India Energy Situation

Overview

Republic of India
Flag of India svg.png
Capital	New Delhi (28° 36′ 50″ N, 77° 12′ 32″ E)
Official language(s)	Hindi, English
Government	Federal parliamentary constitutional republic
President	Pratibha Patil
Prime Minister	Manmohan Singh
Total area	3,287,263 km2
Population	1,210,193,422 (2011 estimate)
GDP (nominal)	$1.538 trillion (2010 estimate)
GDP Per capita	$1,265 (2010 estimate)
Currency	Indian rupee (INR)
Time zone	IST (UTC+05:30)
Calling code	+91

Energy situation

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Energy Supply

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Electricity

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Energy Consumption

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Energy demand in the household sector

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Electricity

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Access rate

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Market situation for different energy technologies and services

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Solar Energy

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Wind Energy

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Biomass

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Biogas

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Hydro Power

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Other renewable Sources

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Key problems of the energy sector

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Policy framework, laws and regulations

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General Energy policy, Energy strategy

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Important Laws and regulations

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 Specific strategies (Biomass, renewable energies, rural electrification, energy access strategy etc.)

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Institutional set up in the energy sector, activities of other donors

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Governmental institutions

The Energy Sector in India is governed by four main ministries at the Central Government level, namely:

• The Ministry of Power, which is in charge of electricity.
• The Ministry of Oil and Gas, which controls pricing of oil and gas, licensing
  and their imports.
• The Ministry of Coal, which controls pricing of coal, its imports and is also in
  charge mining of coal, and;
•  the Ministry of New and Renewable Energy (MNRE).

In addition to these Ministries, there is also the Department of Atomic Energy (DAE) which is in charge of all Nuclear Power Plants in the country. DAE works and reports directly to the Prime Minister of India.
All these ministries are guided in policy making by the “Power & Energy Policy and Rural Energy Division” of the Planning Commission of India.

Private sector (enterprises, NGOs)

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Activities of other donors, activities of NGOs

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Existing Projects 

Government Programmes

Jawaharlal Nehru National Solar Mission (JNNSM)

for more information see Jawaharlal Nehru National Solar Mission

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)

The Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) scheme was launched by the MoP in 2005 to increase the pace of rural electrification under the “Power for all by 2012” initiative. As progress of RGGVY was considered too slow during the 10th plan period, in 2008 the RGGVY was further extended into the 11th plan period (2007-12).
RGGVY financing is available for the following scheme:

• A Rural Electricity Distribution Backbone (REDB) with 33/11 KV (or 66/11 KV) sub-station,
  
• Village Electrification Infrastructure (VEI) with provision of minimum of one distribution transformer in each village or habitation,
• Decentralised Distributed Generation (DDG) systems based on conventional sources or renewable energy where grid supply is not feasible or cost-effective.

On the ground, the schemes would be implemented by franchisees working as distribution companies for the local communities by buying power from the SEBs / DISCOMs and selling it to the final customers. Under RGGVY, the MoP grants 90% of investment costs for rural electrification projects through REC. SEBs are supposed to come up with the remaining 10% of the cost either through their own funds, loans from the REC, or other institutions. Final consumers would need to pay connection fees; however, for households below the poverty line (“BPL Households”), no connection fee would be charged.
RGGVY aims to electrify 125,000 villages and connect the entire 23.4 million “below poverty line” households with free connection. RGGVY is also expected to augment the existing network in 462,000 electrified villages by 2010. While so far the grid extension schemes of RGGVY are advancing according to plan (489.532 villages electrified; 82.32% of target achieved), almost no schemes have been implemented under DDG.

For more information: http://rggvy.gov.in

Remote Village Electrification (RVE) Programme

The Remote Village Electrification (RVE) programme of the MNRE supplements the efforts of MoP by electrifying un-electrified remote villages and hamlets where (i) grid connectivity is not feasible or not economical, and (ii) where DDG projects under RGGVY are not implemented. REC decides whether villages/hamlets will be covered under RGGVY or RVE.
The RVE programme is implemented in the states by state nodal agencies (like REDAs), which receive 90% capital subsidy from the MNRE. A remote village or remote hamlet will be considered electrified if at least 10% of the households are provided with lighting facility. The RVE is technology neutral, but in 80-85 % electricity is provided through solar PV systems.
The cumulative sanctions under the Programme since its inception reached around 9300 villages and hamlets; so far work has been completed in around 5400 villages and hamlets. A target for coverage of 10,000 villages and hamlets has been set for the 11th Plan, out of which around 2600 villages and hamlets had been taken up by March 2009.

For more information: http://www.mnre.gov.in/prog-rvlp.htm

Village Energy Security Test Projects (VESP), since 2004

The aim of the MNRE test projects on village energy security goes beyond electrification by addressing the total energy requirements for cooking, electricity, and motive power with a focus on use of biomass energy. 90% of the capital cost of the test projects would be met through central grant, subject to a benchmark of Rs.20,000/- per beneficiary household for meeting the total domestic and community energy requirements. There are 81 test projects under implementation in 10 States of which 54 projects have been commissioned.

During the mid-term appraisal of the 11th Plan in September 2009, a decision was made to concentrate on consolidating the VESP projects already taken up for implementation, during remaining plan period. The original proposal was to cover 1,000 villages with
a total outlay of INR 225 crore during the Plan period. However, a bulk of it has remained unspent.

For more information: http://www.mnre.gov.in/adm-approvals/vesptest.pdf

National Biogas and Manure Management Programme (NBMMP), since 1981

The Central Sector Scheme on National Biogas and Manure Management Programme, which mainly caters to setting up of family type biogas plants, has been under implementation by MNRE since 1981-82. National Biogas and Manure Management Programme provides for central subsidy in fixed amounts, turn-key job fee linked with five years’ free maintenance warranty; financial support for repair of old-non functional plants; training of users, masons, entrepreneurs, etc.; publicity and extension; service charges or staff support; State level Biogas Development and Training Centres (BDTC); (fixed amount of CFA to institutional biogas plants); financial support for institutions for cattle dung based power generation plants; etc 
The Programme provides Central Financial Assistance (CFA) of Rs 2100to Rs14700 per family depending upon the capacity of the plant, location and the status of family. So far 4.12 million family type biogas plants have been installed. 34% of the potential has been realized so far (2008-09). The Programme is reviewed and revised from time to time in five year plans and annual plans.

For more information: http://www.mnre.gov.in/adm-approvals/prog-ftbp.htm

Solar PV Programme, since 1982

A country wide Solar Photovoltaic Demonstration Programme is being implemented by the MNRE for more than two decades. The Programme is aimed at developing cost effective PV technology and its applications for large-scale diffusion in different sectors, especially in rural and remote areas.

Major components of the solar PV programme include, R&D, Demonstration and Technology Utilization, Testing & Standardization, Industrial and Promotional activities etc.

The following solar PV systems are covered under the solar PV programmes of MNRE:

• Solar Home Lighting Systems/Solar Home Systems
• Solar Lanterns
• Solar Street Lighting Systems
• Stand-alone PV Power Plants
• Solar PV Water Pumping systems
• Other applications of solar PV Technology including new applications.

The programme provides Rs.2400 to Rs.17300 for solar lighting system depending upon the area, Rs125,000 to Rs.270,000/kWp for SPV standalone power plant depending upon the capacity of plant and region. For solar pumps a subsidy of Rs.30/Wp of SPV array used, subject to a maximum of Rs.50,000 is provided per system. So far, 510,877 SPV Home Lighting Systems, 767,350 Solar Lanterns, 82,384 Street Lighting Systems and 7,247 solar pumps have been installed.

For more information: http://www.mnre.gov.in/spv-prog.htm

National Biomass Cookstoves Initiative (NBCI), since 2009

under MNRE. for more information: http://www.mnre.gov.in/prog-nbci.htm

Publications

Energy Sector

• Energiemarkt Indien (in German). BMU / GTZ, 2010.
  

RE in general

• Unleashing the Potential of Renewable Energy in India. World Bank / ESMAP, 2011.
  
• Indian Renewable Energy Status Report. NREL, REN21, GTZ, IRADe, 2010.
  

Rural Energy

• Shifting of Goal Posts - Rural Electrification in India: A Progress Report. Vasudha Foundation, 2010.
• Power to the People: Investing in Clean Energy for the Base of the Pyramid in India. WRI, 2010.