Renewable Energy Power Projects for Rural Electrification in India

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As demand for energy is increasing around the world & in India, there is a positive growth trend coming in the renewable energy sector also. There are many rural and remote areas which are energy deficient.
Private companies are encouraged by Government creating opportunities by various governmental schemes like Rajiv Gandhi Grameen Vidyutikaran Yojna, Distributed Decentralized Generation and support in finance, distribution, technology, land, etc. As every area has its dynamics and differs from others in terms of topography, density of population and energy needs, there is a need of study for specific features related to a region (like a cluster of 19 villages in Gaya, Bihar requiring about 750kw Plant studied here) with the help of surveys, financial tools and earlier standards. Other renewable sources and areas are also covered in the book. The confidential information is edited-redacted.

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Renewable Energy Power Projects for Rural Electrification in India

  1. 1. 1
  2. 2. RENEWABLE ENERGY POWER PROJECTS UNDER DDG SCHEME for RURAL ELECTRIFICATION in INDIA Mohit Sharma (Trendster / Trendy Baba) © All rights reserved, Mohit Sharma 2
  3. 3. CONTENTS Executive Summary………………………………………………….Page 4 Preface……………………………………………………………………… Page 5 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Introduction……………………………………………… Page 6 Rural India and energy……………………………… Page 11 Barriers to Energy Access For Rural Masses… Page 15 Government Initiative……………………………… Page 18 Approach for meeting rural energy need… Page 20 Renewable Energy………………………………… Page 25 Solar Power - Bridge to Future………………. Page 27 Other Renewable Energy………………………… Page 31 Distributed Decentralized Generation Based Power Plan – P. 35 Understanding Bihar…………………………………….. Page 37 Concept of Distributed Generation…………………Page 59 Origin of Study…………………………………………………Page 60 Renewable Energy Technologies as DDG…………Page 62 NEW INNOVATION IN OFF GRID TECHNOLOGY……Page 65 The BIOMASS GASIFIER TECHNOLOGY………Page 69 BARRIERS……………………………………………………Page 71 The BUSINESS MODEL FOR GAYA SYSTEM……Page 75 Penetration of DDG………………………………………..Page 81 Conclusion……………………………………………………..Page 85 References……………………………………………………..Page 86 3
  4. 4. EXECUTIVE SUMMARY The reach of power (energy) in India is limited and there are certain areas where to install a new renewable energy based plant is better than connecting it to the conventional power lines. People of many villages and remote areas have not availed the benefits of electricity which affects their standard of living. To increase the growth of power reach through small off-grid projects government initiated few plans, schemes encouraging private companies to enter in this sector. The Green Mantra (Environmental Carbon Solutions Pvt. Ltd.) is setting up renewable energy based power projects in Bihar, Orissa and North Eastern States. The project covered is a 750 kw hybrid power project of Biomass and Solar energy in a cluster of 19 villages located in Gaya district of Bihar. It also covers the common areas related to usage of renewable energy in Orissa and North East India. Objective of Research As demand for energy is increasing around the world & in India so there is a positive growth trend is coming in the renewable energy sector also. There are many rural and remote areas which are energy deficient. So, private companies are encouraged by Government creating opportunities by various governmental schemes like Rajiv Gandhi Grameen Vidyutikaran Yojna, Distributed Decentralized Generation and support in finance, distribution, technology, land, etc. As every area has its dynamics and differs from others in terms of topography, density of population and energy needs, there is a need of study for specific features related to the target are (a cluster of 19 villages in Gaya, Bihar requiring about 750kw Plant) with the help of surveys, financial tools and earlier standards. Approach Indian solar and non solar market were focused. REC‟s are traded trough any CERC approved power exchanges. With increasing involvement of private players many schemes are yet to be fully exploited to avail the maximum profit from such Projects. Assumptions of various permutationscombinations on the basis of available data is also performed to make the results comparable. Comparison with alternatives like Small Hydro, Wind is also carried out. Primary and Secondary research method has used in the project. 4
  5. 5. Preface Power is the PREFACE life blood of a developing economy. India is currently in a state of burgeoning economic development. But the power scenario in India still has a long way to go. The government policies are well in place to take care of the power requirements of the country at a macro level. However, the issue of Energy Access at the grass root level still remains a cause of major concern. The modern day power system is undergoing rapid and dynamic metamorphosis from the legacy system, in the direction of an intelligent power system. The use of renewable energy resources as distributed generation at the sub-transmission / distribution level is on the rise alongside advances in the efficiency of associated technologies and automation of the power sector. Renewable energy resources (RERs) such as wind and photovoltaic (PV) technologies that are time variant are planned for meeting variation of loads. PV and wind technologies are two technologies that have seen the most significant growth for use and distributed sources. The rural parts of the country still remain largely devoid of an efficient power infrastructure. Research and policy implementation at this level can strengthen the power position of the country at the ground level. Rural India is the backbone of India‟s economy. Nearly 70% of India‟s population lives in villages and agricultural is the main support for their livelihood. It is, therefore, ironical that India‟s rural population shares a much larger burden of poverty as well as energy poverty. Eradicating energy poverty requires that adequate infrastructure is put in place so that power can reach the corners of the country. Moreover, this power must be clean enough to be environmentally acceptable, affordable by the people and also feasible to implement. Most of these criteria are satisfied by Renewable Energy. Also, renewable energy can be implemented in a distributed format which makes it more suitable for providing power to areas with difficult geographical accessibility. This report looks at the providing energy access to the rural part of the country through renewable energy especially through DDG Scheme. With vast diversity of our rural population in physical, social, cultural, educational, and economic background, the solution would need to be developed on case by case matching with the peculiarities of a particular region. Eradicating energy poverty requires that adequate infrastructure is put in place so that power can reach the corners of the country. Moreover, this power must be clean enough to be environmentally acceptable, affordable by the people and also feasible to implement. Most of these criteria are satisfied by Renewable Energy. Also, renewable energy can be implemented in a distributed format which makes it more suitable for providing power to areas 5
  6. 6. with difficult geographical accessibility. This report looks at the providing energy access to the rural part of the country through renewable energy. This report is a comprehensive effort, at macro level, to make an assessment of the current scenario of energy access to the rural population, what should be our objectives and targets to remove the rural energy poverty and how we can meet the challenges encountered and accomplish this stupendous but important task. In such effort, the report identifies the vital role renewable offer. INTRODUCTION Energy is a basic necessity for human activity and economic and social development. Yet global strategies for how to meet this basic need for the world's rapidly growing population are sorely lacking. Lack of energy services is directly correlated with key elements of poverty, including low education levels, restriction of opportunity to subsistence activity, and conflict. Rural electrification is the process of bringing electrical power to rural and remote areas. Electricity is used not only for lighting and household purposes, but it also allows for mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage. In areas facing labor shortages, this allows for greater productivity at reduced cost. One famous program was the New Deal's Rural Electrification Administration in the United States, which pioneered many of the schemes still practiced in other countries. According to IEA (2009) worldwide 1.456 billion people do not have access to electricity, of which 83% live in rural areas. In Sub-Saharan Africa less than 10% of the rural population has access to electricity. Worldwide rural electrification progresses only slowly. In impoverished and undeveloped areas, small amounts of electricity can free large amounts of human time and labor. In the poorest areas, people carry water and fuel by hand, their food storage may be limited, and their activity is limited to daylight hours. Adding electric-powered wells for clean water can prevent many water-borne diseases, e.g. dysentery, by reducing or eliminating direct contact between people (hands) and the water supply. Refrigerators increase the length of time that food can be stored, potentially reducing hunger, while evening lighting can lengthen a community's daylight hours allowing more time for productivity. Indian Context, over 400 million Indians have no access to electricity. 6
  7. 7. The problem is not one of distribution, but of provision. Many people attempt to steal electric power. The electric company then responds with punitive "tampering tariffs" that require charge legitimate users for electricity that fraudulent connections and meters might have stolen. These very high tariffs are resisted by all but the wealthiest users. The result is that the underfunded electric power company reduces service to the amount of electricity it can afford to produce. The electric companies therefore also prefer to serve large institutional customers that pay their bills. Developments on cheap solar technology is considered a potential alternative that allows an electricity infrastructure consisting of a network of local-grid clusters with distributed electricity generation. That could allow bypassing, or at least relieving the need of installing expensive, and lossy, long-distance centralised power delivery systems and yet bring cheap electricity to the masses. India's government has proposed legislation to compel village leaders to operate local generators run from biomass (see links). Locally-controlled generation is preferable to distant generation because the fuel, billing and controls for the generator will then be controlled by the villagers themselves, and they are thought more likely to come to an equitable arrangement among themselves. Distributed generation throughout the power system, real time voltage and angle measurements together with integrated two-way communication are all recently introduced components of the power system. These serve to greatly improve power system‟s reliability and performance. These advancements are being implemented at the transmission, sub-transmission and distribution levels of the electric power system, with the objective of increasing the stability, invulnerability, reliability and adequacy in meeting the increasing power demands. The move toward sustainable and renewable energy technologies is evident due to the various policies favoring the Renwable Energy Sector such as JNNSM, RPO(Renwable Purchase Obligation). The use of renewable energy resources as distributed generators (DGs) at the subtransmission / distribution level is on the increase alongside advances in the efficiency of associated technologies. These technologies provide sustainable and environmental feasible alternatives for energy production that have the additional advantage of reducing the dependability of the grid on imported fossil fuels and large central generation Photovoltaic, wind technology, biomass are amongst these technologies. 7
  8. 8. 8
  9. 9. There are measurable impacts of the penetration of these renewable energy resources (RERs) on the electric grid; they impact the power quality, reliability, stability and safety of the electric power supply. In the present day distribution system, there is an increased instance of DG penetration into the network, with measureable impacts on the system. PV and wind technologies are two technologies that have seen the most significant growth for use and distributed sources as shown in Figures. FIGURES: TRENDS IN GROWTH IN GENERATION CAPACITY OF PHOTOVOLTAIC AND WIND 1. Energy Access & Energy Poverty Access to energy services is a key component of alleviating poverty and an indispensable element of sustainable human development. Without access to modern, commercial energy, poor countries can be trapped in a vicious circle of poverty, social instability and underdevelopment. During the past twenty-five years, electricity supplies have been extended to 1.3 billion people living in developing countries. Yet despite these advances, roughly 1.6 billion people, which is one quarter of the global population, still have no access to electricity and some 2.4 billion people rely on traditional biomass, including wood, agricultural residues and dung, for cooking and heating. More than 99 percent of people without electricity live in developing regions, and four out of five live in rural areas of South Asia and sub-Saharan Africa. 9
  10. 10. Despite advances in areas such as rural electrification, the number of people lacking access to energy services has remained relatively constant due to increases in population. The total number of people without electricity has fallen by fewer than 500 million since 1990. Without modern energy services, millions of women and children face debilitating illness or premature death; basic social goods like health care and education are more costly in both real and human terms, and economic development is harder to perpetuate. The services that energy enables, such as electricity, can create conditions for improved living standards, especially in areas of public health, education, and family life. Electricity allows tasks previously performed by hand or animal power to be done much more quickly with electric powered machines. Electric lighting allows individuals to extend the length of time spent on production and hence on income producing activities. It also allows children time to read or do homework and access to television and film, which opens rural residents to new information that can instill the idea of change and the potential for self -improvement. Modern liquid fuels permit modern modes of transportation that cut the cost, both monetary and in time, of travel to nearby towns where, again, individuals are exposed to different ways of doing things and different views. Faster and cheaper transportation can increase the reliability of supply of modern fuels, reducing the need to maintain supplies of firewood as a back up and facilitating movements up the energy ladder. India has experienced rapid economic growth over the past decade, with an expanding middle class larger than the population of the United States. In 2000, the population grew at a rate of over 6 per cent, which required a rate of 9 per cent of energy growth . In the past 20 years alone, urbanization has driven a 208% growth in India’s energy consumption. Under these conditions, it is imperative that India meets its growing energy necessities in a self-reliant, sustainable manner. However, providing 1 billion plus people with a constant energy supply is very difficult, especially for a developing country facing rising gas prices. More than 18,000 villages live without electricity in India; according to the International Energy Agency, 404.5 million people do not have access to energy. Many who do receive electricity face constant blackouts and uncertainties of a steady energy supply from their utility company? Erratic voltage levels and an unreliable power supply are major problems, due to the inadequate 10
  11. 11. energy supply and ageing transmission leading to power cuts . Rural areas face serious problems with the reliability of power supply. India’s climatic conditions make it a very suitable place to rely on renewable energy (RE); with very high solar irradiationnsolation levels and 45,000 megavolts megawatts (MWV) of possible wind capacity, RE business growth has much potential. The Indian economy also depends heavily on agricultural production, and the livelihood for a majority of the population is farming. Installing RE for rural agricultural purposes is necessary to make a significant impact. Photovoltaic and wind technologies have over the past years revealed an almost 45% increase in the generation capacity of solar PV technology. This is reflective of a global growth in the utilization of those technologies. As the utilization of these resources constantly increases, the use of conventional tools for the analysis of the power system, even with significant RERs penetration persists. For such studies, assumptions / simplifications are made with regards to the modeling of the RERs technologies. Advancing the models of these resources for power system studies has been of recent interest with several works being conducted in this area for the various technologies. 2. RURAL INDIA AND ENERGY Energy Poverty Is Universal As per one estimate, globally, 1.6 billion people (1/3 humanity) have no access to electricity; 80% of energy poverty is in rural areas of developing world. Worldwide, more than 3 billion people depend on dirty, harmful solid fuels to meet their basic energy needs like cooking. Some 2.4 billion people rely on traditional biomass i.e. wood, agricultural residues and dung cake for cooking and heating. The Indian situation is no better. India With its large rural population of (70% of the total population) living in villages and being poor, India is one of the worst affected developing countries suffering from energy poverty. As per the data of 2004 (which might have only changed marginally as a result of various initiatives taken by the Govt.), 26% villages (56.5% households)3 had no access to electricity; An ambitious scheme launched in 2004, Rajiv Gandhi Grameen Vidyuteekaran Yojana (RGGVY) targets to achieve 100% village electrification by 2012 (originally by 2010). Energy Poverty impacts in several ways 11
  12. 12. Social Dimension: Energy poverty is the main reason for rural poverty which in turn, give rise to health issues, Up to 95% of rural energy needs are being met by inefficient burning of fuelwood, dung cake and plant wastes and is used for meeting the basic needs of cooking, heating and lighting, there being nothing left for productive use. These result in high pollution levels in low income dwellings with consequent health issues propping up. Economic Dimension: Lack of affordable and reliable energy restricts the income levels and industrial/commercial activity leading to economic stagnation or slow growth. Environmental Dimension: In the absence of affordable modern energy, there is no alternative to the manner of use of energy natural sources, which results in huge pressure on the environment in general. Years ago, development experts thought industrialized countries should harness and drive research, while developing countries focus on raising basic education and literary skills. India is unique, in that it created world-class educational institutions (e.g. Indian Institute for Technology - IIT) during a time when most of the country was impoverished. The investments made in the scientific research capacity from IIT schools have led to a new generation of information technology engineers that have orchestrated India’s IT boom. Now these same research institutions are discovering technology that creates renewable and efficient energy. Ever since the liberalization of India’s market, the government in the nineties formulated a great number of policies to promote RE, including technology transfer. It is imperative for the GoI to balance the amount of R&D on the national level and imported technology. Not only would India be proving to the world that a developing country can utilize renewable energy options, but developed countries would no longer be able to make the argument that international carbon reduction treaties should not be pursued because of the lack of restrictions on developing countries.India is proving its leadership and takes up the task of providing its citizens with steady, reliable and clean energy, but more can still be done. However, the reduction of RE prices and mass production should not be done to the detriment of quality. Indian industry, which has cultivated an image of quality in other sectors, would be well 12
  13. 13. advised to apply the same standards to RE technologies. Several local producers have been recently criticized and some experts have expressed doubts on the quality of the new installations following the implementation of Indian Solar Plan. In this framework, local authorities have a role to play in imposing internationally agreed standards in their own markets as well for exports. This will have a mid-long term important influence on the local markets (systems working as planned over 20-25 years), as well as on the image of the technology and the industry. The recent major cost decreases of RE is opening up market niches; utilizing the full potential of these niches must be realized. Currently, the RE market in India is over US$2.2 billion, and is growing at 15 per cent every year. Non-governmental Organizations should be also utilized during RE project implementation and public-private partnerships between governments and the private sector can link policy changes with private financing to promote RE. International lending organizations, such as the World Bank and the ADB assistance are still greatly needed for RE implementation, particularly for off-grid. The Banks can help create the right environment for the private sector to invest in RE technology, implementation, and maintenance. India is an agricultural nation, yet the farmers and the rural poor remain the underserved. Klaus Toepfer, the former Executive Director of the United Nations Environment Program, has once said, “These countries need greatly expanded energy services to help in the fight against poverty and to power sustainable development”. The benefits of RE in rural Indian communities are tremendous; RE not only expands energy generation and greenhouse gas mitigation, but also contributes to improvements in local environment, drought control, energy conservation, employment generation, health and hygiene, social welfare, security of drinking water, and increased agricultural yield . Implementing wind farms and solar power in villages brings development in the form of infrastructure, efficient agriculture, and an overall better quality of life for the rural people. Thus, the broader developmental goals, such as poverty alleviation, sustainable development and employment generation should be integrated into the RE programs while seeking direct support under bilateral and multilateral cooperation. The GoI, NGOs, the international community, private businesses, and the villagers themselves all have a significant part to play in creating this better life, and must work together in order to do so. 13
  14. 14. Complexity of Energy needs of rural India The energy needs of rural India, as seen in totality, are much more complex and are unlikely to be fully or substantially addressed by 100% village electrification. Such complexity is the result of large population, majority being poor with no capacity to pay for the cost of energy and the only energy in use i.e. fuel wood for cooking being availed without any financial cost personal human labor, the grid extension to the villages, even if materializes, would be of limited help as there is large gap between supply and demand, quality and timing of supply to the rural areas, high T&D losses and large component of hidden cost involved in such supply, which would justify use of local energy resources than to rely on grid power for the rural population.  About 75% of Energy in Rural India required only for Cooking and Lighting, largely met by locally available bio mass and kerosene, supplemented by electricity from grid.  75% use biomass (firewood), 10% use dung-cake and only 5% use LPG for cooking  50% use kerosene and 48% grid electricity for lighting.  Agriculture is second largest rural energy demand , Electricity and Diesel are the main sources  Human and Animal Energy is major source for domestic, agriculture and several other requirements. Women and Energy have strong relationship in rural India. Drudgery of women and children, Health Issues due to inefficient use of biomass and lack of ventilation The Rural Poor The Economic Poverty and Energy Poverty seem to be going hand in hand. It is difficult to make a conclusive determination which one drives the other. Let us take a look at the typical characteristics of the rural poor household. These are: • The family consists of more than 5 members. • It has no or limited land or livestock as its assets. • It has limited or no other assets or equipment, it may be living in a self built Kachcha (temporary) house. • It has no access to electricity, either no grid connectivity or not being able to afford the cost thereof. 14
  15. 15. • It depends on water from, hand pump, pond or well, irrespective of whether the water is fully potable or needs some treatment for making it fit for drinking. • It depends on rudimentary cooking processes and equipment, typically the three stone chulha (cook stove). • The family survives on a single or two persons working as daily Wage Labor. • It is substantially dependent on natural resources and hence is sensitive to earning shocks. • It may be spending up to 70% of the budget on food expenditure, mainly rice and other staples, unlikely to provide the minimum essential nutrients. • The energy needs are predominantly met by women folk (who may at times be assisted by young children) for fetching wood, biomass or dung and making dung cake for cooking and other needs. Thus, Women and Energy have strong relationship in rural India in arranging and using energy. • Drudgery of women and children can be well imagined who need to collect biomass on their heads almost on daily basis to be able to cook their daily food. Thus, there is no time or energy left with them for to pursue income generating activity or education. 3. BARRIERS TO ENERGY ACCESS FOR RURAL MASSES The barriers or constraints to Energy Access to Rural Masses have their origins in economic, social, technological and financial limitations coupled with inadequate focus by the planners, Governments and national and international development organizations on the issues involved. Some of the major barriers to Energy Access for Rural Masses are:  Geographically dispersed villages  Inadequate focus on local resources  Inadequate financing structures  Inadequate Interest of private sector  Unsustainable initiatives  Need for better monitoring  Ineffective targeting of subsidies  Affordability of Energy cost  Remote locations  Availability of ready to use technology. 15
  16. 16.  Energy crops competing with food crops  Funding Gap  Ability to pay  Sustainability of Renewable  Subsidies The recent increase in the integration of renewable energy technologies into the electric power system, has led to the development of a methodology for the optimal use of these resources within the Power System that takes into consideration the variability of these resources. Though there is presently, integration at the transmission, sub-transmission and distribution level of the system, the use of distributed generators at the customer /load-end of the distribution system is of particular concern. The engineering problem is the development of a comprehensive scheme for the optimal utilization of RERs technologies at the distribution level with consideration as to the impact of these technologies on the reliability of the system. This work involves the development of suitable models that account for the variability of the sources and consideration of the variability of the loads at the distribution level. The underlying benefits of this research are linked to the utilization of renewable energy technologies as distributed generation. This provides the benefit of providing additional generation without the large investment that would be associated with central generation expansion; is accompanied by the relatively low efficiency, and cost of investment with regards to the installation of these sustainable energy technologies and their associated electronic and storage components. To ensure that the resources are use optimally within the confines of the application, it is important that the implications of these resources are comprehensively studied with consideration of their limitations such as variability. Within this work the major solutions to be developed are: i. The selection and implementation of a suitable yet simplistic model for the renewable energy technologies (PV and Wind) to be integrated for power system studies. ii. The development of an optimization scheme for the optimal switching of the resources within the distribution system. iii. The development of a further enhancement scheme that assess the impact of these resources on the distribution system. 16
  17. 17. Conventional placement of DGs has been studied as an optimization problem based on varied objectives that include loss optimization, cost minimization, economic and operational limits of the DGs. For the varied objectives, there have also been implemented a host of methodologies from classical optimization formulations to evolutionary programming computational analysis. Upon review of existing schemes developed that address the issue of the optimal placement of conventional DGs with a network, this thesis aims to address the gaps that exists in involving the variability issues that associated with the sustainable energy sources, PV and Wind. Another critical issue in the utilization of renewable energy resources within the electric power system is the various operation modes that exist; these technologies can be used for stand- alone as well as grid connected applications. There is thus need for the extension of the studies to the various grid connected operation modes for the distribution system. Figure 1 demonstrates the inter-relation of the major components of the study conducted within the report. Figure 1 OVERVIEW OF REPORT OBJECTIVE 17
  18. 18. 4. GOVERNMENT INITIATIVES The Govt. of India as well as the State Governments has taken several initiatives to meet the energy needs of the rural population. Some of these initiatives are discussed below. RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY)Ministry of Power, Govt. of India This is a major national effort to universalize access to electricity – 57% of rural households were without access in 2001. The program me launched in 2005 targets and achievements: • 100,000 un-electrified villages. • 78 million rural households in un-electrified and electrified villages. • Provides 90% capital subsidy.100% capital subsidy for electrification of Below-Poverty-Line (BPL) rural households. • 44,000 villages electrified. Another 22,000 villages covered under intensive electrification. About 2 million connections given. • USD 1.5 billion invested. Another USD 6.75 billion provided. • National program me for Franchisee development launched. Franchisees in place in 14 states, covering 63,000 + villages. • Generated employment for villagers and improved consumer services. • Resulted in significant improvement in revenue collection - in some cases more than 100%. The programme has been in operation ever since its launch in 2005 and has helped in a major way in rural electrification of India. The program has achieved electrification of about 83% unelectrified villages by December 2009. Notwithstanding the progress in village electrification through extension of the grid, the availability of modern energy for the rural poor masses is still perceived to be a distant dream due to inadequate electricity generation and issues of affordability for the rural poor. 18
  19. 19. Integrated Rural Energy programme (IREP) IREP aims at promotion of an optimum mix of both conventional and non-conventional energy sources in selected blocks in the country. Central Sector Component - Provides grants for support staff in the IREP project cells at the State and Block levels, training of the staff and extension work. State Sector Outlays - Utilized for the implementation of IREP Block Energy Plans. IREP is no longer in effect. The program is learnt to have been of limited success primarily due to the State not having been able to allocate necessary financial resources for the scheme. National Biogas & Manure Management Programme The National Biogas and Manure Management Programme‟ (NBMMP) aims at promotion of indigenously developed simple-to-construct and easy-to operate family type biogas plants. Cumulative Installations to over 41.2 lakhs biogas plants for providing clean cooking /lighting fuel to over 4 million rural houses has been achieved by March 2009. Solar Thermal Applications in Rural Areas Solar thermal demonstration programme to promote different types of solar cookers, special demonstration and pilot projects of solar dryers and solar stills, and demonstration scheme for North-East, Islands, Jammu & Kashmir and Sikkim for solar water heating systems has been implemented The programme also provides financial support to the manufacturers of solar cookers for obtaining BIS approval. Under the programme, central financial assistance at the rate of Rs.1, 500 per dish cooker and Rs.15, 000 for community solar cookers is provided. For box type solar cookers, an incentive of Rs.200 for ISI mark and Rs.100 for other solar cookers is provided to the promoter. As of March 2009, Cumulative Installations for demonstration solar thermal power plants is 6.57 lakh units. Remote Village Electrification The Remote village electrification (RVE Program) initiative during 10th plan aimed at providing basic lighting / electricity facilities to renewable energy sources in remote villages and hamlets which are not electrified and where grid connectivity is either not feasible or not cost effective. The 19
  20. 20. total number of such villages and hamlets so far electrified is 2,300. Nearly, 4 lakh households in 4,237 remote villages and 1142 remote hamlets have so far been provided with solar home lighting systems. Biomass based distributed power generation program Biomass power projects with an aggregate capacity of 703 MW through 102 projects have been installed. Fuels used in such projects are rice husk, flora and agricultural residues. The Indian biomass power projects are characterized by a number of innovative features such as use of diverse range of biomass materials in the same boilers and use of air-cooled condensers, etc. The promotion of biomass-based power generation in the country is encouraged through conducive policy at the State and Central levels. The MNRE provides the capital subsidy for biomass and bagasse cogeneration projects. Fiscal incentives such as accelerated depreciation, concessional import duty, excise duty exemption, tax holiday for 10 years etc. were continued during the year. Village Energy Security Program The Village Energy Security Test Projects (VESP) aim at meeting the total energy requirements, such as cooking, lighting and motive power of villages, with full participation of the local communities, including women. The projects are environment-friendly and create avenues for local employment and improve the quality of life. The activities envisaged under these projects are: Preparation of a Village Energy Plan, including assessment of resources, energy services required and configuration of energy production systems; formation of a village energy committee; creation of a village energy fund; plantations and installation of energy production systems; operation & maintenance; and capacity building including training. 5. APPROACH FOR MEETING RURAL ENERGY NEEDS With several variables playing a major role, it would be an easy task to develop a fool-proof model which would cater to all possible situations, but it would certainly help to establish the desirability and effectiveness of most of the initiatives taken so far as also those that may come for consideration in future. 20
  21. 21. Some of the factors in such critical appraisal of the initiatives for meeting rural energy needs would involve aspects of: • Moving to the next stage from pilot/demonstration projects • Contribution in meeting the extent of rural energy needs • Use ABC classification based on magnitude of potential of each initiative to meet the rural energy needs • Prepare a detailed plan for selected initiatives to achieve specific time bound targets for meeting the extent of rural energy needs, complete in terms of resource mobilization (financial, human resource etc.), organizational, monitoring etc. The Ultimate Goal The Ultimate goal of all policies and research is simple - to meet 100% of energy needs of rural India:  in the shortest possible time  at an affordable cost; and  in environmentally sustainable manner The above is an ambitious statement and should also keep in view considerations such as:  Targets for rural energy poverty alleviation in short, medium and long term  Identification of appropriate sources of energy  Identification of appropriate technologies  Where to find the resources financial, technological and organizational The utilization of distributed generation at the distribution level of the power system is a vastly increasing practice in the present and future electric grid. The utilization of renewable energy technologies as distributed generation sources, due to their suitability for remote applications, cost effectiveness and environmental impact, has resulted in the need for the advancement of currently available power system analysis tools to include models of these technologies that include consideration of the variability / intermittency of these sources. Over the years, there have been drives towards the development of components for the realization of new planning and operational tools that are geared to the study, monitoring and 21
  22. 22. operation of the new renewable energy resources (RERs)-integrated grid. The major categories of this work are: i. Development distribution system modeling and analysis. ii. Probabilistic modeling techniques for variable meteorological factors such as solar insolation and wind speed. iii. Modeling techniques for renewable energy resources technologies such as photovoltaic modules and wind turbines. iv. Development of optimization schemes for the sizing and placement of classical and conventional distributed generators (DGs). v. Further enhancement techniques that include power quality assessments, reliability assessment and cost-benefit analysis for the quantification of the impact of distributed energy resources (DERs) on the system under study. The usual practice for increase in demand is to increase investments in both the generation and transmission network of the supply system. However the same power balance and improvement of power quality can be achieved by the used of Distributed Energy Resources. Distributed Generation allow for improved performance of network without comparatively large investments in generating resources and in transmission and distribution system. The utilization of DGs throughout distribution networks has been seen to reduce the power generation central power units and the number of utilized online generators. Distributed Generation (DG) technologies offer technical, economic and environmental advantages. Economically, these implementations reduce expansion costs while remaining more geographically independent that central generation. Utilities are able to delay infrastructure investments and diversify energy sources. Operational options are available for grid inter-tie or stand-alone applications at the distribution level with numerous positive technical implications that include: improved performance of network without comparatively large investments in generating resources, improvement of the stability, power quality, reliability and security of electric power system. DGs may also reduce power losses of the system, and contribute to peak load shaving. The utilization of renewable / sustainable energy technologies as DGs provides a more environmentally sensitive approach. Cleaner, more efficient sources result in lower emissions and environmental impact. However, the utilization of distributed generators increases the uncertainty of power system stability in disturbance events. 22
  23. 23. Distribution System The classical power system is sub-divided into three (3) major sections: generation, transmission and distribution system. However, the inter-relation between the transmission and distribution systems can be sub-divided into several subsections as identified in Figure 2. The distribution level of the power system feeds from the sub-transmission and features the branched loads of the system. Figure 2 STRUCTURE OF THE POWER SYSTEM NETWORK There are various distribution system topologies that typically include radial and mesh topologies. Due to the nature of the existing distribution system, the inclusion of distributed generation has been look at as an advantageous. Distribution networks are generally configured radially for effective and non-complicated protection schemes. There are four distribution system configurations: (i) radial, (ii) loop, (iii) network and (iv) primary selective . These vary in terms of the configuration, the types and number of components, the reliability and the resilience of the system. Of these radial and loop have been the two most exhaustively studied. These topologies have featured in DG placement and reconfiguration studies. Key components for distribution systems include generators, power transformers, lines, shunt capacitors, switches and various loads. In the present day distribution system, distributed resources (DRs) including distribution generators (DGs) and electrical storage technologies are increasingly prominent. 23
  24. 24. These components impact on the function and nature of the distribution system. As an example, the conventional unidirectional flow of energy in the distribution system is now no longer standard. Previous work conducted has indicated the need for special considerations of these technologies in the analysis of the distribution level system. Major Considerations Some of the major considerations in defining the Vision for meeting rural energy needs of India as also the underlying objectives would be addressed through answerers to the questions like:  How do we strengthen our rural economic competitivess and ensure creation of good rural jobs?  How do we make our rural population self reliant and empowered?  How do we reduce the arduous human labor so prevalent in our rural population, more particularly for the women and the children?  How do we protect are natural environment? Limitations of Present Initiatives There seems to be near total reliance to meet the rural energy needs though 100% electrification of the villages though extension of the grid supported by distributed generation in a limited way using renewable sources of energy. This is unlikely to achieve the desired results and provide satisfactory responses to all the questions mentioned above. Some of the limitations are: • Target to achieve 100% Village Electrification, which was originally to be completed by 2010, may not be completed even by 2012. • Huge costs involved for expansion of grid to all the far flung rural areas • Against tariff of Rs 3/- (approx.), actual of supply Rs 9/- per kWh • As distance from grid increases cost of expansion of grid increases by about Rs 1 per km per kWh.(figures to be checked?_ • Poor revenue collection: Rs0-10 p.m. (poor) and Rs. 0-130 p.m. (others) • Sustained thru redistributive policies, tariff cross-subsidies, and financial relief to loss making utilities. • Rural supply low priority, first in power cut. • Rural electrification more in deficit states and less in surplus ones • 13 hours of rural supply considered adequate for irrigation pumps 24 • “Rural” equated to agricultural; casualty education (schools and children) Relevance of Renewable
  25. 25. To bridge the gaps, renewable can play a very important role, including: • Potential to create large no. (Net) of jobs especially in rural sector • Revenue Neutral or even better (savings v/s cash investment) • Benefit to sectors like Construction, Professional Services, Farming, Trucking and Transport, Metal Fabrication etc. Reliance entirely on Renewable Energy sources would not be practical in the short and medium term, despite claims of falling costs, and the rural households would need to be provided with an adequate share of relatively lower cost energy from conventional sources. A comprehensive integrated rural energy development program combining both conventional and nonconventional energy sources, optimized for blocks of rural population, to be evolved. Nonetheless, the long term planning must hover around meeting most of the energy needs of rural India from Renewable Sources of energy. The grid extended to villages could perhaps at some time in future, be used to plough back the energy generated from such renewable sources to the grid rather than from the grid. 6. RENEWABLE ENERGY In the context of other forms of energy service and use to augment the grid extension, especially for the rural population, Renewable Energy is poised to play a major role. Unlike in the past when these resources were perceived to too expensive to be of any practical use, several forms of renewable energy are fast coming into the viability zone, especially when adverse effects of fossils are taken into account on human health and ecology. Vast Potential The Renewable have huge potential to meet the entire energy requirement of the world as evident from the following: • As per some studies, less than 1% of earth‟s deserts can meet the world‟s energy demand using CSP technology and covering 4% of the world‟s deserts with photo voltaic cells could supply the entire world‟s energy. 25 • Wind energy can also theoretically meet 15 times the world‟s energy requirement.
  26. 26. Global Outlook Global Investments in renewable power generation rose from $ 28 billion in 2004 to $ 71 billion in 2006 3(New Energy Finance). The global renewable energy market is doubling every three years. Public Investments in R&D, subsidy schemes that favor renewable, and the probability of a future global carbon market, are all for fuelling the clean tech boom. While driven by supportive public financing and regulation, the challenge of mitigating energy poverty can offer significant commercial opportunities for investors in the area of renewable Major Renewable Energy Resources The major renewable energy sources in commercial use include: • Solar • Wind • Biomass • Small Hydro Initiatives in India India is fast emerging as the World‟s clean energy hot spot. The total demand of electrical energy in India is projected to be shooting up to 240, 000 MW by 2012 and the Govt. has rightly recognized the need to supplement a significant portion of additional generation from renewable energy resources. As much as 18% of additional generation capacity commissioned during first three years of the Tenth plan came from renewable. It is estimated that by 20, 000 MW will be contributed by renewables. A major part of investment in renewable energy sector has come from private sector which is very encouraging for the future of this sector. In the 11th Five Year Plan (2008-2012), India‟s renewable energy market is expected to reach an estimated US $ 19 billion with an investment of US $ 15 billion to add 15000 MW of additional renewable capacity. The Govt. of India has planned a subsidy support system of approximately US $ 1 billion in Govt. funds. India has realized the major role that Renewable Energy can play in meeting the challenges of energy security and climate change though:. • Proactive role of State Govts. • Emerging IT solutions for emission reduction • Innovative Microfinance Schemes 26
  27. 27. • Clean Transport • Carbon Markets • Corporate Interest in Rural Renewable India presently generates 13,878 MW (as in Aug 2009) of grid interactive power from renewable sources including wind, solar, small hydro, biomass and bio-gas cogeneration, which accounts for 9% of total installed generation capacity. The 11th five year plan targets 14,000 MW of grid interactive and distributed renewable power by 2012, which means 10% contribution of renewable in power generation capacity by 2012. If Renewable Energy has to contribute effectively in our medium term and long term energy mix, leapfrogging of initiatives needed taking clue from international trends as well as the successful pilot and demonstration projects in the country. Nature has been magnanimous in provision of RE resources like solar, wind, biomass and small hydro to India. The challenge for India is to mainstream renewable based power generation. 7. SOLAR POWER – THE BRIDGE TO FUTURE Irrespective of the international debate of climate change and negotiations amongst nations on price on carbon and commitment to the extent of carbon reduction, for an energy safe future which also takes care of the health concerns of the population, it is inevitable to focus on policies that will accelerate deployment of clean technologies like solar that make a real difference in fighting climate change, As per an estimate, solar and other renewable energy resources can, with the right policies in place, can play an increasing significant role in meeting the electricity needs of that country, which shows solar energy replacing a large part of coal based energy generation by 2020. The situation of energy needs and availability of clean energy resources offer similar possibilities for India. While national and international politics will continue to play its role in shaping policies towards solar energy, educating the public and the media is vital. The solar industry needs to address this as a challenge rather than creating more business and more profit and these efforts need to be supplemented by NGOs and other institutions/organizations concerned with the ill-effects of climate change on one side and meeting the energy needs of the rural masses on the other. Salient features of Solar Energy: • The cleanest 27
  28. 28. • Most abundant • Inexhaustible • Most predictable of all renewable energy sources Potential Against total equivalent energy consumption of 21.8 TW by 2030, total solar radiation intercepted on earth 173, 000 TW of which 120, 000 TW reaches earth‟s surface i.e. solar energy potential is about 8000 times (800000%) of total global energy requirement in 2030. It offers viable solution for rural energy needs (at least in part). Solar Energy Technologies Solar Photo Voltaic: This technology is based on conversion of light energy from solar radiations falling on a photo voltaic cell directly into electric energy, which can either be stored in storage batteries and used as required or can directly be used as electricity for any purpose like lighting, heating, running a motor or other appliances or for any chemical processes. The photo voltaic cell uses the property of some semi conductor materials to convert light energy into electrical energy. The advantages of Solar PV are: • It can generate power through Centralized Systems – Grid connected or Stand Alone. • It can produce power through Decentralized Distributed Generation (DDG) Distributed Generation, for Street Lights, Lanterns etc • Direct solar radiation can produce some electricity under less than ideal condition, low sun angles and overcast sky. • Offers modularity and scalability, large units more prone to clouds • Clouds may cause spikes, up to 20 MW manageable Solar Thermal Sun light can be used by its conversion into heat energy though • Passive System- through building systems • Active System: CSP Ministry of New and Renewable Energy (MNRE) has initiated a major project on Solar Radiation Resource Assessment (SRRA) station across the nation to assess and quantify the solar radiation availability along with weather parameters with a view to develop Solar Atlas. Centre for Wind Energy 28 Technology (C-WET), Chennai is implementing the project by installing a network of 51 Solar Radiation Resource Assessment (SRRA) station in the first phase in different States using high quality, high
  29. 29. resolution equipment/instruments. Sl. No 1 2 3 4 5 6 7 8 9 10 11 States Rajasthan Gujarat Tamilnadu Andhra Pradesh Karnataka Maharashtra Madhya Pradesh Jammu & kashmir Chhattisgarh Pondichery Haryana Total No.of SRRA station Proposed Completed 12 12 11 11 7 7 6 6 5 5 3 3 3 3 1 1 1 1 1 1 1 1 51 51 Each SRRA station consists of two towers of 1.5 m and 6 m tall each. The 1.5 m tall tower houses a Solar Tracker equipped with Pyranometer, Pyranometer with Shaded Ring and Pyrheliometer to measure solar parameters, such as, global, diffused and direct radiation. The 6 m tall tower houses instruments measuring rainfall, ambient temperature, atmospheric pressure, relative humidity, wind speed and direction. Each SRRA station is totally powered by 160 Watt SPV Panels and consists of 13 equipments/instruments and records 37 parameters inclusive of both measured and derived. The data from each SRRA station averaged to 10 minutes will be transmitted to a Central Receiving Station established at C-WET, Chennai through GPRS mode. The implementation of the project has started from February 2011 and all stations have already been installed, completed and commissioned. Concentrated Solar Power (CSP)- It is also termed as Concentrated Solar Thermal Power (CST), Solar Thermal Electricity Generation (STEG). The technology uses heat from the sun to generate electricity in much the same way the conventional thermal power station. The sun‟s rays are focused on a central receiver containing a mineral oil or other thermal carrier. As this liquid gets heated up (reaching temperatures as high as 400C-600 C ), it passes though a heat exchanger and generates steam, which is then used to drive a steam turbine. With the present state of technology development and costs involved, the areas having solar insulation levels of 2000-2500 kWh.m-2 are better suited for the technology. 29
  30. 30. As in any thermal power plant, water is required for raising steam using solar heat. Since the high levels of solar insulation are predominantly in arid areas, this is matter of concern. However, water consumption can be reduced by as much as 90% using dry cooling, which however would result in higher price by about 10%. Water is also required for washing of parabolic mirrors for maximum performance, but the amount of water required is less than that required for steam. Integrated Solar Combined Cycle (ISCC) Another possibility CSP offers is in its integration with Gas based Combined Cycle Power Plants (typically known as Integrated Solar Combined Cycle (ISCC) Power Plants. Conceptually the disadvantage of solar based energy generation being not available when sun is not available is taken care by ensuring generation though natural gas, the available solar heat during day time can be utilized for augmenting power generation in steam cycle with scaled up stem generators and Steam, Turbines would help in achieving lower cost of generation from high cost natural gas. Storage – the USP of CSP technology The concept seeks to address the biggest limitation of solar power- its non-availability when there is no sun. The heat collected during day can be fed into storage tanks – using a medium like molten salt to hold the heat. When needed, that heat can be released to generate steam to run the turbines. Generation from Solar Plant with storage can be shifted to match the utility system load profile. It allows solar to provide power when it is needed most. As a result Storage CSP Plants are able to achieve higher annual efficiencies up to +50%. Such peaking power has a high commercial value. Adding storage and extra collector field to serve it pays off when there is good feed-in tariff or good peaking power price. Other Salient features • The concept of CSP technology is based on creation of high temperature, which generates steam or hot gases for STG or GTG. • Best suited where high direct solar radiation • Flexible- storage, backing by other fuel use • Suitable for peaking energy or for extended hours of generation. • Generally, each installation tailor-made • Some options are: ISCC, Direct Steam, Lineal Fesnal Reflectors for lower cost, Molten Salt for storage (freezing a challenge). • Capability to produce lowest cost, commercial scale bulk electricity • Capability to dispatch as needed. 30 Capital cost
  31. 31. Though initiatives for solar power generation were taken back in 1980s in USA, the use of solar energy has not for become commercially popular due to several constraints. The biggest of such constraints has been the capital investment involved in such projects. Though it is difficult to pin pointedly mention these costs but till about a year back these were perceived to be as high as Rs. 15 to 20 cr. Per MW of installed capacity. In the recent past, say last one year, with the technological advancements and increasing population of solar power installation, the perceived costs have substantially come down. So much so that for some of the CSP projects in USA, taking into account the state tax credit provision, the expected tariff by 2012 would match with the peak load tariff of grid power. 8. OTHER RENEWABLE ENERGY RESOURCES Biomass Energy Biomass is a major source of energy especially in rural areas. However, it is being used in an inefficient and un healthy manner with the consequent adverse impacts of depleting forest reserves and human health with all its consequences on the socio-economic status of the rural population. Biomass includes fuels like wood, agro-waste, Bagasse, rice husk, animal ding etc. Advantages of Biomass Energy There is an immediate and immense need for better use of biomass. Good biomass for energy could: • diversify energy supply at reasonable cost, • improve trade balances, • provide rural income and employment, • reduce GHG emissions from fossil fuels. Use of biomass for energy would be bad if; • GHG emission reduction is not achieved. • Biodiversity loss though Land Use change is not controlled/monitored through suitable safeguards. • Suitable Safeguards not used for tackling food insecurity, overuse of water and mismanagement of soils. Global Potential for Better Use of Biomass for Energy estimated at 25 to 30% of Global Energy Supply by 2050.Use of biomass for energy is associated with direct and indirect Land Use Change emission. The impact needs to be monitored and controlled. Indirect Land Use Change emission can be controlled by • Using residues and wastes • Promoting more efficient energy conversion • Using land “set-free” from higher yield crops 31
  32. 32. • Using abandoned or degraded land not in competition with food, feed or fibre production • multiyear crops • Multiple cropping schemes (agro forestry) • Land based algae • More efficient conversion: • CHP • Next generation bio fuels • Integrated bio-refineries With Carbon Capture Sequestration (CCS), sustainable bio-energy could, in long term, achieve reduction in atmospheric CO2 levels Major Mile stones in better use of bio energy would be • In the first phase mainly being used for electricity and heat, less for transport. • CCS will push (2050) shifting biomass use to road, ship and aviation fuels. • Biomass for energy cultivation of potential crops on low carbon land could help sequestion of atmospheric carbon in soil and could reduce deforestation process thorough economic development alternatives and access to modern energy. • Use of good biomass will also help in: • GHG emission reduction • Maintenance of biodiversity • Energy Security • Low Social Trade Off Biomass in India India being tropical with good sun and rain is ideal for bio-mass production. The availability of biomass in India is estimated at about 540 million tonnes per year covering residues from agriculture, forestry, and plantations. Principal agricultural residues include rice husk, rice straw, bagasse, sugar cane tops and leaves, trash, groundnut shells, cotton stalks, mustard stalks, etc. It has been estimated that about 70-75% of these wastes are used as fodder, as fuel for domestic cooking and for other economic purposes leaving behind 120–150 millions tones of usable agro industrial and agricultural residues per year which could be made available for power generation. By using these surplus agricultural residues, more than 16,000 MW of grid quality power can be generated with presently available technologies. In addition, about 5000 MW of power can be produced, if all the 550 sugar mills in the country switch over to modern techniques32 co-generation. of
  33. 33. Biomass does not add carbon dioxide to the atmosphere as it absorbs the same amount of carbon in growing as it releases when consumed as a fuel. Its advantage is that it can be used to generate electricity with the same equipment or power plants that are now burning fossil fuels. Biomass is an important source of energy and the most important fuel worldwide after coal, oil and natural gas. Traditional use of biomass is more than its use in modern application. In the developed world biomass is again becoming important for applications such as combined heat and power generation. In addition, biomass energy is gaining significance as a source of clean heat for domestic heating and community heating applications. In fact in countries like Finland, USA and Sweden the per capita biomass energy used is higher than it is in India, China or in Asia. Biomass fuels used in India account for about one third of the total fuel used in the country, being the most important fuel used in over 90% of the rural households and about 15% of the urban households. Instead of burning the loose biomass fuel directly, it is more practical to compress it into briquettes (compressing them through a process to form blocks of different shapes) and thereby improve its utility and convenience of use. Such biomass in the dense briquetted form can either be used directly as fuel instead of coal in the traditional chulhas and furnaces or in the gasifier. Gasifier converts solid fuel into a more convenient-to-use gaseous form of fuel called producer gas. Scientists are trying to explore the advantages of biomass energy as an alternative energy source as it is renewable and free from net CO2 (carbon dioxide) emissions, and is abundantly available on earth in the form of agricultural residue, city garbage, cattle dung, firewood, etc. Bio-energy, in the form of biogas, which is derived from biomass, is expected to become one of the key energy resources for global sustainable development. At present, biogas technology provides an alternative source of energy in rural India for cooking. It is particularly useful for village households that have their own cattle. Through a simple process cattle dung is used to produce a gas, which serves as fuel for cooking. The residual dung is used as manure. Biogas plants have been set up in many areas and are becoming very popular. Using local resources, namely cattle waste and other organic wastes, energy and manure are derived. A mini biogas digester has recently been designed and developed, and is being in-field tested for domestic lighting. Indian sugar mills are rapidly turning to bagasse, the leftover of cane after it is crushed and its juice extracted, to generate electricity. This is mainly being done to clean up the environment, cut down power costs and earn additional revenue. According to current estimates, about 3500 MW of power can be generated from bagasse in the existing 430 sugar mills in the country. Around 270 MW of power has already been commissioned and more is under construction. Technologies for biomass based energy generation • Gasification • Pyrolosis • Direct Combustion One of the perceived limitation of biomass is the requirement of land especially clash with the land 33 requirement for food crops. It is estimated that the total land requirement for use of good biomass is 16
  34. 34. mmn hectares where as the total available degraded land is about 100 mm hectares. Such criticism therefore, would be misconceived. Examples and Success Stories There are several success stories of good biomass in the country. One such example is Impunia grass based bio mass plant at Jhansi (100kW). 18 such projects planned to be replicated: It is given to understand that cost of power is comparable with grid power. Limitations of Biomass as energy source Another perception seems to be that bio mass energy projects may use up the agriculture, plant residues and other bio products which would otherwise be used as organic (compost) manure. Looking into the totality and macro level picture, the constraint even if real is much amplified. Such material would constitute a very small percentage of the total bio mass energy materials. Wind Energy Both offshore and onshore wind energy are suitable for generation of power and are being used, although offshore use is yet to pick up in a major way due underlying higher costs. However, some countries are moving forward with their plans for offshore wind energy. More than 95 percent of the wind potential is concentrated in five states in southern and western India. Even if the previously estimated potential of 102 GW is fully developed, wind would provide only about 8 percent of the projected electricity demand in 2022 and 5 percent in 2032. The new Berkeley Lab study has found the total techno-economic wind potential to range from 2,006 GW for 80-meter hub heights (an indication of how high the wind turbine stands above the ground) to 3,121 GW for 120-meter hub heights. Given these new estimates, the availability of wind energy can no longer be considered a constraint for wind to play a major role in India‟s electricity future. The research team have been discussing their findings informally and formally with several key government agencies in India and have gotten positive responses. Improved wind technology, including higher efficiency and hub heights, accounted for much of the increase along with more advanced mapping techniques. The previous wind potential estimate in India of 102 GW is based on the assumption that only two percent of the windy land is available for wind power development. 34 However, this assumption is not based on any assessment of land availability. The Berkeley Lab study undertook a systematic assessment of the availability of land using publicly available GIS (geographic information system) data on topography and land use and found a significantly higher availability of land that can potentially be used for wind power development, which is the primary reason for the higher potential
  35. 35. estimates. The study excluded land with low-quality wind, slopes greater than 20 degrees, elevation greater than 1,500 meters and certain other unsuitable areas such as forests, bodies of water and cities. The researchers obtained off-the-shelf wind speed data for heights of 80 meters, 100 meters and 120 meters from 3TIER. Offshore Wind Energy • Expanding to grow leaps and bounds in next decade. • Globally, Offshore Wind Energy potential estimated at 45 GW by 2020. • Growth likely be led by Europe supported by North America and Asia. • Growth so far has been slow, due to various reasons, including higher cost. • In last eight yrs grew from 70 MW to 1.5 GW. • In Europe, Onshore Wind Projects are struggling to find land and higher capacity factors leading to Govts being pressured to provide incentives to Offshore Wind Projects. • Asia to tap Offshore Wind market by 2014. • China, with its 9000 miles of coast line, well poised to tap Offshore Wind Energy; China‟s potential of Offshore Wind Energy estimated at 750 MW; has one operational Offshore Wind Project and two more in planning stage. • Higher capital cost getting weighed out by low running cost, longer lasting turbines, high and steady volumes. Small Hydro and Micro Hydro Ministry of New and Renewable Energy has been vested with the responsibility of developing Small Hydro Power (SHP) projects up to 25 MW station capacity. The estimated potential for power generation in the country from such plants is about 15,000 MW. Most of the potential is in Himalayan States as river-based project and in other States on irrigation canals. SHP projects are economically viable and consequently private sector has started investing in such projects. The viability of these projects improves with increase in the station capacity. Of the estimated potential of 15,000 MW of small hydro power in the country, 5415 potential sites with an aggregate capacity of 14,292 MW have been identified. The Ministry is providing financial support to the States for identification of new potential sites and preparation of a perspective plan for the State for development of small hydro potential. The Ministry is supporting 142 SHP Projects in the government sector aggregating to 266 MW capacity in 23 States/ UTs. So far, a total of 77 projects aggregating to a capacity of 148 MW have been commissioned and the other projects are at various 35 stages of execution.
  36. 36. The Ministry aims to double the current growth rate that leads to a capacity addition of 500 MW per year with total installed capacity of 4000 MW by the end of 11th Plan. State Nodal Agencies provide assistance for obtaining necessary clearances and allotment of land at potential sites. Micro-hydro power is the small-scale harnessing of energy from falling water, such as steep mountain rivers. Using this renewable, indigenous, non-polluting resource, micro-hydro plants can generate power for homes, hospitals, governmental buildings, private handicraft centers or small scale industries schools and workshops. Practical Action promotes small-scale hydro schemes that generate up to 500 kilowatts of power. The microhydro station, which converts the energy of flowing water into electricity, provides poor communities in rural areas with an affordable, easy to maintain and long-term solution to their energy needs. "Run of the river" systems do not require a dam or storage facility to be constructed. Instead they divert water from the stream or river, channel it in to a valley and drop it in to a turbine via a pipeline called a penstock. The turbine drives a generator that provides the electricity to the local community. By not requiring an expensive dam for water storage, run-of-the-river systems are a low-cost way to produce power. They also avoid the damaging environmental and social effects that larger hydroelectric schemes cause, including a risk of flooding. Water from the river is channelled through a settling basin, which helps to remove sediment that could harm the turbine. The water then flows into the Forebay Tank where it is directed downhill through a pipe called a penstock. When the water reaches the bottom, it drives a specially designed turbine to produce the electricity. Micro-hydro power can also be supplied to villages via portable rechargeable batteries. People can use these convenient sources of electricity to fuel anything from workshop machines to domestic lighting – and there are no expensive connection costs. The batteries are charged at a station in the village, thus providing the local community with a clean, renewable source of power. For industrial use, the output from the turbine shaft can be used directly as mechanical power, as opposed to converting it into electricity via a generator or batteries. This is suitable for agro-processing activities such as milling, oil extraction and carpentry. Micro-hydro schemes are owned and operated by the communities they serve, with any maintenance carried out by skilled members of that community. So they provide employment in themselves, as well as providing the power to re-energize entire communities. 36
  37. 37. Understanding Bihar The Background In order to contextualize the scope and potential for the development of renewable energy systems and their contribution to the future of sustainable development of Bihar, it is necessary to summarize the current social condition of Bihar, as it has emerged after the division of the State. 1. Bihar is primarily an agriculture based state with 90% of the population living in the rural areas and 10% urbanization (2001 census). It is possible that the 2011 census may show a marked increase in urbanization; but the basic rural character of the State will not change. 2. The farm / agricultural land holding pattern is characterized by an overwhelming majority of marginal, small, semi-medium and medium farms (data 1995-96), distributed as below S. No. 1 Size class Percentage of holdings Marginal 0 – 1 ha 43.09 % 0 – 0.5 ha (20.81 %) 0.5 – 1 ha (22.28 %) 2 Small 1 – 2 ha 19.21 % 3 Semimedium 2 – 4 ha 22.88 % 2 – 3 ha (13.64 %) 3 – 4 ha (09.24 %) 4 – 10 ha 12.76 % 4 – 5 ha (06.05 %) 5 – 7.5 ha (04.16 %) 7.5 – 10 ha (02.56 %) 10 – 20 ha and above 10 – 20 ha 02.07 % 4 5 Medium Large (01.47 %) (00.60 %) 20 and above (Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar, pp.97) Again, these figures may change in the latest Census; they will certainly change in the direction of increases in the percentages of marginal, small and semi-medium farms due to well recognized processes of population growth, land division at the household level, continued marginalization and impoverization etc. From the planning perspective, it can be safely assumed that 80% and more of the farms will in the near future lie in the size classes denominated as marginal, small and semi-medium holdings. 3. Unlike most of the surrounding states, as well37 the all-India average, Bihar has a as significantly higher percentage of agricultural labourers as compared to cultivators. A comparison with selected States is shown below (data 2001)
  38. 38. Percentage of agricultural labourers and cultivators in Bihar and other states Sr. No. State % Cultivators Percentage of Agricultural Labourers 1 Bihar 32.16 42.84 2 Jharkhand 41.20 16.32 3 Uttar Pradesh 46.98 15.14 4 Madhya Pradesh 46.65 20.32 5 Rajasthan 54.95 05.78 6 Orissa 35.82 21.88 7 West Bengal 19.79 19.64 8 All-India 33.10 20.29 (Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar Even when compared with States at broadly similar levels of development, this adverse ratio of agricultural labourers to cultivators shows that landlessness is widespread and possibly a leading cause of poverty. Moreover, the overwhelming predominance of small / marginal farms, as indicated in the previous paragraph, implies that the current pattern of agriculture cannot absorb such a large labour population (the small / marginal farms will utilize household labour in preference to employed labour to conserve cash); nor does the current low productivity of small / marginal farms provide the wherewithal to increase agricultural employment; unless the productivity of small farms is increased significantly – which is the challenge to be faced by RE sources – this situation cannot be significantly changed in the immediate future. This implies that one of the major objectives to be achieved has to be the effective deployment / implementation of RE sources / systems to enhance agricultural productivity particularly at the small / marginal farms level to put them on a sustainable growth path. 4. Another major implication of the surplus labour in the rural areas is that labour migration probably takes place to States / areas where employment opportunities are available. This would be a continuation of the historical pattern both during the colonial period (labour exported to West Indies, Mauritius etc.), labour migration to Bengal (both West and East) during the colonial period, labour employed in coal mining and other mining activities (Bengal, Jharkhand, Chhattisgarh, Madhya Pradesh etc.) in the post-independence era and the continuing migration of labour to agriculturally and industrially developed states such as Punjab, Maharashtra, Delhi etc. Since it has been reported in the initiation workshop that biomass materials like rice husk are being exported to Punjab and sugarcane is being crushed outside the state; this implies that both biomass based materials as well as able-bodied labour is creating energy / development in other states38 these are unable as yet to create significant but energy / development in Bihar.
  39. 39. 5. The migration of able-bodied labour out of a region has other sociological implications viz. that those who are left behind are generally women and children, the old and the dependent and the disabled. Since they are often unable to look after their own needs, being dependent on a money- order economy, being subject to debt exploitation and many other travails associated with extreme poverty, the immediate intervention of renewable energy systems deployed for welfare functions is also an important consideration, very often to be borne by the state and its institutions. Otherwise the vicious circle of poverty will continue, with children unable to attend school or receive education, women being forced to labour long hours for getting fuel wood and water, ill health forcing debt on older people and so on. There is now enough literature worldwide to assert that vicious cycles can be replaced by virtuous cycles of sustainable development in which renewable energy plays a central role. 6. Another way of understanding Bihar is to consider the relative contribution of various sectors to the Net State Domestic Product at current Prices (Rs Cr.) Table 1.3 Contribution of various sectors to the Net State Domestic Product in Bihar S. No. Sector (Regd. & Unregd) 4 All services 1,841,931 2,004,703 2,158,718 (100%) (100%) 384,882 428,031 430,519 (25.35) (19.94) 244,105 262,977 285,219 (13.25) (13.11) (13.21) 988,800 1,071,998 1,180,417 (53.68) 3 Manufacturing 2004-05 (20.89) 2 Agriculture 2003-04 (100%) 1 State 2002-03 (53.47) (54.68) (Source: Bihar Through Figures - 2007, Directorate of Economics and Statistics, Govt of Bihar, pp.64) It is evident that Agriculture contributes significantly more to the Domestic Product than combined Manufacturing (both Registered and Unregistered). All services contribute by far the largest percentage of the Domestic Product. This circumstance can, in fact, be turned to Bihar„s advantage since Agriculture can become a net producer of green energy (and green materials) in the near future and services generally have a low intensity of energy consumption per unit of value addition. Also, instead of committing to a long term path of energy-intensive industrialization and energy-dependent infrastructure, if Bihar can chart a path of light industry which can also produce electricity or energy as a by-product, from renewable sources, it can lay the foundation for sustainable growth across all three sectors of 39 the economy. A significant range of agro-processing industries (food processing, dairies, cheese factories, abattoirs and meat processing industries etc.) have the possibility of cogenerating electricity and / or heat if suitably designed at the initial stages, which not only adds
  40. 40. to their viability but also contributes to green electricity in grids. This will be explored further in the chapter on Bio-energy. 7. The current electricity scenario in Bihar can be judged from the following table Current Electricity Scenario in Bihar Attribute Value State installed capacity 590 MW Of which Thermal 540 MW (Barauni) 320 MW (Muzaffarpur) 220 MW Hydro (Kosi) 50 MW Share of CG stations 1379 MW AT&C Losses 44.45 % Energy shortage 16.4 % Peak Deficit 27.6 % Per Capita consumption 93 kWh National consumption 650 kWh Source: 3rd North East and East Power Summit 2010, CEA and PFC Existing power stations Name of power station Installed Capacity (MW) Agency Kosi (4x4.8) 19.2 BSHPC* Sone E&W Canal(2x1.65+4x1.65) 9.9 BSHPC East Gandak Canal(3x5) 15 BSHPC Agnoor 1.0 BSHPC Dhelabagh 1.0 BSHPC Total 46.1 Hydro Thermal Barauni (2x50+2x110) 320 BSEB Muzaffarpur (2x10) 320 BSEB** Total 540 *BSEB transferred the project to BSHPC on 16th Nov.2003 **Now transferred to new JV-Vaishali Generating Co. (Source: Road Map for Development of Power Sector in Bihar – A Report of the Special Task Force on Bihar, Govt. of India, July 2007) 40 Thus Bihar, with approx 600MW of its own generation capacity, is heavily dependent on the power supplied by Central Generating Stations. This lack of power poses an enormous constraint for all future development – whether in agriculture, industry or services.
  41. 41. Supply position Peak March 2011 April 10– March 11 Peak Demand (MW) 2123 2140 Peak Met (MW) 1402 1649 Peak Deficit (-) / Surplus (+) -721 -481 Peak Deficit / Surplus (%) -34 -22.5 Energy Requirement (MU) 909 (p.m.) 12384 Energy Availability (MU) 773 (p.m.) 10772 Energy Deficit (-) / Surplus (+) MU -136 (p.m.) -1612 Energy Deficit / Surplus (%) -15 -13 Energy (Source: Central Electricity Authority (CEA), Govt of India), March 2011 http://www.cea.nic.in/reports/monthly/executive_rep/apr11/2526.pdf Power supply position Period Peak Demand (MW) Peak Met (MW) Peak Deficit/ Surplus (MW) Peak Deficit/ Surplus (%) Energy Energy Requirement Availability (MU) (MU) Energy Deficit/ Surplus (MU) Energy Deficit/ Surplus (%) 9TH PLAN END 1409 1288 -121 -8.6 9370 8992 -378 -4.0 2002-03 1389 1325 -64 -4.6 8096 7422 -674 -8.3 2003-04 973 788 -185 -19.0 7588 5878 -1710 -22.5 2004-05 980 980 0 0.0 7201 6476 -725 -10.1 2005-06 1314 1116 -198 -15.1 7955 7218 -737 -9.3 2006-07 1399 1162 -237 -16.9 8425 7741 -684 -8.1 2007-08 1882 1243 -639 -34.0 9155 7933 -1222 -13.3 2008-09 1842 1333 -509 -27.6 10527 8801 -1726 -16.4 2009-10 2,249 1,509 -740 -32.9 11,587 9,914 -1,673 -14.4 APR-DEC 2010 2,073 1,659 -414 -20.0 9,792 8,422 -1,370 -14.0 DEC 2010 2,023 1,373 -650 -32.1 1,232 947 -285 -23.1 (Source: Power Scenario at a Glance, January 2011, Central Electricity Authority (CEA), Govt of India (pp. 92-93)) http://www.cea.nic.in/reports/planning/power_scenario.pdf Proposed projects Name of power project Installed Capacity(MW) Agency Hydro Indrapuri Reservoir (5x90) 41 450 BSHPC Telhar Kund PSS (4X100) 400 BSHPC Sinafdar PSS (3X115) 345 BSHPC
  42. 42. Panchghotia PSS (3X75) 225 BSHPC Hathiadah-Durgawati PSS(8X200) 1600 BSHPC Dagmara Barrage (3x42) 126 BSHPC Barauni Extn. (2x250) 500 BSEB Muzaffarpur (2x250) 500 BSEB Nabi Nagar 2000 BSEB Katihar(4x250) 1000 BSEB Pirapanti 4000 BSEB Thermal (Source: Road Map for Development of Power Sector in Bihar – A Report of the Special Task Force on Bihar, Govt. of India, July 2007). 42
  43. 43. These projects will add enormously to the States existing generation capacity. However, by their very nature, large projects will involve long construction and commissioning times as also large financial burden on the States financial resources. Table 1.9 Bihar’s share of power projects Name of the project Total Share(MW) Unallocated Shares (MW) Farakka (3 x 200 MW+ 2 x 500 MW) 363 - Kahalgaon (4 x 210 MW) 222 12(included in total share) Talcher St-1(2 x 500 MW) 354 13(included in total share) Kahalgaon St-II (1x500 MW) 63* Sub-total 1002 Rangit Hydro ( 3 x 20 MW) 21 Chukha (270 MW) 80 Tala HPS (3x170 MW) 130 Sub-total 231 Total allocation to Bihar 1233 Including unallocated share of 25 MW * Date of Commercial Operation (COD) yet to be declared. (Source: Road Map for Development of Power Sector in Bihar – A Report of the Special Task Force on Bihar, Govt. of India, July 2007) Tentative share of Bihar in central sector projects expected during 11th Plan Name Agency Capacity (MW) Tentative Share (MW) Target date Teesta ST-V NHPC 510 52 2007-08 Kahalgaon St-II NTPC 1000 BARH-I NTPC 1980 324* 2009-11 NORTH KARANPURA NTPC 1320 127* 2011-12 FARAKKA ST-III NTPC 500 53 2009-10 BARH-II NTPC 1320 188 2011-12 NTPC 500 103 2010-12 Thermal NABINAGAR (other than railway) 126 (firm share) 2007-08 *as indicated by NTPC, allocation yet to be decided by MoP (Source: Road Map for Development of Power Sector in Bihar–A Report of the Special Task Force on Bihar, Govt. of India, July 2007) Power scenario at the end of 11th Plan Peak 2011-12 Peak Demand (MW) 3607 Peak Met (MW) 1534 Peak Deficit (-)/surplus (+) MW -2073 Peak Deficit/Surplus (%) -57.5 Energy Requirement (MU) Energy 19905 Energy availability (MU) 11755 43
  44. 44. Peak 2011-12 Energy Deficit (-) / Surplus (+) -8150 Energy Deficit / Surplus (%) -40.9 (Source: Road Map for Development of Power Sector in Bihar – A Report of the Special Task Force on Bihar, Govt. of India, July 2007) Thus, both energy deficit and peak deficit have increased enormously towards end of 11 th Plan as compared to Table -6 (2006-07), indicating demand for outstrips supply. 44
  45. 45. . Table - Demand forecast Year Peak Load (MW) Energy Requirement (MU) 2006-07 1570 9629 2007-08 1842 11134 2008-09 2177 12874 2009-10 2575 14886 2010-11 3046 17213 2011-12 3607 19905 2016-17 5598 32857 2021-22 9567 58248 (Source: Road Map for Development of Power Sector in Bihar – A Report of the Special Task Force on Bihar, Govt. of India, July 2007) Since Bihar has started with per capita electricity consumption well below the national average, the demand growth will be high in the foreseeable future; this will happen in a situation where all states will be competing for power from CGS. This also indicates the tremendous potential forfuture RE development in Bihar. T & D losses Year T & D Losses 2003 – 04 36.66 2004 – 05 38.88 2005 – 06 43.96 2006 – 07 50.67 2007 - 08 48.79 (Source: Power Scenario at a Glance, January 2011, Central Electricity Authority (CEA), Govt of India (pp. 92-93)) http://www.cea.nic.in/reports/planning/power_scenario.pdf 8. Varying estimates exist of Bihar„s Aggregate Technical and Commercial (AT&C) losses : Table 1.14 Estimates of Bihar’s AT&C losses Years Source Estimate 2004-06 Power Road Map 40 % 2004-05 BSEB 46 % 2004-05 ICRA 48 % 2003-04 PFC (Performance of State Power Utilities Report) 77 % 2004-04 PFC 74.09% Reduction Trend 3% p.a. in 2004-05 compared to 2003-04 (PFC Report) 45
  46. 46. With regard to T&D losses, the following observation has been made in section 5.8.10 of National Electricity Policy 2005, released by Ministry of Power, Govt of India: ― It would have to be clearly recognized that Power Sector will remain unviable until T&D losses are brought down significantly and rapidly. A large number of States have been reporting losses of over 40% in the recent years. By any standards, these are unsustainable and imply a steady decline of power sector operations. Continuation of the present level of losses would not only pose a threat to the power sector operations but also jeopardize the growth prospects of the economy as a whole. No reforms can succeed in the midst of such large pilferages on a continuing basis. Action on reduction of AT&C losses has to be taken on a priority basis, for which adequate powers are available under the Electricity Act, 2003. The following sections of the Act are relevant: Table 1.15 Provisions under Electricity Act 2003 to reduce AT&C losses Section Number Pertaining to Penalty Section 135 Theft of Electricity Imprisonment upto 3 years or fine or both, subject to qualification; burden of proof on consumer Section 136 Theft of Electricity lines and materials Imprisonment upto 3 years or fine or both, subject to qualification; for repeat offence, imprisonment not less than 6 months and upto 5 years and fine not less than Rs. 10,000 Section 137 Receiving stolen property Imprisonment upto 3 years or fine or both Section 138 Interference with meters or works of licensee Imprisonment upto 3 years or fine upto Rs.10,000/- or both; in case of continuing offence, daily fine upto Rs.500 Section 145 Civil court not to have jurisdiction (to entertain suit or grant injunction) (Source: Ministry of Power, Govt of India) http://www.powermin.nic.in/acts_notification/electricity_act2003/preliminary.htm) 46
  47. 47. This is an impressive performance, yet it adds to the problem of demand being far greater than supply. 10. Agriculture power sales 28% of total sales Agriculture power revenue 4 % of total revenue 11. The Credit Deposit (CD) Ratio of different categories of banks in Bihar is as shown: (Other figures in Rs. Crores, rounded) Table - CD Ratios of banks in Bihar Bank Deposits Advances CD Ratio Commercial Banks 91243 26974 29.5 % Cooperative Banks 2972 1543 51.9 % RRBs 12801 5615 43.8 % Total 107017 34132 31.9 % (Source: State Level Bankers Committee, Bihar: 35th Review Meeting, Jan 2011, pg 20) Thus, commercial banks business constitutes the largest share of the banking industry in Bihar and has the lowest CD Ratio. With respect to other parts of India, the comparative picture is as shown below: Table 1.17 CD Ratios of Commercial Banks 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Bihar 20.70 21.90 23.70 26.90 31.40 30.20 31.10 India 56.70 58.40 59.20 58.20 66.00 72.50 75.00 (Source: Road Map for Rural Industrialization of Bihar – Report of the Special Task Force on Bihar, Govt. of India, July 2008; Annexure VIII – pg 74) The above comparison indicates that local savings (as deposits) are not returning to the local economy (as Advances or Credit); in effect, capital is flowing out of Bihar. Taken together with the earlier observations, this implies that labour, biomass resources and capital have been flowing out of Bihar. This may serve to elucidate the major reasons why development is not taking place in Bihar at the desired pace, despite aspirations. 12. The recovery data for bankers is as follows: (Rs Crores) Table - Recovery data for bankers in Bihar Bank Demand raised Amt. recovered Recovery % Commercial 6152 2715 44.13 % Cooperative 533 225 42.22 % RRBs 792 560 70.66 % Total 7478 3500 46.81 % (Source: SLBC, 35th Review Meeting, pg. 21) The bankers accept that the recovery rate is poor. Informal discussion with the bankers 47 has indicated that with poor rates of recovery, bankers are wary of further lending. Hence, one of the most powerful engines of development is brought to a halt.
  48. 48. 13. However, section 5.8.1 of National Electricity Policy 2005, released by Ministry of Power, Govt of India, states that ―Public service obligations like increasing access to electricity to rural households and small and marginal farmers have highest priority over public finances. 14. The districts affected by left wing extremism have been officially recognized, as follows: Arwal, Aurangabad, Gaya, Jamui, Jehanabad and Rohtas. (Source: SLBC 35th Review Meeting - pg 27, pg 29A) 15. The figures indicate that there are a very large number of cooperative institutions financed by the Bihar State KVIC, almost 2500 in number; their organizational reach could be utilized for the rapid diffusion of RE across Bihar, particularly as many of them are backwardly linked to forms of agricultural production. This aspect needs further study. 16. The composite picture that emerges from all of the above, based on an energy perspective, is as follows : a. Due to shortages of grid electricity from conventional generation sources, industrialization will continue to lag, particularly because large sources of generation have long gestation periods while domestic demand will spurt as aspirations for electricity increase. This indicates that, under the appropriate conditions, fast deployment modular RE systems can grow rapidly. b. Agricultural growth can add to the energy supply sources provided the principal constraints electricity for irrigation – can be suitably addressed through RE deployment. c. Growth of light industry linked to various forms of agricultural processing can become sustainable provided the process waste streams can be harnessed for energy generation. d. Service sector growth, which is low on energy consumption, can become sustainable in energy terms, provided there is a conscious strategy for the substitution of energy by information. Thus, many operations such48 billing, financial and banking transactions, as travel booking, payments etc. can be conducted via computers thereby avoiding travel cost, travel time and travel energy. With the rapid growth of telecom connectivity, this
  49. 49. option for development must be consciously utilized to the fullest extent for rapid growth in the services economy and improvement of the quality of services. This will also generate low energy employment and progressively higher value employment in the tertiary sector. 17. Broadly taken together, the various policies across agriculture, water, rural industrialization and renewable energy are capable of driving growth in a desirable sustainable direction, though careful monitoring will be called for at all stages, given the present deficit of infrastructure and other aspects of development. This is the real challenge that the RE Action Plan has to confront. 18. Finally, this path of development has to be pioneered in an international environment forcing a multiplicity of crisis, as below: a. the climate crisis b. the water crisis c. the fossil fuel availability crisis d. the crisis caused by escalating prices of fossil fuels e. the global agricultural crisis f. the health crisis This emergent scenario of global crisis adds further constraints to the development path to be chosen and it would be unrealistic for any Action Plan to ignore this backdrop. The remainder of this Report will concentrate on RE sources as potentially providing solutions in the emerging context, for Bihar. It is important to note here that RE represents hitherto untapped resources over and beyond the aforementioned labour, capital and agricultural commodities. These resources are manifest as wind, solar, bio-energy and small hydro resources which can be harnessed to energize development. 49
  50. 50. INTRODUCTION: DDG Electricity is the most critical strategic infrastructure in our society today and its importance will increase in the future. Its direct importance in reliably delivering energy to point of use enables every other major technological infrastructure in our society. By 2050 World Energy Council envisages the global energy mix will be made up of at least eight energy sources (coal, oil, gas, nuclear, hydro, biomass, wind & solar) with none expected to have more than 30% share of the market. Electricity can make this diverse supply portfolio possible while simultaneously meeting global energy and environmental demands. In spite of several initiatives taken by Government of India and progress in extending the national grid, 26 percent of rural households still do not have access to electricity. In India the Ministry of Power has specifically targeted scheme; Decentralized Distributed Generation (DDG) for state actors & community organizations to invest in off–grid generation and distribution in rural areas. In many areas, despite grid availability, households have chosen not to connect, frequently because of insufficient and unreliable supply of electricity. With the demand for power outstripping its availability, rural areas face major challenges of very low per capita consumption and inadequate power supply (most rural areas receive only a few hours of supply per day) made worse by poor quality of service. Rural electrification supply in India has been lagging in terms of service as well as penetration; Decentralized Distributed Generation (DDG) is other option for rural electrification that has been implemented in many areas. The rural household has access to electricity, and the supply suffers from frequent power cuts, high fluctuation in voltage and frequency with so called blackouts and brownouts. A major bottleneck in the development of the power sector is the poor financial state of the utilities, which can be attributed to the lack of adequate revenues and state subsidies for supply to the rural subscribers. The present policies of building large centralized generation and extended distribution networks are clearly unlikely to solve the problems of rural electricity supply, at least in the near future. Decentralized power generation close to the rural load centers using renewable sources appears to have the potential to address at least some of the problems of rural electrification. It is another option for rural electrification that has been implemented successfully in remote villages where connectivity to 50

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