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Renewable Energy Sources in
     India: Is It Viable
        Santanu Guru
            Liberty Institute
             New delhi
Renewable sources of energy cannot play a key role in
     india’s power sector in the next tevn years ,without
        consumers and the economy paying very high
                      opportunity cost
•   Attraction towards renewable energy
•   Growth and emergence of renewable energy in india
•   Technology hurdles in renewable energy
•   Role of subsidies and other incentives offered by indian
    government




11/20/03                     200231019
Why renewable energy became so attractive
                       in the 1970
• Fear of disappearing of fossil fuel from world
• Dependency of India on OPEC(Organization of Oil
   Exporting Countries)
• Pollution and environmentally damaging
  emissions from fossil fuel based plants generating electric
   power
• Emergence of renewable energy as the cleanest and
   cheapest technology



11/20/03                    200231019
Coal and oil reserves in India

Fuel           Proven            Indicated     Years to last
               reserves          reserves
Oil            5.7 bbarrels      30 btonnes    50
Coal           82 bbarrels       211 btonnes   300

Recent international studies indiacate that no more than a
quarter of india’s 26 secondary basins have a serious
exploration activity.these includes oofshore basins covring
about 3,80,000 sq km and on shore basins covering 13,40,000
sq km.it contains 30 billion tonnes of reserves 5 times the
current figure.
11/20/03                  200231019
•Inflation rates after the two oil shocks of 1973 and 1979 were
13 and 19 per in india .hence self reliance and import
substition were development mantras used by our govt in he
five year plans.
•But dependency on OPEC reduced by policy makers
encouraging intensive exploration activities in untapped areas
by attracting private capital




  11/20/03                    200231019
Gas                     Reduction in emission
     Sulphur dioxide              99%
     Nitrogen oxide               81%
     Carbon dioxide               58%
     particulates                 95%


 •Electricity generation increased by 14pc between 1989 and
 1996 by reducing emission gases by 20 pc with the help of
 high tech pollution control technology.this will increase the cost
 of electricity by only 1pc. These will leave renewable sources
 which is at least 50 pc more expensive than fossil fu
             Annual energy Report :2000 and 2001,NTPC


11/20/03                    200231019
India as a renewable energy super power

• India is the leading country in the asia and in the world for
  generating electric energy by renewable energy
• India is the fifth largest wind energy producer in the
  world
• The ministry of non-conventional energy sources is the
  only one of its kind in the world
• Only a fraction of the total potential of renewable energy
  sources has been utilized in india.



11/20/03                    200231019
Renewable energy :annual capacity addition in 90’s
Sources    1993    1994     1995     1996     1997    1998   1999



Wind    12.5 61.0           235.     382.0    67.0    56.0143.0
        0                   0                             0
solar   0.15 0.12           0.10     0.11     6.50 5.0    5.0
biomass 3.0 5.0             22.0     37.0     45.50 48.50 63.50

Small      12.0 5.50        25.0     7.50     11.0    28.0   33. 5
hydro




11/20/03                       200231019
Renewable energy capacities : potential and installed (till april 2000 in
MW)
              source            Potential           installed
              Wind              45,000.00           1167.00
              Solar             50,000.00           57.00
              Bio-mass          21,000.00           255.00
              Small-hydro 10,000.00                 217.00




   11/20/03                          200231019
Renewable energy technology
• Renewable energy technology are primitive
• Renewable energy technology is inefficient and
  uneconomical
• Renewable energy is not reliable
• Renewable energy is dependent




11/20/03                  200231019
• It prevents from supplying either base load or peak load levels of
consumer demand .even intermediate level is a big challenge
• 2,100mw coal fired plant of NTPC at korba in Chattisgard
generates more electricity than all the capacities installed under
renewable energy
• For every kilowatt of installed capacity,conventional power plants
produce 4,000 to 7,000kwh of electricity. Wind plant manage 2000 to
2,500kwh and solar PV plants generate 750-1500kwh
• More than 85pc of renewable enegy caopacity is for captive
consumption
• Low capacities ,lower utilization rates and irregular supplies play
havoc with electricity grid
• The largest contributor to electricity supply in india ,wind energy
with installed capacity of 1100mw produces 1650 gigawatt hour of
electricity with a capacity utilization of 15pc which is less then a
single11/20/03 plant of 250mw
        coal                        200231019
Average capacity of power plants(mw)

            Energy         India
            source
            Coal           200
            Gas            100
            Wind           0.50
            Solar          0.25
            Bio-mass       20.0
            Small-hydr0    1.50




11/20/03                          200231019
Capital cost of power plant in USA
           Fuel source                Capital cost ($)
           Coal                       1092
           Wind                       983
           Biomass                    1732
           Solar                      3500


               Capital cost in renewable energy in
           Fuelindia
                source              Cost (in crore in
                                    indian rupee per mw)
           wind                     3-4
           Small hydro               3-6
           Biomass                   3-4
           Solar pv                  25-30
11/20/03                         200231019
• Renewable energy is fully dependent on subsidies
• Eight crore rupees is given as capital subsidy in the co-
generation plant with maximum capacity of 20mw
• Various studies estimate that US taxpayers have spent 25 to
40 pc billion us dollars to enable renewable source of energy to
get a one and half pc market share
• India had spent more than 3000 crore during 1990s
promoting wind energy.
• IREDA has sanctioned 4600 crore till end 1999 as a
loan.preventing the use of almost 1 million tonnes of coal (india
consumes close to 400 million tonnes of coal per year
• It provides electricity at much rate

• The capital cost of renewable energy plant is very high
 11/20/03                     200231019
Conclusion
• Role of indain policy in making the renewable energy efficient and
  cheapest fuel as a substitute for the fossil fuels used in production of
  electric energy.
• The indian government blindly spent the huge amount of money for
  making the renwable energy popular without considering the
  statistics
• Bowing down to the wishes of green activities and placing obstacles
  in the growth path of conventional electric power supply would
  directly contradict the poverty reduction goals of policy-makers
• Government should improve the existing power supply encouraging
  use of hi-tech technology.


11/20/03                         200231019
Thank you
           Presented by:Sandhya Subramaniam
                 MS-IT(Agri)




11/20/03       200231019

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200231019

  • 1. Renewable Energy Sources in India: Is It Viable Santanu Guru Liberty Institute New delhi
  • 2. Renewable sources of energy cannot play a key role in india’s power sector in the next tevn years ,without consumers and the economy paying very high opportunity cost • Attraction towards renewable energy • Growth and emergence of renewable energy in india • Technology hurdles in renewable energy • Role of subsidies and other incentives offered by indian government 11/20/03 200231019
  • 3. Why renewable energy became so attractive in the 1970 • Fear of disappearing of fossil fuel from world • Dependency of India on OPEC(Organization of Oil Exporting Countries) • Pollution and environmentally damaging emissions from fossil fuel based plants generating electric power • Emergence of renewable energy as the cleanest and cheapest technology 11/20/03 200231019
  • 4. Coal and oil reserves in India Fuel Proven Indicated Years to last reserves reserves Oil 5.7 bbarrels 30 btonnes 50 Coal 82 bbarrels 211 btonnes 300 Recent international studies indiacate that no more than a quarter of india’s 26 secondary basins have a serious exploration activity.these includes oofshore basins covring about 3,80,000 sq km and on shore basins covering 13,40,000 sq km.it contains 30 billion tonnes of reserves 5 times the current figure. 11/20/03 200231019
  • 5. •Inflation rates after the two oil shocks of 1973 and 1979 were 13 and 19 per in india .hence self reliance and import substition were development mantras used by our govt in he five year plans. •But dependency on OPEC reduced by policy makers encouraging intensive exploration activities in untapped areas by attracting private capital 11/20/03 200231019
  • 6. Gas Reduction in emission Sulphur dioxide 99% Nitrogen oxide 81% Carbon dioxide 58% particulates 95% •Electricity generation increased by 14pc between 1989 and 1996 by reducing emission gases by 20 pc with the help of high tech pollution control technology.this will increase the cost of electricity by only 1pc. These will leave renewable sources which is at least 50 pc more expensive than fossil fu Annual energy Report :2000 and 2001,NTPC 11/20/03 200231019
  • 7. India as a renewable energy super power • India is the leading country in the asia and in the world for generating electric energy by renewable energy • India is the fifth largest wind energy producer in the world • The ministry of non-conventional energy sources is the only one of its kind in the world • Only a fraction of the total potential of renewable energy sources has been utilized in india. 11/20/03 200231019
  • 8. Renewable energy :annual capacity addition in 90’s Sources 1993 1994 1995 1996 1997 1998 1999 Wind 12.5 61.0 235. 382.0 67.0 56.0143.0 0 0 0 solar 0.15 0.12 0.10 0.11 6.50 5.0 5.0 biomass 3.0 5.0 22.0 37.0 45.50 48.50 63.50 Small 12.0 5.50 25.0 7.50 11.0 28.0 33. 5 hydro 11/20/03 200231019
  • 9. Renewable energy capacities : potential and installed (till april 2000 in MW) source Potential installed Wind 45,000.00 1167.00 Solar 50,000.00 57.00 Bio-mass 21,000.00 255.00 Small-hydro 10,000.00 217.00 11/20/03 200231019
  • 10. Renewable energy technology • Renewable energy technology are primitive • Renewable energy technology is inefficient and uneconomical • Renewable energy is not reliable • Renewable energy is dependent 11/20/03 200231019
  • 11. • It prevents from supplying either base load or peak load levels of consumer demand .even intermediate level is a big challenge • 2,100mw coal fired plant of NTPC at korba in Chattisgard generates more electricity than all the capacities installed under renewable energy • For every kilowatt of installed capacity,conventional power plants produce 4,000 to 7,000kwh of electricity. Wind plant manage 2000 to 2,500kwh and solar PV plants generate 750-1500kwh • More than 85pc of renewable enegy caopacity is for captive consumption • Low capacities ,lower utilization rates and irregular supplies play havoc with electricity grid • The largest contributor to electricity supply in india ,wind energy with installed capacity of 1100mw produces 1650 gigawatt hour of electricity with a capacity utilization of 15pc which is less then a single11/20/03 plant of 250mw coal 200231019
  • 12. Average capacity of power plants(mw) Energy India source Coal 200 Gas 100 Wind 0.50 Solar 0.25 Bio-mass 20.0 Small-hydr0 1.50 11/20/03 200231019
  • 13. Capital cost of power plant in USA Fuel source Capital cost ($) Coal 1092 Wind 983 Biomass 1732 Solar 3500 Capital cost in renewable energy in Fuelindia source Cost (in crore in indian rupee per mw) wind 3-4 Small hydro 3-6 Biomass 3-4 Solar pv 25-30 11/20/03 200231019
  • 14. • Renewable energy is fully dependent on subsidies • Eight crore rupees is given as capital subsidy in the co- generation plant with maximum capacity of 20mw • Various studies estimate that US taxpayers have spent 25 to 40 pc billion us dollars to enable renewable source of energy to get a one and half pc market share • India had spent more than 3000 crore during 1990s promoting wind energy. • IREDA has sanctioned 4600 crore till end 1999 as a loan.preventing the use of almost 1 million tonnes of coal (india consumes close to 400 million tonnes of coal per year • It provides electricity at much rate • The capital cost of renewable energy plant is very high 11/20/03 200231019
  • 15. Conclusion • Role of indain policy in making the renewable energy efficient and cheapest fuel as a substitute for the fossil fuels used in production of electric energy. • The indian government blindly spent the huge amount of money for making the renwable energy popular without considering the statistics • Bowing down to the wishes of green activities and placing obstacles in the growth path of conventional electric power supply would directly contradict the poverty reduction goals of policy-makers • Government should improve the existing power supply encouraging use of hi-tech technology. 11/20/03 200231019
  • 16. Thank you Presented by:Sandhya Subramaniam MS-IT(Agri) 11/20/03 200231019