Conventional and Renewable Energy Scenario of India
Conventional and Renewable Energy Scenario of India
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Abstract
This paper presents a review about conventional and renewable energy scenario of India. The ordinal terms
of Consumption, Production and Supply are acquainted. In India most of the power generation is carried out
by conventional energy sources, coal and mineral oil-based power plants which contribute heavily to
greenhouse gases emission. Setting up of new power plants is inevitably dependent on import of highly
volatile fossil fuels. Thus, it is essential to tackle the energy crisis through judicious utilization of abundant
the renewable energy resources, such as biomass energy, solar energy, wind energy, geothermal energy and
Ocean energy.
Last 25 years has been a period of exuberant hunt of activities related to research, development, production
and demonstration at India. 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.
Keywords
Conventional Energy, Renewable energy, Solar, Wind, Biomass, Geothermal
1. Introduction
With high economic growth rates and over 17 percent of the world’s population, India is a significant
consumer of energy resources. India, at 1.17 billion people, is the second most populated country in the
world. Despite the global financial crisis, India’s energy demand continues to rise [19] (Fig.1). India
consumes its maximum energy in Residential, commercial and agricultural purposes in comparison to China,
Japan, Russia, EU-27 and US [1] (Fig. 2).
Energy ‘self-sufficiency’ was identified as the major driver for new and renewable energy in the country in
the wake of the two oil shocks of the 1970s. The Ministry of New and Renewable Energy (MNRE) is the
nodal Ministry of the Government of India for all matters relating to new and renewable energy. The broad
aim of the Ministry is to develop and deploy new and renewable energy for supplementing the energy
requirements of the country. The sudden increase in the price of oil, uncertainties associated with its supply
and the adverse impact on the balance of payments position led to the establishment of the Commission for
Additional Sources of Energy in the Department of Science & Technology in March 1981.
The Commission was charged with the responsibility of formulating policies and their implementation,
programs for development of new and renewable energy apart from coordinating and intensifying R&D in
the sector. In 1982, a new department, i.e., Department of Non-conventional Energy Sources (DNES), that
incorporated CASE, was created in the Ministry of Energy. In 1992, DNES became the Ministry of Non-
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conventional Energy Sources. In October 2006, the Ministry was re-christened as the Ministry of New and
Renewable Energy [7].
In the following sections, a picture about conventional and renewable energy utilization/generation is given
along with current status of renewable, future potentials of their uses, major achievements, and current
government policies, delivery and outreach in Indian context in the country. At the end, some suggestions
are proposed for effective dissemination of RE in the country.
100%
80%
60%
40%
20%
0%
TWh Mt. Mt. b cum
Figure 2: Energy consumption by sector, India compared to China, Japan, Russia, EU 27 and US
2. Conventional energy
The conventional energy supplies, generation/production and consumption in the country have been shown
in Figs. 3–8.
In 2009, India consumed roughly 1.8 Tcf of natural gas, almost 300 billion cubic feet (Bcf) more than in
2008, according to EIA (Energy Information Administration) estimations (Fig. 3) [13]. Natural gas demand
is expected to grow considerably, largely driven by demand in the power sector. The power and fertilizer
sectors account for nearly three-quarters of natural gas consumption in India.
According to Oil and Gas Journal, India had approximately 38 trillion cubic feet (Tcf) of proven natural gas
reserves as of January 2010[12]. The estimation is that India produced approximately 1.4 Tcf of natural gas
in 2009, a 20 percent increase over 2008 production levels (Fig. 3). The bulk of India’s natural gas
production comes from the western offshore regions, especially the Mumbai High complex, though the Bay
of Bengal and its Krishna-Godavari (KG) fields are proving quite productive. Despite the steady increase in
India’s natural gas production, demand has outstripped supply and the country has been a net importer of
natural gas since 2004. India’s net imports reached an estimated 445 Bcf in 2009.
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From the annual report of Ministry of Coal, Government of India, the Coal production in all over India
during the period April, 2009 to January, 2010 has been 416.47 Million tones (Provisional) as compared to
the production of 385.02 Million tones (MT) during the corresponding period of the previous year showing a
growth of 8.17% [3].
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In 2007, India had approximately 159 gigawatts (GW) of installed electric capacity and generated 761
billion kilowatt hours. Nearly all electric power in India is generated with coal, oil or gas. Conventional
thermal sources produced over 80 percent of electricity in 2007. Hydroelectricity, a seasonally dependent
power source in India, accounted for nearly 16 percent of power generated in 2007. Finally, nuclear energy
produced roughly 2 percent of electricity during the same year, while geothermal and other renewable
sources accounted for approximately 2 percent (Fig.8) [13].
3. Renewable Energy
According to the International Energy Agency (IEA), coal/peat account for nearly 40 percent of India’s total
energy consumption, followed by nearly 27 percent for combustible renewables and waste. Oil accounts for
nearly 24 percent of total energy consumption, natural gas six percent, hydroelectric power almost 2 percent,
nuclear nearly 1 percent, and other renewables less than 0.5 percent(Figure 9). Although nuclear power
comprises a very small percentage of total energy consumption at this time, it is expected to increase in light
of international civil nuclear energy cooperation deals [12]. According to the Indian government, nearly 30
percent of India’s total energy needs are met through imports.
Current installed base of Renewable energy is 16,492.42 MW which is 10.12% of total installed base with
the southern state of Tamil Nadu contributing nearly a third of it (5008.26 MW) largely through wind power.
India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. The
economy of India, measured in USD exchange-rate terms, is the twelfth largest in the world, with a GDP
(Gross Domestic Product) of around $1 trillion (2008). GDP growth rate of 9.0% for the fiscal year 2007–
2008 which makes it the second fastest big emerging economy, after China, in the world. There is a very
high demand for energy, which is currently satisfied mainly by coal, foreign oil and petroleum, which are
apart from being a non-renewable.
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Combustible Renewables
and Waste
Hydro
Oil
Nuclear
Coal/Peat
Natural gas
Other Renewables
In solar energy sector, 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. India is endowed with
rich solar energy resource. The average intensity of solar radiation received on India is 200 MW/km square
(megawatt per kilometer square). With a geographical area of 3.287 million km square, this amounts to
657.4 million MW. However, 87.5% of the land is used for agriculture, forests, fallow lands, etc., 6.7% for
housing, industry, etc., and 5.8% is either barren, snow bound, or generally inhabitable. Thus, only 12.5% of
the land area amounting to 0.413 million km square can, in theory, be used for solar energy installations.
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Even if 10% of this area can be used, the available solar energy would be 8 million MW, which is equivalent
to 5,909 mtoe (million tons of oil equivalents) per year.
In July 2009, India unveiled a $19 billion plan, to produce 20 GW of solar power by 2020.Under the plan,
solar-powered equipment and applications would be mandatory in all government buildings including
hospitals and hotels. On November 18, 2009, it was reported that India was ready to launch its National
Solar Mission under the National Action Plan on Climate Change, with plans to generate 1,000 MW of
power by 2013.
India has a vast potential for renewable energy sources, especially in areas such as solar power, biomass and
wind power. The current installed capacity of renewable energy is around 92204 MW, constituting about 7.3
percent of India’s total installed generation capacity. Technological breakthroughs for cost-effective
photovoltaic technology could generate a quantum leap in the renewable energy sector since India is well
endowed with solar insolation (average of 6 kwh/ sq.mt./day).India plans to announce increased subsidies for
solar-power generation, as the country looks to scale up production of renewable energy and show it is
committed to mitigating climate change.
India just had 2.12 megawatts of grid-connected solar generation capacity. As part of the National Solar
Mission, the ministry aims to bolster the annual photovoltaic production to at least 1,000 megawatts a year
by 2017. With an installed capacity of 123 GW, the country currently faces energy shortage of 8 percent and
a peak demand shortage of 11.6 percent. In order to sustain a growth rate of 8 percent, it is estimated36 that
the power generation capacity in India would have to increase to 306 GW in the next ten years which is 2.5
times current levels. However, as of October 2009, India is currently ranked number one along with the
United States in terms of installed Solar Power generation capacity.
The Karnataka Power Corporation Limited (KPCL) has installed India’s largest solar photovoltaic power
plant at Yalesandra village in Kolar district of Karnataka. Built at the cost of about $13 million, the plant
makes use of modular crystalline technology to generate solar energy (Fig.10)
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Samana wind farm is the largest wind project undertaken to date by RULON. CLP India, the Group's
subsidiary in India, is partnering with wind turbine manufacturer Enercon (India) Limited to develop this
greenfield project in India's north-western state of Gujarat. Samana wind farm has a generating capacity of
100.8 MW, and is expected to be completed in two phases – the first 50.4 MW by June 2008 and the other
50.4 MW by January 2009. The project further leads RULON into the wind power market of India (Fig.12)
Suzlon, India's largest wind power company, has risen to ranking 5th worldwide, with 7.7%of the global
market share in just over a decade. Suzlon holds some 52 percent of market share in India. Suzlon’s success
has made India the developing country leader in advanced wind turbine technology (Fig.13).
100%
wind power
80%
60%
40%
20%
0%
US
Kingdom
China
India
Italy
European
Spain
Portugal
Germany
Denmark
Canada
United
Union
Countries
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Figure 12: Samana wind farm, the largest wind project at Gujarat
Figure 13: Wind-powered turbines set up by Suzlon Energy near Dhule, India, are part of the technology
increasingly reaching the country’s rural regions
3.3. Hydropower
India is endowed with economically exploitable and viable hydro potential assessed to be about 84,000 MW
at 60% load factor (1,48,701 MW installed capacity). In addition, 6780 MW in terms of installed capacity
from Small, Mini, and Micro Hydel schemes have been assessed. Also, 56 sites for pumped storage schemes
with an aggregate installed capacity of 94,000 MW have been identified [16]. However, only 19.9% of the
potential has been harnessed so far. Hydroelectricity is the term referring to electricity generated by
hydropower; the production of electrical power through the use of the gravitational force of falling or
flowing water. It is the most widely used form of renewable energy. India is blessed with immense amount
of hydro-electric potential and ranks 5th in terms of exploitable hydro-potential on global scenario (Fig. 14)
[20]. India was one of the pioneering countries in establishing hydro-electric power plants. The power plant
at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of
the first in Asia. The installed capacity as of 2008 was approximately 36,877. The public sector has a
predominant share of 97% in this sector.In addition, 56 number of pumped storage projects have also been
identified with probable installed capacity of 94,000 MW. In addition to this, hydro-potential from small,
mini & micro schemes has been estimated as 6 782 MW from 1 512 sites.
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700 China
Installed Capacity(GW)
600 Canada
500 Brazil
400
US
300
200 Norw ay
100 India
0 Venezuela
1 Japan
Country Sw eden
Figure 14: Annual hydroelectric productions (TWh) of ten of the largest procedures as at 2009
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The Parbati Hydroelectric Project (Stage-II) (Fig.15) is a run-of-the-river scheme proposed to harness hydro
potential of the lower reaches of the river Parbati, The proposed scheme is 'inter basin transfer' type [23].
Chamera Power Station Stage-I (540 MW) is a run-of-the-river scheme built on river Ravi, which is a major
river of the Indus Basin, originating in the Himalayas from the Baira Bhanghal branch of the Dhaula Dhar
Range. The project was commissioned in April 1994 (Fig. 16) [6].
3.4. Biomass
Biomass has been a key player in energy generation even in the past. Biomass, defined as all land and water-
based vegetation as well as organic wastes, fulfilled almost all of human kind’s energy need prior to the
industrial revolution. In present day scenario, once again its utilization for generation of energy has gained
momentum because of limited availability of the conventional energy resources as well as environmental
concern due to GHG emissions.
In the past decade there has been renewed interest in the biomass as a renewable energy source worldwide.
The major reasons for this are as follows. First of all technological developments relating to the conversion,
crop production, etc. promise the application of biomass at lower cost and with higher conversion efficiency
than was possible previously. In Western Europe and in the US, the second main stimulus is food surpluses
producing agricultural sector. This situation has led to a policy in which land is set aside in order to reduce
surpluses. In these regions, a number of factors associated with surplus land, such as the de-population of
rural areas and payment of significant subsidies to keep land fallow, have provided sufficient driving force to
the introduction of alternative, non-food crops desirable. Thirdly, the potential threat posed by climate
change, due to high emission levels of greenhouse gases, the most important being CO2, has become a major
stimulus for renewable energy sources in general. When produced by sustainable means, biomass emits
roughly the same amount of carbon during conversion as is taken up during plant growth. The use of
biomass therefore does not contribute to a build up of CO2 in the atmosphere. India is very rich in biomass
and has a potential of 16,881MW (agro-residues and plantations), 5000MW (bagasse cogeneration) and
2700MW (energy recovery from waste). Biomass power generation in India is an industry that attracts
investments of over INR 600 crores every year, generating more than 5000 million units of electricity and
yearly employment of more than 10 million man-days in the rural areas [2].
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India has reasonably good potential for geothermal; the potential geothermal provinces can produce 10,600
MW of power. Rocks covered on the surface of India ranging in age from more than 4500 million years to
the present day and distributed in different geographical units. The rocks comprise of Archean, Proterozoic,
the marine and continental Palaeozoic, Mesozoic, Teritary, Quaternary etc., More than 300 hot spring
locations have been identified by Geological survey of India (Thussu, 2000).But yet geothermal power
projects has not been exploited at all, owing to a variety of reasons, the chief being the availability of
plentiful coal at cheap costs.
However, with increasing environmental problems with coal based projects, India will need to start
depending on clean and eco-friendly energy sources in future; one of which could be geothermal. India
occupies 15th position in geothermal power use by country (Fig. 17) [22]
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The National Electricity Policy aims at achieving the following objectives; access to electricity, availability
of power demand (to be fully met by 2012), energy and peaking shortages to be overcome and spinning
reserve to be available, supply of reliable and quality power of specified standards in an efficient manner and
at reasonable rates, per capita availability of electricity to be increased to over 1000 units by 2012, financial
turn around and commercial viability of electricity sector and protection of consumers’ interests.
The Electricity Act contains the following provisions pertaining to non-conventional energy sources. Under
Sections 3(1) and 3(2), it has been stated that the Central Government shall, from time to time, prepare and
publish the National Electricity Policy and Tariff Policy, in consultation with the state governments and
authority for development of the power system based on optimal utilization of resources such as coal, natural
gas, nuclear substances or material, hydro and renewable sources of energy. Section 4 states that the Central
Government shall, after consultation with the state governments, prepare and notify a national policy,
permitting stand-alone systems for rural areas. Section 61, 61(h) and 61(i) state that the appropriate
commission shall, subject to the provision of this Act, specify the terms and conditions for the determination
of tariff, and in doing so, shall be guided by the following, namely, the promotion of cogeneration and
generation of electricity from renewable sources of energy; and the National Electricity Policy and Tariff
Policy.
Section 86(1) and 86(1)(e) state that the state commissions shall discharge the following functions, namely,
promote cogeneration and generation of electricity from renewable sources of energy by providing, suitable
measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of
electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution
license.
The Tariff Policy announced in January 2006 has the following provisions:
1. Pursuant to provisions of section 86 (1) (e) of the Act, the Appropriate Commission shall fix a
minimum percentage for purchase of energy from such sources taking into account availability of
such resources in the region and its impact on retail tariffs.
2. It will take some time before non-conventional technologies can compete with conventional sources
in terms of cost of electricity. Therefore, procurement by distribution companies shall be done at
preferential tariffs determined by the Appropriate Commission.
3. Such procurement by Distribution Licensees for future requirements shall be done, as far as possible,
through competitive bidding process under Section 63 of the Act within suppliers offering energy
from same type of nonconventional sources.
4. The Central Commission should lay down guidelines within three months for pricing non-firm
power, especially from nonconventional sources, to be followed in cases where such procurement is
not through competitive bidding.
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1. Goals include provision of access to electricity to all households by the year 2009, quality and
reliable power supply at reasonable rates, and minimum lifeline consumption of 1 unit/household/day
as a merit good by year 2012.
2. For villages/habitations where grid connectivity would not be feasible or not cost effective, off-grid
solutions based on standalone systems may be taken up for supply of electricity.
3. State government should, within 6 months, prepare and notify a rural electrification plan, which
should map and detail the electrification delivery mechanism.
4. The Gram Panchayat shall certify and confirm the electrified status of the village as on 31st March
each year.
Suggest a path to meet energy needs of the country in an integrated manner up to 2031–2032. It
recommended special focus on renewable energy development.
5. Major Achievements
The Ministry of New & Renewable Energy (MNRE) has been facilitating the implementation of broad
spectrum programs including harnessing renewable power, renewable energy to rural Areas for lighting,
cooking, and motive power, use of renewable energy in urban, industrial and commercial applications and
development of alternate fuels and applications [4]. The Major achievements are summarized as below:
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Power from
I. Renewables
A Grid-interactive renewable power
Biomass Power(Agro
1 residues) 45.5 MW 901.1 MW
2 Wind Power 202.73 MW 12009.48 MW
Small Hydro Power (up
3 to 25 MW) 31.64 MW 2767.05 MW
4 Cogeneration-bagasse 67.5 MW 1411.53 MW
5 Waste to Energy 7.5 MW 72.46 MW
6 Solar Power 2.0 MW 12.28 MW
Total (in MW) 356.87 MW 17173.9 MW
Remote Village
II. Electrification 208 Villages & Hamlets 6867 Villages & Hamlets
6. Suggestions
Following suggestions are given for policy makers for development, dissemination and better and efficient
use of renewable energy technologies in the country:
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1) Establishment of biomass /solar / wind power generation systems and energy saving in every
government office to encourage and inspire people.
2) Strenuous exaltation of renewable energy by government agencies, public sector, corporate,
academic institutions etc.
3) Foundation of national-level body to increase awareness of renewable energy at comprehensive level.
4) Research and development of renewable energy technologies get provided the financial support and
sponsorship.
5) Setting up aspiring goals and targets for power generation non-conventional sources.
6) Making it compulsory to install solar water heating systems for all urban residential and commercial
establishments.
7) Imperative renewable energy systems provision for new residential, commercial and industrial
buildings.
8) Restricting use of large battery energy storage systems and promoting use of biofuels in vehicles.
9) Abrogating duties / taxes on import of small-scale renewable energy generating equipment and
providing manageable loans for setting up renewable energy enterprises.
10) Handsome incentives and subsidies for installation and successful operation of renewable energy
equipment and additional incentives for buyers and manufacturers of renewable energy equipments
in rural areas.
11) Cultivation of energy crops on marginal and degraded land.
7. Conclusions
There is an urgent need for transition from petroleum-based energy systems to one based on renewable
resources to decrease reliance on depleting reserves of fossil fuels and to mitigate climate change. In
addition, renewable energy has the potential to create many employment opportunities at all levels,
especially in rural areas. So Isolated systems, whose cost depends on load factor are needed to be linked with
rural industry. Innovative financing is also a requirement.
Mainstreaming of renewables is very essential. Energy security, economic growth and environment
protection are the national energy policy drivers of any country of the world. The need to boost the efforts
for further development and promotion of renewable energy sources has been felt world over in light of high
prices of crude oil.
A disparaging part of the solution lies in promoting renewable energy technologies as a way to address
concerns about energy security, economic growth in the face of rising energy prices, competitiveness, health
costs and environmental degradation. The cost-effectiveness of Wind and Small Hydro power energy should
also be taken into account.
An emphasis should be given on presenting the real picture of massive renewable energy potential; it would
be possible to attract foreign investments to herald a Green Energy Revolution in India.
Specific action include promoting deployment, innovation and basic research in renewable energy
technologies, resolving the barriers 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 wind electric generators, and enhancing
the regulatory/tariff regime in order to main stream renewable energy sources in the national power
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system(Source: NAPCC). Accordingly, increased focus is being laid on the deployment of renewable power
that is likely to account for around 5% in the electricity-mix by 2032.
India’s quest for energy security and sustainable development rests a great deal on the ability to tap energy
from alternate sources or the renewable sources.
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