Electricity in India
Encyclopedia
The electricity sector in India supplies the world's 5th largest energy consumer, accounting for 4.0% of global energy consumption by more than 17% of global population
. the Energy policy of India
is predominantly controlled by the Government of India
's, Ministry of Power
, Ministry of Coal
and Ministry of New Renewable Energy
and administered locally by Public Sector Undertakings (PSUs).
About 65.34% of the electricity consumed in India is generated by thermal power plants, 21.53% by hydroelectric power plants
, 2.70% by nuclear power plants
. and 10.42% by Renewable Energy Sources. More than 50% of India's commercial energy demand is met through the country's vast coal
reserves. The country has also invested heavily in recent years in renewable energy utilization
, especially wind energy
. In 2010, India's installed wind generated electric capacity was 14,550 MW. Additionally, India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30,000 MW. In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power
by 2022.
Rapid economic growth
has created a growing need for dependable and reliable supplies of electricity
, gas and petroleum products. Due to the fast-paced growth
of India's economy
, the country's energy demand has grown an average of 3.6% per annum over the past 30 years. In August 2011, the installed power generation capacity of India stood at 181.558 GW and per capita energy consumption stood at 704 kWh in 2008-09. The country's annual energy production increased from about 190 billion kWh in 1986 to more than 837 billion kWh in 2010. The Indian government has set a modest target to add approximately 78,000 MW of installed generation capacity by 2012 which it is likely to miss. The total demand for electricity in India is expected to cross 950,000 MW by 2030. Four major economic and social drivers characterize the energy policy
of India: a rapidly growing economy, increasing household incomes, limited domestic reserves of fossil fuels
and the adverse impact on the environment of rapid development in urban and regional areas.
According to a research report published by Citigroup Global Markets, India is expected to add up to 113 GW of installed capacity by 2017. Further, renewable capacity might increase from 15.5 GW to 36.0 GW. In the private sector, major capacity additions are planned in Reliance
Power (35 GW), Adani Power
(20 GW), Lanco
Power (15 GW), ESSAR Energy (12 GW) and CESC (7 GW).
is the apex body responsible for coordination administration of the electrical energy sector in India. This ministry started functioning independently from 2 July 1992; earlier, it was known as the Ministry of Energy. The Union Minister of Power at present is Sushil Kumar Shinde of the Congress Party who took charge of the ministry on 28 May 2010.
(NTPC), Damodar Valley Corporation
(DVC), National Hydroelectric Power Corporation
(NHPC) and Nuclear Power Corporation of India
(NPCI). Besides PSUs, several state-level corporations, such as Andhra Pradesh Power Generation Corporation (APGENCO) in Andhra Pradesh
, Tamil Nadu Electricity Board
(TNEB) in Tamil Nadu
, Maharashtra State Electricity Board
(MSEB)in Maharashtra
, Kerala State Electricity Board
(KSEB) in Kerala
, in Gujarat (MGVCL, PGVCL, DGVCL, UGVCL four distribution Companies and one controlling body GUVNL, and one generation company GSECL and one transmission company GETCO), are also involved in the generation and intrastate distribution of electricity. The PowerGrid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.
(REC Ltd) and Power Finance Corporation Limited (PFC Ltd) These Central Public Sector Enterprises provide loans for both public sector and private sector companies/ projects involved in building power infrastructure.
Electricity losses in India during transmission and distribution are extremely high and vary between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11%. Due to shortage of electricity, power cuts
are common throughout India and this has adversely effected the country's economic growth. Theft of electricity, common in most parts of urban India, amounts to 1.5% of India's GDP. Despite an ambitious rural electrification program, some 400 million Indians lose electricity access during blackouts. While 80 percent of Indian villages have at least an electricity line, just 52.5% of rural households have access to electricity. In urban areas, the access to electricity is 93.1% in 2008. The overall electrification rate in India is 64.5% while 35.5% of the population still live without access to electricity. According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993. Multi Commodity Exchange
has sought permission to offer electricity future markets.
The state of Maharashtra is the largest producer of thermal power in the country.
(Shivanasamudra) were established in 1898 and 1902 respectively and are among the first in Asia
.
India is endowed with economically exploitable and viable hydro potential assessed to be about 84,000 MW at 60% load factor. In addition, 6780 MW in terms of installed capacity from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely used form of renewable energy. India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential on global scenario.
The present installed capacity as on 30-06-2011 is approximately 37,367.4 MW which is 21.53% of total Electricity Generation in India. The public sector has a predominant share of 97% in this sector. National Hydroelectric Power Corporation (NHPC), Northeast Electric Power Company (NEEPCO), Satluj jal vidyut nigam (SJVNL), Tehri Hydro Development Corporation, NTPC-Hydro are a few public sector companies engaged in development of Hydroelectric Power in India.
Bhakra Beas Management Board (BBMB) is the epitome of excellence in Hydro - power under the Ministry of Power in India. BBMB has an installed capacity of 2864.73 MW and generates 12000-14000 million units per year. The cost of generation of energy after four decades of operation is about 20 paise/kWh. BBMB is a major source of peaking power and Black Start to the Northern Grid in India. Large reservoirs provide lot of operational flexibility. BBMB reservoirs annually supply water for irrigation to 1 crore 25 lac acre of agricultural land of partner states.
in India
is a sector that is still in its infancy. Even though India was the first country in the world to set up a ministry of non-conventional energy resources, in early 1980s. Its success has been very spotty. It still lags behind many developed nations in terms of the use of renewable energy (RE). As on 30-06-2011 about 18,454.52 MW of Energy is being generated through renewable means. This forms about 10.42% of total Electricity Generation in India. Renewable energy in India comes under the purview of the Ministry of New and Renewable Energy
.
India is endowed with rich solar energy resource. India receives the highest global solar radiation on a horizontal surface. The average intensity of solar radiation received on India is 200 MW/km square (megawatt per kilometre square). With a geographical area of 3.287 million km square, this amounts to 657.4 million MW. However, 87.5% of the land is used for agriculture, forests, fallow lands, etc., 6.7% for housing, industry, etc., and 5.8% is either barren, snow bound, or generally inhabitable. Thus, only 12.5% of the land area amounting to 0.413 million km square can, in theory, be used for solar energy installations. Even if 10% of this area can be used, the available solar energy would be 8 million MW, which is equivalent to 5909 million ton oil equivalent per year. The desert areas in India have the solar radiation required for CSP production. A 60 km x 60 km area can produce 1,00,000 MW of power. India has a desert area of 2,08,110 sq kilometres in Rajasthan and Gujarat. Even if India uses only 15,000 sq. kilometres of the desert, it can produce 3,00,000 MW of power.
The first Indian solar thermal power project (2X50MW) is in progress in Phalodi (Rajasthan), and is constructed by CORPORATE ISPAT ALLOY LTD. The solar thermal power plant has cost 4 times as much as the coal based steam thermal power plant, CIAL carried this 2x850 crore solar thermal project. It is the "pioneering of solar energy" in India.
India is densely populated and has high solar insolation
, an ideal combination for using solar power
in India. Much of the country does not have an electrical grid, so one of the first applications of solar power has been for water pumping, to begin replacing India's four to five million diesel powered water pump
s, each consuming about 3.5 kilowatts, and off-grid lighting. Some large projects have been proposed, and a 35,000 km² area of the Thar Desert
has been set aside for solar power
projects, sufficient to generate 700 to 2,100 gigawatts.
The Indian Solar Loan Programme, supported by the United Nations Environment Programme
has won the prestigious Energy Globe World award for Sustainability for helping to establish a consumer financing program for solar home power systems. Over the span of three years more than 16,000 solar home systems have been financed through 2,000 bank branches, particularly in rural areas of South India where the electricity grid does not yet extend.
Launched in 2003, the Indian Solar Loan Programme was a four-year partnership between UNEP, the UNEP Risoe Centre, and two of India's largest banks, the Canara Bank and Syndicate Bank.
Announced in November 2009, the Government of India proposed to launch its Jawaharlal Nehru National Solar Mission
under the National Action Plan on Climate Change with plans to generate 1,000 MW of power by 2013 and up to 20,000 MW grid-based solar power, 2,000 MW of off-grid solar power and cover 20 million square metres with collectors by the end of the final phase of the mission in 2020.
The development of wind power in India began in the 1990s by Tamilnadu Electric Board[TNEB] near Tuticorin, and has significantly increased in the last few years. Although a relative newcomer to the wind industry compared with Denmark
or the US, a combination of domestic policy support for wind power
and the rise of Suzlon (a leading global wind turbine manufacturer) have led India to become the country with the fifth largest installed wind power capacity in the world.
As of June 2010 the installed capacity of wind power in India was 12009.14 MW, mainly spread across Tamil Nadu
(4132.72 MW), Maharashtra
(1837.85 MW), Karnataka
(1184.45 MW), Rajasthan
(670.97 MW), Gujarat (1432.71 MW), Andhra Pradesh
(122.45 MW), Madhya Pradesh
(187.69 MW), Kerala
(23.00 MW), West Bengal
(1.10 MW), other states (3.20 MW) It is estimated that 6,000 MW of additional wind power capacity will be installed in India by 2012. Wind power accounts for 6% of India's total installed power capacity, and it generates 1.6% of the country's power.. In Tamil Nadu it is mostly produce in the southern district like Kanyakumari, Tirunelveli and Tuticorin districts. It alone constitutes the 30% of India's wind power production.
In present day scenario, Biomass utilization for generation of energy has gained momentum because of limited availability of the conventional energy resources as well as environmental concern due to GHG emissions. Technological developments relating to the conversion, crop production, etc. promise the application of biomass at lower cost and with higher conversion efficiency than was possible previously. When produced by sustainable means, biomass emits roughly the same amount of carbon during conversion as is taken up during plant growth. The use of biomass therefore does not contribute to a build up of CO2 in the atmosphere. India is very rich in biomass and has a potential of 16,881MW (agro-residues and plantations), 5000MW (bagasse cogeneration) and 2700MW (energy recovery from waste). Biomass power generation in India is an industry that attracts investments of over INR 600 crores every year, generating more than 5000 million units of electricity and yearly employment of more than 10 million man-days in the rural areas.
Geothermal energy is earth’s natural heat available inside the earth. This thermal energy contained in the rock and fluid that filled up fractures and pores in the earth’s crust can profitably be used for various purposes. This energy is accessed by drilling water or steam wells in a process similar to drilling for oil. Geothermal energy is an enormous, underused heat and power resource that is clean (emits little or no greenhouse gases), reliable (average system availability of 95%), and home grown (making us less dependent on foreign oil).
India has reasonably good potential for geothermal; the potential geothermal provinces can produce 10,600 MW of power. Rocks covered on the surface of India ranging in age from more than 4500 million years to the present day and distributed in different geographical units. The rocks comprise of Archean, Proterozoic, the marine and continental Palaeozoic, Mesozoic, Teritary, Quaternary etc., More than 300 hot spring locations have been identified by Geological survey of India (Thussu, 2000). But yet geothermal power projects has not been exploited at all, owing to a variety of reasons, the chief being the availability of plentiful coal at cheap costs.
However, with increasing environmental problems with coal based projects, India will need to start depending on clean and eco-friendly energy sources in future; one of which could be geothermal. India occupies 15th position in geothermal power use by country.
The identified economic tidal power potential in India is of the order of 8000-9000 MW with about 7000 MW in the Gulf of Cambay about 1200 MW in the Gulf of Kutch and less than 100 MW in Sundarbans.
Rural Electrification Corporation is the nodal agency for implementation of the scheme. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in the execution of Rural Electrification projects. The Management of Rural Distribution is mandated through franchisees.
So far, Ministry of Power has sanctioned 576 projects for 546 districts to electrify 1,10,321 villages and to provide free electricity connections to 2.30 Crore BPL rural households. As on 30 June, 2011, works in 97,940 villages have been completed and 165.79 lakh free electricity connections have been released to BPL households. The revised Bharat Nirman target for RGGVY is to electrify 1 lakh villages and to provide free electricity connections to 175 lakh BPL households by March 2012.
Demographics of India
The demographics of India are inclusive of the second most populous country in the world, with over 1.21 billion people , more than a sixth of the world's population. Already containing 17.5% of the world's population, India is projected to be the world's most populous country by 2025, surpassing...
. the Energy policy of India
Energy policy of India
The energy policy of India is largely defined by the country's burgeoning energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy....
is predominantly controlled by the Government of India
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
's, Ministry of Power
Ministry of Power (India)
The Ministry of Power is an Indian government ministry. The Minister of Power holds cabinet rank as a member of the Council of Ministers. The current minister is Sushilkumar Shinde....
, Ministry of Coal
Ministry of Coal
The Ministry of Coal is an Indian government ministry. The portfolio is currently held by the Prime Minister Manmohan Singh, assisted by the Minister of State for Coal, Sriprakash Jaiswal....
and Ministry of New Renewable Energy
Ministry of New and Renewable Energy
Ministry of New and Renewable Energy or MNRE is a ministry of Government of India. The ministry is headed by Farooq Abdullah, a Cabinet Minister. The ministry was established as the Ministry of Non-Conventional Energy Sources in 1992...
and administered locally by Public Sector Undertakings (PSUs).
About 65.34% of the electricity consumed in India is generated by thermal power plants, 21.53% by hydroelectric power plants
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
, 2.70% by nuclear power plants
Nuclear power in India
Nuclear power is the fourth-largest source of electricity in India after thermal, hydroelectric and renewable sources of electricity. As of 2010, India has 20 nuclear reactors in operation in six nuclear power plants, generating 4,780 MW while seven other reactors are under construction and...
. and 10.42% by Renewable Energy Sources. More than 50% of India's commercial energy demand is met through the country's vast coal
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
reserves. The country has also invested heavily in recent years in renewable energy utilization
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
, especially wind energy
Wind energy
Wind energy is the kinetic energy of air in motion; see also wind power.Total wind energy flowing through an imaginary area A during the time t is:E = ½ m v2 = ½ v 2...
. In 2010, India's installed wind generated electric capacity was 14,550 MW. Additionally, India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30,000 MW. In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
by 2022.
Rapid economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
has created a growing need for dependable and reliable supplies of electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
, gas and petroleum products. Due to the fast-paced growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
of India's economy
Economy of India
The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...
, the country's energy demand has grown an average of 3.6% per annum over the past 30 years. In August 2011, the installed power generation capacity of India stood at 181.558 GW and per capita energy consumption stood at 704 kWh in 2008-09. The country's annual energy production increased from about 190 billion kWh in 1986 to more than 837 billion kWh in 2010. The Indian government has set a modest target to add approximately 78,000 MW of installed generation capacity by 2012 which it is likely to miss. The total demand for electricity in India is expected to cross 950,000 MW by 2030. Four major economic and social drivers characterize the energy policy
Energy policy
Energy policy is the manner in which a given entity has decided to address issues of energy development including energy production, distribution and consumption...
of India: a rapidly growing economy, increasing household incomes, limited domestic reserves of fossil fuels
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
and the adverse impact on the environment of rapid development in urban and regional areas.
According to a research report published by Citigroup Global Markets, India is expected to add up to 113 GW of installed capacity by 2017. Further, renewable capacity might increase from 15.5 GW to 36.0 GW. In the private sector, major capacity additions are planned in Reliance
Reliance
-Companies:* Reliance Industries, an Indian conglomerate of companies headed by Mukesh Ambani** Reliance Petroleum** Reliance Life Sciences** Reliance Solar** Reliance Logistics** Reliance Industrial Infrastructure** Reliance Institute of Life Sciences...
Power (35 GW), Adani Power
Adani Power
Adani Power Limited is the power business arm of Indian business conglomerate Adani Group with head office at Ahmedabad, Gujarat. The company is India's largest thermal private power producer with capacity of 3300 MW....
(20 GW), Lanco
Lanco
Lanco is a city and commune in southern Chile administered by the Municipality of Lanco. It is located in Valdivia Province in Los Ríos Region, about northeast of Valdivia close to Cruces River.-Demographics:...
Power (15 GW), ESSAR Energy (12 GW) and CESC (7 GW).
Administration
The Ministry of PowerMinistry of Power (India)
The Ministry of Power is an Indian government ministry. The Minister of Power holds cabinet rank as a member of the Council of Ministers. The current minister is Sushilkumar Shinde....
is the apex body responsible for coordination administration of the electrical energy sector in India. This ministry started functioning independently from 2 July 1992; earlier, it was known as the Ministry of Energy. The Union Minister of Power at present is Sushil Kumar Shinde of the Congress Party who took charge of the ministry on 28 May 2010.
Technical
Major PSUs involved in the generation of electricity include National Thermal Power CorporationNational Thermal Power Corporation
NTPC Limited is the largest Indian state-owned energy service provider based in New Delhi, India. It is listed in Forbes Global 2000 for 2010 ranked it 341st in the world...
(NTPC), Damodar Valley Corporation
Damodar Valley Corporation
The Damodar Valley Corporation, popularly known as DVC, is the first multipurpose river valley project of independent India. The corporation came into being on July 7, 1948 by an Act of the Constituent Assembly of India . It is modelled on the Tennessee Valley Authority of the USA. Jawaharlal...
(DVC), National Hydroelectric Power Corporation
National Hydroelectric Power Corporation
NHPC Limited , A Govt. of India Enterprise, was incorporated in the year 1975 with an authorised capital of Rs. 2000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects...
(NHPC) and Nuclear Power Corporation of India
Nuclear Power Corporation of India
The Nuclear Power Corporation of India Limited is a government-owned corporation of India based in Mumbai. One of the public sector undertakings, it is wholly owned by the Union Government and is responsible for the generation of nuclear power for electricity. NPCIL is administered by the...
(NPCI). Besides PSUs, several state-level corporations, such as Andhra Pradesh Power Generation Corporation (APGENCO) in Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
, Tamil Nadu Electricity Board
Tamil Nadu Electricity Board
The Tamil Nadu Electricity Board TNEB is a statutory body formed on 01.07.1957 under the Electricity Supply Act, 1948 as a successor to the erstwhile Electricity Department of the Government of Madras. India, that generates, distributes and regulates the electricity supply in the state...
(TNEB) in Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
, Maharashtra State Electricity Board
Maharashtra State Electricity Board
Maharashtra State Electricity Board is a state-owned electricity regulation board operating within the state of Maharashtra in India. The MSEB was formed on June 20, 1960 under Section 5 of the Electricity Act, 1948...
(MSEB)in Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
, Kerala State Electricity Board
Kerala State Electricity Board
Kerala State Electricity Board is a public sector agency under the Government of Kerala, India, that generates and distributes the electricity supply in the state...
(KSEB) in Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
, in Gujarat (MGVCL, PGVCL, DGVCL, UGVCL four distribution Companies and one controlling body GUVNL, and one generation company GSECL and one transmission company GETCO), are also involved in the generation and intrastate distribution of electricity. The PowerGrid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.
Funding
The Ministry of Power provides funding to national schemes for power projects via Rural Electrification Corporation LimitedRural Electrification Corporation Limited
REC is a leading public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India, operating through a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi...
(REC Ltd) and Power Finance Corporation Limited (PFC Ltd) These Central Public Sector Enterprises provide loans for both public sector and private sector companies/ projects involved in building power infrastructure.
Demand
During the year 2010-11, the energy requirement registered a growth of 3.7% during the year against the projected growth of 5.6% and Peak demand registered a growth of 2.6% against the projected growth of 6.5%., though the total ex-bus energy availability increased by 5.6% over the previous year and the peak met increased by 6.0%, the shortage conditions prevailed in the Country both in terms of energy and peaking availability. Base load requirement was 861,591 (MU) against availability of 788,355 MU which is a shortage is 73,236 MU i.e. 8.5% deficit. During peak load the demand was for 122,287 MW against availability of 110,256 MW which is a shortage of 12,031 MW i.e. 9.8%.Electricity losses in India during transmission and distribution are extremely high and vary between 30 to 45%. In 2004-05, electricity demand outstripped supply by 7-11%. Due to shortage of electricity, power cuts
Power outage
A power outage is a short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network...
are common throughout India and this has adversely effected the country's economic growth. Theft of electricity, common in most parts of urban India, amounts to 1.5% of India's GDP. Despite an ambitious rural electrification program, some 400 million Indians lose electricity access during blackouts. While 80 percent of Indian villages have at least an electricity line, just 52.5% of rural households have access to electricity. In urban areas, the access to electricity is 93.1% in 2008. The overall electrification rate in India is 64.5% while 35.5% of the population still live without access to electricity. According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993. Multi Commodity Exchange
Multi Commodity Exchange
Multi Commodity Exchange is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. The turnover of the exchange for the fiscal year 2009 was US$ 1.24 trillion, and in terms of contracts traded, it was in 2009 the world's sixth largest commodity exchange...
has sought permission to offer electricity future markets.
Thermal Power
Current installed capacity of Thermal Power as of June 30, 2011 is 115649.48 MW which is 65.34%of total installed capacity.- Current installed base of Coal Based Thermal PowerFossil fuel power plantA fossil-fuel power station is a power station that burns fossil fuels such as coal, natural gas or petroleum to produce electricity. Central station fossil-fuel power plants are designed on a large scale for continuous operation...
is 96,743.38 MW which comes to 54.66% of total installed base. - Current installed base of Gas Based Thermal Power is 17,706.35 MW which is 10.00% of total installed capacity.
- Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.67% of total installed capacity.
The state of Maharashtra is the largest producer of thermal power in the country.
Hydro Power
In this system of power generation, the potential of the water falling under gravitational force is utilized to rotate a turbine which again is coupled to a Generator, leading to generation of electricity. India is one of the pioneering countries in establishing hydro-electric power plants. The power plants at Darjeeling and ShimshaShimsha
Shimsha is a river that flows in the state of Karnataka, India. It is one of the tributaries of the river Kaveri, which is one of the major rivers of South India. The river originates in the southern part of the Devarayanadurga hill in the Tumkur district of Karnataka and flows for about . before...
(Shivanasamudra) were established in 1898 and 1902 respectively and are among the first in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
.
India is endowed with economically exploitable and viable hydro potential assessed to be about 84,000 MW at 60% load factor. In addition, 6780 MW in terms of installed capacity from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes with an aggregate installed capacity of 94,000 MW have been identified. It is the most widely used form of renewable energy. India is blessed with immense amount of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential on global scenario.
The present installed capacity as on 30-06-2011 is approximately 37,367.4 MW which is 21.53% of total Electricity Generation in India. The public sector has a predominant share of 97% in this sector. National Hydroelectric Power Corporation (NHPC), Northeast Electric Power Company (NEEPCO), Satluj jal vidyut nigam (SJVNL), Tehri Hydro Development Corporation, NTPC-Hydro are a few public sector companies engaged in development of Hydroelectric Power in India.
Bhakra Beas Management Board (BBMB) is the epitome of excellence in Hydro - power under the Ministry of Power in India. BBMB has an installed capacity of 2864.73 MW and generates 12000-14000 million units per year. The cost of generation of energy after four decades of operation is about 20 paise/kWh. BBMB is a major source of peaking power and Black Start to the Northern Grid in India. Large reservoirs provide lot of operational flexibility. BBMB reservoirs annually supply water for irrigation to 1 crore 25 lac acre of agricultural land of partner states.
Renewable Energy
Renewable energyRenewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
is a sector that is still in its infancy. Even though India was the first country in the world to set up a ministry of non-conventional energy resources, in early 1980s. Its success has been very spotty. It still lags behind many developed nations in terms of the use of renewable energy (RE). As on 30-06-2011 about 18,454.52 MW of Energy is being generated through renewable means. This forms about 10.42% of total Electricity Generation in India. Renewable energy in India comes under the purview of the Ministry of New and Renewable Energy
Ministry of New and Renewable Energy
Ministry of New and Renewable Energy or MNRE is a ministry of Government of India. The ministry is headed by Farooq Abdullah, a Cabinet Minister. The ministry was established as the Ministry of Non-Conventional Energy Sources in 1992...
.
Solar power
Solar energy is tapped using both solar thermal and Photovoltaic cell. In Solar thermal the solar energy is used to produce steam which is subsequently used to drive a turbo-generator to produce electricity. But in case of a Photovoltaic cell semiconducting materials are used to produce positive and negative charges under the influence of light i.e. Energy from sun light. Solar energy can alternatively, also be used for water heating, Air Conditioning and Cooking.India is endowed with rich solar energy resource. India receives the highest global solar radiation on a horizontal surface. The average intensity of solar radiation received on India is 200 MW/km square (megawatt per kilometre square). With a geographical area of 3.287 million km square, this amounts to 657.4 million MW. However, 87.5% of the land is used for agriculture, forests, fallow lands, etc., 6.7% for housing, industry, etc., and 5.8% is either barren, snow bound, or generally inhabitable. Thus, only 12.5% of the land area amounting to 0.413 million km square can, in theory, be used for solar energy installations. Even if 10% of this area can be used, the available solar energy would be 8 million MW, which is equivalent to 5909 million ton oil equivalent per year. The desert areas in India have the solar radiation required for CSP production. A 60 km x 60 km area can produce 1,00,000 MW of power. India has a desert area of 2,08,110 sq kilometres in Rajasthan and Gujarat. Even if India uses only 15,000 sq. kilometres of the desert, it can produce 3,00,000 MW of power.
The first Indian solar thermal power project (2X50MW) is in progress in Phalodi (Rajasthan), and is constructed by CORPORATE ISPAT ALLOY LTD. The solar thermal power plant has cost 4 times as much as the coal based steam thermal power plant, CIAL carried this 2x850 crore solar thermal project. It is the "pioneering of solar energy" in India.
India is densely populated and has high solar insolation
Insolation
Insolation is a measure of solar radiation energy received on a given surface area in a given time. It is commonly expressed as average irradiance in watts per square meter or kilowatt-hours per square meter per day...
, an ideal combination for using solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
in India. Much of the country does not have an electrical grid, so one of the first applications of solar power has been for water pumping, to begin replacing India's four to five million diesel powered water pump
Water Pump
Water Pump is one of the neighbourhoods of Gulberg Town in Karachi, Sindh, Pakistan. It is near main Water Pump that supplies fresh water to the city of Karachi....
s, each consuming about 3.5 kilowatts, and off-grid lighting. Some large projects have been proposed, and a 35,000 km² area of the Thar Desert
Thar Desert
The Thar Desert |Punjab]] province. The Cholistan Desert adjoins the Thar desert spreading into Pakistani Punjab province.-Location and description:...
has been set aside for solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
projects, sufficient to generate 700 to 2,100 gigawatts.
The Indian Solar Loan Programme, supported by the United Nations Environment Programme
United Nations Environment Programme
The United Nations Environment Programme coordinates United Nations environmental activities, assisting developing countries in implementing environmentally sound policies and practices. It was founded as a result of the United Nations Conference on the Human Environment in June 1972 and has its...
has won the prestigious Energy Globe World award for Sustainability for helping to establish a consumer financing program for solar home power systems. Over the span of three years more than 16,000 solar home systems have been financed through 2,000 bank branches, particularly in rural areas of South India where the electricity grid does not yet extend.
Launched in 2003, the Indian Solar Loan Programme was a four-year partnership between UNEP, the UNEP Risoe Centre, and two of India's largest banks, the Canara Bank and Syndicate Bank.
Announced in November 2009, the Government of India proposed to launch its Jawaharlal Nehru National Solar Mission
Jawaharlal Nehru National Solar Mission
The Jawaharlal Nehru National Solar Mission is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenges. It will also constitute a major contribution by India to the global effort to meet the...
under the National Action Plan on Climate Change with plans to generate 1,000 MW of power by 2013 and up to 20,000 MW grid-based solar power, 2,000 MW of off-grid solar power and cover 20 million square metres with collectors by the end of the final phase of the mission in 2020.
Wind Power
In this system the velocity of the wind is used to rotate large fans attached to turbines. The turbines then rotate the Generator to produce electricity. The short gestation periods for installing wind turbines, and the increasing reliability and performance of wind energy machines has made wind power a favored choice for capacity addition in India.The development of wind power in India began in the 1990s by Tamilnadu Electric Board[TNEB] near Tuticorin, and has significantly increased in the last few years. Although a relative newcomer to the wind industry compared with Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
or the US, a combination of domestic policy support for wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
and the rise of Suzlon (a leading global wind turbine manufacturer) have led India to become the country with the fifth largest installed wind power capacity in the world.
As of June 2010 the installed capacity of wind power in India was 12009.14 MW, mainly spread across Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
(4132.72 MW), Maharashtra
Maharashtra
Maharashtra is a state located in India. It is the second most populous after Uttar Pradesh and third largest state by area in India...
(1837.85 MW), Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...
(1184.45 MW), Rajasthan
Rajasthan
Rājasthān the land of Rajasthanis, , is the largest state of the Republic of India by area. It is located in the northwest of India. It encompasses most of the area of the large, inhospitable Great Indian Desert , which has an edge paralleling the Sutlej-Indus river valley along its border with...
(670.97 MW), Gujarat (1432.71 MW), Andhra Pradesh
Andhra Pradesh
Andhra Pradesh , is one of the 28 states of India, situated on the southeastern coast of India. It is India's fourth largest state by area and fifth largest by population. Its capital and largest city by population is Hyderabad.The total GDP of Andhra Pradesh is $100 billion and is ranked third...
(122.45 MW), Madhya Pradesh
Madhya Pradesh
Madhya Pradesh , often called the Heart of India, is a state in central India. Its capital is Bhopal and Indore is the largest city....
(187.69 MW), Kerala
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
(23.00 MW), West Bengal
West Bengal
West Bengal is a state in the eastern region of India and is the nation's fourth-most populous. It is also the seventh-most populous sub-national entity in the world, with over 91 million inhabitants. A major agricultural producer, West Bengal is the sixth-largest contributor to India's GDP...
(1.10 MW), other states (3.20 MW) It is estimated that 6,000 MW of additional wind power capacity will be installed in India by 2012. Wind power accounts for 6% of India's total installed power capacity, and it generates 1.6% of the country's power.. In Tamil Nadu it is mostly produce in the southern district like Kanyakumari, Tirunelveli and Tuticorin districts. It alone constitutes the 30% of India's wind power production.
Biomass Power
In this system Bagasse, Forestry and agro residue & Agricultural based industrial wastes are burnt to produce steam which is used to produce electricity. Waste to energy remains mostly unrealized while there is a massive potential for generating Biomass electricity from agri residues like rice husk etc.In present day scenario, Biomass utilization for generation of energy has gained momentum because of limited availability of the conventional energy resources as well as environmental concern due to GHG emissions. Technological developments relating to the conversion, crop production, etc. promise the application of biomass at lower cost and with higher conversion efficiency than was possible previously. When produced by sustainable means, biomass emits roughly the same amount of carbon during conversion as is taken up during plant growth. The use of biomass therefore does not contribute to a build up of CO2 in the atmosphere. India is very rich in biomass and has a potential of 16,881MW (agro-residues and plantations), 5000MW (bagasse cogeneration) and 2700MW (energy recovery from waste). Biomass power generation in India is an industry that attracts investments of over INR 600 crores every year, generating more than 5000 million units of electricity and yearly employment of more than 10 million man-days in the rural areas.
Geothermal Energy
In this system the geothermal energy is utilized to produce steam for generation of electricity.Geothermal energy is earth’s natural heat available inside the earth. This thermal energy contained in the rock and fluid that filled up fractures and pores in the earth’s crust can profitably be used for various purposes. This energy is accessed by drilling water or steam wells in a process similar to drilling for oil. Geothermal energy is an enormous, underused heat and power resource that is clean (emits little or no greenhouse gases), reliable (average system availability of 95%), and home grown (making us less dependent on foreign oil).
India has reasonably good potential for geothermal; the potential geothermal provinces can produce 10,600 MW of power. Rocks covered on the surface of India ranging in age from more than 4500 million years to the present day and distributed in different geographical units. The rocks comprise of Archean, Proterozoic, the marine and continental Palaeozoic, Mesozoic, Teritary, Quaternary etc., More than 300 hot spring locations have been identified by Geological survey of India (Thussu, 2000). But yet geothermal power projects has not been exploited at all, owing to a variety of reasons, the chief being the availability of plentiful coal at cheap costs.
However, with increasing environmental problems with coal based projects, India will need to start depending on clean and eco-friendly energy sources in future; one of which could be geothermal. India occupies 15th position in geothermal power use by country.
Tidal Wave Energy
The high energy of sea tides is used to rotate turbines which drive generators to produce electricity.The identified economic tidal power potential in India is of the order of 8000-9000 MW with about 7000 MW in the Gulf of Cambay about 1200 MW in the Gulf of Kutch and less than 100 MW in Sundarbans.
Strategies
- Power Generation Strategy with focus on low cost generation, optimization of capacity utilization, controlling the input cost, optimisation of fuel mix, Technology upgradation and utilization of Non Conventional energy sources
- Transmission Strategy with focus on development of National Grid including Interstate connections, Technology upgradation & optimization of transmission cost.
- Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss reduction, theft control, consumer service orientation, quality power supply commercialization, Decentralized distributed generationDistributed generationDistributed generation, also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, generates electricity from many small energy sources....
and supply for rural areas.
- Regulation Strategy aimed at protecting Consumer interests and making the sector commercially viable.
- Financing Strategy to generate resources for required growth of the power sector.
- Conservation Strategy to optimise the utilization of electricity with focus on Demand Side management, Load management and Technology upgradation to provide energy efficient equipment / gadgets.
- Communication Strategy for political consensus with media support to enhance the general public awareness.,
Rural Electrification
Jharkhand, Uttar Pradesh, Orissa and Madhya Pradesh are some of the states where significant number (more than 10%) of villages are yet to be electrified.- Number of Villages (1991 Census) - 593,732
- Villages Electrified (30 May 2006) - 488,173
- Village level Electrification % - 82.2%
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
Ministry of Power launched Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) as one of its flagship programme in March 2005 with the objective of electrifying over one lakh un-electrified villages and to provide free electricity connections to 2.34 Crore rural BPL households. This programme has been brought under the ambit of Bharat Nirman, Under RGGVY, electricity distribution infrastructure is envisaged to establish Rural Electricity Distribution Backbone (REDB) with at least a 33/11KV sub-station in a block, Village Electrification Infrastructure (VEI) with at least a Distribution Transformer in a village or hamlet, and standalone grids with generation where grid supply is not feasible. Subsidy towards capital expenditure to the tune of 90% is being provided, through Rural Electrification Corporation Limited (REC), which is a nodal agency for implementation of the scheme. Electrification of un-electrified Below Poverty Line (BPL) households is being financed with 100% capital subsidy @ Rs.2200/- per connection in all rural habitations.Rural Electrification Corporation is the nodal agency for implementation of the scheme. The services of Central Public Sector Undertakings (CPSU) are available to the States for assisting them in the execution of Rural Electrification projects. The Management of Rural Distribution is mandated through franchisees.
So far, Ministry of Power has sanctioned 576 projects for 546 districts to electrify 1,10,321 villages and to provide free electricity connections to 2.30 Crore BPL rural households. As on 30 June, 2011, works in 97,940 villages have been completed and 165.79 lakh free electricity connections have been released to BPL households. The revised Bharat Nirman target for RGGVY is to electrify 1 lakh villages and to provide free electricity connections to 175 lakh BPL households by March 2012.
See also
External Links
- India’s Energy Policy and Electricity Production, Q&A with Charles Ebinger (October 2011)