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

India has a population of over 1.21 billion (2011 census). Out of these 1210 million people, 600 million Indians do not have access to electricity and about 700 million Indians use biomass as their primary energy source for cooking.

Generating capacity addition during the Tenth Plan (2002-2007)  & Anticipated generating capacity by the end of the Eleventh plan (2007-2012) (in MW)

	Hydro	Thermal	Nuclear	RE	Total
Installed Capacity as on 31 March 2002	26269	74429	2720	1628	105046
addition during 10th plan	7886	12114	1080	6132	27212
Installed Capacity as on 31 March 2007	34654	86015	3900	7760	132329
Proposed addition during 11th plan	15627	59693	3380	14000	92700
Total capacity antidipated as on 31 March 2012	50281	145708	7280	21760	225029

(Source: www.planning commission.nic.in)

Energy Supply

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Electricity

Power Cuts

A crowdsourcing information webpage on power cuts in India has been in operation since 2011: [1]

Energy Consumption

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Energy demand in the household sector

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Electricity

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Access rate

2009 (IEA)
Electrification rate - 66.3%
Population without electricity - 403.7 million

2008 (IEA)
Electrification rate, total - 64.5%
Electrification rate, urban - 93.1%
Electrification rate, rural - 52.5%
Population without electricity - 404.5 million

Market situation for different energy technologies and services

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Solar Energy

• PV
• Solar Thermal - Solar Thermal Applications in Industries in India

Wind Energy

Reported installed capacity by Dec 2011: 16084 MW Ranked as the 5th country with the largest installed capacity.

During the 2011 India add 3019 MW of wind power.

Source: Global wind statistics 2011 (GWEC)

Biomass

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Biogas

 Biogas technology in India

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.)

Strategic Plan for New and Renewable Energy Sector for the period 2011-2017

National Policy on Biofuels - The Goal of the Policy is to ensure that a minimum level of biofuels become readily available in the market to meet the demand at any given time. An indicative target of 20% blending of biofuels, both for bio-diesel and bio-ethanol,
by 2017 is proposed.

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. Under Ministry of Power comes the Central Electricity Authority (CEA) is responsible for the technical coordination and supervision of programmes.
• 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)

Bosch India - Under its CSR wing, Bosch is looking into implementing PV projects in rural India. Together with Husk Power, Bosch has implemented a 5 kW solar mini grid in Bihar.

D.Light - private company ("Silicon Valley Venture") manufacturing 3 types of small off-grid lighting products. D.Light has received start-up financing by Shell Foundation and the Acumen Fund.

Envirofit - is a private company selling improved cooking stoves in India as well as East Africa.

EnviTec Biogas -is a joint venture of German biogas plant manufacturer with a local Indian biogas company is involved in setting up several biogas projects all over India.

First Energy is a stove manufacturer based in Pune, Maharashtra. The Oorja stove is a gasifier stove (55% efficiency) running on biomass pellets (agricultural residues) that are marketed together with the stove, it was originally designed by BP.

GK Energy Marketers is focusing on CDM development for energy products as well as in general marketing/project implementation for renewable energy technologies: Marketing of the Vikram stove, development of Cookstove CDM projects and a SWH PoA,  biomass gasifiers for village electrification planned.

GreyMatter Technologies in Bangalore, is the manufacturing company contracted by iSquareD to manufacture the Chulika stove. The plant has 14 staff. The manufacturing unit has a capacity of 300 stoves per day (1 shift).

Greenleaf is a private company involved in Biodiesel production from mainly Pongamia plantations in Bihar.

Greentech is a Delhi-based consultancy providing energy advisory services in the areas of buildings, renewables, small industries and carbon project development. Greentech has 6 staff members and is working with 14 associations which spread all over India. e.g. Bushlight (off-grid PV systems with intelligent load controllers) and all India solar water heater market assessment studies and surveys for different sectors and demand segments (under UNDP SWH project).

Harvest Energy Private Limited is a private company involved in biomass gasification (2 sites) and charcoal production from various types of biomass.

Husk Power is a private business aiming at providing power from biomass gasifiers to rural communities.

MEMC/Sun Edison - MEMC in Chennai, a global leader in the manufacture and sale of wafers and related intermediate products to the semiconductor and solar industries, pioneered the design and development of wafer technologies over the past 50 years. In 2009, MEMC bought SunEdison.

Mera Garo Micro Gid Power is a private company setting up rural low-cost PV mini-grids for provision of lighting services through LEDs.

Naturetech Infra is a private company involved in setting up and operating low-cost PV village grids (with support from Mera Garo) and village electricity supply systems based on biogas plants. Naturetech Infra is providing lighting and mobile charging solutions to 50 villagers in 3 remote villages in Bhagalpur dist. of Bihar through 3 solar mini-grid power plants , it is developing a 300 KW canal based mini hydel project in Rajasthan. a 1000m³ biogas providing cooking energy to 200 houesholds andelectricity to the village is under preparation.

Orb Energy provides Solar Energy Systems for residential and commercial uses. They specialize in solar photovoltaic systems for lighting and backup power, solar water heating systems, solar street lighting, and energy efficient lighting.

ONergy is a Renewable Energy venture passionately committed to sustainability and equity - providing complete energy solutions to BoP in rural India - using appropriate renewable technologies (SHS; pico PV, stoves, SWH). Currently ONergy is working in selected villages within North and South 24 pargannas. ONergy is a for-profit company while Switch ON is its not-for-profit wing.

Project Dharma is a social enterprise aiming to serve the needs of rural households at the Bottom of the Pyramid (NoP) by creating rural distribution network providing customized products and services (Solar lighting, improved stoves, water purifier, UPS inverters, fortified foods, farmer information services, energy efficient cooling solutions) sold at a socially affordable price point. The company serves as a distribution entity for existing products sourced mainly from Indian producers. Project Dharma also aims to provide micro-finance / credit solutions for rural entrepreneurs and consumers. Currently, the company has about 400 village-level entrepreneurs (VLEs) in Maharashtra, Bihar, Uttar Pradesh and Madhya Pradesh. The company has also recently been supported by the Shell Foundation as a partner for last-mile distribution of social impact products.

Saran Renewable Energy (SRE) was set up to provide more reliable electricity in Bihar. It has built a biomass gasification plant at Garkha to gasify biomass bought from local famers, and use the gas to generate electricity, which is sold to small, local businesses.

SELCO Solar Pvt. Ltd, a for-profit social enterprise established in 1995, provides sustainable energy solutions and services to under-served households and businesses. Mostly using PV, improved cooking applications, but other technologies also planned/piloted. 

S3IDF, A Social Merchant Bank, is active in financing and business support to entrepreneurs in the following energy-related areas: Lighting solutions, biogas, small household energy devices (e.g. lights, pressure cookers for efficient cooking, water purifiers), extending electricity & LPG connections and pico Hydro schemes.

Vikram Stoves is manufacturing the biomass-saving Vikram stoves in Osmanabad

Activities of other donors, activities of NGOs

Apropriate Rural Technology Institute (ARTI) - NGO, established in April 1996 by a group of scientists, technologists and social workers, to develop and transfer innovative, sustainable technologies to rural people for income generation and to improve their quality of life.RE activities: cookstove technology development & training of cookstove entrepreneuers, biogas technology development & commercialization

AVANI is a voluntary organization working in the Kumaon region of Uttarakhand (middle range of Central Himalayan region). Avani is working in solar systems (also productive use - spinning and weaving), solar water heaters, solar driers, pine needle gasification, biogas.

Bushlight India (finished)- managed by CAT Projects and funded by the Australian Government under the Asia Pacific Partnership on Clean Development and Climate, Renewable Energy & Distributed Generation Taskforce, with approval from the Government of India. It operated from July 2008 to March 2011. IT is a $3m (AUD) project funded by the Australian Government through the Asia Pacific Partnership. Partners: Gram Vikas, WWF-India, Tata BP Solar, WBREDA, local communities. Project objective: collaboratively develop, document and demonstrate an optimised model for electrifying remote villages in India using centralised solar power systems; based on the successful Bushlight Model from Australia. Two demonstration systems in remote villages (Western Orissa, West Bengal).

Centre for Rural Energy & Water Access (CREWA) - recently constituted non-profit organization. CREWA's mission is to enhance access to energy and potable water in rural areas through dissemination of appropraite knowhow as well as facilitating market access.

Department for International Development (DFID) UK - is supporting selected focal states (West Bengal, Bihar, Orissa) in the development of state action plans on renewable energy. There is also a plan of a funding mechanism for supporting off-grid RE in rural areas in India.

Development Alternatives - in a NPO working in employment generation and skill development,clean environment, and basic needs fulfilment. RE activities: "Information Networks on Decentralized Renewable Energy for Communities" funded by UNEP-GRID-ARENDAL, part of the SPEED programme (cell phone towers) by the Rockefeller Foundation, cookstoves under Shell Foundation's Breathing Space, and several other off-grid RE projects.

Environmental Defence Fund (EDF)- a US national nonprofit organization, most programmes are focused on the US, however there are also some internation activities. In India, EDF is currently implementing village-level development programmes following a cross-sectoral approach inlcuding energy (biogas plants, stoves, solar systems), covering about 100,000 households. Money is sourced from donations and carbon credit forwards. A programme on milk cooling devices for rural milk collections unit is under development with a Norwegion company.

International Finance Corporation (IFC) is a member of the World Bank Group. RE activities in India: provision of loans and equity financing to RE companies (e.g. Husk Power), interested in off-grid business models for upscaling.

KFW Development Bank - Energy activities: through the Indian Renewable Energy Development Agency (IREDA) sub-loans to promote the development of renewable energies (wind power plants, SHP, CHP, biomass) are provided. Focus on construction and modernisation of hydropower plants. KFW is also active in energy efficiency measures, supporting India in halving the enormous power losses caused by higher voltage levels, particularly in rural supply networks, from the current level of 20 to ten percent. Providing financing tooff-grid energy providers is also on the agenda.

Mahatma Gandhi Institute for Rural INdustrialization MGIRI is a National Institute under the Ministry of Micro, Small and Medium Enterprises,Govt.of India. MGIRI has with support of MNRE developed several solar-powered devices for rural applications, e.g. solar spinning wheels, air coolers, grinders and potter’s wheels. However, there have been no attempts to bring these products to the market on a larger scale.

Prayas is a Pune-based Research NGO with focus on policy research in the areas of health, energy, resources and livelihood, learning and parenthood. Prayas is conducting research on RE policy, just starting to get involved in issues to off-grid renewable energy.

Rockefeller Foundation - SPEED (Smart Power for Environmentally-sound Economic Development) is a 5-7 Mio US$ TA programme to increase economic development in rural areas by providing energy to local businesses. To increase profitability SPEED is linking up with operators of mobile phone towers to provide a constant base load for rural village grids. First pilots with DESI Power have been implemented.Other partners are Development Alternatives, Pradan, Prayas and others. Goal for the 2nd phase of SPEED (2011-2013): Establish 50-70 pilot plants in 4 to 5 states

Shakti Sustainable Energy Foundation is the regional climate foundation in India of Climate Works Foundation.

Shell Foundation (Report on Shell Foundation's Activities in India

• Breathing Space - tackles the ‘silent killer in the kitchen’ - the fumes inhaled by people cooking on smoky fires and stoves, (which is responsible for a 1.5 million premature deaths worldwide) by promoting and selling improved stoves through a market-oriented approach.
• Excelerate -  this program aims to help small enterprises provide modern energy services for the poor in ways that are financiylla viable and scalable through a combination of direct investments and support of intermediary organisations. The programme thereby provides new economic opportunities, enhance livelihoods, and helps reduce the impacts of climate change.

SAMUHAis an NGO working in six districts of Karnataka - Raichur, Koppal, Haveri, Gadag, Uttara Kannada and Banga­lore Urban. iSquareD is a charitable trust which explores, supports and enhances social enterprises. It was promoted by SAMUHA and is still very closely linked. iSquareD is promoting and marketing the Chulika stove, which is manufactured for iSquareD through Gray Matter Technologies in Bangalore.

The Energy and Resource Institute (TERI)leading think tank and research institute

energy activities:Gasifier technology for industrial thermal applications, Gasifier technology for rural electrification, Gasifiers for cold storage in rural areas, Analysis of business models to develop a framework for off-grid electricity models, Evaluation of MNRE VESP programme, funded by World Bank, Distributed supply models, funded by World Bank, Lighting a Billion Lives Campaign, Improving solar lantern design, Solar Multi-utility,Smart mini grids, Biomass Stove Development & Distribution

TERI/Research Councils UK - Off-grid Access Systems for South Asia http://www.oasyssouthasia.info/ ,undertaking research in decentralised off-grid electricity generation in South Asia

UNDP

• 'Access to Energy - 'Enhancing Effectiveness in Electricity Distribution and End-uses" Project is a joined project with the Ministry of Power (MoP). It is focusing on rural electrification (on-grid) and has a budget of  1.5 million US$.
• Access to Clean Energy -The project aims to upscale at least 10-15 successful, cost effective, replicable, financially viable entrepreneurship based business & delivery model for deployment of RET projects that strengthen livelihoods and enhance economic development. In essence, the overall objective of the Project is to provide support for pilot projects in 35-50 villages for the development of a replicable approach for assisting local entrepreneurs to create, manage, and upscale enterprises that harness RET applications to provide a clean energy access and improved quality of life of the rural people. The Project’s four related sub-objectives are to: i. Assist in local capacity building; ii. Generate local employment; iii. Augment incomes and livelihoods through value-added production; iv. Support development of MSMEs and v. Contribute to global local environmental benefits. UNDP/MNRE: Access to Clean Energy: a Glimpse of Off Grid Projects in India
• Global Solar Water Heating Market Transformation and Strengthening Initiative, India one of six countries within in this programme. 2008-2012, 13 Mio USD., goal of installing 7 mio m² of additional SWH by 2020, support to supply chains, building awareness, refine and replicate incentive programmes for SWH.

UNIDO/GEF - Project on Promoting Energy Efficiency & Renewable Energy in selected MSME Clusters, in coopperation with MNRE, Bureau of Energy Efficiency (BEE), Ministry of MSME. The aim of the project is to develop and promote a market environment for introducing enhanced use of energy efficiencies and RE technologies in process applications in 12 selected energy-intensive MSME clusters in India with expansion to more clusters later, in oder to improve the productivity and competitiveness of units as well as to reduce overall carbon emissions and improve the local environment. The project will work at cluster levels as well as at policy level to achieve its aim. Started in 2011.

USAID - 1) Community Development with Solar Energy Illumination, 2) Market Initiative for Advancing Clean Energy and 3) Sustainable Green Business Development in India, 4) Partnership to Advance Clean Energy (PACE ), 5) Support of Improved Cookstoves through the USAID Health Programme

Vasudha Foundation was set up to promote environment -friendly, socially just and sustainable models of development by focusing on alternative technologies and lifestyle solutions. Main areas of work: policy advocacy, climate Negotiations,engaging multi-lateral agencies, demystifying RE/ demolishing myths, State Climate Action Plans

Winrock International India (WII) is a non-profit organization working in the areas of natural resources management, energy and environment, and climate change. Rural Energy Access Group

World Bank - Development of a model for distributed power generation, study to develop a distributed energy supply model which combines distributes power generation with rural frachisee models (with TERI), technical support for the MNRE VESP programme.

WWF India - Two studies in biodiversity hot spots have been undertaken by WWF: 1)  Sustainable RE solutions (near Nepal) 2) Options for 100% RE supply (Satpura-Maikal lanscape).

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.

The World Bank has conducted a detailed assessment and identified lessons learned from VESP in a 2011 study: http://www.mnre.gov.in/pdf/VESP-Final-Report-July%202011.pdf

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

It emphasizes on enhancement of technical capacity in the country by setting up state-of-the-art testing, certification and monitoring facilities and strengthening R&D programmes in key technical institutions. The dominating focus is put on health impacts by improving combustion efficiency, avoiding the generation of pollution. The considered stoves are therefore more sophisticated (e.g. centrally-manufactured gasifier stoves with forced draft through electric fans; require development of sophisticated supply chains since such materials and components mostly are developed by specialized firms) and expensive than in previous programmes.

The project is focusing on improving the technical capacities for improved cookstoves in India through:

• Setting up of regional test centers,
• Improving test protocols and standards,
• Strict monitoring,
• R&D,
• Pilot projects implemented through the state nodal agencies of MNRE.

State-specific information

Bihar

Bihar Energy Situation

Orissa

Biogas in Orissa

Publications

Energy Sector

• Energiemarkt Indien (in German). BMU / GTZ, 2010.
• PSI Media Inc. (2010) India Energy Handbook

Power Sector

IEA (2011) Technology Development Prospects for the Indian Power Sector

KPMG (2010) Power Sector in Inda. White Paper on Implementation Challenges and Opportunities

McKinsey (s.a) Powering India. The Road to 2017.

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.
• Energy Poverty in Rural and Urban India - Are the Energy Poor also Income Poor? World Bank, 2010.
• Still Waiting - Report on Energy Injustice. Greenpeace, 2009.