Are we really powerless?
Aug 2008, Bangalore
The rains come a bit late and the government promptly announces load shedding. A few days later, it pours and within two days, prayers have been answered and we are in for a season of plenty. Reservoirs are nearing the danger mark in storage. Even as consumers lug the diesel sets back to the store, power cuts are back. And it's still raining.
It goes without saying that a two digit growth rate can be sustained only with a sustainable power sector. At the present installed capacity of 1,43,000 MW in the nation today, we are still short of 13 percent in meeting peak demands. While our oil imports have crossed Rs 200,000 crores, our coal imports are slowly rising. From a net exporter to one who imports 45 million tonnes, the trend is not very encouraging. Our coal reserves will not last for more than 45 years.
Now combine that with rising international prices for coal at $180 per tonne, up by almost 125 percent. Selling such costly power at the low prevailing consumer tariffs do not attract private investors.
Projections show a power shortfall of 43,000 MW by 2012 and a doubling of that by 2017.
How on earth are we then going to meet the commendable yet ambitious target of power for all by 2012? Energy is everyone’s right. Why should 45 percent of the households in a fast developing economy be deprived of power?
So, can we continue with our business as usual scenario? Or do we need to tighten belts? Turn our power utilities into commercially viable units by more privatisation?. Or go in for more renewables? Cap the staggering 34 percent losses in transmission and commercial collections? Or look at short-gestation projects? Do we need nuclear power?
Over 50 percent of our power generation is coal based. And the trend will continue. With it will rise our carbon footprint, the burden on an already panting planet. Do we ignore the implications in our reluctance to give up the envied growth figure?
Suggestions and measures are many. But these often fail to see the big picture. For instance, the investment based incentives in wind energy has seen many players come in, but plant load factors continue to be low and power generation nothing to boast about. Despite the large economies of scale, the costs have not come down. Clearly, this indicates a need for performance based incentives as against investment based ones.
Why have the government's APDRP and RGGVY schemes not delivered on their expectations? Do we need more power reforms or more implementation?
There are so many issues blocking the flow of energy. Join our discussions and contribute to a better understanding of the situation, out of which innovative solutions are sure to come.
After all, there is no reason why anyone should remain in the dark in the world’s largest democracy.
Aug 2008, Bangalore
The rains come a bit late and the government promptly announces load shedding. A few days later, it pours and within two days, prayers have been answered and we are in for a season of plenty. Reservoirs are nearing the danger mark in storage. Even as consumers lug the diesel sets back to the store, power cuts are back. And it's still raining.
It goes without saying that a two digit growth rate can be sustained only with a sustainable power sector. At the present installed capacity of 1,43,000 MW in the nation today, we are still short of 13 percent in meeting peak demands. While our oil imports have crossed Rs 200,000 crores, our coal imports are slowly rising. From a net exporter to one who imports 45 million tonnes, the trend is not very encouraging. Our coal reserves will not last for more than 45 years.
Now combine that with rising international prices for coal at $180 per tonne, up by almost 125 percent. Selling such costly power at the low prevailing consumer tariffs do not attract private investors.
Projections show a power shortfall of 43,000 MW by 2012 and a doubling of that by 2017.
How on earth are we then going to meet the commendable yet ambitious target of power for all by 2012? Energy is everyone’s right. Why should 45 percent of the households in a fast developing economy be deprived of power?
So, can we continue with our business as usual scenario? Or do we need to tighten belts? Turn our power utilities into commercially viable units by more privatisation?. Or go in for more renewables? Cap the staggering 34 percent losses in transmission and commercial collections? Or look at short-gestation projects? Do we need nuclear power?
Over 50 percent of our power generation is coal based. And the trend will continue. With it will rise our carbon footprint, the burden on an already panting planet. Do we ignore the implications in our reluctance to give up the envied growth figure?
Suggestions and measures are many. But these often fail to see the big picture. For instance, the investment based incentives in wind energy has seen many players come in, but plant load factors continue to be low and power generation nothing to boast about. Despite the large economies of scale, the costs have not come down. Clearly, this indicates a need for performance based incentives as against investment based ones.
Why have the government's APDRP and RGGVY schemes not delivered on their expectations? Do we need more power reforms or more implementation?
There are so many issues blocking the flow of energy. Join our discussions and contribute to a better understanding of the situation, out of which innovative solutions are sure to come.
After all, there is no reason why anyone should remain in the dark in the world’s largest democracy.
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