ina'outuscommitteewrkgrp$"wgCoal$)#2!pdf
'uilds +arious comple* situations like>
Coal imports are not easy due to inadequate supporting
infrastructure!
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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!
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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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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