INDIA Presentation Power Up! -A just energy transition for the South.

INDIA Presentation

Power Up!-A just energy transition for

the South

Outline• Quick facts• India’s unique position• BUT – window is closing fast• Policy Gaps• Role of civil society• Experiences on decentralised

options- partner presentations

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Country background•Second largest population•29 states - 23 official languages•10th largest economy -2011•But.. Growing inequity

Source: WEO ,2011

energy Scenario

- Coal dominates, - Bio-mass -non commercial, mainly for

cooking Source : Prayas

QUICK FACTS- INSTALLED CAPACITY

Fuel MW %age

Total Thermal

153847.99 68.14

                            Coal

1,32,288.39 58.59

                             Gas

20,359.85 9.02

                             Oil

1,199.75 0.53

Hydro (Renewable)

39,623.40 17.55

Nuclear 4,780.00 2.12

RES** (MNRE)

27,541.71 12.2

Total 2,25,793.10 100

SHP= Small Hydro Project ,BG= Biomass Gasifier ,BP= Biomass Power,U & I=Urban & Industrial Waste Power, RES=Renewable Energy Sources ( May 2013)

www.powermin.nic.in

QUICK FACTS CONTD….• 35.5% of the population -

without access to electricity.

• 800 million Indians use traditional fuels fuelwood, agricultural waste and biomass cakes

• Kerosene also being used as the main source of lighting in rural areas, as a cooking fuel.

•World Health Organisation, claim 300,000 to 400,000 people in India die of indoor air pollution ( IAP) and carbon monoxide poisoning every year because of biomass burning and use of chullahs• 30% Less than use clean energy for cooking

(Source: Green stoves to replace Chullahs, 2009)

•Power outages range from 2-20 hours on a daily basis, and 14-16 hours in rural areas•Highest in the world in terms of T& D• Big gap between urban and rural electricity and energy infrastructure - centralized grid supply being the main source of electricity supply•Theft and illegal tapping•Subsidies- misused; poorly targeted

•Electricity supply is on average 10 percent short of demand (Central Electricity Authority, 2011)

Illegally Tapping into the Power Line

QUICK FACTS CONTD.. ELECTRICITY SCENARIO

• Rural Electrification Definition is itself a problem!

• Govt data says that 32464 out of 593015 villages are unelectrified ( 5.47%)

• Only 8 out of a total of 29 states of India can boast of 100% village electrification, with only 11 states having less than 10% un-electrified villages and with 4 of the large states having more than 40% un-electrified villages

• Over 54% of the households in India yet to be electrified and 95% of them are in rural areas

• Only 3 states of India have less than 25% of households with no electricity access, while the remaining 26 states have un-electrified households ranging from 25 to as high as 90 percent

(http://www.cea.nic.in/reports/monthly/dpd_div_rep/village_electrification.pdf

.

• India’s per-capita electricity consumption is less than one-fifth of the world average of 2,596 kWh.

• Approx. 1 USA (40 Cr) without access to electricity

• Approx. 1 Africa (100 Cr) living on less than 100 kWh /household/month

LIMITED ACCESS TO ENERGY

Players in India’s electricity sectorCentral and State regulate electricity sector

Contribution of pvt parties sharply increasing (73% (514,000 MW) of in-pipeline capacity in private sector

In 2010, the five largest power companies in India, by installed capacity, were the state-owned NTPC, state-owned NHPC, followed by three privately owned companies: Tata Power, Reliance Power and Adani Power

Annual electricity generation capacity about 66 GW in 1991 to over 100 GW in 2001, to over 199 GW in 2012 ( 3.5 times over 20 years) .Another 100 GW by 2017.

• Clearances accorded for 1,92,913 MW of coal and gas plants

• 508907 MW at various stages of clearance cycle

• Total of 701820 MW- awaiting to be built

• Coming up in critically polluted areas/ fertile lands

• For whom is this power generated?• Can we assume that this will improve

access and availability to energy for livelihood for the marginalized majority of India?

MASSIVE EXPANSION OF THERMAL CAPACITY ON THE CARDS!

Comparative Map of India with Thermal Power Plants and level of household electrification

SOME MIND NUMBING FIGURES!!

Source: ToI, May 2012

Can we sustain a continuation of past trends of energy use ?

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Energy security:Where will all the coal and oil come from?

Infrastructure:How will all this energy be transported/handled?

Environment:What will be the implications on local and global environment?

Land & water issues?Source: TERI

India’s energy ChallengeIn next 12 years India’s electricity requirement to grow 2.5 times/ commercial demand by 72% over 10 years

Electricity shortage estimated at 25-35 GW

400 Million people still without access to electricity

India is dependent on oil imports / coal imports -30%

Growing pressure to Address emissions/ 25% reduction in energy intensity

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•Half the households do not have pucca houses, toilets, basic health care•One-fourth villages have no proper road access, one-fifth no primary schoolSource: Census, NSSO, PM Sadak Yojana, Prayas estimates

Energy and infrastructure deficit and inequity

Renewable Energy Scenario

What do the RE Nos Say?

http://data.gov.in/dataset/estimated-renewable-energy-potential

• JNN solar mission -20 GW By 2020- achieved 398 MW by July 2013•National wind energy mission- 12th plan•Wind to be the largest contributor to India’s target of 15% renewable by 2020

• National Electricity Policy, 2005• National Tariff Policy, 2006 (RPOs were

recommended by State Regulators)• National Action Plan on Climate Change,

15% RE by 2020• JLN SM• Some new and welcome regulations such

as Generation Based Incentives for wind, Trading of RE certificates, Clean Energy fund, Production Tax credits etc

Policies Specific to Renewable Energy

INTERNATIONAL COMPARISON OF POLICIES FOR RE

• India has almost all the policies that are required for massive renewable energy promotion (in theory)

Countries

Renewable Purchase Obligation

RE Certificate Trading

Feed in Tariff

Investment Tax credit

Production Tax Credit

Subsidies

Tax Holidays

Legislative Support (RE Law)

Finacial Assistance

India √ √ √ √ √ √ √ √

USA √ √ √ √ √ √ √ √ √

Germany

√ √ √ √ √

China √ √ √ √ √ √

Ranking: India is fourth amongst the four countries in generation in absolute numbers or quantum but has all the required policies but unfortunately numbers don’t tell the story!

What is Lacking?????

• Our policies are not consistent and contradict each other

• The Ministry of New and Renewable Energy has not realised the full Renewable Energy Potentials for India

• Delusion of Coal being eternal

• National Action Plan on Climate Change targets 15% Renewable Energy by 2020, while the Integrated Energy Policy looks at a maximum of 6.5% of Renewable Energy by 2031

• The Industry estimates of RE potentials are far higher

• 60% of our coal fired power plants are running below capacity due to lack of availability of coal

OTHER INCONSISTENCIES OR CONTRADICTIONS OF POLICIES

IEP: Demand Forecasting on the basis of GDP and the estimated demand for electricity in 2030-31 – 800,000 MW

• Efficiency saving potential estimated by the IEP is in the region of 15%

• Very little emphasis on Decentralised Renewables

• NAPCC makes mention of a sustainable Electricity Conspn.

• Prayas study estimates a electricity saving potential of 30% in the domestic sector alone

• Renewable Electricity investment to the tune of of ₹ 20,000 Cr has been made in 2011-2012. ( LARGE PROJECTS)

• The Solar Mission mentions very high roof top

• Rural electrification-

• 22/29 states fail to meet renewable Purchase Obligations ( RPO)*

• Other implementation issues relate to coordination between the Centre-State-Municipal bodies

• Poor policy enforcement- no penal measure; lack of accountability

• Technical and financial support for the policy implementation poor giving Utilities the room to wriggle out of fulfilling their obligation *Powering Ahead on Renewables: Leaders and Laggards” ( 2012)

IMPLEMENTATION ISSUES

• Demand to put an immediate moratorium on any further environmental clearances to thermal power plants. -Awaiting EC, Granted TOR or Awaiting TOR

•GO –NO GO Zones for coal mining

• Serve as a watchdog for projects already cleared •Initiate a transparent deliberative process to revamp EIA.

•Equity should be the point of departure

• Advocacy Energy Efficiencies in Transport

ROLE OF CIVIL SOCIETY

• Vigorous and effective implementation of policies that are already in place should be taken up along with significant deployment of new technologies and increased innovation.

• Create models of decentralized energy production systems at the grassroots –off grid

• Come up with Creative ways of taxing the elite- “overconsumption line”

• Thrust of ‘getting local’ -relook at the production distribution system

ROLE OF THE CIVIL SOCIETY

Girls from the Jalka village, Maharashtra enjoy the shade under the solar panels that power the fans in

their school

YOU

!