CURRENT POWER POLICY OF INDIA 2015-2022

Energy Policy of India

The energy policy of India is largely defined by the country's expanding energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.

The energy consumption in India is the fourth biggest after China, USA and Russia. The total primary energy consumption from diesel oil (0.4 %), natural gas (8.6 %), coal (60.5 %), nuclear energy (2 %), hydro electricity (15 %), RES (13.3 %) wind power, biomass electricity and solar power as on November 2015. About 70% of India's electricity generation capacity is from fossil fuels. India is largely dependent on fossil fuel imports to meet its energy demands. By 2030, India's dependence on energy imports is expected to exceed 53% of the country's total energy consumption. The growth of electricity generation in India has been hindered by domestic coal shortages and as a consequence, India's coal imports for electricity generation increased to a large extent.

Due to rapid economic expansion, India has one of the world's fastest growing energy markets and is expected to be the second-largest contributor to the increase in global energy demand by 2035, accounting for 18% of the rise in global energy consumption. Given India's growing energy demands and limited domestic fossil fuel reserves, the country has ambitious plans to expand its renewable and most worked out nuclear power program. India has the world's fifth largest wind power market and also plans to add about 103,000 MW of solar power capacity by 2022. India also planning to increase the contribution of nuclear power to overall electricity generation capacity from 4.2 % to 9 % within 25 years. The country has five nuclear reactors under construction (third highest in the world) and plans to construct 18 additional nuclear reactors (second highest in the world) by 2025. As on November 2015, the central, state and private power producers of the country have achieved around 79 % growth towards capacity addition i.e. around 69,960.12 MW against the 12^th plan (2012-17) target of 88, 537 MW in thermal, hydro & nuclear sectors. Out of 5, 97,464 number of villages, 5, 81,397 (97.3 %) villages are already electrified and rest to be completed by 2016.

Policy Framework

In general, India's strategy is the encouragement of the development of renewable sources of energy by the use of incentives by the federal and state governments. Other examples of encouragement by incentive include the use of solar energy, wind Power and nuclear energy. Decision taken in November-December 2015 Paris Climate Change Conference speaks in favor of reducing global warming to counter CO2 threat level. As a corrective measure to combat global warming, central government has taken a massive program of capacity addition through 103 GW solar power to reduce green house gas emission by 2022.   

A long-term energy policy perspective is provided by the Integrated Energy Policy Report 2006 which provides policy guidance on energy-sector growth. Increasing energy consumption associated primarily with activities in transport, mining, and manufacturing in India needs rethinking India's energy production. Coal based power projects are to be tapered out over a period of time, say, 2032. Old power stations running with poor efficiency and largely responsible for huge air pollution are to be shut down. Approval for construction of highly efficient super/ultra super-critical coal based units emitting less GNG are to be given by MOEF to control global warming to the extent possible keeping growth in economy. However, recent fall in oil prices would tilt the energy policy in favour of crude oil / natural gas.

Solar Power

Fall in tariff has proved to be a key factor for installation of more grid connected solar projects. Solar Energy Corporation of India (SECI) has taken a mammoth target of capacity addition by solar power to reduce green house gas emission by comparable fossil fuel power stations. Green house gas emitters from fossil fuel based power stations across the country have played major role for air pollution:

Coal - 1280 MMTPY (70 %); Petroleum - 435 MMTPY (24 %); Natural Gas - 119 MMTPY (6 %)

Grid connected solar power, known as green power, is a suitable substitute of air pollution creator fossil fuel based power. Apart from land requirement, solar PV projects are more attractive and do possess good positive reasons for construction in large scale. For each 10 MW project 20 Ha (50 Acres) of land is required with a maximum gestation period of 6 months. Project cost per MW is low compared to fossil fuel based power projects (as revealed from latest solar power tariff INR 4.63 against fossil fuel based power tariff INR 5.0 - 6.0). Regular operation of solar PV power units is free from water, fuel and ash.

SECI Solar target by 2022 - 103 GW (Utility - 60, Roof Top - 40, Off Grid - 3)

Existing Solar Power installation in the country - 4.5 GW (2015 end)

Fall in tariff based power by Private Developers:

First Solar (USA) - INR 6.01/kWh in October 2014

Sky Power Solar (Canada) - INR 5.05/kWh in July 2015

SunEdison Inc (USA) - INR 4.63 /kWh in November 2015

Power Generation Capacity in India

The installed capacity of utility power plants is 267,637 MW as on 31 March 2015 and the gross electricity generated by utilities is 1106 GWh (1106 billion kWh) which includes auxiliary power consumption of power generating stations. The installed capacity of captive power plants in industries (1 MW and above) is 47,082 MW as on 31 March 2015 and generated 166.426 billion kWh in the financial year 2014-15. In addition, there are nearly 75,000 MW aggregate capacity diesel generator sets with units sizes between 100 KVA and 1000 KVA. All India per capita consumption of Electricity is nearly 1010 kWh during the financial year 2014-15.

Total installed Power generation Capacity (end of March 2015)

Source	Utilities Capacity (MW)	%	Captive Power Capacity (MW)		%
Coal	164,635.88	61.51	27,588.00		58.60
Hydroelectricity	41,267.43	15.42	83.00		0.17
Renewable energy source	31,692.14	11.84	Included in Oil		-
Natural Gas	23,062.15	8.61	5,215.00		11.08
Nuclear	5,780.00	2.16	-		-
Oil	1,199.75	0.44	14,196.00		30.17
Total	267,637.35		47,082.00
Sector	Utility Power Capacity (MW)	Percentage
State Sector	96,963.20	36.23
Central Sector	72,521.16	27.10
Private Sector	98152.99	36.67
Total	267,637.35

Energy Conservation

Energy conservation has emerged as a major policy objective, and the Energy Conservation Act 2001, was passed by the Indian Parliament in September 2001, 35.5 % of the population still live without access to electricity. This Act requires large energy consumers to adhere to energy consumption norms; new buildings to follow the Energy Conservation Building Code; and appliances to meet energy performance standards and to display energy consumption labels. The Act also created the Bureau of Energy Efficiency to implement the provisions of the Act. In the year 2015, Prime Minister of India launched a scheme called Prakash Path urging people to use LED lamps in place of other lamps to drastically cut down lighting power requirement.

Mission

It is high time to shift our total focus on the massive capacity addition program of GoI for implementation of 103 GW grid connected Solar PV Projects which might have estimated contract value around USD 80 Billion over a period of next 7 years (2016 - 2022) across the country to produce more and more green power for control of global pollution assuring perfect balance in share of green power (now 30%) and thermal power (now 70%) by 2022.