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AStudyofRuralElectrificationinIndiaChallengesand
Alternatives
ByUshaKumar,ResearchScholar,JJTUniversity
Introduction
Demand for reliable electricity services is significant and this represents a key driver
behindeconomicdevelopmentofthecountryandraisingbasicstandardsofliving.This
is especially applicableto rural India which is home to 70% of the nations population
and over 25% of the worlds poor. Currently only around 55% of households are
electrified (MOSPI 2006). The Expansion of electrification and electricity services are
vitaltoboththeeconomicandsocialdevelopmentofIndia.Howeverthecurrentstate
ofelectricityservicesinmostofthestatesofIndiaindicatesignsofcrisisandarewith
severeshortcomingsinmanyareas:
a)Limitedaccesstoelectricityforruralandurbanpoor
b)Generationcapacityunabletomeetpeakdemand
c) Electric supply Reliability, in terms of predictability of outages and quality of
power.
The supply of electricity across India currently lacks both quality and quantity with an
extensiveshortfallinsupply,apoorrecordforoutages,highlevelsoftransmissionand
distribution(T&D)lossesandanoverallneedforextendedandimprovedinfrastructure
(GoI2006).
The Indian Government recently outlined an ambitious plan for 100% village level
electrification by the end of 2007 and total household electrification by 2012. Indian
Government has initiated a major programme to achieve this, a major programme of
gridextensionandstrengtheningoftheruralelectricityinfrastructurehasbeeninitiated
undertheRajivGandhiGrameenVidyutikaranYojana(RGGVY)(GoI2005).Howeverthe
ambitious grid expansion plans need to be accompanied by similarly ambitious
distribution reforms and depoliticisation of tariffs to deliver the real benefits for the
newly connected rural households. Concerns have been expressed, questioning in
particularthelongtermfinancialandtechnicalsustainabilityoftheprogramme(World
Bank2004).
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Objectives
1.ToassessandsummarisethechallengesfacedinRuralElectrificationinIndia
2.Toassessthealternativesforthesameincludingtheuseofnonconventionalenergy
(RenewableEnergy).
ResearchMethodology
Thispaperisaconceptualonewhichisbasedonthedatathatiscollectedfromvarious
sourceslikejournals,magazines,newspapers,websitesandresearcharticlesofscholars.
Furtheritisanalysedaccordingtothedataandfindingsareexplored.
ChallengesfacedinRuralElectrification
a. Incompletecoverage:
Only 86% of the villages have been electrified. However, there has been an 85%
reductionintheoutlayforruralelectrificationintheNinthFiveYearPlanascompared
to the Seventh Plan. The rate of electrification of villages has been steadily declining
aftertheSeventhPlan.Stateagenciesarenotsokeeninmakinginvestmentsinareasof
village electrification and pump set energization. They consider it unremunerative.
Also,withincreasingsubsidies,thereturnsontheinvestmentaffectedtheloanrepaying
capacity of the SEBs. There is not enough focus on this problem and it would take
centuriesatthisratetoachievethestatedruralelectrificationobjectives.
b. Faultydefinition/IncompleteData:
The definition of village electrification as adopted by the Government of India is: "A
village will be deemed to be electrified if electricity is used in the inhabited locality
within the revenue boundary of the village for any purpose whatsoever". Therefore,
electrificationofavillagedoesnotimplythatallthehousesinavillagehaveelectricity.
It is not very clear from the reports scrutinized whether the low level of electrified
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AlternativeEnergySources:RenewableEnergy
Renewable Energy Sources need to be considered as a strong alternative for rural
electrification schemes. They typically combine centralised grid connections as
distribution franchises and DDG operated at the local level taking advantage of
renewableenergytechnologies.
Theuseofrenewablescanavoidfueltransportorgridinterconnectiontoremoteareas,
harvestfrequentlygoodresourcepotentialsandtapintoruralcommunitieswillingness
topay.Thescalabilityofmanyrenewabletechnologiesallowsforagradualincreaseof
electricityservicesprovidedinlinewiththepurchasingpowerofthecommunities,and
thus avoids the dilemma of past rural electrification projects which first deliver
electricityasafreeorhighlysubsidisedgoodandthussubsequentlyfailtoimplement
effectivechargingschemestosecurethecontinuationofpowersupply.
Future energy demands and supply are subjected to numerous uncertainties, most of
which are difficult to predict. Such as energy prices, global economic growth rate,
demographic changes, technological advances, government policies and consumer
behaviour. In such a complex market, energy projections are based on historical
information. Since the availability of fossil fuel is on the decline therefore the
unconventionalorrenewablesourcesofenergyhastobegivenimportance.
MainRenewablesourcesofEnergyare:
SolarPower
India has huge untapped solar off grid opportunities, given its ability to provide
energytovastuntappedremoteruralareas,thescopeofprovidingbackuppowerto
celltowersandithasinherentpotentialtoreplacefossilfuels.Indiaislocatedinthe
equatorialsunbeltoftheearthreceivingabundantradiantenergyfromthesun.In
most part of India, clear sunny weather is experienced about 250 to 300 days per
year.
Solar energy is ideally suited for providing power to those areas not having power
linesconnectingit.LargepartsofIndiadonothaveelectricitygridconnectivityandit
ischeapertopowerthemthroughsolarenergyratherthanextendingpowerlines.
WindPower
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Recommendation
a. IncreasingpromotionofuseofRenewableEnergySources
Renewableenergyiscurrentlyexperiencingincreasingvibrancyacrossallsectorsofthe
economydrivenbysustainedeconomicgrowthandgrowingglobalconcernsregarding
climate change. There are various stakeholders that directly/indirectly contribute
towards the promotion of renewable energy, and each one has some aspirations and
expectations from this sector, just as they have a significant responsibility. This is in a
way laying foundation of a new economy that is inclusive, sustainable and aspires for
decarbonisationofenergyinadefinitetimeframe.However,thereisalongwaytogo.
Inordertocreateanenablingenvironment,theMinistryasapolicymakerwillhavea
significantcontributiontomake.
Renewablesstruggletocompeteingenerationcosttermsatsubsidizedtariffratesfor
grid electrification (Banerjee 2006; Nouni et al. 2007). However, where full cost of
energydeliveryistakenintoaccountforservingruralareaswithgridpower,renewables
areoftencostcompetitive.
b. Setupeffectiveinstitutionstodealwithproblems.
Most successful programs have a specialized institution that deals with and promotes
rural electrification. The exact nature of institutional structure does not appear to be
critical,asavarietyofapproacheshavebeensuccessful.Theyincludeaseparaterural
electrificationauthority(Bangladesh);settingupruralelectriccooperatives(CostaRica);
allocatingruralelectrificationtoanewdepartmentinthenationaldistributioncompany
(Thailand);ordelegatingittoaspecializedofficewithintheutility(Tunisia).However,
there mustbe a high degree of operating autonomy so the implementing agency can
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CONCLUSION
Indias economic growth has been substantial and sustained over the year and this is
placing enormous demands on its energy resources. This has created a demand and
supply imbalance and requires a serious effort from the part of the Government to
augmentitsenergysupplies.
Indiaisalreadyimportingmorethan75%ofitsoilandthereisagrowingthreatofthis
increasing further. Also there is a significant risk of lesser thermal capacity being
installedonaccountoflackofindigenouscoalinthecomingyears.Thediscoveryofgas
reservesandproductioninrecentyearsislikelytomitigatethepowerneedsonlytoa
verylimitedextent.
Indiaisthereforefacingseverenergysupplyconstraints.Alsohugequantitiesofdiesel
andfurnaceoilsarebeingusedbyallsectorse.g.industrial,commercial,institutionalor
residential. This usage is being subsidized and thus leading to enormous costs for the
government.Ontheotherside,wehavealargeproportionofcitizenswhocontinueto
live without even having any access to electricity or any other form of commercial
energy.Othershavetodowitherraticavailabilityofelectricity.
TheTraditionalmeansofenergysupplyarefallingshortduetotheseconstraintsfaced
inresourceavailabilityandindeliverymechanisms.Thisconditionislikelytopersistin
the foreseeable futureas well andenergy availability andaccess will continue to be a
problem.
Insuchascenario,acceleratingtheuseofrenewableenergyisalsoindispensableifIndia
needs to not only add new capacity but also increase energy security, address
environmental concerns as well and lead the market for renewable energy. It is also
indispensable from the perspective of meeting its commitments to reduce carbon
intensity. The Power sector contributes to almost half of its carbon emissions.
Renewable Energy is no longer alternate energy, but will increasingly become a key
partofthesolutiontoIndiasenergyneeds.
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