Power Scenario In India – Then & Now : An Insight

On Aug 26, 2015

From the time immemorial human race has survived, grown, flourished and prospered on the basis of energy produced, established and utilized. The invention of fire accidentally proved a major boost for early man to evolve into what we are today. This discovery paved way to exploration of the tremendous potential. Major inventions of science focused on harnessing energy and converting it from one form to another to achieve mechanical work. The discovery of electricity has paved way to the most flexible source of energy. From powering consumer appliances, to multi-gear machines that manufacture and assemble goods and even certain artificial intelligence in the form of computers and modern robotics, electricity is synonymous with power.

Our early milestones

India has always been a pioneer in the generation and utilization of electricity since the 19th century. Major developments associated with harnessing the full potential of electricity are as follows:

The first demonstration of electric light in Calcutta was conducted on 24 July 1879.
The first hydroelectric installation in India was installed near a tea estate at Sidrapong for the Darjeeling Municipality in 1897.
Maharaja Partap Singh established the first hydroelectric power station in Jammu & Kashmir at Mohra in Baramulla in 1905.
Company (B.E.S.T.) set up a generating station in 1905 to provide electricity for the tramway.
The first electric train ran between Bombay’s Victoria Terminus and Kurla along the harbor Line.
First Hydel power project at Darjeeling was established in 1897.

Ever since, the electricity sector in India is growing leaps and bounds, exhibiting great dynamism and exponential growth. The utility electricity sector in India had an installed capacity of 271.722 GW as of end March 2015. Renewable Power plants constituted 28% of total installed capacity and Non-Renewable Power Plants constituted the remaining 72%. The gross electricity generated by utilities is 1106 TWh (1106,000 GWh) and 166 TWh by captive power plants during the 2014–15 fiscal. The gross electricity generation includes auxiliary power consumption of power generation plants. India became the world’s third largest producer of electricity in the year 2013 with 4.8% global share in electricity generation surpassing Japan and Russia. During the year 2014-15, the per capita electricity consumption in India was 1010 kWh with total electricity consumption (utilities and non utilities) of 938.823 billion kWh. [1] Electric energy consumption in agriculture was recorded highest (18.45%) in 2014-15 among all countries. The per capita electricity consumption is lower compared to many countries despite cheaper electricity tariff in India.

State-owned and privately owned companies are significant players in India’s electricity sector, with the private sector growing at a faster rate. India’s central government and state governments jointly regulate electricity sector in India. Major economic and social drivers for India’s push for electricity generation include India’s goal to provide universal access, the need to replace current highly polluting energy sources in use in India with cleaner energy sources, a rapidly growing economy, increasing household incomes, limited domestic reserves of fossil fuels and the adverse impact on the environment of rapid development in urban and regional areas.

The growth impetus to the power sector is further fuelled by firm and flexible regulations framed by the Ministry of Power, Government of India. One of the major regulations is the Electricity Act of 2003. Electricity Act 2003 has been enacted and came into force from 15.06.2003. The objective is to introduce competition, protect consumer’s interests and provide power for all. The Act provides for National Electricity Policy, Rural Electrification, Open access in transmission, phased open access in distribution, mandatory SERCs, license free generation and distribution, power trading, mandatory metering and stringent penalties for theft of electricity.

It is a comprehensive legislation replacing Electricity Act 1910, Electricity Supply Act 1948 and Electricity Regulatory Commission Act 1998.The Electricity Act, 2003 has been amended on two occasions by the Electricity (Amendment) Act, 2003 and the Electricity (Amendment) Act, 2007. The aim is to push the sector onto a trajectory of sound commercial growth and to enable the States and the Centre to move in harmony and coordination.

Energy Sources

1) Thermal power: Thermal power plants convert energy rich fuels such as coal, natural gas, petroleum products, agricultural waste, domestic trash/waste, etc. into electricity. Other sources of fuel include landfill gas and biogases. In some plants, renewal fuels such as biogas are co-fired with coal. Coal and lignite accounted for about 60% of India’s total installed capacity. India’s electricity sector consumes about 72% of the coal produced in the country. India expects that its projected rapid growth in electricity generation over the next couple of decades is expected to be largely met by thermal power plants.

2) Hydropower: The hydro-electric power plants at Darjeeling and Shimsha (Shivanasamudra) were established in 1898 and 1902 respectively and were among the first in Asia. India is endowed with economically exploitable and viable hydro potential assessed be about 84,000 MW at 60% load factor. In addition, 6740 MW in terms of installed capacity from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely used form of renewable energy. India is blessed with immense amount of hydroelectric potential and ranks 5th in terms of exploitable hydro-potential on global scenario.

3) Nuclear power: India’s nuclear power plant development began in 1964. India signed an agreement with General Electric of the United States for the construction and commissioning of two boiling water reactors at Tarapur. In 1967, this effort was placed under India’s Department of Atomic Energy. In 1971, India set up its first pressurized heavy water reactors with Canadian collaboration in Rajasthan. In 1987, India created Nuclear Power Corporation of India Limited to commercialize nuclear power. Nuclear Power Corporation of India Limited is a public sector enterprise, wholly owned by the Government of India, under the administrative control of its Department of Atomic Energy. Its objective is to implement and operate nuclear power stations for India’s electricity sector. The state-owned company has ambitious plans to establish 63 GW generation capacity by 2032, as a safe, environmentally benign and economically viable source of electrical energy to meet the increasing electricity needs of India

Renewable Sources of Energy for power generation:

a) Solar energy:
India is endowed with a vast solar energy potential. India receives one of the highest global solar radiations – energy of about 5,000 trillion kWh per year is incident over India’s land mass with most parts receiving 4-7 kWh per m2 per day. Under Solar Mission, a central government initiative, India plans to generate 1 GW of power by 2013 and up to 20 GW grid-based solar power, 2 GW of off-grid solar power and cover 20 million square meters with solar energy collectors by 2020. India plans utility scale solar power generation plants through solar parks with dedicated infrastructure by state governments, among others, the governments of Gujarat and Rajasthan.

b) Wind power:
India has the fifth largest installed wind power capacity in the world. In 2010, wind power accounted for 6% of India’s total installed power capacity, and 1.6% of the country’s power output. The largest wind power generating state was Tamil Nadu accounting for 30% of installed capacity, followed in decreasing order by Maharashtra, Gujarat, Karnataka, and Rajasthan.

c) Biomass power:
In this system biomass, bagasse, forestry and agro residue & agricultural wastes are used as fuel to produce electricity. Nearly 750 million tons of non edible (by cattle) biomass is available annually in India which can be put to use for higher value addition.

d) Geothermal energy:
Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. India’s geothermal energy installed capacity is experimental. Commercial use is insignificant. According to some ambitious estimates, India has 10,600 MW of potential in the geothermal provinces but it still needs to be exploited. India has potential resources to harvest geothermal energy.

The resource map for India has been grouped into six geothermal provinces:

Himalayan Province – Tertiary Orogenic belt with Tertiary magmatic rocks.
Areas of Faulted blocks – Aravalli belt, Naga-Lushi, West coast regions and Son-Narmada lineament.
Volcanic arc – Andaman and Nicobar arc.
Deep sedimentary basin of Tertiary age such as Cambay basin in Gujarat.
Radioactive Province – Surajkund, Hazaribagh, Jharkhand.
Cratonic province – Peninsular India

e) Tidal wave energy:
Tidal energy technologies harvest energy from the seas. The potential of tidal wave energy becomes higher in certain regions by local effects such as shelving, funnelling, reflection and resonance. India is surrounded by sea on three sides; its potential to harness tidal energy is significant. In December 2011, the Ministry of New & Renewable Energy, Government of India and the Renewable Energy Development Agency of Govt. of West Bengal jointly approved and agreed to implement India’s first 3.75 MW Durgaduani mini tidal power project. Indian government believes that tidal energy may be an attractive solution to meet the local energy demands of this remote delta region.

Demand
Of the 1.4 billion people of the world who have no access to electricity in the world, India accounts for over 300 million. The International Energy Agency estimates India will add between 600 GW to 1,200 GW of additional new power generation capacity before 2050. This added new capacity is equivalent to the 740 GW of total power generation capacity of European Union (EU-27) in 2005. The technologies and fuel sources India adopts, as it adds this electricity generation capacity, may make significant impact to global resource usage and environmental issues.

Some 800 million Indians use traditional fuels fuelwood, agricultural waste and biomass cakes – for cooking and general heating needs. These traditional fuels are burnt in cook stoves, known as chulah or chulha in some parts of India. Traditional fuel is inefficient source of energy, its burning releases high levels of smoke, PM10 particulate matter, NOX, SOX, PAHs, polyaromatics, formaldehyde, carbon monoxide and other air pollutants. Some reports, including one by the World Health Organization, claim 300,000 to 400,000 people in India die of indoor air pollution and carbon monoxide poisoning every year because of biomass burning and use of chullahs.

Traditional fuel burning in conventional cook stoves releases unnecessarily large amounts of pollutants, between 5 to 15 times higher than industrial combustion of coal, thereby affecting outdoor air quality, haze and smog, chronic health problems, damage to forests, ecosystems and global climate. Burning of biomass and firewood will not stop, these reports claim, unless electricity or clean burning fuel and combustion technologies become reliably available and widely adopted in rural and urban India.
The growth of electricity sector in India may help find a sustainable alternative to traditional fuel burning. In addition to air pollution problems, a 2007 study finds that discharge of untreated sewage is single most important cause for pollution of surface and ground water in India. There is a large gap between generation and treatment of domestic wastewater in India. The problem is not only that India lacks sufficient treatment capacity but also that the sewage treatment plants that exist do not operate and are not maintained. Majority of the government-owned sewage treatment plants remain closed most of the time in part because of the lack of reliable electricity supply to operate the plants. The wastewater generated in these areas normally percolates in the soil or evaporates. The uncollected wastes accumulate in the urban areas cause unhygienic conditions, release heavy metals and pollutants that leaches to surface and groundwater. Almost all rivers, lakes and water bodies are severely polluted in India. Water pollution also adversely impacts river, wetland and ocean life.

Reliable generation and supply of electricity is essential for addressing India’s water pollution and associated environmental issues. Other drivers for India’s electricity sector are its rapidly growing economy, rising exports, improving infrastructure and increasing household incomes.

Demand trends
During the fiscal year 2014-15, the electricity generated in utility sector is 1,030.785 billion KWh with a short fall of requirement by 38.138 billion KWh (-3.6%) against the 5.1% deficit anticipated. The peak load met was 141,180 MW with a short fall of requirement by 7,006 MW (-4.7%) against the 2.0% deficit anticipated. In a May 2015 report, India’s Central Electricity Authority anticipated, for the 2015–16 fiscal year, a base load energy deficit and peaking shortage to be 2.1% and 2.6% respectively. Southern and North Eastern regions are anticipated to face energy shortage up to 11.3%. The marginal deficit figures clearly reflect that India would become electricity surplus during the 12th five-year plan period.

In December 2011, over 300 million Indian citizens had no access to frequent electricity. Over one third of India’s rural population lacked electricity, as did 6% of the urban population. Of those who did have access to electricity in India, the supply was intermittent and unreliable. In 2010, blackouts and power shedding interrupted irrigation and manufacturing across the country. States such as Gujarat, Madhya Pradesh, etc. provide continuous power supply.

Despite an ambitious rural electrification programme, some 400 million Indians lose electricity access during blackouts. According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993. While 80% of Indian villages have at least an electricity line, just 52.5% of rural households have access to electricity. In urban areas, the access to electricity is 93.1% in 2008. The overall electrification rate in India is 64.5% while 35.5% of the population still lives without access to electricity.

The 17th electric power survey of India report claims:

Over 2010–11, India’s industrial demand accounted for 35% of electrical power requirement, domestic household use accounted for 28%, agriculture 21%, commercial 9%, public lighting and other miscellaneous applications accounted for the rest.
The electrical energy demand for 2016–17 is expected to be at least 1,392 Tera Watt Hours, with a peak electric demand of 218 GW.
The electrical energy demand for 2021–22 is expected to be at least 1,915 Tera Watt Hours, with a peak electric demand of 298 GW.

If current average transmission and distribution average losses remain same (32%), India needs to add about 135 GW of power generation capacity, before 2017, to satisfy the projected demand after losses.

India’s demand for electricity may cross 300 GW, earlier than most estimates.

To explain their estimates, there are four primary reasons:

India’s manufacturing sector is likely to grow faster than in the past.
Domestic demand will increase more rapidly as the quality of life for more Indians improve.
About 125,000 villages are likely to get connected to India’s electricity grid.
Blackouts and load shedding artificially suppresses demand; this demand will be sought as revenue potential by power distribution companies.

A demand of 300 GW will require about 400 GW of installed capacity it is further noted. The extra capacity is necessary to account for plant availability, infrastructure maintenance, spinning reserve and losses.

In 2010, electricity losses in India during transmission and distribution were about 24%, while losses because of consumer theft or billing deficiencies added another 10–15%. According to two studies published in 2004, theft of electricity in India, amounted to a nationwide loss of $4.5 billion. This led several states of India to enact and implement regulatory and institutional framework; develop a new industry and market structure; and privatize distribution. Power cuts are common throughout India and the consequent failure to satisfy the demand for electricity has adversely effected India’s economic growth.

Problems with India’s power sector

Inadequate last mile connectivity is the main problem to supply electricity for all users. The country has already adequate generation and transmission capacity to meet the full demand temporally and spatially. However, due to lack of last-mile link-up with all electricity consumers and reliable power supply (to exceed 99%), many consumers depend on Diesel Generator sets using costly diesel oil for meeting unavoidable power requirements. The distribution companies should focus on providing uninterrupted power supply to all the consumers who are using costly DG set’s power. This should be achieved by laying separate buried power cables (not to be effected by rain and winds) for emergency power supply in addition to the normal supply lines. Emergency supply power line shall supply power when the normal power supply line is not working. Emergency power supply would be charged at higher price without any subsidy but less than the generation cost from diesel oil. Nearly 80 billion KWh electricity is generated annually in India by DG sets, which are consuming nearly 15 million tons of diesel oil.
Demand build up measures can be initiated to consume the cheaper electricity (average price Rs 2.5 per kWhr at generator’s supply point) available from the grid instead of running the coal/gas/oil fired captive power plants in various electricity intensive industries.
A system of cross-subsidization is practiced based on the principle of ‘the consumer’s ability to pay’. In general, the industrial and commercial consumers subsidize the domestic and agricultural consumers. Further, Government giveaways such as free electricity for farmers, partly to curry political favor, have depleted the cash reserves of state-run electricity-distribution system. This has financially crippled the distribution network, and its ability to pay for power to meet the demand.
The residential building sector is one of the largest consumers of electricity in India. Continuous urbanization and the growth of population result in increasing power consumption in buildings. Thus, while experts express the huge potential for energy conservations in this sector, the belief still predominates among stakeholders that energy-efficient buildings are more expensive than conventional buildings, which adversely affects the “greening” of the building sector.
Key implementation challenges for India’s electricity sector include new project management and execution, ensuring availability of fuel quantities and qualities, lack of initiative to develop large coal and natural gas resources available in India, land acquisition, environmental clearances at state and central government level, and training of skilled manpower to prevent talent shortages for operating latest technology plants.
Shortages of fuel: despite abundant reserves of coal, India is facing a severe shortage of coal. The country isn’t producing enough to feed its power plants. Some plants do not have reserve coal supplies to last a day of operations. India’s monopoly coal producer, state-controlled Coal India, is constrained by primitive mining techniques and is rife with theft and corruption; Coal India has consistently missed production targets and growth targets. Poor coal transport infrastructure has worsened these problems. To expand its coal production capacity, Coal India needs to mine new deposits. However, most of India’s coal lies under protected forests or designated tribal lands. Any mining activity or land acquisition for infrastructure in these coal-rich areas of India has been rife with political demonstrations, social activism and public interest litigations.
Poor pipeline connectivity and infrastructure to harness India’s abundant coal bed methane and shale gas potential.
The giant new offshore natural gas field has delivered less fuel than projected. India faces a shortage of natural gas.
Hydroelectric power projects in India’s mountainous north and north east regions have been slowed down by ecological, environmental and rehabilitation controversies, coupled with public interest litigations.

Theft of power

Losses in the connector systems/service connections leading to premature failure of capital equipments like transformers
India’s nuclear power generation potential has been stymied by political activism since the Fukushima disaster in Japan.
Average transmission, distribution and consumer-level losses exceeding 30% which includes auxiliary power consumption of thermal power stations, fictitious electricity generation by wind generators & independent power producers (IPPs), etc.
Over 300 million (300 million) people in India have no access to electricity. Of those who do, almost all find electricity supply intermittent and unreliable.
Lack of clean and reliable energy sources such as electricity is, in part, causing about 800 million (800 million) people in India to continue using traditional biomass energy sources – namely fuel wood, agricultural waste and livestock dung – for cooking and other domestic needs. Traditional fuel combustion is the primary source of indoor air pollution in India, causes between 300,000 to 400,000 deaths per year and other chronic health issues.
India’s coal-fired, oil-fired and natural gas-fired thermal power plants are inefficient and offer significant potential for greenhouse gas (CO2) emission reduction through better technology. Compared to the average emissions from coal-fired, oil-fired and natural gas-fired thermal power plants in European Union (EU-27) countries, India’s thermal power plants emit 50% to 120% more CO2 per kWh produced.

Summing up, the Power scenario has to be continuously researched and dedicatedly attended to if we wish to progress as a country.

“The world has today 546 nuclear plants generating electricity. Their experience is being continuously researched, and feedback should be provided to all. Nuclear scientists have to interact with the people of the nation, and academic institutions continuously update nuclear power generation technology and safety.”
Dr. A. P. J. Abdul Kalam

[Contributed by Dr. Jyoti D. Vora, M.Sc., Ph.D., F.S.Sc.,
CME(USA) NET CLEARED,
Head, Department of Biochemistry and Food Science and Quality
Control, Ramnarain Ruia College, Matunga, Mumbai-400 019.
Email: [email protected]]

CME(USA) NET CLEARED Dr. Jyoti D. Vora