The great energy divide

By Shankar Sharma
December 2009

Instead of blindly adding millions of MW of additional capacity and increasing GHG emissions to bridge the energy divide, India needs to adopt an integrated approach based on renewable energy sources and decentralized supply systems at its core.

A latest Greenpeace India report has reaffirmed what the country always knew and feared. India, even after 62 years of Independence, has not been able to light homes and streets for its rural population. There still prevails an ugly discrimination in the supply of electricity to rural and urban areas. The Greenpeace report aptly titled "Still Waiting" is based on the survey conducted in five states.

But in the times when the dark clouds of climate change are hovering over one and all, the concern is not just about energy injustice in the country (which is in no way an issue India can sleep over). It is about the much graver consequences this injustice is leading the nation to. Energy consumption is linked with substantial part of Greenhouse Gas (GHG) emissions leading to global warming. Of various forms of energy, electricity alone is responsible for about 42% of global CO2 emissions and about 24% of all GHG emissions. In fact, burning fossil fuels for generation of electricity is one of the main causes of GHG emissions.

India's low per capita electricity consumption is being offered as the main argument in favor of larger carbon space for India. The fact is that for 40% of India's population commercial energy is still beyond reach. If we aim to provide energy security to our growing population in a business-as-usual scenario, the pollution level in our country will be enormous. As per Greenpeace's projection, India's contribution to the global CO2 emissions will increase from about 1,126 million tons in 2003 to approximately 4,039 million tons in 2050, increasing its share in global emissions from 4.8% to 8.7%.

While it may appear logical that India should argue for common but differentiated responsibilities for each country to reduce country specific GHG emissions, its own record of energy consumption by two broad categories of citizens should be of grave concern - Energy profligacy by the rich and lack of access to commercial energy for the poor. As per an earlier report by Greenpeace "Hiding Behind the Poor", much of India's population in the lowest income group have per capita CO2 emissions of about 335 kg, while a small section of the population with the highest income group have per capita CO2 emissions of about 1,500 kg.

Energy consumption by two broad categories of citizens should be of grave concern - Energy profligacy by the rich and lack of access to commercial energy for the poor.
According to the Integrated Energy Policy of the Planning Commission, "to sustain a growth rate of 8% through 2031-32 and to meet the lifeline energy needs of the poor, India needs, at the very least, to increase the power generation capacity to nearly 800,000 MW from the current capacity of about 160,000 MW inclusive of all captive power plants." In this context it is important to note that more than 70% of such additional capacity is projected to be coal based. In fact, successive governments have embarked on a major capacity-addition drive based on fossil fuels and dams in the last few decades.

Such a large-scale addition of conventional power capacity in a short period will have profound impact on social, environmental and economic aspects of our society. The massive amount of coal burning; the large requirement of fresh water and land to support this much of additional power capacity will not only devastate our environment but also push the vulnerable sections of our society to destitution, because of displacement, lack of fresh water and threat to livelihood.

The total installed generating capacity in the country has gone up from 58,012 MW in 1989 to 1,52,148 MW in 2009 - a whopping 162% increase. Total monthly generation from conventional sources has increased from 43,596 MU in March 2000 to 65,057 MU in March 2008, an increase of about 50%. National per capita electricity consumption has gone up from 283 kWH in 1992-93 to 429 in 2005-06, an increase of 52%. But 40% of the households, mostly in rural areas, have no access to electricity even in 2009.
A study on Rural - Urban divide

To compare the electricity supply scenario in rural and urban populations, Greenpeace India selected the five states from four regions of the country. In each state one tier A city, one tier B city, and three villages were chosen for survey. None of the 15 villages covered in the survey were found to have 100% electrification. Even in those villages, where the official records indicate more than 50% electrification of households, the supply is so bad that the per capita electricity consumption is abysmally low. Most states consider one unit a day as the lifeline energy requirement for a family.

Besides, it was found that there is neither regularity in supply nor power is it provided when the people need it most. Generally the power supply is provided in the afternoon hours and late night, when it is not of much use for the villagers. The low voltage and frequent power cuts make it just a cruel joke on villagers.

This pathetic situation of villages is in stark contrast with urban areas, which have almost 100% electrification and enjoyed 22 to 24 hours of better quality supply. "Still Waiting" has revealed that with 100% household electrification and 24 hours supply, each of these villages can attain a much improved lifestyle, drastically reducing need for urban migration.

In Karnataka between 1999 and 2009 the available power capacity has gone up by 70%; energy consumption has gone up by 95%; per capita consumption has gone up by 76%. But 356 villages remained unelectrified.
In Maharastra between 1999 and 2009 the available power capacity has gone up by 54%; energy consumption has gone up by 54%; per capita consumption has gone up by 32%. But 5,018 villages remained unelectrified.
In Uttar Pradesh between 1997and 2009 the available power capacity has gone up by 58%; energy consumption has gone up by 53%; per capita consumption has gone up by 6%. But 12,298 villages remained unelectrified.
About 40% of the entire population in India, almost all of which in rural areas, are still without access to any commercial form of energy, including electricity.

An analysis of the power sector in the country provides real reasons for this gross neglect of rural areas. Huge inefficiencies prevailing in generation, transmission, distribution and utilization of electricity are at the root of the larger problem. These inefficiencies alone -typical characteristics of a badly managed grid based centralized electricity generation system - amount to a total loss in the range of 25-40% of the installed capacity. Few effective measures such as improving the generating plant performance; reducing the T&D losses; minimizing wastage; demand side management (DSM); energy conservation have tremendous potential to overcome the deficits.

Sustainability of centralised supply system

Inherent with a grid-based centralized generation system are the need for long lengths of transmission lines, complex network of distribution systems, and the associated equipment such as transformers. Each of these add to the complexity, reduced reliability and increased capital and operational costs. These centralized generation systems also are found to be economical only with large size power plants and concentrated loads. But Indian villages are widespread and cannot provide substantial loads individually like towns and cities.

The centralized generation/distribution model has inherent problems attached to it in terms of equity also. In a case of power shortage it is the rural poor that suffer. The poor are the last to get power and the first to get shut out of power. Clearly, the present model is not the best way forward.

Few recent initiatives in the private sector to provide electricity to un-electrified villages through standalone community based on non-conventional energy power plants fed by bio-mass OR wind OR solar OR micro-hydel power have established that they are an appropriate solution to energy requirements of most sections of the country. The major advantages associated with these alternatives are the shorter gestation periods, low societal impacts, and their immense suitability to rural needs.
There is clearly an urgent need for a paradigm shift in our energy policy: instead of blindly adding millions of MW of additional capacity, we need to adopt an 'integrated energy resource management' approach which will have renewable energy sources and decentralized supply systems at its core.

In view of the huge societal costs associated with economic, social and environmental aspects of grid-based centralized generation system of conventional power, the decentralized electric supply systems based on renewable energy sources are hugely economical in the long run and the best option for the accelerated electrification of rural house holds.

The overall electricity scenario in the country provides a sad picture of electricity injustice. Unless urgent corrective measures are taken to set right this injustice the overall development of the country will greatly suffer, while accelerating the addition of GHG emissions against our own national as well as global interests.

The deficiencies, complexities and costs inherent in the grid based centralized generation system in India cannot provide any assurance that the rural-urban divide will be eliminated soon and that the electricity supply at the national level will be satisfactory in the near future. The decentralized energy solutions are the right answers to provide quality access to electricity to the rural population.

The poverty alleviation, rural electrification, decentralized electricity supply system based on renewable energy sources, human development, mitigation and adoption to Climate Change are all intricately linked and hence need to be addressed with an integrated approach.