- Electricity Scenario: India
- Problem with hydro power
- Coal Based Electricity Generation
- What was the reason behind grid failure?
- What is an electrical grid?
- Components of a grid
- When does a grid collapse?
- Penalty for Grid violation
- What is the network in India like?
- Players in the game
- Suggest the reforms to fix Electricity problems in India
Because of the Grid failure, last month about half of India or roughly 10 per cent of the world’s population, suddenly found they had no electricity.
Electricity is the life line for Manufacturing and Service sector. If India wishes to grow at 8 or 9% a year, then smooth and uninterrupted supply of electricity =essential.
Electricity Scenario: India
- India’s present installed electricity capacity is 205 gigawatts (1GW is 1,000MW).
- Per capita electricity consumption in China is about 3.5 times that of India. [ If a country’s electricity, cement or steel consumption is higher than India, it means means they’re more advanced and Developed than we are].
- Hydro and coal account for nearly 77 per cent of electricity generation in India.
Problem with hydro power
- hydro power contributes to only about 20 per cent of electricity generation in India, while in China- the Three Gorges dam alone satisfies 10% of China’s electricity consumption.
- Only about one-fourth (25%) of the India hydro potential has been harnessed. Why?
- Lack of vision,
- social and environmental activism of Jholaachhap NGOs.
- slow decision-making
- Weak law-enforcement. (the whole naxal belt- Government cannot start any projects there)
- We’ve huge potential of hydro power generation in Arunanchal Pradesh but most of the projects are stalled due to Border disputes with China. (lack of political will.)
Coal Based Electricity Generation
- Coal accounts for more than half of India’s electricity generation.
- country has the world’s fifth largest reserve of coal but its quality is poor because of very high ash content.
- Coal India has not been increasing production fast enough.
- Compared to China’s exponentially increasing output, Indian production has remained almost stationary during the past two years.
- Existing mines have strict limits as to how much coal they can extract.
- New mines are difficult to open because of the trouble in obtaining environmental and land clearances.
What was the reason behind grid failure?
- The national electricity transmission network links up India’s five regional grids.
- some states used more than their quota of power from this network.
- Why? Because of the low monsoon, farmers were using more electricity to pump out more ground water.
- So this extra demand of electricity overburdened the system, causing a cascade of failures.
- To cut the burden, power plants were shut down, some automatically because of computer softwares.
Here goes some technical details
What is an electrical grid?
- grid is an interconnected network of transmission lines : on one hand it has Generating station and on the other hand it has load centres.
generating stations |
|
load centres or distribution companies |
|
- For an electricity grid to function smoothly, it is essential that load and generation must be balanced at all times to prevent a failure.
- The flow of electricity through the lines should ideally not exceed the rated capacity, otherwise the lines could trip due to an overload.
Components of a grid
- A grid consists of three main components:
power stations | produce electricity from fossil fuels (coal, gas) or non-combustible fuels (hydro, nuclear, wind, solar); |
transmission lines | carry electricity from power plants to demand centers |
Transformers | reduce the voltage so that distribution lines carry power for final delivery. |
When does a grid collapse?
- There can be two main reasons.
- First reason: equipment failure due to reasons such as fog and pollution
- Second reason: when one or more constituents violate the grid code and overdraw in a big way from the grid, causing it to fail due to the imbalance in the power injection
- Northern states are repeat violators of the grid frequency norms, especially Uttar Pradesh, Haryana, Punjab, Jammu and Kashmir.
Penalty for Grid violation
- If a state draws more electricity than its quota, then it has to pay penalty known as “Unscheduled Interchange or UI rate.”
- Uttar Pradesh is the repeat offender of grid violation, it has ‘UI’ penalty bills of several hundred crores and delays the payments. The state has also taken advantage of a High Court order under which it does not pay the full UI penal rate.
What is the network in India like?
- At present the northern, western, eastern and northeastern regions are integrally connected through AC (alternating current) transmission links to form what is called the ‘NEW’ grid.
Players in the game
Private players
- Few years back, (when there was no recession in US and call centres were booming), the private players thought that India’s middle class will grow exponentially, and everyone will buy TVs, fridge, washing machine and computers. Thus demand of electricity will increase and we could make heavy bucks. So many private players (like Anil Ambani), entered the game and opened their thermal power stations.
Problems faced by private players in power market
- electricity-generating companies in the private sector do not get enough coal from Coal India, or get the Indian Railways to transport it in time.
- And They cannot import lot of coal from abroad (Australia) because it is expensive and Government controls the electricity prices, so they cannot pass on the cost of import to the final consumers.
- Thus industrialists have started reduced long-term investment in new plants. Some of them had taken loans from Banks and now showing inability to repay the loan on time, so banks are also feeling the heat. And adding insult to the injury, Less electricity = expensive electricity = low IIP, low GDP, high WPI and CPI.
Coal India
- it is the Government controlled mining company that has monopoly over digging up coal through out India.
- Environmental clearance : can’t dig enough coals from jungles.
- Coal India has $11 billion of unused cash, but reinvests only about 20 per cent of its gross cash flow into research and Development (R&D).
- So its coal processing capacity, machinery etc. are not up to the mark according to international standards.
- Technology and management practices in mining and transportation are outdated.
- Management is weak because of strong trade unions [just like Air India] and the system is rife with corruption. [just like MNREGA]
Local Electricity companies
- Most local distribution firms are state-owned and all but bankrupt, as local politicians insist that tariffs stay low and that juntaa especially farmers, get free power- especially during the election year. And given India’s polity, we’ve elections round the year- in this state or that state. So there is no “dry” year, in which Government can take tough non-populist measures.
- Lack of modernisation, poor operation and maintenance practices and pilferage (stealing of electricity) ensure that 30-40 per cent of electricity generated is lost and do not produce any revenue.
Farmers
- Farmers get free power to pump groundwater for irrigation, but some of this free power is illegally diverted to factories.
- Since electricity is free, farmers run their pumps whether or not crops require water. As a result, groundwater levels in many states are declining by over 1 metre every year.
- This means each year, farmers have to use more electricity to pump water from increasing depths,
- Secondly, when ground water table decreases, the soil becomes more saline. And saline soil produces less crop. Combine this with Deforestation and soil erosion= farmers are forced to use more and more fertilizers to produce same amount of crop.
- So, in the end this becomes a vicious cycle of excessive electricity and fertilizer use.
Suggest the reforms to fix Electricity problems in India
- Privatize Coal India.
- install new electricity regulator with teeth. (just like SEBI is for capital markets.)
- Install nuke power stations, disregarding the protests by jholaachhap NGOs and their foreign masters.
- Sort out border disputes with China, so that Arunanchal Pradesh’s hydro potential can be fully utilized.
- Your suggestions also welcome.
1. laying transmission lines within the ground..
2. replacing old electricity component with new one.(modern type of relays)
thanks mrunal.
modernisation is required..many of our technocrats have made reports(came in hindu recently)….govt does not implement as they ll have to put them in budget!!!
and underground cables have higher loses and cost 30 times more for long lines….hence overhead lines are better….
Underground transmission is safer more reliable and has lesser transmission losses.
NOW DEFINE TRANSMISSION LINE???
>IT IS THE SIMPLE TYPE OF WIRE THAT CONVEY SIGNAL OR POWER FROM ONE PLACE TO ANOTHE
Thanks Mrunal! Nicely written article.
Govt. should encourage and give subsidies for installing solar power equipments especially for domestic use. publicity shd be given as given for AIDS.
SHD REVIEW THE FREE PROMISES GIVEN BY POLITICAL PARTIES DURING ELECTIONS.
SHD CHECK THE THEFT OF ELECTRIICY ESPECIALLY MINORITY DOMINATED AREAS.
SHD FORMULATE RULES TO PUNISH THEM IMMEDIATELY BOTH IN THE FORM OF PENALTY AND IMPRISONMENT.
SHD MODERNISE ALL WAYS TO MONITOR THEFT OF ELECTRICITY.
use of smart as its happen in USA
utilization of exisiting coal block more efficiently
minimizing electricity threads
electronic meters implementation with more vigor .
This is a very practical thing which i would like to bring in notice.
First of all Govt. should strictly ban the light Bulb(100watt.200watt…) manufacturer.In rural areas most of the people using such kind of bulbs bcz they are getting electricity almost free of cost (rental basis).A huge amount of energy is being waste.If such kind of inefficient bulbs wiil not available in market,people wiil be forced to buy CFL etc.Those people (BPL card holder)who can`t effort Govt. should distribute it along with Rashan. By this way at least some amount of energy/Environment we can save.
This is indeed a well placed practical solution and is very much possible to work if political will enable our policymakers to do so.
Progressive taxation for electricity use as implemented in Delhi should be implemented all over the country.
Simply restricting UP or Any other states will not solve the problem… they draw power because 25% indian population resides in UP.. so Govt should be pro active in implimenting wind,solar, bio-gas power generation modes..
germany is having renewable energy source of 70Giga watt & are leading in power generation through solar & wind power… Already our Govt has started Rajeev gandhi solar mission, even many states have learnt the importance of renewable energy & have started seperate departments [ in karnataka it is KREDL].. but lack of political will is inhibiting these project… Also Govt should make an attempt to restrict the forign controlled NGO activism…… as many US Sponsered NGO’s are protesting against Kudankulam nuke project where india is using 2 X 1000MW supercritical power plant’s machineries imported from russia…
Renewable sourcers of energy must be explored, there is a huge potential for tidal energy, wind energy and solar energy, also geothermal energy at some places.
agree with above comment;also renewable energy resources must be explored.industries must install solar panel,so that there will be less demand from state electricity board,also solar energy can be utilized for street lights and for traffic signals.unnecessary energy consuming bulbs and lights should be banned.also state govt must help the state electricity board for recovery of stolen electricity and there must be right punishment for that.
Privatisation of complete Coal India is neither possible nor acceptable, in the pretext of Labour Union, Democracy crisis, land acquisition act etc.
However a part of Coal India like it R&D deprtment, Exploration department or do some JVs with international or even local firm like Tata is quite resonable and need of hour. whts say Mrunal
Vivek
Privatisation of complete Coal India is neither possible nor acceptable, in the pretext of Labour Union, Democracy crisis, land acquisition act etc.
However a part of Coal India like it R&D deprtment, Exploration department can be privatised or if govt wants to do a quick fix they may do some JVs with international or even local firm like Tata is quite resonable and need of hour. whts say Mrunal
Vivek
Reduce the Transmission and Distribution losses,which is the major thing,More and More R and D must be done on Conventional sources of energy like Wind,Tidal,Geothermal and others,to get maximum energy.Thermal should be reduced on one hand which depends on coal. Ho-stings which consume power even during the midnight’s must also be reduced.
THANKS FOR THIS CURRENT TOPIC WITH RELEVANT INFO.
hi mrunal
there is already a regulatory body i.e. CERC…can you exxplain why is it inefficient??
First, Stop or atleast try to reduce the pilferage.( 40% electricity is lost due to this- huge revenue loss).
Second, harness renewable resources for electricity generation (nuclear, tidal, wind, solar, hydro).
Third, Invest in the R&D for uncovering the innovative ways to produce and transfer electricity(as lots of electricity is lost during transmission).
Fourth, educate people about optimum utilization of electricity.
Simply Superb. Thanks for such a wonderful article
Dear Mrunal,
First of all thank you for such informative and to the point articles.Please provide a PRINT link at the ed of every article,so that it becomes more print friendly.
Dear Mrunal,
First of all thank you for such informative and to the point articles.Please provide a PRINT link at the ed of every article,so that it becomes more print friendly.
Mrunalji how GAAR implementation will decrease foriegn fund flow in indian stock market ?
why CERC is not effective??
reason is simple…it also comes under min. of power..means ministers are controlling it in some way or other….SP giving support to UPA….would you punish your ally??
thanx mrunal for being sch a gr8 help….could u pls pls suggest me smthing for the prep of english literature…any notes r any links where i cud get some help from……nd can we opt for d same subject in prelims chosen for mains also.
thanks mrunal..
Nice article as usual. Thanks for the same! I believe within the given constraints if the entire system is made to run efficiently most problems would be resolved. Inventing new strategies will only make existing resource (human and material) underused, complacent and finally without liability.
Hence i also feel privatization is an easy way out for the govt. By this logic the govt. itself should be privatized! The existing system should be checked at every single level, held accountable for its actions and made to function effectively. Lets brainstorm on how to do that!
sahi yr..!
Being linked with the elctricity sector for couple of years, I can say that electricity saved is electricity produced. As one of the readers suggested the banning of 100 & 200 W bulbs, I would like to add to it that it is an excellent idea to save power and use of CFLs will make it very energy efficient. Also there is tremendous amount of loss during transmission and distribution, which should be tried to minimise. Populist measures of free electricity to farmers should be abolished and they should be made to pay for the usage albeit at lower rate.
Thanks a lot.
I have 2 doubts:-
a)what is groundwater table?
b)In which states is groundwater decreasing @1m/year.
@Mrunal : One of recent Grid failure(took at early morning) was due to under drawing of electricity not over drawing.
There is wrong misconception that over drawing put the power grip failure.Due to under drawing of electricity , supply of electricity can not be lowered below certain limit (called technical limit)make tipping of grid and lead power loss of Northern part of India.