World energy issues monitor 2024
In a world where the demands for secure, affordable and sustainable energy are ever-increasing, global and national energy systems are showing signs of deficiencies and strains everywhere. There is an
Power Transmission
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Govt wants us to get our own power at home
Dev Chopra, a retired official who lives in DLFII, says he managed without a generator for years but gave in recently.
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GURGAON IN GLOOM
You don't have to look far to know why this city is being pushed into the dark ages. Govt didn't bother to plan for infrastructure even as more and more private colonies were allowed to come up and industry grew. Now they say it will take time. So, make your own arrangements and pay the penalty Dipak Kumar Dash | TNN Gurgaon, the fading dream of a Millennium City, is battling a power crisis that has seen power cuts up to 12 hours in winter. And now with summer on us, there is a mad scramble for inverters and generators, an expensive proposition besides being unfriendly to the environment. Sixty-two-year-old Vijay Malhotra, a resident of DLF Phase-IV, says living in Gurgaon is a big drain on resources.
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EU deal could have domino effect on sector
Eon's shock offer yesterday to sell its prized electricity transmission grid could have a domino effect on the European Union's energy sector. The German company struck a deal with EU competition regulators to divest the asset to settle two antitrust cases against it, an important breakthrough in Brussels' efforts to prise open electricity and gas markets.
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Scientists get a clue for superconducting materials
power transmission is an endless battle with the phenomenon of resistance, which leads to losses. The search for a superconductor, which offers no resistance to the passage of electricity, has kept
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Separate feeders for homes, fields in Maharashtra
as part of the power sector reforms in Maharashtra, a government-owned distributor will separate feeders that service homes from those that feed agricultural pumpsets. Expected to complete over two
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At Rs 2,800 crore, Haryana tops chart of power subsidy to farmers
Cash-rich Haryana has earmarked Rs 2,800 crore for power subsidy to farm sector for the year 2008-09, surpassing even Andhra Pradesh, which has earmarked Rs 2,385 crore for free power supply to the farmers in its 2008-09 Budget presented this month. From Rs 400 crore six years back, it is a seven-fold leap for Haryana which is paying an average of Rs 40,000 per tubewell for the nearly 4.3 lakh tubewells in the state. Though Haryana, unlike neighbouring Punjab, does not dole out power free to the farm sector, but subsidises it at 25 paisa per unit. As a result, the farmer pays less than Rs 4,000 per tubewell to the power utilities and nearly 10 times the amount (Rs 40,000) is borne by the state Government. An estimated Rs 300 crore out of the Budget outlay of Rs 2,800 crore for power subsidy is due to the hike in the cost of generation and transmission of power, official sources in Dakshin Haryana Bijli Vitran Nigam (DHBVN) said. "The estimate for power subsidy for 2008-09 is Rs 2,800 crore, against Rs 2,132 crore last year. Though we are able to afford it, subsidies cannot go on endlessly,' said Haryana Finance Minister Birender Singh. "We are mulling over ways to reduce power subsidy burden. At a recent Cabinet meeting, we discussed the proposal of providing power subsidy directly to farmers instead of the power utilities, on the lines of Union Finance Minister's view on providing direct fertiliser subsidy to farmers. It will also help us adjudge the magnitude of transmission and distribution losses which are passed on as power subsidy by the power utilities of the state,' he added. Interestingly, Haryana, unlike Punjab, which was recently directed by its state electricity regulatory commission to clear subsidy arrears of the last few years, is also very prompt in making payments for the power subsidy to the power utilities, which are made twice in a month and even weekly. However, even after footing a huge subsidy bill, the state has failed to ensure that there are no defaults in payments by farmers. The present Congress regime had announced Rs 1,600 crore waiver for arrears of rural domestic and agriculture categories of consumers in the year 2005. "The waiver scheme was an effort to support the farmers to join the mainstream. It was not a blanket waiver, but one aimed at encouraging farmers to pay their current bills for 20 months without fail after which their arrears will be waived off,' says Haryana power secretary Ashok Lavasa. About 60 per cent of defaulting farmers have joined the scheme, which till the last review meeting of the power department, has generated close to Rs 350 crore for the state. However, according to a World Bank report on Haryana power subsidy, they are proving counterproductive for the farm sector, which has to endure the frustration and economic costs of supply that is both unreliable (not available at predictable times) and of poor quality (with fluctuating voltage).
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Power tariffs should include social costs
Build infrastructure' has become the favourite slogan of India Inc and is seen as the most important action for development. The discussion usually focuses on the massive investment required and the difficulties of providing it, but rarely on the way infrastructure planning is done. Official plans propose increasing the power generation capacity by 60% over the next 5 years and by 600% by 2031. According to the Planning Commission's working group on power, an investment of Rs 9,70,000 crore will be required just for the next five years. These projections are seen as natural for development. But there are several irreconcilable problems with this approach, which are leading to a crisis. The earlier we review our path, the better it is for our Economy and for democracy. Our plans are not accompanied by an assessment of impacts, nor a check on whether they are realistic. We do not estimate the land and water needed to install and run proposed power plants, nor do we check tariff impacts of investments. Even ballpark estimates of the number of people to be displaced are rare even though, potentially, the numbers can be large. For example, a study by the coal ministry estimates that coal mining alone will displace 8.5 lakh people in 20 years. Getting water or land for new power projects is going to be impossible without major social conflicts. Getting fuel will not be any easier. According to current estimates, known Indian coal reserves will be used up in 50 years. In this scenario, Indian energy imports will upset even the international fuel Markets. Three corrections are urgently needed in infrastructure planning. First, we should recognise that social and environmental costs are real and are paid, usually by the poor. These costs should be included in the cost of electricity. Second, the focus should shift from energy consumption to services. Current planning focuses on electricity
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We are ahead in attracting investments
Chhattisgarh, which became a separate state in November 2001, has the richest reserves of minerals in India. It is for the same reason that it is attracting a lot of investors, says the state's Chief Minister Raman Singh. In conversation with Yeshi Seli, the chief minister points out that steel and power projects would be attracting major investments in the years to come. The Tatas had evinced a keen interest in setting up a steel plant in Chhattisgarh but that ran into rough weather. What is the latest on that front? Substantial progress has been made ii the project that the Tatas would be setting up. The land acquisition proceedings have already been completed. And contrary to what some people may want to believe, majority of the farmers have accepted the compensation package. In fact, we are certain that onsite work on the project would begin by the end of February or the beginning of March this year. As far as the farmers are concerned, we have provided a modern and pro-people 'rehabilitation package' to them, which includes alternate agricultural land for those who want to continue with agriculture, instead of accepting an employment in the plant. As you may be aware, Chhattisgarh is rich in minerals and our government has formulated a specific policy of value, addition of our natural resources within the state. Our good quality iron ore, bauxite and lime stone have attracted a number of iron & steel, aluminium and cement industries to invest in our state. We are number one state in attracting investment proposals and have received offers worth around Rs, 10,000 crore. Installation of various industries is in different stages of completion and more than Rsl5,000 crore have already been invested in these sectors within the last four years. There were reports suggesting that L.N. Mittal wanted to set up a greenfield steel plant in your state... There are many Indian and foreign companies that are interested in setting up steel plants in our state. However, till something conclusive is arrived at, it would not be prudent on our part to divulge details for the same. Would your state prefer investment by domestic companies like the Tatas to international majors like Mittal? Projects which are in the interest of the state, be it by Indian or foreign companies, would be offered a level playing field in Chhattisgarh. However, we would look forward to proposals/investments in new technology sectors like it. It is also understood that Chhattisgarh has huge reserves of diamonds and international majors like De Beers were allowed to mine in the state. What were the results of the same? Yes, there are diamond reserves in our state. Regarding De Beers, some of its projects have been recommended by our government to the Centre for granting it prospecting licence. With new projects coming up, there would be additional requirement of power. Is your state equipped with adequate power? During the past two decades, not one new power project was established in our state. However, things have improved now, as thermal power projects with a collective capacity of 500 megawatt (mw) Tiave been established here recently. Also, an action plan has been prepared to make our state the power hub of the country. Accordingly, MoUs have been executed to set up power plants with 30,000 mw capacity, which would be worth about Rsl,35,000 crore. On 1 January 2008, Chhattisgarh became a 'no power-cut state'. Now, we are supplying power for 24 hours in our rural as well as urban areas without any interruption. We have also invested around Rs20,000 crore to improve our transmission and distribution network for quality power supply. How do you ensure law and order for those coming to invest, as there is a huge Naxalite problem in Chhattisgarh? The long-standing problem of Naxalites is not limited to Chhattisgarh alone. This problem will have to be tackled in close co-ordination with the Union government and other affected state governments. I think the efforts taken in this direction are yielding positive results. The worst phase, I feel, is over. People in the affected districts are now fed up with this menace and are voicing their resistance towards Naxalites, which is creating panic within the Naxalites. The state government is in control of the situation and I don't think it will affect the flow of investments in the state.
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Power sector initiatives: Deja vu?
In contemporary parlance, SEBs remain deeply subprime. Several initiatives in the power sector are supposedly on the anvil. First, a Rs 100,000 crore National Electricity Fund (NEF) has been reportedly proposed by a committee. Ostensibly the objective is to provide loans to those state electricity boards and, presumably, their successor unbundled entities comprising transmission and distribution companies that cannot otherwise borrow from normal channels, like banks. The money will be borrowed for the benefit of state electricity boards (SEBs) by government-owned specialised financial intermediaries, specifically, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) with the help of fiscal sops and concessions (and implicitly government backing given the origins of these entities). Second, the possible extension of the tax holiday for new power projects (including mega ones) from 2010 to 2017 since projects that have been awarded recently are unlikely to begin operations on time to benefit within the current deadline. Third, a revamped Accelerated Power Development and Reform Programme (APDRP) to induce reduction in aggregate technical and commercial (ATC) losses may be introduced, whereby states are financially rewarded if losses decline to a target level, say, 15 per cent. The serious "new' money is the NEF, if it comes about. The proposed initiatives are hardly original, they are devoid of conviction (since we are close to elections), and they are largely an admission of failure. Since the beginning of the decade, this will be the second instance of a major central government financial intervention in the electricity sector. It may be recalled that in 2001, unpaid dues (including interest and penalties) of SEBs to central public sector units (CPSUs) and Indian Railways had reached Rs 41,500 crore (about 2 per cent of 2000/01 GDP); the sector was on the verge of a default crisis, which would have taken CPSUs down, financially. The way out, in a manner of speaking, entailed securitising Rs 35,000 crore through bonds
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State to get power from Tamil Nadu
The State will get 122 MW of power from a mega power project at Tuticorin at Rs.2.92 a unit, Electricity Minister A.K. Balan has said.