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RENEWABLE RESOURCE

MANAGEMENT IN INDIA
Submitted to:
Ms. Eritriya Roy
(Faculty, Economics)
On: 10 OCTOBER 2014
Submitted by:
SHIKHA ROHRA
Roll No. 150
Section C

Semester I,B.A L.L.B. (Hons.)

Hidayatullah National Law


University
Raipur (C.G.)

Certificate of Declaration
I hereby declare that the project work entitled Renewable resource management
in india submitted to HNLU, Raipur, is record of an original work done by me
under the able guidance of Ms. Eritriya Roy, Faculty Member in Economics,
HNLU, Raipur.

Shikha Rohra
Section C
Roll No.-150

ACKNOWLEDGEMENT
I feel highly jubilant to work on the topic Renewable Resource Management In India.
I express my deepest regard and gratitude for our Faculty of Economics. Her consistent
supervision, constant inspiration and invaluable guidance have been of immense help in
understanding and working on this project.
My thanks and appreciations also go to my colleagues in developing the project and people who
have willingly helped me out with their abilities.
Once again I would like to express my heartfelt gratitude and gratefulness to my teacher Ms.
Eritriya Roy, for putting her trust in me and giving me a project topic such as this and for having
the faith in me to present my report in the best possible way. I would also like to thank her for the
guidance she provided during the tenure of my working in this project. Maam, thank you for
providing me with an opportunity that helped me to grow.
I would also like to thank the University for providing the extensive research databases in the
form of such a well- stocked library and internet access.

Shikha Rohra

TABLE OF CONTENTS
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2.
3.
4.
5.
6.

Certificate of declaration
Acknowledgements
Introduction
Objectives
Research Methodology
Objectives based chapters
Renewable Resources In India
Energy in India : An Overview.
Role of renewable resources.
Government policies.
Present scenario in the country.
7. Conclusion.
8. References.

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INTRODUCTION
RENEWABLE RESOURCES: A CONTEXUAL OUTLOOK

India is the fourth largest energy consumer in the world after the United States, China, and
Russia . In recent years, Indias energy consumption has been increasing at a relatively fast rate
due to population growth and economic development. Rapid urbanization and improving
standards of living for millions of Indian households, the demand is likely to grow significantly.
In order to sustain the production, industries have opted for inefficient diesel-fuelled back-up
power. Indias energy planning, which is based on the twin objectives of high economic growth
and providing electricity to all, is failing to meet either.
India has great potential to accelerate the use of its endowed renewable resources to power its
growing economy with a secure and affordable energy supply. The Government of India
recognizes that development of local, renewable resources is critical to ensure that it is able to
meet both its economic and environmental objectives, and it has promoted this development
through policy action.
The Indian economy has experienced tremendous growth over the past several years. Energy, in
all its forms, underpins both past and future growth. For the Indian economy to continue this
trajectory, India needs to address its energy challenges, which cross all sectors and impact all
citizens. Electricityboth in terms of quality and accessis a key challenge. The quality of the
current electricity supply is impeding Indias economic growth. Issues such as voltage
fluctuation, frequency variation, spikes, black-outs, brown-outs, and other disruptions impact
industrial, commercial, and residential consumers. Much of Indias population is not
experiencing the benefits of economic growth. The Government of India sees the provision of
electricity to all as critical to inclusive growth. It recognizes off-grid renewable energy as a
practical, cost-effective alternative to an expansion of grid systems in remote areas of the
country.

To be able to provide adequate electricity to its population, India needs to more than double its
current installed capacity to over 300 GW by 2017. Also, Indias demand for oil in 2015 is
expected to be 41% higher than in 2007 and almost 150% higher in 2030needed primarily to
feed a growing transportation sector. The Indian government is aware of the size and importance

of the challenges and that success will depend on structural changes in the industry and on new
technologies and business models.

Renewable energy represents an area of tremendous opportunity for India, and this report
discusses the ways in which India has already supported the growth of renewable energy
technologies, the impact this has had on utilization of various technologies, and the enormous
remaining potential.1
The domestic power demand of India was 918 billion units in 2012. It is expected that at 9.8%
annual growth the demand will reach 1640 billion units by 2020.At this pace, India will require
390 GW in the next eight years which is almost double its current installed capacity of 210

1 http://ren21.net/Portals/0/documents/Resources/Indian_RE_Status_Report.pdf

gigawatts (GW). There is growing energy inequity between rural and urban areas and also
between the developed and developing states.

OBJECTIVES

To study about renewable resources in the country.


To understand the role of renewable resources.
To find out the present scenario in India.
To know the government policies related to renewable energy.

RESEARCH METHODOLOGY

The project is based on research from secondary sources, mainly books and web
pages. I owe my sincere gratitude to the respected faculty of Economics and the
well-stocked library of the University.
The content of this project is not copied from any source other than the citations
provided and is purely genuine and authentic and is a result of extensive research.

RENEWABLE RESOUCES IN INDIA

India has a vast supply of renewable energy resources, and it has one of the largest programs in
the world for deploying renewable energy products and systems. Indeed, it is the only country in

the world to have an exclusive ministry for renewable energy development, the Ministry of NonConventional Energy Sources (MNES). Since its formation, the Ministry has launched one of the
worlds largest and most ambitious programs on renewable energy. Based on various promotional
efforts put in place by MNES, significant progress is being made in power generation from
renewable energy sources. In October, MNES was renamed the Ministry of New and Renewable
Energy.

I.
II.

What are the energy trends in India?

To better understand the current situation in India and the future of the renewable energies
market, it is important to look at the trends in energy consumption, growth of the current grid,
and the availability of transportation and equipment used there. Since thermal generation is
based on burning coal or oil, increases in CO2 emissions, which damage the environment and
affect global warming, accompany this growth. As the graph below shows, it also increases the
dependence on imports, which will continue into the future unless the policy changes.

a) Energy consumption and production up to 2005


Since the 1980s, and still currently, India has encountered a negative balance in overall energy
consumption and production. This has resulted in the need to purchase energy from outside the
country to supply and fulfil the needs of the entire country. As we will demonstrate later, the
Government is more sensitive to renewable energy potential and has started to put reforms and
projects, incentives and legislation in place to convince investors and companies to make the
shift. These will be discussed in a later section.
India relies heavily on coal energy to produce electricity. A strong second is hydro power,
followed by natural gas. The consumption of all renewable energies represents fully one third of

the total consumption. This is a significant figure, and we will see later that this sector has a
great future. Afghanistan to the Bay of Bengal and on a second axis from Bombay on the central
west coast to the north-east of India, through Bhutan.
b) The breakdown of energy sources for power production of India in 2005
India is a large consumer of coal, which makes up more than 57% of its total consumption.
However, more than 1/3 of energy consumed comes from renewable resources, predominantly
from large hydropower.
India relies heavily on coal energy to produce electricity. A strong second is hydro power,
followed by natural gas. The consumption of all renewable energies represents fully one third of
the total consumption. This is a significant figure, and we will see later that this sector has a great
future.

c) Distribution of the different kinds of plants and lines of transportation


As mentioned, India relies principally on coal for 57% of total energy consumption. As we can
see on the map, coal production is extensive and is located in central and north-eastern parts of
the country. Hydro power plants are distributed along the west coast from the southern tip to
about the way up the coast, in the extreme north, and some in the east from rivers flowing
from the Himalayas.
Except for the fact that the gas and products line dont extend, the country has the largest railway
network in Asia and the second largest in the world under a single management. Roads are taking
developmental changes to the most remote corners of the country.

d) India Energy grid 7

Nearly 85% of the villages have been electrified, and there is a nationwide grid for the
transmission and distribution of power.
The electric network is extensive throughout India with 440 kW or 750 kW power lines. The
main power grid is still concentrated in the north on a north-west/south-east axis, from
Afghanistan to the Bay of Bengal and on a second axis from Bombay on the central west
coast to the north-east of India, through Bhutan.

III.

Sources of renewable energy available in India: What renewable energies are


in the Indian market?
We know where the non renewable energies coal, oil and gas are located and how these
fuels are transported, combusted, and the power transmitted throughout the country over the
power grid. Now, lets look at the renewable energies hydro, solar, wind and biomass and
see where they are found.
a) Hydro power : The hydroelectric power refers to the energy produced from water
(rainfall flowing into rivers, etc). Consequently, rainfall can be a good indicator to investor
looking for a location to implement or build a new hydroelectric power plant in India.
The dominant annual rainfall is located on the north/eastern part of India: Arunachal Pradesh,
Assam, Nagaland, Manipur and Mizoram, and also on the west coast between Mumbai
(Bombay) and Mahe. India utilizes twelve primary hydroelectric power plants: Bihar (3),
Punjab, Uttaranchal, Karnataka, Uttar Pradesh, Sikkim, Jammu & Kashmir, Gujarat, and
Andhra Pradesh (2). If we consider the annual rainfall of Bangalore (central south), we see
that most of the rainfall occurs from May to November. Consequently, we can predict that
hydro energy could be harnessed during the rainy season. Good water management and
storage allows for continuous electrical generation throughout the year.

b) Solar Energy : Because of its location between the Tropic of Cancer and the Equator,
India has an average annual temperature that ranges from 25C 27.5 C. This means that

India has huge solar potential. The sunniest parts are situated in the south/east coast, from
Calcutta to Madras. Solar energy has several applications: photovoltaic (PV) cells are placed
on the roof top of houses or commercial buildings, and collectors such as mirrors or parabolic
dishes that can move and track the sun throughout the day are also used. This mechanism is
being used for concentrated lighting in buildings. Photovoltaic (PV) cells have a low
efficiency factor, yet power generation systems using photovoltaic materials have the
advantage of having no moving parts. PV cells find applications in individual home rooftop
systems, community street lights, community water pumping, and areas where the terrain
makes it difficult to access the power grid. The efficiency of solar photovoltaic cells with
single crystal silicon is about 13 % - 17%. High efficiency cells with concentrators are being
manufactured which can operate with low sunlight intensities.
India has an expanding solar energy sector: 9 solar cell manufactures, 22 PV module
manufactures, and 50 PV systems manufacturers. Therefore, technology resources exist in
country and a growing market would lead to job growth in country.
c) Wind Energy
India is surpassed only by Germany as one of the world's fastest growing markets for wind
energy. By the mid 1990s, the subcontinent was installing more wind generating capacity
than North America, Denmark, Britain, and the Netherlands. The ten machines near Okha in
the province of Gujarat were some of the first wind turbines installed in India. These 15meter Vestas wind turbines overlook the Arabian Sea. Now, in 2006, there is an installed
capacity of 4,430 MW; however, ten times that potential, or 46,092 MW, exists.
Advantages of Wind Power:

It is one of the most environment friendly, clean and safe energy resources.
It has the lowest gestation period as compared to conventional energy.
Equipment erection and commissioning involve only a few months.
There is no fuel consumption, hence low operating costs.
Maintenance costs are low.
The capital cost is comparable with conventional power plants. For a wind farm, the
capital cost ranges between 4.5 crores to 5.5 crores, depending on the site and the
wind electric generator (WEG) selected for installation.

d) Biomass energy
Biomass includes solid biomass (organic, non-fossil material of biological origins), biogas
(principally methane and carbon dioxide produced by anaerobic digestion of biomass and
combusted to produce heat and/or power), liquid biofuels (bio-based liquid fuel from
biomass transformation, mainly used in transportation applications), and municipal
waste(wastes produced by the residential, commercial and public services sectors and
incinerated in specific installations to produce heat and/or power).
The most successful forms of biomass are sugar cane bagasse in agriculture, pulp and paper
residues in forestry and manure in livestock residues. It is argued that biomass can directly
substitute fossil fuels, as more effective in decreasing atmospheric CO2 than carbon
sequestration in trees. The Kyoto Protocol encourages further use of biomass energy.
Biomass may be used in a number of ways to produce energy. The most common
methods are:
Combustion
Gasification
Fermentation
Anaerobic digestion

IV.

Forecasts: What are the general forecasts for the next decades?

Around the world, a growing number of nations have recognized the economic, social, and
environmental benefits of renewable energy and are enacting tax incentives and other policy
measures favorable to renewable technologies. In Germany, Japan, Spain, and a handful of
other countries, clear government commitments to renewable energy and strong, effective
policies have overcome barriers and created demand for these technologies, leading to
dramatic growth in renewable industries and driving down costs.

The position of India in the world potential renewable energy

The electricity consumption and generation forecasts of India as part of the emerging
economies.

Growth in net electricity consumption is expected to be most rapid among the emerging
economies of the world, including India. According to the EIA, the annual average increase will
be about 4.0 percent from 2002 to 2025. Emerging economies are projected to more than double
their net electricity consumption, from 4,645 billion kilowatt hours in 2002 to 11,554 billion in
2025. The projected growth in net electricity consumption for emerging market economies is
driven in large party by gross domestic product (GDP) and population growth assumption.
Because of the links between reliable electricity supply, GDP growth, and living standards, many
of the nations with emerging economies are attempting to increase access to reliable electricity
supply.

Projected energy consumption of India for 2030

Currently, 45 percent of households in India do not have access to electricity. New legislation has
set a target of electrifying all households by 2010. As in the past, the ongoing challenge in
providing electricity is the ability of the poor to pay. India announced plans in March, 2005, to
continue subsidizing electricity consumption for rural and poor households that use less than 30
kilowatt hours per month.
The sum of these renewable resource potentials, 152,000 MW, is greater than the current total
installed energy generating capacity of India. 2

ENERGY IN INDIA : AN OVERVIEW

India consumes 3.7% of the worlds commercial energy making it the 5th largest

consumer of energy globally.


Total installed capacity of 1,44,912 MW.

2
http://www.geni.org/globalenergy/library/energytrends/currentusage/renewable/Ren
ewable-Energy-Potential-for-India.pdf

350 kgoe per capita primary commercial energy consumption. 22% of world average.
Per capita electricity consumption: 600 kWhr per year.
About 80% of total rural energy consumption comes from non-commercial energy.
84% villages electrified. 44% of rural households electrified.3

ROLE OF RENEWABLE ENERGY

Renewable energy is well positioned to play a critical role in addressing this growing energy
demand for the following reasons:

India has the natural resources : India has abundant, untapped renewable energy

resources, including a large land mass that receives among the highest solar
irradiation in the world, a long coastline and high wind velocities that provide
ample opportunities for both land-based and offshore wind farms, significant
annual production of biomass, and numerous rivers and waterways that have
potential for hydropower.

3 http://www.slideshare.net/push_shan/renewable-energy-in-india-status-and-futureprospects

Renewable energy provides a buffer against energy security concerns. Indias


use of its indigenous renewable resources will reduce its dependence on imported,
expensive fossil fuels.

Renewable energy offers a hedge against fossil fuel price hikes and volatility.
Increased competition for limited fossil resources is projected to push prices up,
while increased deployment of renewable technologies pushes prices down in line
with technology improvements and economies of scale. For example, oil prices in viii
2030 are projected to be 46% higher than in 2010 while the investment costs for
photovoltaic (PV) systems are expected to decrease to less than half of their 2007
levels over the same time period.
Off-grid renewable power can meet demand in un-served rural areas.

As a distributed and scalable resource, renewable energy technologies are well suited to meet the
need for power in remote areas that lack grid and road infrastructure.

Renewable energy can be supplied to both urban and rural poor.


Renewable energy technologies offer the possibility of providing electricity services to the
energy poor while addressing Indias greenhouse gas (GHG) concerns and goals.

Renewable energy can support attainment of India climate change goals.


Through its National Action Plan on Climate Change (NAPCC) and through its recently
announced carbon intensity goal, India has made a commitment to addressing its carbon
emissions.

India aims to be a global leader in renewable energy.


Indias intention to play a leadership role in the emergent global green economy is driving
investment in renewable energy technologies. Recognizing the magnitude of the potential
demand for renewable energy, India is attracting significant investment in renewable energy.

GOVERNMENT POLICIES

The Government of India has enacted several policies to support the expansion of renewable
energy. Those that apply to more than one renewable technology include the following :

ELECTRICITY ACT 2003: Mandates that each State Electricity Regulatory Commission
(SERC) establish minimum renewable power purchases; allows for the Central Electricity
Regulatory Commission (CERC) to set a preferential tariff for electricity generated from
renewable energy technologies; provides open access of the transmission and distribution system
to licensed renewable power generators.

NATIONAL ELECTRICITY POLICY 2005: Allows SERCs to establish preferential tariffs


for electricity generated from renewable sources.

NATIONAL TARIFF POLICY 2006 : Mandates that each SERC specify a renewable
purchase obligation (RPO) with distribution companies in a time-bound manner with purchases
to be made through a competitive bidding process.

RAJIV GANDHI GRAMEEN VIDYUTIKARAN YOJANA (RGGVY) 2005: Supports


extension of electricity to all rural and below poverty line households through a 90% subsidy of
capital equipment costs for renewable and non-renewable energy systems.

ELEVENTH PLAN 2007-2012 : Establishes a target that 10% of power generating capacity
shall be from renewable sources by 2012 (a goal that has already been reached); supports phasing
out of investment-related subsidies in favor of performance-measured incentives.

PRESENT POWER SCENERIO IN THE COUNTRY

India has transitioned from being the worlds seventh-largest energy consumer in 2000 to fourthlargest one within a decade. The country has the fifth-largest power generation portfolio
worldwide. Indias energy basket has a mix of all the resources available including renewables.
The dominance of coal in the energy mix is likely to continue in near future. At present India's
coal dependence is borne out from the fact that ~58 % of the total installed electricity generation
capacity is coal based. Out of total thermal installed capacity 86% capacity is coal based. Other
renewables such as wind, geothermal, solar, and hydroelectricity represent a 2 percent share of
the Indian fuel mix. Nuclear holds a 2% percent share.
Social and environmental issues
The environmental and social concerns associated with renewable energy projects have generally
not been very widely discussed in India. There could be two reasons for the same; the first being
the fact that typically renewable energy projects are outside the purview of Environmental
Impact Assessment considering the fact that such projects have negligible negative impact on
surrounding environment. The other being that cases where there have been problems on this
front are not many in number and are therefore not widely reported. The recently commissioned
report by MNRE on developmental impact and governance issues of renewable energy projects
has put forth similar views on this subject.
Notwithstanding this fact, it is seen that some renewable energy projects for example wind
and small hydro power projects have had significant effects on local ecosystems. The recently
concluded report of the Western Ghats Ecology Expert Panel (WGEEP) highlights several issues
and concerns associated with the setting up of wind projects in the Western Ghats, which have
several high wind potential sites. The setting up of transmission lines, hauling of construction
cranes for setting up wind masts as well as hauling the wind masts themselves require
construction of roads necessitating the large-scale destruction of forests, habitats and soils,
including leading to landslides and massive soil erosion in these high rainfall areas (MoEF,
2011). Apart from damaging effects on landscape, they also have negative impacts on bird
mortality and cause habitat fragmentation. The case of the controversial Enercon wind project

near the Bhimashankar Wildlife Sanctuary in Maharashtra which has caused grave destruction to
the flora and fauna has also been investigated in the report (WGEEP, 2011).
Many of the renewable energy projects such as biomass and municipal solid waste plants (up to
acapacity of 15 MW), wind, small hydro power, and Solar PV plants (up to a plant size of 50
hectares).4

4 http://www.ijareeie.com/upload/2014/february/9_Overview.pdf

CONCLUSION

India is a nation in transition. Considered an "emerging economy," increasing GDP is driving the
demand for additional electrical energy, as well as transportation fuels. India is a nation of
extremes. Poverty remains in areas with no energy services, while wealth grows in the new
business hubs. Coal fired generation currently provides two thirds of the generation capacity, and
hydropower supplies the other third. Yet, India is blessed with vast resources of renewable energy
in solar, wind, biomass and small hydro. In fact, the technical potential of these renewables
exceeds the present installed generation capacity.
Unique in the world, India has the only Ministry that is dedicated to the development of
renewable energies: the Ministry of New and Renewable Energy. This bodes well for the
acceleration of renewable development throughout the nation -- both to meet the underserved
needs of millions of rural residents and the growing demand of an energy hungry economy.
The development and deployment of renewable energy, products, and services in India is driven
by the need to

decrease dependence on energy imports


sustain accelerated deployment of renewable energy system and devices
expand cost-effective energy supply
augment energy supply to remote and deficient areas to provide normative
consumption levels to all section of the population across the country
And finally, switch fuels through new and renewable energy system/ device
deployment.

In a report on the Indian economy by Deutsche Bank, in which countries were ranked by
attractiveness for outsourcing and off-shoring, India came in #1, well ahead of China. India is
currently experiencing strong economic growth, while at the same time attempting to extend
modern power services to millions still in poverty. Expanding electrical capacity is essential.
Renewable energy remains a small fraction of installed capacity, yet India is blessed with over
150,000MW of exploitable renewables. It makes sense to the authors that all efforts and
investment should consider accelerating these sustainable energy resources before committing to
the same fossil fuel path as western nations.
The fossil fuel strategy will surely bring price volatility from dwindling supplies and added
pollution from carbon combustion. Tapping India's wind, solar, biomass, and hydro could bring
high quality jobs from a domestic resource. Extending the electric grid between all states, and

ultimately between neighbor nations will expand international trade and co-operation on the
subcontinent. This report is meant only as an overview in hopes that it will encourage even more
rapid and extensive development of the renewable energy resources on the Indian subcontinent.

Presently, a large gap is there between the demand and the supply. Since, fossil fuels will
extinguish in future, the renewable sources of energy have to play a significant role in order to
achieve sustainability. Hence, the potential of renewable energy sources is the key to meet the
demand.

REFERENCES

http://www.ijareeie.com/upload/2014/february/9_Overview.pdf
http://ren21.net/Portals/0/documents/Resources/Indian_RE_Status_Repo
rt.pdf

http://www.geni.org/globalenergy/library/energytrends/currentusa
ge/renewable/Renewable-Energy-Potential-for-India.pdf
http://www.slideshare.net/push_shan/renewable-energy-in-indiastatus-and-future-prospects

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