Power Sector in India - Renewable Energy, Wind Energy, Solar

Power
India with a production of 1,006 terawatt hours (TWh), is the fifth largest producer and consumer of
electricity in the world. In India sources for power generation range from commercial sources such as
coal, lignite, natural gas, oil, hydro and nuclear power to other viable non-conventional sources such as
wind, solar, and agriculture and domestic waste.
The key components of Power sector include Renewable Energy, Wind Energy and Solar Power.

Market Size
The Planning Commissions 12th Plan expects total domestic energy production to reach 669.6 million
tonnes of oil equivalent (MTOE) by 201617 and 844 MTOE by 202122.
Indian solar installations are forecast to be approximately 1,000 megawatt (MW) in 2014, as per
Mercom Capital Group, a global clean energy communications and consulting firm.
By 2030 35, energy demand in India is projected to be the highest among all countries according to
the 2014 energy outlook report by British oil giant BP.

Investments
With policy liberalisation, the sector has witnessed high investment flows. The power ministry has set a
target for adding 76,000 MW of electricity generation capacity in the 12th Plan (201217) and 93,000
MW in the 13th Plan (20172022).
The Working group on power for formulation of the 12th Five Year Plan has estimated total fund
requirement of Rs 1,372,580 crore (US$ 227.98 billion) for the power sector. The industry attracted
foreign direct investment (FDI) worth Rs 40,417.6 crore (US$ 6.72 billion) during April 2000 to January
2014.

Road Ahead
Wind energy is the largest renewable energy source in India; projects like the Jawaharlal Nehru National
Solar Mission (aims to generate 20,000 MW of solar power by 2022). They also help build a positive
environment to attract investors to India. India has vast potential for solar energy and is quickly
developing itself as a major manufacturing hub for solar power plants. Besides, it is expected that the
annual PV-installed capacity will grow at a CAGR of around 49.5 per cent during 20102014 to reach
1,500 MW. The government is targeting capacity addition of around 89 GW under the 12th (201217)

and around 100 GW under the 13th (201722) Five-Year Plan. The expected investments in the power
sector during the 12th Plan (201217) is US$ 223.9 billion. There is a tangible shift in policy focus on the
sources of power. The government is keen on promotion of hydro, renewable and gas-based projects, as
well as adoption of clean coal technology.
Wind energy is the largest source of renewable energy in India; it accounts for an estimated 87 per cent
of total installed capacity (18.3 GW). There are plans to double wind power generation capacity to 20
GW by 2022.
Biomass is the second largest source of renewable energy, accounting for 12 per cent of total installed
capacity in renewable energy. There is a strong upside potential in biomass in the coming years.

Indian Power Industry - Current Scenario and Opportunities Ahead

Power or electricity is one of the most critical components of infrastructure, affecting economic growth
and wellbeing of nations. The existence and development of adequate power infrastructure is essential
for sustained growth of the Indian economy. With a production of 1,006 terawatt hours (TWh), India is
the fifth largest producer and consumer of electricity in the world after US, China, Japan and Russia.
The Indian power sector is one of the most diversified in the world. Sources for power generation range
from commercial sources such as coal, lignite, natural gas, oil, hydro and nuclear power to other viable
non-conventional sources such as wind, solar, and agriculture and domestic waste. The demand for
electricity in the country has been growing at a rapid rate and is expected to grow further in the years to
come. In order to meet the increasing requirement of electricity, massive addition to the installed
generating capacity in the country is required.
Wind power in India
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 United
States, India has the fifth largest installed wind power capacity in the world.[1] In 2009-10 India's growth
rate was highest among the other top four countries.
As of 31 March 2014 the installed capacity of wind power in India was 21136.3 MW,[2][3] mainly spread
across Tamil Nadu (7253 MW),[4] Gujarat (3,093 MW), Maharashtra (2976 MW), Karnataka (2113 MW),
Rajasthan (2355 MW), Madhya Pradesh (386 MW), Andhra Pradesh (435 MW), Kerala (35.1 MW), Orissa
(2MW),[5][6] West Bengal (1.1 MW) and other states (3.20 MW).[7] It is estimated that 6,000 MW of
additional wind power capacity will be installed in India by 2014.[8] Wind power accounts for 8.5% of
India's total installed power capacity, and it generates 1.6% of the country's power.

Renewable energy in India

Renewable energy in India comes under the purview of the Ministry of New and Renewable Energy.
India was the first country in the world to set up a ministry of non-conventional energy resources, in
early 1980s. India's cumulative grid interactive or grid tied renewable energy capacity (excluding large
hydro) has reached 29.9 GW,[1] of which 68.9% comes from wind, while solar PV contributed nearly
4.59% of the renewable energy installed capacity in India.
Solar power in India
India is densely populated and has high solar insolation, an ideal combination for using solar power in
India. In the solar energy sector, some large projects have been proposed, and a 35,000 km2 (14,000 sq
mi) area of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 to
2,100 GW. Also India's Ministry of New and Renewable Energy has released the JNNSM Phase 2 Draft
Policy,[1] by which the Government aims to install 10 GW of Solar Power and of this 10 GW target, 4 GW
would fall under the central scheme and the remaining 6 GW under various State specific schemes.
In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020.[2] Under the
plan, the use of solar-powered equipment and applications would be made compulsory in all
government buildings, as well as hospitals and hotels.[3] On 18 November 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. From August 2011 to July 2012, India went from 2.5
MW of grid connected photovoltaics to over 1,000 MW.
According to a 2011 report by BRIDGE TO INDIA and GTM Research, India is facing a perfect storm of
factors that will drive solar photovoltaic (PV) adoption at a "furious pace over the next five years and
beyond". The falling prices of PV panels, mostly from China but also from the U.S., has coincided with
the growing cost of grid power in India. Government support and ample solar resources have also
helped to increase solar adoption, but perhaps the biggest factor has been need. India, "as a growing
economy with a surging middle class, is now facing a severe electricity deficit that often runs between
10% and 13% of daily need".[5] India is planning to install the World's largest Solar Power Plant with
4,000 MW Capacity near Sambhar Lake in Rajasthan.
There are various factors that we need to consider before investing into a solar power plant. A lot of
enthusiasm has been seen among people about the use of Solar Energy as a substitute of conventional
sources of energy. However, currently, with the power subsidies in India, solar works economical only in
those areas that are using diesel generators as a primary source of electricity. The entire payback is
made in 2-3 years. Solar system for petrol pumps is a leading example of such an application. IOCL is
leading the race for solarization of petrol pumps with aggressive targets. Solar applications for petrol
pumps by RelyOn Solar has been installed in more than 150 IOCL petrol pumps across India and now
other oil companies are also looking to solarize their ROs. Solar installations for commercial buildings,
where the electricity rates are higher, are also proving to be a game changer for the owners of IT
companies.
On 16 May 2011, Indias first 5 MW of installed capacity solar power project was registered under the
Clean Development Mechanism. The project is in Sivagangai Village, Sivaganga district, Tamil Nadu.

Conclusions

The power sector plays a crucial role in industrialization and urbanization of India and faces challenges in
absorbing high cost of inputs. It plays a socially responsible role in bridging rural-urban disparities by
improving provision of affordable commercial energy access. In order to sustain high economic growth
power will continue to play an integral role. Indian power sector has made considerable progress in the
last decade and has evolved from a nascent market to a developing market led by policy reforms and
increased private sector participation. The Indian power market is substantially dissimilar from power
markets elsewhere in the world; its very nature poses unique challenges in the development of the
market and the product as well. Challenges do exist in the sector, which India has to overcome, to
evolve from a developing market to a matured market. In consideration of the issues highlighted above,
a lot remains to be done on the part of regulators and other involved organizations to ensure smooth
functioning of the power value chain. Energy storage is of critical importance, and investment in such
technologies is essential in order to fully utilize potential of renewable energy generation. Further, the
need for a smart grid is explored for better efficiency, reliability, with possible integration of renewable
and alternate energy sources. Within the smart grid context, renewable nonvariable resources such as
pump storage, geothermal, biomass and hydro are used more than before. More generation from
renewable variable sources, such as wind and solar energy can be added to improve the efficiency of
power value chain in India. Looking from a long term perspective India would need 3870TWh of
electricity by 2030 which implies CAGR of 7% from 2005-30.

ayush jain
section a
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