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ISSN : 2319 – 3182, Volume-1, Issue-2, 2012

140

Future Scenario of Renewable Energy in India

Sandeep Kumar1, Mohit Rathi2, Aloy Palit3 & Puneet Nandrajog4

1&2Department of Mechanical Engineering, DCRUST, Murthal, Haryana, India

3Department of Chemical Engineering, DCRUST, Murthal, Haryana, India

4Munjal Showa Ltd.

Email : [email protected]1, [email protected]2, [email protected]3, [email protected]4

Abstract – This paper presents a review about future scenario of renewable energy in India.Energy is a vital input for economic and social development of any country. With increasing industrialand agricultural activities in the country, the demand for energy is also rising. Solar, wind and biomassare accepted as dependable and widely available renewable sources of energy. To meet the energy requirement for such a fast growingeconomy, India will require an assured supply of 3–5 times more energy than the total energy consumedtoday. The renewable energy is one of the options to meet this requirement Energy is the prime mover of economic growth and is vital to the sustenance of a modern economy. Future economic growth crucially depends on the long-term availability of energy from sources that are affordable, accessible and environmentally friendly. India has obtained application of a variety of renewable energy technologies for use in different sectors too. This paper presents current status, major achievements and future aspects of renewable energy in India. In this paper evaluation of current energy policies for conquering the obstructions and implementing renewables for the future is also been presented.

I. INTRODUCTION

India is perceived as a developing country, but it is developing at a pace that is not matched by many others.

We have experienced significant economic growth. Yet the fact remains that our growth is constrained by energy supply and availability. Although we have seen an impressive Increase in installed capacity addition, from barely about 1,350 MW at the time of independence (1947) to about 160,000 MW today, over 90,000 MW of new generation capacity is required in the next seven years. A corresponding investment is required in transmission and distribution. The increasing appetite for energy that has developed in the recent past has been further complicated by rapidly diminishing conventional sources, like oil and coal. To further add to the problems of increased demand and constrained supply, there are serious questions about pursuing a fossil fuel-led growth strategy, especially in the context

of environmental concerns. The challenge facing a developing nation such as ours is to meet our increasing energy needs while minimizing the damage to the environment. This is why, while striving to bridge our energy deficit, we want to increase the share of clean, sustainable, new and renewable energy sources.

Whether or not renewable energy completely replaces fossil fuel, we are determined to develop renewable energy to its fullest potential

Fig. 1 : Primary energy production in India

II. RENEWABLE ENERGY IN INDIA:

It is a sector that is still underdeveloped. India was the first country in the world to set up a ministry of non- conventional energy resources, in early 1980s. However its success has been very spotty. In recent years India has been lagging behind other nations in the use of renewable energy (RE). The share of RE in the energy sector, as on March 2011, is 10.63% of total generation capacity of India. Renewable energy in India comes under the purview of the ministry of new and renewable resources.

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ISSN : 2319 – 3182, Volume-1, Issue-2, 2012

141 There are some energy resources in india such as:-

1. solar power 2. wind power 3. waste to energy 4. Biomass etc.

Solar power:-

India is densely populated and has high solar insolation, an ideal combination for using solar power in India. Much of the country does not have

anelectrical grid, so one of the first applications of solar power has been for water pumping, to begin replacing India's four to five million diesel poweredwater pumps, each consuming about 3.5 kilowatts, and off-grid lighting. Some large projects have been proposed, and a 35,000 km² area of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 to 2,100 Gigawatts.

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ISSN : 2319 – 3182, Volume-1, Issue-2, 2012

142 The Indian Solar Loan Programme, supported by the United Nations Environment Programme has won the prestigious Energy Globe World award for Sustainability for helping to establish a consumer financing program for solar home power systems. Over the span of three years more than 16,000 solar home systems have been financed through 2,000 bank branches, particularly in rural areas of South India where the electricity grid does not yet extend. Launched in 2003, the Indian Solar Loan Programme was a four- year partnership between UNEP, the UNEP Risoe Centre, and two of India's largest banks, the Canera Bank and Syndicate Bank.

Announced in November 2009, the Government of India proposed to launch its Jawaharlal Nehru National Solar Mission under the National Action Plan on Climate Change with plans to generate 1,000 MW of power by 2013 and up to 20,000 MW grid-based solar power, 2,000 MW of off-grid solar power and cover 20 million sqmetres with collectors by the end of the final phase of the mission in 2020.

Wind power:

The development of wind power in India began in the 1990s, and has significantly increased in the last few years. Although a relative newcomer to the wind industry compared with Denmark or the US, domestic policy support for wind power has led India to become the country with the fifth largest installed wind power capacity in the world.As of December 2010 the installed capacity of wind power in India was 13,065.37 MW, mainly spread across TamilNadu (4132.72MW), Maharashtra (1837.85MW), Karnataka (1184.45MW), Rajasthan (670.97MW), Gujarat (1432.71MW), Andhra Pradesh (122.45MW), MadhyaPradesh (187.69MW), Kerala (23.00MW), West Bengal (1.10 MW), other states (3.20 MW) It is estimated that 6,000 MW of additional wind power capacity will be installed in India by 2012. Wind power accounts for 6% of India's total installed power capacity, and it generates 1.6% of the country's power.

Waste to energy:

Every year, about 55 million tonnes of municipal solid waste (MSW) and 38 billion liters of sewage are generated in the urban areas of India. In addition, large quantities of solid and liquid wastes are generated by industries. Waste generation in India is expected to increase rapidly in the future. As more people migrate to urban areas and as income increase, consumption levels are likely to rise, as are rates of waste generation. It is estimated that the amount of waste generated in India will increase at a per capita rate of approximately 1-

1.33% annually. This has significant impacts on the amount of land that is and will be needed for disposal, economic costs of collecting and transporting waste, and the environmental consequences of increased MSW generation levels. Waste Energy in India

III. GOVERNMENT POLICIES TO PROMOTE RENEWABLE ENERGY RESOURCES IN INDIA:

India is determined to becoming one of the world's leading clean energy producers. The Government of India has already made several provisions, and established many agencies that will help it achieve its goal. Renewable Energy, excluding large hydro projects already account for 9% of the total installed energy capacity, equivalent to 12,610 MW of energy. In combination with large hydro, the capacity is more than 34%, i.e. 48,643MW, in a total installed capacity of 144980 MW.

Total Installed Capacity (June 2012) Source Total Capacity (MW) Percentage

Coal 116,333.38 56.65

Hydroelectricity 39,291.40 19.13 Renewable

energy source 24,832.68 12.09

Gas 18,903.05 9.20

Nuclear 4780 2.32

Oil 1,199.75 0.58

Total 2,05,340.26

1) Electricity Act 2003

In this act provides that cogeneration and generation of electricityfrom renewable sources would be promoted by the StateElectricity Regulatory Commissions (SERCs) by providing suitablemeasures for connectivity with grid and sale of electricity to anyNational Electricity Policy 2005

2) The National Electricity Policy 2005

Stipulates that progressively the share of electricity from non-conventional sources would need to be increased; such purchase by distribution companies shall be through competitive bidding process; considering the fact that it will take some time before non-conventional technologies compete, in terms of cost, with conventional sources, the commission may determine an

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143 appropriate deferential in prices to promote these technologies.

3) National Tariff Policy 2006

As per the National Tariff Policy 2006, the State Electricity Regulatory Commissions (SCRC) to specify a Renewable energy Purchase Obligation (RPO/RPS) by distribution licensees in a time-bound manner. The Policy announced in January 2006 has the important provision for renewable promotion such as in pursuant to provisions of section 86 (1) (e) of the E’ Act 2003, the appropriateCommission shall fix a minimum percentage for purchase of energy from renewable sources taking into account availability of suchresources in the region and its impact on retail tariffs. Such percentages for purchase of energy should be made applicable for the tariffs to be determined by the SERCs.

It will take some time before nonconventional technologies can compete with conventional sources in terms of cost of electricity. Therefore, procurement by distribution companies shall be done at preferential tariffs determinedby the Appropriate Commission. Such procurement by Distribution Licensees for future requirements shall be done, as far as possible, through competitive bidding process under Section 63 of the E’

Act 2003 within suppliers offering energy from same typeof non-conventional sources. In the long-term, these technologies would need to compete with other sources in terms of full costs ofgeneration. The Central Commission should lay down guide lines within three months of its establishment for pricing nonfarmpower, especially from non-conventional sources, to be followed in cases where such procurement is not through competitive bidding.

4) National Rural Electrification Policies (NREP), 2006

The goals of NREP-2006 include provision of access to electricityto all households by the completion of year 2009, quality andreliable power supply at reasonable rates, and minimum lifelineconsumption of one unit/household/day as a merit good by year2012.

For villages/habitations where grid connectivity wouldnot be feasible or not cost effective, off-grid solutions based onstand-alone renewable based systems may be taken up for supply ofelectricity. Where these also are not feasible and if only alternativeis to use isolated lighting technologies like solar photovoltaic, thesemay be adopted. However, such remote villages may not be designatedas electrified. State governments have to be prepared andnotify a rural electrification plan in their respective states, whichshould map and detail the electrification delivery mechanism. Theplan may be linked to and integrated with district developmentplans.

The plan should also be intimated to the appropriate commission.Moreover, Gram Panchayat shall involve in it and issuethe first certificate at the time of the village becoming eligible fordeclaration as electrified.

Subsequently, the Gram Panchayat shallcertify and confirm the electrified status of the village as on 31st March each year .

5) Initiatives to promote solar PV in India

The NREP-2006 policy aims at providing access to electricityto all households in the country and a minimum ‘lifeline’ level ofconsumption of 1 unit (kWh) per household per day. The policy alsomentions that off-grid solar PV solutions may be deployed wherethe supply of grid electricity is infeasible. The policy also mentionsthat off-grid solar PV solutions may be deployed where the supplyof grid electricity is infeasible .

6) Semiconductor Policy (2007)

The Semiconductor Policy is meant to encourage semiconductorand ecosystem manufacturing, of which solar PV is also a component.It offers a capital subsidy of 20% for manufacturing plants inSEZs and 25% for manufacturing plants outside of Special EconomicZones (SEZs). The subsidy is however, based on the condition thatthe net present value (NPV) of the investment is at least US $212 mn(Rs. 10,000 mn at 1 US$ = Rs. 47) . 7) Solar PV generation based incentive

MNRE formed guidelines for generation based incentives forgrid connected solar (both thermal and PV) plants in January 2008.The scheme was extended to all existing registered companies,Central and State power generation companies and public/privatesector PV power project developers. The scheme promoted grid connected power plants in excess of 1 MW of capacity at a single location. The scheme was limited to 5 MW per developer across India and a maximum of 10 MW per state.

According to this scheme, MNRE offered to provide, through IREDA, a generation-based incentive of a maximum of Rs. 12/kWhto eligible projects, which are commissioned by December 31 2009,after taking into account the power purchase rate (per kWh) providedby the State Electricity Regulatory Commission or utility for that project. Apart from the Central Government, several State Governments have also taken 8) State level initiatives

The State Electricity Boards and respective agencies for renewableenergy at the state level, play a key role in implementation at astate level. Independent of these national efforts, states are promotingsolar power. Gujarat, for example, is promoting the

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ISSN : 2319 – 3182, Volume-1, Issue-2, 2012

144 installationof 350 MW solar PV by 2011. It offers a feed-in tariff of Rs. 15/kWhfor the first 12 years and Rs.

5/kWh for the following 13 years.

9) Research & development (R&D) initiatives

For technology development, the R&D strategy would comprisefive categories, viz.

• Basic research having a long term perspective for the developmentof innovative and new materials, processes andapplied research aimed at improvement the existing Processes, materials and the technology for enhanced Performance, durability and cost competitiveness of the Systems/

devices.

• Technology validation and demonstration projects aimed at fieldevaluation of different configurations, including hybrids withconventional power systems for obtaining feedback on performance,operability and costs.

• Development of R&D infrastructure in private public partnership mode.

• Support for incubation and startups, a 3-tier R&D institutionalframework, including high level research council, National Centerof Excellence and a network of centers of excellence

IV. FUTURE TARGET FOR DEVELOPMENT OF RENEWABLE ENERGY RESOURCES BY INDIAN GOVT. 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 nuclear power industries.

India has the world's fifth largest wind power market and plans to add about 20GW of solar power capacity by 2022. India also envisages 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.

The Ministry of New and Renewable Energy (MNRE) has fixed a target of 10,500 MW Between 2007–12, but an additional generation capacity of only about 6,000 MW might be available for commercial use by 2012.

The Ministry of New and Renewable Energy (MNRE) has announced a revised estimation of the potential wind resource in India from 49,130 MW assessed at 50m Hub heights to 102,788 MW assessed at 80m Hub height. The wind resource at higher Hub heights that are now prevailing is possibly even more.

• New project developers for 100 MW capacity of grid (below 33 kV) connected solar projects (of 100 kW to 2 MW capacitieseach) have also been selected. It is expected that 150–200 MW of solar power will be installed in the country by December 2011.

• To create an enabling policy framework for the deployment of 20,000 MW of solar power by 2022.

• To promote programs for off grid applications, reaching 1000 MWby 2017 and 2000 MW by 2022.

 To achieve 15 million m2 solar thermal collector area by 2017 and 20 million by 2022.

 Over 4200MWgrid power from wind, small hydro, biomass and solar energy.

 3600 remote villages/hamlets, including those in Sunderbans,

 Bastar, Ladakh and the North East electrified through solar energy.

 Largest solar–steam cooking system for 15,000

persons/day set up at

TirupatiTirumalaDevasthanam.

 7 lakh square meter collector area solar water heating systems installed.

 3.5 million biogas plants installed for cooking and lighting applications.

 35 million improved wood stoves in rural homes.

 Integrated Rural Energy Program implemented in 860 blocks.

 30MWcapacity Solar Photovoltaic products exported to various developed and developing countries.

 280 Energy Parks set-up in educational institutions for demonstration of renewable energy systems and devices.

 Rs.25, 000 million direct subsidy given so far to beneficiaries/users of renewable energy systems and devices, including subsidy for grid connected renewable power projects.

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 Rs. 32,000 million loan provided so far by Indian Renewable Energy Development Agency Limited for 1600 renewable energy projects.

Centre for Wind Energy Technology set up as a scientific and industrial research organization for wind resource assessment, equipment certification and R&D at Chennai in Tamil Nadu.

V. CONCLUSION:

This paper tells about the future of renewable energy resources future policies. Energy security, economic growth and environment protection ,are the national energy policy drivers of any country of the world.The sources of renewable energy would be promoted. Specific action points thathave been mentioned include promoting deployment, innovationand basic research in renewable energy technologies, resolving thebarriers to development and commercial deployment of biomass,hydropower, solar and wind technologies, promoting straight(direct) biomass combustion and biomass gasification technologies,promoting the development and manufacture of small windelectric generators, and enhancing the regulatory/tariff regime in order to main stream renewable energy sources in the nationalpower system.It is expected that modern renewables will account for about 6%of energy mix in 2012 and 2022.

This could be increased to morethan 10% in 2022 in the presence of enabling policies. The growth ofsolar PV is being driven by the international demand. If the highgrowth rates are to sustain, strategies are required to promote thegrowth of the domestic PV market. There is a need for targetedtechnology development and R&D for cost reduction – low windspeed machines, inverters and controllers for a few kW,manufacturing cost reduction in PV modules.

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