ENERGY AND SUSTAINABLE
DEVELOPMENT
By
A. Anantha
GM, REC
Sustainable Development
Sustainable
Development
means
‘Development that meets the needs of
the present day without compromising
the ability of future generations to meet
their needs’
Background
In the last 50 years
 Global GDP grew around fourfold
 Despite high population growth rates in
developing countries average per capita increase
by about 30%
 Adult illiteracy and infant mortality in developing
countries cut by half
Concerns
 Growing social stresses due to conflicts and
inequality, poverty etc
 Environmental degradation
For Next 50 years
 The global economy may grow further more than
four folds
 Poverty may reduce considerably
Govt. Attention Needed




To reduce poverty
Maintain Growth
Improve social cohesion
Protecting Environment
Energy Consumption worldwide
P rim a ry
E ne rgy
n pt io n
CMoillio
ns um
t o nne s o il
P o pula t io n
P e r C a pit a E ne rgy
C o ns um pt io n
m illio ns
Kgo e
US A
2 2 9 8 .7
2 9 2 .6
7856
China
1204.2
1,300.0
926
R us s ia n F e de ra t io n
6 5 6 .9
14 4 .6
4543
J a pa n
5 0 4 .9
12 7 .7
3954
India
350.4
1,070.8
327
G e rm a ny
3 3 2 .1
8 2 .6
4021
C a na da
3 0 2 .3
3 1.6
9566
F ra nc e
2 5 9 .6
6 0 .0
4327
Unit e d Kingdo m
2 2 5 .4
5 9 .3
3801
S o ut h Ko re a
2 11.8
4 7 .5
4459
It a ly
18 1.0
5 8 .0
3 12 1
B ra zil
18 0 .0
18 1.4
992
9 8 0 0 .8
6 3 13 .8
15 5 2
Wo rld A v e ra ge
India is 5th largest energy consumer. Per Capita energy consumption is very low.
Source: BP Stats 2005
Energy Consumption in India
Consumption in million
% of total
tonnes of oil equivalent
Oil
113.1
32.3
Natural Gas
26.9
7.7
Coal
190.6
54.4
Nuclear
4.1
1.2
Hydro
15.7
4.5
Total
350.4
100
Consumption by energy type in 2003
Source: BP Stats 2005
Energy Challenges
Improve access to energy which is
 Sustainable
 Reliable
 Affordable
In order to
 Alleviate poverty
 Promote energy savings
 Promote renewable and sustainable technologies
Energy Challenges for Sustainable Development





Tackling climate change
Promoting environmentally sound energy
Use of efficient technologies
Meeting growing energy needs
Capacity building
Energy Efficiency and DSM




Energy efficient technologies
Compulsory energy audit annually
End use efficiency
Demand Side Management measures like peak
saving, time of the day metering etc
Energy Needs
 For Urban areas- High Demand
 For Rural areas- Varies from life line to medium
demand
Sources of Energy
In rural Areas (villages)
 Fuel wood, biomass, biogas, kerosene etc
 Decentralised electricity generation locally
 Electricity supply through grid
The status of village electrification in India as
on 31.03.2004
 Total No. of census villages – 587556
 Total No. of census villages electrified –474982 (81%)
 Balance villages to be electrified – 112401 * (19%)
*
As per the new definition of village electrification (effective from 2004-05) total no. Of un-electrified
villages is estimated to be 1,25,000
The status of household electrification in
India
 Total No. of households – 13.8 Cr. (2001 census)
 Total No. of household electrified – 6.02 Cr. (44%)
 Balance household to be electrified – 7.78 Cr. (56%)
Rajiv Gandhi Gramin Vidyutikaran Yojana (2005)
 Create Rural Electricity Backbone
 Wire villages/hamlets
 Power to all BPL families – last mile connectivity
 Electrify public places
 Develop franchisees
Policy Targets
As per Rajiv Gandhi Grameen Vidyutikaran Yojna,
April 2005.
in 5 years….






Electrify all villages and habitants
Provide access to electricity to all households
Give electricity connection to Below Poverty Line
(BPL) families free of charge. Through creation of :
Rural Electricity Distribution Backbone (REDB) with at
least one 33/11 kV (or 66/11kV) sub station in each
block.
Village Electrification Infrastructure (VEI) with at
least
one
distribution transformer in each
village/habitation.
Decentralised Distributed Generation (DDG) system
where
Grid supply is not feasible or cost effective.
Work in hand
States
Districts
Villages
Households
As on 31.03.06
22
196
51,284 unelectrified +
74,615 electrified
72,78,758
Additional 10,000 villages
electrified under RGGVY
(05-06)
Electrification of Villages
Electrification of Unelectrified Villages
250000
Intensive Electrification
230000
220000
200000
150000
100000
50000
50000
40000
35000
20000
10000
581
207
0
122
765
350
0
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
(Projected)
38
08-09
Achievements/ Targets
 10,000 villages electrified by March 2006
 40,000 villages targeted to be electrified by
March 2007
 Additional 25,000 villages targeted for intensive
electrification
 Funds required Rs. 7500 crores i.e. about Rs. 600
crores per month
Challenges
 Timely flow of funds
 Holding price line of equipments
 Creation of viable franchisees
 Availability of reliable power
AT&C Losses-Present status
(All India AT&C loss )
Sl.No.
Source: MOP
site/Power
Finance
Corporation / *
State Electricity
Regulatory
Commission
1a
b
c
d
2
3
4
5
6a
b
c
7
8
9a
b
10
11
12
13a
b
c
d
14
15a
b
c
State / Utility
APCPDCL (Andhra Pradesh)
APEPDCL (Andhra Pradesh)
APNPDCL (Andhra Pradesh)
APSPDCL (Andhra Pradesh)
Arunachal Pradesh
Assam
Bihar
Chattisgarh
BSES Rajdhani (Delhi)
BSED Yamuna (Delhi)
NPDL (Delhi)
Goa
Gujarat
DHBVNL (Haryana)
UHBVNL (Haryana)
Himachal Pradesh
Jammu & Kashmir
Jharkhand
BESCOM (Karnataka)
GESCOM (Karnataka)
HESCOM (Karnataka)
MESCOM (Karnataka)
Kerala
Poorva KVVCL (MP)
Pashchim KVVNL (MP)
Madhya KVVCL (MP)
2002-03 2003-04 2004-05
29.68*
19.32*
26.84*
27.26*
61.8
39.44
77.64
38.68*
47.40*
61.89*
47.79*
22.98
31.24
41.39
42.54
29.52
61.71*
53.00*
35.7
43.54
47.73
35.68
29.08*
34.05
43.41*
51.13*
19.12*
17.79*
10.41*
17.17*
16.26*
43.35
77
38.87*
45.07*
54.29*
44.86*
21.28
30.98
48.68*
52.84*
9.27
67.56*
65.00*
28.91
43.86
31.66
25.82
27.44*
42.68*
45.66*
57.06*
23.95
14.27
21.91
20.55
37.26
40.40*
74.09
45.07*
40.64*
50.12*
33.79*
17.27
30.32
36.39
43.12
21.71
68.33
69.23
24.83
42.99
41.64
26.62
32.12
44.37*
38.86*
53.17*
AT&C Losses-Present status
All India AT&C loss (contd..)
Sl.No.
Source: MOP
site/Power
Finance
Corporation / *
State Electricity
Regulatory
Commission
16
17
18
19
20
21a
b
c
d
22
23
24a
b
c
25
26
27
28a
b
c
d
29
30a
b
State / Utility
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
CESCO (Orissa)
NESCO (Orissa)
SESCO (Orissa)
WESCO (Orissa)
Pondicherry
Punjab
AVVNL (Rajasthan)
JDVVNL (Rajasthan)
JVVNL (Rajasthan)
Sikkim
Tamilnadu
Tripura
Dakhinachal VVN (U.P)
Madhayanchal VVN (U.P)
Pashchimanchal VVN (U.P)
Poorvanchal VVN (U.P)
Uttaranchal
West Bengal
CESC (WB)
2002-03 2003-04 2004-05
44.3
76.86
42.34
49.55
53.82
55.04*
52.25*
49.76*
47.30*
41.66
23.19
41.22*
41.97*
39.99*
80.43
18.00*
34.31
48.00*
48.00*
48.00*
48.00*
40.74
34.53*
19.30*
44.18*
69.73
39.31
40.75
55.59
51.10*
50.36*
51.56*
46.18*
41.01
22.40*
44.57*
41.56*
38.62*
66.54
18.00*
31.53
43.21*
43.21*
43.21*
43.21*
43.38
43.92*
17.90*
26.62
88.50
38.16
22.11
39.53
49.37*
42.96*
45.71*
40.60*
40.49
20.62*
49.75
47.56
43.22
63.60
18.00*
30.87
48.00*
38.00*
43.00*
38.00*
42.85
35.66*
16.80*
AT&C Loss % of various states
(based on 04-05 figures)
Less than
20%
Goa
Tamil Nadu
Between 20%
and 30%
Andhra Pradesh
West Bengal
Himachal
Pradesh
Maharashtra
Punjab
Mizoram
Between
30% and 40%
Karnataka
Kerala
Assam
Meghalaya
Arunachal
Gujarat
Nagaland
Tripura
Above 40%
Delhi
UP
Bihar
Jharkhand
MP
Uttaranachal
Rajasthan
Haryana
Manipur
Assam
J&K
Chattisgarh
Orissa
Pondicherry
Sikkim
Projections for Electricity requirement by MOP
Year
Billion kWhr
Installed Capacity (GW)
7%
8%
7%
8%
2006-07
700
700
140500
140500
2011-12
982
1029
197060
206440
2016-17
1377
1511
276385
303330
2021-22
1931
2221
387645
445690
2026-27
2709
3263
543690
654865
2031-32
3799
4793
762555
962210
Source: Draft Integrated Energy Policy document
10
Plan-wise Projected Installed Capacity (MW)
250000
7%
8%
200000
150000
100000
50000
0
XI Plan
(2007-12)
XII Plan
(2012-17)
XIII Plan
(2017-22)
Source: Draft Integrated Energy Policy document
11
IVX Plan
(2022-27)
VX Plan
(2027-32)
Household Energy Consumption in India (July 1999June 2000)
Fuel Type
Physical Units
MTOE
Rural
Urban
Total
Rural
Urban
Total
Fire Wood & chips (Mt.)
158.87
18.08
176.95
71.49
8.13
79.62
Electricity (BkWh)
40.76
57.26
98.02
3.51
4.92
8.43
Dung Cake (Mt.)
132.95
8.03
140.98
27.92
1.69
29.61
Kerosene (Mltrs)
7.38
4.51
11.89
6.25
3.82
10.07
Coal (Mt.)
1.20
1.54
2.74
0.49
0.63
1.12
L.P.G. (Mt.)
1.25
4.43
5.68
1.41
5.00
6.41
Source: Derived from NSS 55th Round, (July 1999- June 2000 data, National Sample Survey
Organisation, Ministry of Statistics and Programme Implementation, Government of India
12
The Current Situation




Large parts of rural India not electrified
Poor service levels – 12 to 15 hour power cuts common in
several large states
Erratic voltage and rampant breakdowns
High AT&C losses
% of Rural Households Unelectrified
30
Average Hours of Supply
25
20
15
10
5
M
ad
h y Pu
n
a
Pr jab
ad
An Ka e s
dh rn a h
ra
ta
Pr ka
ad
e
G sh
Ta uja
m ra
il N t
ad
u
M
ah Bih
a r ar
a
Jh sht
ar ra
kh
an
d
Hi We Ori
s
m
s
ac t B sa
ha en
l P ga
l
Ut rad
ta e s
h
r
Ch an c
h
ha
t is a l
ga
rh
G
o
Ke a
ra
la
0
Illustrative Cost structure of SEB Supply
Tr. Cost & Loss
110
Generation Fuel
Expense
34
140
Distribution Cost
& AT&C Loss
309
(P/kWh)
Generation Capital
 Delivered cost to consumer = 662
P/kWh
 AT&C loss of 48%
 Distribution cost of 60 P/kWh
 Transmission cost of 20 P/kWh &
7% losses
 Cost of generation for servicing
incremental load considered
 Imperative that economic and
fiscal policies should address the
core issue along with the reduction
in other underlying costs
Franchisee
The Energy/ Electricity distribution and collection
models should be on the basis of franchisees for a
sustainable development
Indian Energy Scenario
 Revenue Collection problems
 India- 17% of world population, 4% of primary
energy
 Present pattern- predominantly fossil based
 56% of households unelectrified
 Linkage between energy services and quality of
life
Power Generation Options
Power Generation
Centralized
(Grid Connected)
Decentralized Distributed
Generation (Isolated/ Grid
interconnected)
Cogeneration
Demand Side Management
( Export)
(Solar water heater, passive
solar, Energy Conservation etc.)
Typical Village Load Profile
Source Prof. Rangan Banerjee, IIT Mumbai
DDG- Issues
 Execution at mass level
 To contain tariff within affordable limits
 To pursue/encourage private companies and local
bodies
 Local/ Consumer participation
 Inconsistent SEBs policy
 Mapping of energy resources
 Low load factor
 Standardization of units
Combination Of Grid And Off Grid Operations
 DDG also to support grid power as a supplement

Minimum guarantee of supply hours to be given by the
States/ State utilities at normal rates
 Balance hours supply through DDG at DDG’s determined
tariff
 Average cost of supply through grid and off grid to be
reasonable and affordable
 To improve the PLF, if required, Power may also be
exported to the grid or third party by paying wheeling
charges, wherever applicable
Regulatory Issues - DDG
 As per the Electricity ACT 2003 no license requirement for
stand alone generation and distribution in notified rural
areas
 Interconnection with grid may bring State Regulatory
Commissions in picture- Matter needs to be addressed
 For stand alone system the tariff can be fixed by the
operator, regulatory commission has no jurisdiction in such
areas notified as rural
 Private operators of DDG systems must follow certain
guidelines to be notified by the Govt. of India regarding
periodicity of increasing the tariff and the basis of increase
 Safety regulations to be followed even for DDG as per the
Electricity Act 2003
DDG- Policy Interventions
 No Customs or Excise Duty to be charged
 Income tax holiday for 10 years
 No Electricity Duty or other levies
Talukas as Rural Economic Hubs









Talukas are manageable
Talukas can be self sufficient with local resources
Talukas may be converted to Rural Economic Hubs
DDG can meet the supplementary energy needs of the
Talukas
Employment generation in Talukas would reduce
migration to cities
Decentralization would work well for developmental
goals and against economic deprivation
Give equal opportunity to all Talukas
Rural industries will get a boost
It will be sustainable
REC LTD. SHOULD BE THE APEX AGENCY
FOR
RURAL
DEVELOPMENT
AND
REFINANCING BEING ALREADY SPREAD
ACROSS THE COUNTRY AND BEING
CONSIDERED FOR NAVARATNA STATUS
Way Forward…..
 Need to improve Rural Energy Delivery systems
 Encourage DDG as supplementary power option
 Framing of Decentralised Distributed Generation Policy
at National level
 Develop talukas/ blocks as rural economic hubs for
sustainability
 Utilise RGGVY infrastructure for feeding power through
DDG as supplementary power to protect the
investments made under RGGVY
 Priority to energy efficiency and DSM measures
 Investments to be made in T&D sector to cut down
AT&C losses drastically
 Concrete efforts required by all stakeholders for
sustainable development
Conclusion
Growing energy demand and shortage of
resources call for the urgency to focus attention
on energy efficiency and demand side
management besides reducing AT&C losses.
Energy generation to be more decentralised also
for meeting local needs through grid or off grid.
Investments have to be made now with a vision
for sustainability. All energy options to be
exploited to the extent feasible
Thank You