Wind And Solar Energy In India

Published Date: 02 Nov 2017

Under the supervision of

Mr Gajendra Behari

Chief Engineer (R&D), Central Electricity Authority (CEA)

www.cea.nic.in

[email protected]

Table of Contents

Abstract…………………………………………………………………………………….

1.Introduction…………………………………………………………………………..

1.1 Generation………………………………………………………………………..

1.2 Transmission…………………………………………………………………….....

1.3 Distribution………………………………………………………………….….….

2. Aging Electrical Grid in India and its prognosis.......................................................

2.1 Power Generation and Infra-Structure…………………………………..……….

2.2 Supply Demand and Unplanned Connections………………………………..…..

2.3 Blackouts: Planned and Unplanned………………………………………………

2.4 Transmission and Distribution Losses……………………………………………

2.5Environmental Ramifications of the Power Sector……………………….………

Table of Figures

Figure1: Indian Electricity Generation By Type, 2000-2009

Figure2:All India Installed Capacity( as on 30th November 2012)

Figure3: Existing transmission lines and expansion

Figure 4: Growth of transmission system in India

Figure 5:Cost of power supply (paisa/kWh sold)

Figure 6: India’s Coal Production and Consumption

Figure 7: August 2012 blackout Frequency VS Time graph

Figure 8: T&D losses in the system

Figure 9: Comparison of life cycle emissions

Abstract:

Ever increasing population coupled with a perpetual depletion of fossil fuel resources and many generation sites attaining their ultimate capacity, India is in dire need of a Midas touch or of an Aladdin’s Lamp. A much smarter approach towards the electrical grid is a need of the hour. This smarter approach technically referred to as the "smart grid" ,promises affordable electrical environment which seems to be the need of the hour. India has large untapped resource of wind and solar energy which if utilised properly can fulfill the energy requirements of the country to a large extent. This paper presents the journey of the Indian power sector through time, analyses various Demand and Supply Scenarios which are mutually exclusive and also assesses various issues facing the Indian Power System . This exercise hence proposes that integration of enhanced electrical capacity realised through a large-scale integration of renewable energy resources such as wind and solar energy in the Indian electrical grid leading to a smarter grid platform that can ensure increased efficiency, reliability, and security as well as reduced environmental impact of supplying the electrical power needs of modern society. The result is enhanced electricity management environment and a dynamic programmable renewable source moblisation in India and thus leading to energy independence and an electrical grid that is much more reliable, secure, efficient, and greener.

Keywords: Smart grid, Wind and Solar energy, Micro sources, Electricity management.

1.Introduction:

General overview:

Electricity is a crucial facet of any country’s prosperity. India has an installed power generation capacity of 210 GW as on November 30 2012, which is about 154 times the installed capacity in 1947 (1362 MW). Electricity generation growth has been steadily increasing year after year, and in the year 2011-12 the generation being about 876.8 billion units of energy with a growth of ~8% over the previous year. During the 11th plan the power sector made a considerable progress with a capacity addition of ~58 GW which was significantly more than the capacity commissioned in the previous plans1. Strong private sector involvements and the government following a much dynamic regulation policy enabled such an improvement in the performance. In the process of transformation structural as well as policy both the types of amendments played their role.

However, the demand has been consistently outstripping the supply even as availability of power has increased due to substantial/ significant investments on the supply side. India faces the challenge of poor reliability and a not upto mark quality of electricity, leading to frequent blackout situation one part or another part . India has witnessed substantial energy and peak shortages of 8.5% and 11% respectively in the year 2011-12.

The Indian power sector has been going through evolution, from vertically involved public utilities to unbundled entities, especially with more private assets joining in on the generation side. The changes have brought a steady improvement in efficiency and competition and offer contingency management with better price signals to incentivize the market participants across the value chain. Banking on the inspiration from these changes, India targets to set up substantially high 88 GW of capacity in the 12th plan which may suffice the ever growing demand to a large extent. To better understand the state of the Indian power sector, a deeper analysis of all the three components i.e., generation, transmission and distribution is required.

Figure1: Indian Electricity Generation by Type, 2000-2009

Source: US Energy information Administration, International Energy Statistics

1.1 Generation

The power generation industry is going through rough times. The sector is battling several issues, largely consanguine to fuel shortages, which could slow down the industrious pace of capacity addition witnessed in the past couple of years. In 2011-12, a record capacity addition of over 20,500 MW in a single year was registered in the sector, taking the total capacity addition in the 11th plan period to about 55,000 MW2. A significant contribution was reported from the private sector with a share of over 58 percent during 2011-12 and 42 percent during the entire 11th plan period. As on July 31 2012, India’s installed capacity (excluding captive plants) stood at 206,456 MW3. Thermal sources continued to dominate accounting for two thirds of the capacity at 137,386 MW, followed by hydropower (19 % or 39,291 MW), Renewable Eenergy (12.1 percent or 24,998 MW) and Nuclear power (2.3 % or 4780 MW). The traditional power generation industry is at a juncture where the issues like Capacity additions ,enhanced reliability of supply of power and quality of supply which needs to be addressed quickly, are paving way for more investments and easier regulatory norms for absorption of more and more renewable energy in the Indian National Grid. It is ironical that India with the fourth largest coal reserves in the world is perpetually struggling to meet its coal demand by way of deficient coal production because of various policy and infrastructural bottlenecks. The issues faced are:

Coal and gas shortages: Thermal power generation suffered a shortfall of 20 BUs during 2011-12 – 9 BUs and 11 BUs due to a shortage of coal and gas respectively4.

Slowdown in hydropower capacity addition: Capacity addition from hydropower sources slowed in the past couple of years. The year on year growth rates declined to 3.8 percent 2011-12 from 7.2 percent in 2006-07. This can be mainly accredited to geological changes and local issues to some extent, deficiencies in survey and investigation, lack of transparency in the process of award of contracts and inadequacies in project of execution.

Brake in nuclear power: In the post- Fukushima scenario, the opposition to nuclear power in the country has gained ground. Although India has decided to proceed with its nuclear agenda with greater safety measures, local agitation against the upcoming nuclear projects could adversely impact its nuclear power ambition.

Source: CEA

1.2 Transmission:

In India the Transmission business exercises a monopolistic model where The Central Transmission Utility (CTU) and The State transmission Utility (STU) have the key responsibility of network planning, development and execution. The private players have a very negligible presence. It was only during the 11th plan period that the Inter- State transmission sector was opened up for private sector participation through joint venture with Power grid and through the selection of Transmission System Provider involving competitive bidding.

Figure3: Existing transmission lines and expansion

Source: http://www.metisbs.com/page.php?cid=53

During the 11th plan period (years 2007- 2012 ), open access in transmission has been introduced to promote competition amongst the generating companies who can now sell to different distribution licensees across the country as well as consumers having demand more than 1 MW. The growth of transmission system can be summarized as in figure 4.

Though elaborate and multi faceted legislations such as the Electricity Act, 2003 and IEGC are in place, the effective implementation of these legislations is essential. Greater executing powers need to be bestowed upon the central and the state regulators as well as the system operators. The issues that need to be addressed at present for both public and private transmission project developers are procedural delays in land acquisition; obtaining RoW, environmental and related statutory clearances; and equipment deployment, particularly in hostile terrain.

Figure 4: Growth of transmission system in India

Source: CEA

1.3. Distribution:

Distribution provides the critical last mile connectivity in the electricity sector. The revenue generating characteristic of this link makes it an important segment . Moreover, unlike the other two sectors- generation and transmission, the distribution consumers are assorted and discrepant.

Cost Generation and Tariff:

During 2007 to 2011, the overall unit cost has increased by 21% but the rise has not been comparable or even proportionate with the increase in the cost of supply. As a result the gap between the cost of supply and the average tariff has been widening over the years. The financial position of the electricity distribution sector has been a concern for over a decade now. The state owned distribution utilities to remain financially and commercially viable is a million dollar question and is putting at risk the significant investments being pumped into the electricity sector by private and public players.The investment to the tune of 300000 Million US Dollars is the financial risk taken by Indian Public Sector Banking Industry.

The estimated loss of all the State distribution utlities has been estimated at Rs 2.4 lakh crore as of March 31, 2012.

Distribution companies, mostly state-owned, are mired with about $35 billion in debt.

Tariffs haven't been revised since last ten years leading call for higher subsidies to be inducted in the sub sector to cover costs of inefficiencies, indifference of consumers towards the efficiency the appliances used by them, augmentation of distribution network to ever changing profile of consumers in terms of quantum of consumption ,spatial, distribution in time and space , nor has electricity theft been checked to the extent that feasible, leading to the accumulated commercial losses to the tune of 35 US$. The electricity distribution losses are huge losses as high as 40% in some states, while the country-wide average is 27 %.

The current AT&C losses vary across state utilities in the range of 12.22%(Himachal Pradesh) to 72.86%( Jammu &Kashmir,to the some extent owing to the fact that the consumers are thinly populated; while the national average was about 26% in the year 2010-11

Figure 5:Cost of power supply (paisa/kWh sold)

Source: Annual report on working of state power utilities and electricity departments 2011-12

2 Aging electrical grid of India and its prognosis:

On July 31 2012, India was reeling under the largest electrical blackout in history, affecting an area encompassing about 670 million people, or roughly 10 % of the world’s total population. Three of the country’s interconnected Northern Power Grids crumpled and were left dead for several hours, as blackouts extended almost 2,000 miles, from India’s eastern border with Myanmar to its western border with Pakistan. Such an enormous power failure would pave way for more stringent regulations that need to be adhered to in truest sense to the chain of electricity delivery system in the power sector. Indian authorities should leave no stone unturned to augment the supply chain of electricity delivery system so as the fragile and weary electrical power delivery system of India is mended to the extent that such blackouts do not occur in the future.The primary difference is of adaptability if way blackouts occur in India is compared with that of some other country where electrical supply is far more reliable. The Indian electrical system is conventionally rated as a fragile and an unreliable system lacking considerable self healing and progressive capabilities that tend to have a cascading effect on the overall health of the electrical system. Issues facing India’s electrical system have been discussed rather generously considering they seem to be pivotal to the growth of India’s power sector.

Power Generation and infrastructure:

Experts dealing with the ministry of power reflected on the August 2012 blackout as an accident waiting to happen3. The rapid development of the country has put an acute stress on the Indian power delivery chain . It is highly dependent on coal for 70% of its generation and is experiencing perpetual coal shortages. The fuel shortage is acute when it comes to coal, which accounts for two-thirds of the country's power generation. India has about 10 % of the world's coal reserves but output by the near-monopoly Coal India has stagnated,whereas importing coal is far more costlier option coupled with lack of rail connectivity from port to power stations holding up coal supply to power stations.It may sometimes so happens that one more power stations do not have even one day’s coal stock. Such an eventuality is critical to grid security and its uninterrupted continuous operation. Perhaps the biggest challenge, though, is the health of decrepit distribution companies that depend on subsidies and face huge losses from low tariffs and rampant power theft. Together, they are now saddled with debt worth some $35 billion and are increasingly unable to pay for new supplies. Many of the state run electricity companies, which collectively lose $4.5 billion per year, are essentially bankrupt.

Figure6: India’s Coal Production and Consumption

Source:http://www.gregor.us

Supply, Demand and Unofficial Connections:

Power infrastructure in India cannot be considered capable of providing sufficient and reliable power supply that westerners take for granted. Some 300 million people have no access to electricity since the grid does not reach their areas. While India ranks sixth in the world in terms of overall electricity production and consumption, its population of 1.2 billion means that per capita levels of electricity consumption remains low at just over 500 kWh per person per year,as compared to more than 2,600 kWh in China and nearly 12,000 kWh in the United States.

The efficient management of power supply and thereby providing quality power is an uphill task taking in consideration the ever increasing demand that unbalances the demand and supply equation. Perhaps, to balance supply and demand, in medium term or long term consumers are to notify the distribution companies. More so they are supposed to get their sanctioned load enhanced whenever they connect a new device apply for and pay for enhanced committed load. Often this not observed because of the lack of knowledge and non-committal attitude of the consumers to affairs of the distribution company. Even when India bboasts of a highly industrialised economy and the emerging urban lifestyles, the facility of an electrical connection still seems to be out of reach of many, most particularly the residents of slums. This definitely does not mean that slums are looming under dark but that unofficial power tapings are common in such areas.

Blackouts - Planned and Unplanned:

The blackout of July 2012 seems to have its roots in Agra in the state of Uttar Pradesh where transmission lines were carrying twice the permitted load. When the Agra-Gwalior line went down, the effect was a cascade, with lines tripping one after the other. The impact of the blackout was considerable and noticed to a large extent. People were trapped in the metros and lift systems with help reaching them after a long time. The cooling systems came to as grinding halt leaving most of the populace of central India under the mercy of the summer heat with temperatures touching around 37 degree Celsius in certain parts. Massive traffic jams formed in New Delhi as traffic lights went out. Electric crematoria ceased to function. Hundreds of miners were trapped underground. Water supply was heavily impacted. Some hospitals faced major difficulties in the following days. How India differs from western countries is the way blackouts are treated here. In India, the issue is not whether or not there will be a blackout. People know that there will be, often for several hours every day. They prepare for outages and take them head on. The difference is between planned and unplanned blackouts. Planned outages are called rolling blackouts and are a common scene in many places across the country. A rolling blackout also referred to as load shedding refers to an engineering technique employing an intentional electrical shutdown where electricity delivery is stopped for non-overlapping periods of time. Rolling blackouts are a common or even a normal daily event in many developing countries where electricity generation capacity is underfunded or infrastructure is poorly managed. Where outages are scheduled, people adjust their activities accordingly. However, unscheduled disruption is tolerated, so long as it is an organized disruption.

Figure 7: August 2012 blackout Frequency VS Time graph.

Source: IIT Bombay

Transmission and Distribution losses:

A huge chunk( 23%) of the electricity generated is lost while evacuating power to the consumers as T&D ( transmission and distribution losses). Even though sample studies carried out by various independent agencies including TERI estimate the losses to be as high as 50 % in some states. Accurate estimation of losses is a very important practice as it directly affects the sales and the power purchase requirements and hence determines the electricity tariff of a utility by the commission.

Energy losses mainly occur in the process of evacuating power to consumers due to technical as well as commercial losses. The officially declared transmission and distribution losses in India have steadily risen from about 15 % up to the year 1966-67 to about 23 % in 1998-99. The continued rising trend in the losses is a matter of serious concern and dedicated efforts are required to curtail them. According to a study by the Electric Power Research Institute (EPRI) of the USA, the losses in various elements of the T&D system usually are of the order as shown below.

Figure 7: T&D losses in the system

System Element

Power losses

Minimum(%)

Power losses

Maximum(%)

Step up Transformers and EHV transmission system

05

1.0

Step down to sub transmission voltage level

1.5

3.0

Step down to distribution voltage level

2.0

4.5

Distribution lines and Service connections

3.0

7.0

Total losses

7.0

15.5

Source: T&D losses, An Independent study(www.teriin.org)

Environmental ramifications of the power sector:

In India power shortage is not the only issue but its spread is an equally serious issue. Traditionally resources for electricity generation would be foraged using the simple theory of "cheap is good". Although essentially important there are certain other parameters that need to be taken care of such as social, environmental and technological benefits and consequences of the energy sources selection. A figure showing the comparison of different energy sources for life cycle emissions is shown6.

Figure 8: Comparison of Life- Cycle Emissions(Tons of carbondioxide equ. Per Gigawatt Hour)

Source: University of Wisconsin

It can be easily seen that Coal has the maximum global warming potential followed by Natural Gas and others. In a developing country like India the economics of producing electricity is of paramount concern while planning for the type of plant to be installed and commissioned and more so with the abundant supply of coal. However if the consequences of prolonged use of coal for producng electricity on human health and environment and cost as well as efforts required to improve or alter the path of degradation, it seems the initial low cost of using coal seems a strategically bad idea when compared to renewable resources for producing electricity. Taking into account the growing economy of India compared to other countries in the west, switching to a cleaner sources of energy is more of a multi step mechanism rather then a single step. There is an urgent need for transfer of technology and development of other financial instruments from the developed world. India is 145th in the world in the release of 1.25t CO 2 per annum7.