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5. Energy

Introduction

India is the fourth largest consumer of energy in the world after USA, China and Russia but it is not endowed with abundant energy resources. Efficient and reliable energy supply is critical for economic growth. The availability of conventional energy sources is limited and may not be sufficient in the long run to sustain the process of economic development. With the increasing share of fossil fuels in the energy supply/use, the share of imported energy may go up further. The challenge is to ensure adequate supply of energy at the least possible cost.

India’s power sector has seen extreme changes in the last decades. A slew of policies and regulations followed the Electricity Act of 2003 to facilitate an accelerated growth in the sector. The process started with the restructuring of power distribution utilities, with some states corporatizing the functional entities for power generation, transmission and distribution. The states of Orissa and Delhi went a step further by privatising the distribution sector. Another important aspect is to provide clean and convenient "lifeline" energy, critical for the well-being of deprived. Similarly requirement of coal, the dominant fuel in India’s energy mix will also need to be expand. Meeting the energy challenge is of fundamental importance to India’s economic growth imperatives and its efforts to raise its level of human development.

Focus Areas

1. Increasing Supply Side Potential by Augmenting Generation Capacity

To bridge the gap between peak demand/deficit, and faster retirement of the old inefficient power plants, the target for the Twelfth Plan has been fixed at 1,18,536.6 MW.  Additionally, alternative sources of energy are exploring to meet supply/demand of energy.

2. Expansion of Transmission System and Capacity

The large expansion in production and consumption of electricity has to be supported by a significant expansion and strengthening of the transmission network. The transmission programme to be taken up during the Twelfth Plan period is as follows:

3. Strengthening Distribution Systems

It plays a crucial role in the overall functioning of the power sector because it is the part of the system, which generates the revenues needed to pay generation and transmission utilities. The viability of the power sector as a whole is therefore critically dependent on the health of the distribution sector. This sector has developed high aggregate technical and commercial (AT and C) losses, which needs to be down from the current level of losses.

To address the problems of distribution losses, the Central Government had launched the scheme to finance the modernization of sub-transmission and distribution networks with the objective to reduce AT and C losses to 15 per cent, therefore Govt. of India has proposed Restructured Accelerated Power Development and Reform Programme (R-APDRP) as a Central Sector Scheme. The focus of the programme shall be on actual, demonstrable performance in terms of sustained loss reduction. Establishment of reliable and automated systems for sustained collection of accurate base line data, and the adoption of Information Technology in the areas of energy accounting will be essential before taking up the regular distribution strengthening projects.

4. Improving Access to Energy

Government of India had 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. For rural areas, 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.

The scheme provides a subsidy of 90 per cent of the total project cost and balance 10 per cent of the project cost is provided by the Rural Electrification Corporation (REC) as loan. Initially, Phase I of the RGGVY scheme was approved for implementation during the the Tenth Plan period. Subsequently, the scheme was approved to be continued in the Eleventh Plan.

5. Development of Renewable Energy for Energy Security and Sustainable Development

Jawaharlal Nehru National Solar Mission (JNNSM) is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India’s energy security challenges. The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level. JNNSM aims to create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022. The states have setup their own benchmarks for solar power. For example, in Tamil Nadu, 1 lac street lights in village panchayats are targeted over a period of 5 yrs upto 2016. Tamil Nadu solar energy policy 2012 has been announced which envisages, establishment of 3000 MW of solar generation by 2015.