Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals(SDGs). Comment on the progress made in India in this regard. [UPSC MAINS 2018](General Studies Paper-3)
Lets discuss about how to enable inclusive growth through affordable, reliable, and sustainable energy:
1) Theme of Chapter-9 in Economic Survey 2018-19 and SDG Goal-8
2) Link between energy consumption and per capita income of a country.
2) Link between energy consumption and per capita income of a country.
Theme of Chapter-9 in Economic Survey 2018-19 and SDG Goal-8
The energy sector not only plays a significant role in the growth of the country but it is also linked with the social indicators such as Human Development Index. Both Sustainable Development Goals and Economic Survey focuses on the role of energy sector in inclusive growth.
a) Economic Survey
The theme of Chapter 9 of economic survey of 2018-19 is "Enabling Inclusive Growth through Affordable, Reliable and Sustainable Energy".
b) Sustainable Development Goal
The goal 07 of Sustainable Development Goal (SDG) also provides for "Affordable and Clean Energy - Ensure access to affordable, reliable, sustainable and modern energy for all".
Link between energy consumption and per capita income of a country
Over the years, a trend is noticed that the rise in per capita income of the developed countries and upper-middle-income countries had a direct linkage with the rise in per capita energy consumption. The energy-intensive industrial growth has helped to raise the standard of living of the people. The energy sector is the forerunner in the economic growth and development of the country.
The present problem in Indian context is that the energy usage of the country is very less when compared to the global scenario. In this respect, the economic survey 2018-19 says: "Though India accounts for around 18% of world’s population, it uses only around 6% of the world’s primary energy."
Role played by energy sector in transforming India from a developing country to an upper-middle income country
In order to become an upper-middle-income country, India has do following things in energy sector:
i) Increase Energy Consumption:
India has to increase its share of energy usage on a global level with respect of its share in the world population (India is the second largest country in the world by population).
ii) Provide Access to Energy:
India needs to make sure to provide an affordable and easily accessible modern sources of energy to the common man.
ENERGY SOURCES
A. CLEAN COOKING FUEL
How is access to energy linked with poverty?
There are two problems seen in India as to how access to energy has a direct linkage with poverty:
a) There is a large gap in energy access between urban and rural areas
Though we are living in the 21st century, yet the large proportion of the rural population has to depend on the non-commercial biomass such as cow dung cakes, coal and firewood, as the primary source of energy for meeting their cooking and heating needs on a daily basis. The smoke generated from burning these unclean fuel leads to poor indoor air quality which adversely affects the health of women and children.
The share of Liquefied Petroleum Gas (LPG) as the primary cooking fuel is more in urban areas compared to the rural areas.
b) A wide disparity can be seen in access to energy across the economic strata
As we move up the expenditure the class, the reliance on non-conventional biomass like cow dung cake, firewood and coal as the primary source of energy decreases and usage of LPG as the cooking fuel increases.
What are the initiatives taken by the government to increase access to clean cooking fuel?
Government of India has taken two major steps to increase the access of clean cooking fuel upto the grassroot level in the country through launch of Ujjwala yojna and PAHAL scheme.
1) Pradhan Mantri Ujjwala Yojna (PMUY)
In order to encourage and increase the usage of LPG in the rural areas for primary cooking needs, the Ministry of Petroleum & Natural Gas has launched Pradhan Mantri Ujjwala Yojna (PMUY) on 1st May, 2016 from Ballia, Uttar Pradesh.
Under Ujjwala Yojana, the Government of India has provided 7 crore LPG connections to the BPL families till April 2019.
2) PAHAL - Direct Benefit Transfer for LPG consumer (DBTL) scheme
The Ministry of Petroleum & Natural Gas launched a Direct Benefit Transfer for LPG consumer (DBTL) scheme named ʻPAHAL’ on 15th Nov, 2014 in 54 districts of the country. The aim of PAHAL was to curb the subsidy leakages and transfer the subsidy directly in the bank account of the LPG consumer.
PAHAL has also created a World Record by being the Largest Direct Benefit Scheme in the World.
B. THERMAL POWER
Though we are shifting our focus towards renewable sources of energy for electricity generation, still coal holds the largest share which accounts for 38% market share globally in 2018 (IEA, 2019).
1) Installed electricity capacity
a) According to International Renewable Energy Agency (IRENA), out of total installed electricity capacity of the world at the end of 2018, the renewable energy accounted for 2351GW which forms one-third of the total share.
b) Out of total installed electricity capacity of India, 60% is constituted by the thermal power which forms the main component of coal-based thermal power plants.
2) Nationally Determined Contribution
Under the Paris Agreement 2015, the India's Nationally Determined Contribution (INDC) states to achieve 40% installed capacity of power from non-fossil fuels by 2030.
3) Why does coal continues to be the main source of energy in India?
Coal continues to be the main source of energy in India because:
a) Impact on Banking Sector
If the coal based power plants are abandoned suddenly and their useful lifetime is not utilized completely, then it would lead to stranding of assets having an adverse effect on banking sector as non-performing assets would increase.
b) Renewable Energy Storage
The renewable power supply is intermittent in nature and till now we do not have appropriate technology for storing energy efficiently.
Until adequate technological advancements are not made in the area of energy storage, it is not feasible to replace thermal power with renewable energy as the main source of power in India.
Way Forward for Coal-based Power Plants
Government of India aims to provide access to affordable, reliable and sustainable energy to all the citizens of the country. This could be achieved through:
1) Building capacity for cleaner and more efficient coal technologies
2) Better utilization of coal resources by generating greater output from the existing resources.
C. RENEWABLE ENERGY
Renewable energy is obtained from the natural resources which are inexhaustible and are replenished or regenerated over time. Renewable energy is environment friendly and a clean fuel which does not generate harmful greenhouse gases.
The sources of renewable energy are:
- Solar energy
- Hydro energy
- Wind energy
- Tidal energy
- Geothermal energy
The renewable energy will play a vital role if India wants to achieve energy security by following a low carbon development pathway and mitigating climate change.
The share of renewable energy in Indian energy mix is increasing year by year.
- In 2018-19, the share of renewable energy excluding hydro-power >25MW was 10% of the total installed capacity of the country where as in 2014-15, it was around 6%.
India's rank in the world in renewable energy
- Wind energy - India ranks 4th in the world
- Solar energy - India ranks 5th in the world
- Renewable energy installed capacity - India ranks 5th in the world
Government Initiatives to promote renewable energy
i) 175 GW of renewable energy by 2022
India has set a target to achieve 175 GW of total installed capacity of renewable power by 2022.
ii) Solar energy:
1) To promote and encourage domestic solar panel manufacturers, the government announced zero import duty on components used in making solar panels in the Union Budget 2018-19.
2) National Solar Mission
- National Solar Mission targets to install 100 GW of solar capacity by 2022.
3) Kisan Urja Suraksha Evam Utthaan Mahabhiyan (KUSUM) scheme
KUSUM scheme encourages farmers to install solar water pumps in the farms and use clean alternative to diesel water pumps. The objective of KUSUM scheme is to provide financial and water security to farmers and de-dieselization of the farm sector.
KUSUM scheme envisages to:
- install 2.75 million off-grid solar water pumps in the farms,
- install grid connected solar power plants of 2 MW each in the rural areas,
- solarization of existing grid connected water pumps
- farmers can sell surplus power generated from solar pumps to DISCOM
iii) Tariffs
1) Tariff discovery to made through reverse auctioning process.
2) Decrease tariffs on renewable energy sources so that cost of supplying renewable energy is decreased and hence per unit cost of power generated from renewable sources is decreased.
iv) Integrate renewable energy into the national electricity grid
- Green Energy Corridor project
Green Energy Corridor project provides for smoother integration of renewable energy into the national grid.
Renewable Energy Management Centres have been setup under Green Energy Corridor project.
v) Hydro-power Generation
India has immense hydroelectric potential of around 1,45,320 MW, out of which only 45,400 MW have been utilized.
The hydroelectric power is an environmental friendly alternative to thermal power and is available all round the year. Thus, as the energy requirements of the country is increasing, the hydroelectric power can play a major role in the development of India.
Problems in Hydel power generation
- Land acquisition
- Social and environmental impact as it displaces people and adversely affect biodiversity of the region
- Time and cost overrun of the projects
- High tariffs
Government initiatives to overcome problems of Hydro-power generation
1) New Hydro Policy
A new Hydro Policy has been approved by the government which recognizes large hydropower projects as a renewable energy source.
2) Tariff rationalization
Measures for tariff rationalization have been taken such as:
i) Hydroelectric power projects developers have been provided flexibility to determine tariff by back loading of tariff after increasing project life to 40 years,
ii) Debt repayment period is increased to 18 years
iii) Escalating tariff of 2% is introduced
3) Budgetary Support
Government to provide budgetary support for funding infrastructure such as roads and bridges and flood control component of hydel-power projects.
vi) Electric Mobility
Adoption of Electric vehicles (EVs) in India can help to fight the menace of vehicular pollution and provide an environment friendly and sustainable solution to the increasing demand of vehicular ownership.
It also provides an opportunity to India to emerge as a manufacturing hub for electric vehicles.
Impediments in adopting Electric Vehicles in India
There are several roadblocks before India can widely adopt Electric Vehicles:
a) Inadequate charging and battery infrastructure
b) No universal policy for charging standards
c) High manufacturing costs of EVs
d) The lifetime ownership cost of EVs is high
e) No manufacturing plants for Lithium-ion storage batteries in India. Thus, need to import batteries.
f) High custom duty on imports of EVs and batteries
Thus, government need to take adequate steps if EVs need to be widely adopted by people.
Read further: Electric Vehicles In India (EVs)
It also provides an opportunity to India to emerge as a manufacturing hub for electric vehicles.
Impediments in adopting Electric Vehicles in India
There are several roadblocks before India can widely adopt Electric Vehicles:
a) Inadequate charging and battery infrastructure
- Public chargers not available
- Fast chargers not available
b) No universal policy for charging standards
c) High manufacturing costs of EVs
d) The lifetime ownership cost of EVs is high
e) No manufacturing plants for Lithium-ion storage batteries in India. Thus, need to import batteries.
f) High custom duty on imports of EVs and batteries
Thus, government need to take adequate steps if EVs need to be widely adopted by people.
Read further: Electric Vehicles In India (EVs)
D. ENERGY EFFICIENCY
What is meant by energy efficiency?
Energy efficiency means lesser amount of energy is required to produce the given output.
For example:
LED bulbs consumes lesser amount of energy in comparison to incandescent bulbs to produce same amount of light i.e Light Emitting Diode (LED) is more energy efficient that incandescent bulbs.
The advantages of higher energy efficiency are:
- Saves energy
- Cost savings are more
- Green House Gases (GHG) emissions are reduced
Government Initiatives for Energy Efficiency
1) Institutional and legal framework for energy efficiency
The Energy Conservation Act of 2001 provided for creation of the Bureau of Energy Efficiency (BEE) which is a statutory body under the Ministry of Power whose primary objective is to reduce the energy intensity of India and efficiently use energy resources of the country.
2) How to Make India Energy Efficient?
The flagship programmes of Bureau of Energy Efficiency to make India energy efficient are:
a) Making Homes and Buildings Energy Efficient
- Energy Conservation and Building Code (ECBC)
- Standards and Labelling - Star Label
b) Making Industries Energy Efficient
- Perform Achieve and Trade (PAT) scheme - Energy Efficiency in Large Industry
- SME programmes - Energy Efficiency in Small & Medium Industry
c) Making States, Cities & Villages Energy Efficient
- State Designated Agency (SDA) - Energy Efficiency in States
- Demand Side Management (DSM) - Energy Efficiency through Demand Side Management
3) The largest contribution to energy efficiency in India is made by three main programs:
- PAT
- UJALA
- Standard & Labelling
Way Forward in Energy Efficiency
There is a huge potential to utilize the energy resources of the country efficiently which can be achieved through:
i) The regulatory structures need to be made favorable.
ii) The institutional framework need to be strengthened further.
iii) We need to innovative financial structures for affordable financing.
iv) The usage of latest technology can help to use energy resources more efficiently, so we need to promote research and development in the field of energy efficiency.
v) The engagement of stakeholder need to be increased.
vi) We need to review the existing approaches and plan a new set of strategies to increase energy efficiency across the country.
Thus, we can see that energy plays a vital role in the path of development of a country. If India wants to achieve energy security in an environmental friendly and sustainable manner by following a low carbon led development path, then we need to utilize the enormous potential of renewable energy along with traditional thermal power. We need to provide access to energy to all and utilize energy efficiently. We need to encourage people to utilize cleaner fuels for their cooking needs, transportation and electricity needs.
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