Wednesday, April 18, 2012

Time for a paradigm change

Let’s put our thinking caps on and look at the power scenario in the country. There has been an enormous increase in the installed power capacity in the country since independence (about 180 times) but the centralised power supply system has not been able to meet the electricity needs of rural India. About 400 million are still outside the purview of the electricity Grid even in 2011.

In this light, there is need to look at the recommendations of the Integrated Energy Policy. Following the IEP, huge additions to such installed capacities are being planned all over the country. The projection by IEP that the country’s electricity production capacity has to increase by five folds (from about 160,000 MW in 2006 to about 800,000 MW by 2032), is seen by some as being exaggerated and done without considering the associated social and environmental impacts. As a result, a large number of conventional power projects, without due diligence, are being proposed/implemented all over the country with huge (hidden) costs to the society. Is this the approach needed or do we need a more realistic demand forecast that takes into account socio-economic and environmental impacts? Should our strategy focus more on demand side management and sustainable energy supply options?

It has been worked out by some groups that a comfortable 1,000 kWH of per capita electricity could be made available using simple measures like efficiency improvements, minimum wastages, responsible usage, and wide spread usage of renewable energy sources. The combined loss to the nation because of the prevailing inefficiency in the power sector is estimated to have crossed about Rs. 125,000 crores in 2011. As much as 35 to 40% of the existing demand can be reduced by efficiency improvement measures alone, making it important that government considers such measures as the first option to bridge the gap between demand and supply.

Whether it be coal plants or nuclear, the recognition of social, economic, environmental and health issues associated must be recognized. A carefully designed combination of centralized and decentralised renewable energy sources alone can ensure energy security, some believe. For instance, distributed energy sources can assist in accelerated rural electrification and reduce overall investment in power transmission and distribution network. Assuming about 30 crore households in the country by 2031-32 (@ 4 persons per house), and assuming that about 10 crore houses in the country will be economically able to install roof-top solar photovoltaic systems of 3 kW each, about 2,70,000 MW installed capacity of solar power becomes feasible. This capacity should be adequate and suitable to meet most the non-industrial loads in the country.

Why then has the IEP focused on adding conventional plants on a massive scale?

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