IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption...

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New Energy Security Challenges Early Career Researchers Workshop RGS-IBG (Energy Geographies Working Group), London, 10-11 May, 2012 IMPLEMENTATION OF SOLAR POWER POLICY FOR ADDRESSING ENERGY POLICY FOR ADDRESSING ENERGY SECURITY AND RURAL ELECTRIFICATION Komalirani Yenneti, PhD (2 nd year) University of Birmingham

Transcript of IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption...

Page 1: IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption Coal meets more than half of India’s energy demand and oil makes up 30% of its

New Energy Security Challenges Early Career Researchers WorkshopRGS-IBG (Energy Geographies Working Group), London, 10-11 May, 2012

IMPLEMENTATION OF SOLAR POWER POLICY FOR ADDRESSING ENERGYPOLICY FOR ADDRESSING ENERGY

SECURITY AND RURAL ELECTRIFICATION

Komalirani Yenneti, PhD (2nd year)University of Birmingham

Page 2: IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption Coal meets more than half of India’s energy demand and oil makes up 30% of its

Presentation Outline

Growing economy Vs Growing consumption of Energy

The Challenge – Sustainable Energy

Existing energy scenario - India

Rural electrification status

Renewable energy overview Renewable energy overview

Solar energy potential – India and Gujarat

Implementation of solar power policy

Challenges and Issues

Komalirani Yenneti PhD (2nd year) University of Birmingham

Page 3: IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption Coal meets more than half of India’s energy demand and oil makes up 30% of its

Growing economy and growing consumption

Coal meets more than half of India’s energy demand and oil makes up 30% of its energy portfolio

Needs to triple its power generation by 2025 to feed fast-growing technology andNeeds to triple its power generation by 2025 to feed fast growing technology and manufacturing industries

Large supply-demand mismatches (period from Apr-07 to Feb-08 witnessed a deficit of 16998 MW, or 15.8% of the demand with141,500 MW installed as on 2008), , )

Year Mtoe Electricity (billion

Installed Capacity

kWhr) (MW)2011-12 677 1,097 219,9922016 17 861 1 524 305 6232016-17 861 1,524 305,6232021-22 1,082 2,118 424,7442026-27 1,417 2,866 574,748, , ,2031-32 1,818 3,880 778,095 For 8% GDP growth

Domestic energy resources must be a major contributor to Indian energy supply.

Komalirani Yenneti PhD (2nd year) University of Birmingham

Source: Energy Policy Report, Planning Commission, India

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The Challenge: Sustainable Energy for all ( >1 billion)

Total primary energy supply : 565.93 Mtoe(4.8% of the world)

Electricity generation : 557 97 TWh (3 2% ofElectricity generation : 557. 97 TWh (3.2% of the world)

India consumes 3.7% of the world’s commercial energy – 5th largest consumer

Komalirani Yenneti PhD (2nd year) University of Birmingham

Around 30% - biomass Source: IEA Energy Statistics 2008 & own sources

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Existing Power Generation and Potential

RES

Installed capacity in India (as of Feb 2012) - 190,592MW approx(22,233 MW)Grid

Interactive REPotential (MW)

Achievement(MW)

Nuclear3%

12%

(4,780MW)

Interactive RE source

(MW) (MW)

Wind 45,195 10,243

S ll H d 15 000 2 430

Coal

Hydro20%

(38,848MW)

Small Hydropower

15,000 2,430

Bio power 16,881 70355%

Oil1%

Co-generationbagasse

5,000 1,049

Waste to energy 2 700 59 Gas9% (124,730MW)

Waste to energy 2,700 59

Solar power 50 per sq.km

2.12

For a large country like India, with huge future energy requirements, depending largelyupon import of energy resources and technologies is neither economically sustainable norstrategically sound for energy security….

Komalirani Yenneti PhD (2nd year) University of Birmingham

Source: Ministry of Power and MNRE

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Rural electrification status – RE status and targets

Remote village electrification programme4 250 villages and 1 160 hamlets had4,250 villages and 1,160 hamlets had

been electrified using renewables435,000 solar PV home lighting

systemssystems700,000 solar lanterns, 7,000 solar-

power water pumps637,000 solar cookers160MW of small-scale and bio-mass

gasification systems for off-grid generation

Energy for Rural areasAgro waste, fuel wood, dung cake

forms 30% - used for cooking byforms 30% used for cooking by over 84% of rural populationKerosene for lighting - 45%Biogas (cattle population) – 25%

Komalirani Yenneti PhD (2nd year) University of Birmingham

(Source: Progress Report Published by CEA: http://powermin.gov.in)

g ( p p )

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Renewable Energy in India: An overview

As of June 2007, in India, Generation capacities based on renewable resources are around 10.7 GW showing a y-o-y growth rate of 30%

hi % f h l i ll d i b l l b l This represents ~7% of the total installed capacity, below global average Including large hydro capacity, renewable capacity is ~46 GW

K D i

Cogen/bagassBio Power

5%

Renewable Energy Capacities in India, June 2007Key Drivers

Rising demand : 6-7%/year Energy security: net import (134.83

M )

small hydro

e6%

Mtoe ) Access to energy: 45% household out of

services Climate changesmall hydro

19% Climate change Ample number of sites for wind, hydro

and solar plants Government incentives and Increasing

wind70%

gsources of finance

Komalirani Yenneti PhD (2nd year) University of Birmingham

(Source: CEA, MNRE; IEA Energy Statistics 2008)

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Solar Energy Potential – India’s National Solar Mission (of NAPCC)

India’s energy shortage – 10% Peak deficit – 17% Increase solar capacity – 20GW by 2020, 100 GW by 2030, 200 GW by 2050 I d i PV d i 4 5 GW b 2017

SO

Capacity will be ramped

Create favourable conditionsfor solar manufacturingcapability particularly for solar

Increase domestic PV production – 4 to 5 GW per year by 2017

LAR

G

Will focus on solar thermaland on promoting off-gridsystems to serve population

Capacity will be rampedup to create conditionsfor scaled up andcompetitive solar energyin the country

capability, particularly for solarthermal for indigenousproduction and marketleadership

1,000-2,000200

1,000-2,000200

7 Million

GROWT

without access to commercialenergy and modest capacityaddition in grid-based systems

in the country

1,000-2,000200

7 Million

7 MillionTH

Utility grid power, including roof topOff grid solar applications (MW)

2010-13 2013-17 2017-22(source: Figures taken from National Solar Mission)

Komalirani Yenneti PhD (2nd year) University of Birmingham

g pp ( )Solar collectors (sq.meters)

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Solar Power Policy – Case Study

Radhanpur

BhabaraTharada

Rapar

Radhanpur

Patadi

Plot showing average data for 7 years (kWh/m2/day)

Existing solar farm6

8

10

g g y ( y)

Proposed solar farm

0

2

4

Komalirani Yenneti PhD (2nd year) University of Birmingham

0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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Existing Power and Solar Energy Potential - Gujarat

Hydro7%Nuclear

5%

Renewable

6%Existing scenario

Total installed capacity (2011) – 14,000 MWE d fi it ( 2009) 9 8%Energy deficits (as on 2009) – 9.8%Project demand (2012)- 18, 428 MW (installed

capacity)

Thermal

Solar Power Policy 2009:

34 national & international developers 82%

Installed Capacity

commissioned/process of commissioning – 365 MW solar PV and 351 MW solar Thermal Generate 1,25 million units of green energy

annuallyannuallyProvide employment to over 5,000 peopleIncentives apply to projects up to 500 Mwe –

provision for 10% RE purchase obligation

Tariff for PV Tariff for Solar Thermal

Rs 15 per kWh Rs 11 per kWh provision for 10% RE purchase obligationAvoid use of 0.9 million tonnes of coal and 1.25

million tonnes of CO2 emissions per annum

for first 12 yrs Rs 5 per kWh

from 13th yr to 25th yr

for first 12 yrs Rs 4 per kWh

from 13th yr to 25th yr

Komalirani Yenneti PhD (2nd year) University of Birmingham

25 yr 25 yr(source: From the Solar Power Policy, Gujarat)

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Gujarat State Solar Power Policy Vs India National Policy

Item Description (state power policy) For SPV power projects (under MNRE scheme)

Effective period of Up to 31 March 2014 Up to 31 March 2012poperation

p p

Capacity of installed system

A maximum of 500-MW solar power generation to be allowed

Maximum capacity of 50MW earmarked

Capacity limit per project

A maximum project capacity to be 5MW each

1MW, but projects in a modular fashion also allowed

Eligible units Any company or body corporate or All existing registered companies, association (whether incorporated or not) can set up an SPG facility

central and state power generation companies and public/private sector project developers

Type of use allowed For self use or for sale of power toType of use allowed For self use or for sale of power to grid/sale to third party. Captive use is not allowed.

---

For self use or for sale of power to 9000 MWepgrid/sale to third party. Captive use is not allowed.

9000 MWe

Energy 23%

Komalirani Yenneti PhD (2nd year) University of Birmingham

Conservation

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Historical Challenges facing RE in India

Optimal pricing of power generated from the renewable energy sources

Quality and consistency issue of renewable power arising from the intermittent Q y y p g

nature of electricity from wind and small hydropower,

The costs of technology development and production need to be reduced

significantly from current levels

Availability of financing especially project finance for Renewables

Creditworthiness of counterparties has posed challenges

Slow pace of rural electrification and pace of reforms in the rural electricity sector

Utilization has remained marginal in spite of government’s efforts

Komalirani Yenneti PhD (2nd year) University of Birmingham

Page 13: IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption Coal meets more than half of India’s energy demand and oil makes up 30% of its

New Challenge and Issues

Lack of provision of Information to the local people

Negative perception of the project in terms of implementation

Issue of equitable benefits and Uneven distribution of the benefits

Question of livelihoods – Pastoral nomads ???Q

Allied activities and economic development

Sudden change in the economics of land Sudden change in the economics of land

Impact on the livelihoods of the people

Loss of trust on the government Loss of trust on the government

Komalirani Yenneti PhD (2nd year) University of Birmingham

Page 14: IMPLEMENTATION OF SOLAR POWER ... - University of Exeter · Growing economy and growing consumption Coal meets more than half of India’s energy demand and oil makes up 30% of its