RCSS Policy Studies 13 : Chapter 2 

 [Chapter 1]  [Chapter 2]  [Chapter 3]  [Chapter 4]  [Chapter 5]

India:
The Indian power system has an installed capacity of about 86,600 MW with 72% thermal, 26% hydro and 2% nuclear capacity. It has a peak demand of about 62,000 MW.37 The electric power system of India is divided into five zones, viz, Northern, Southern, Western, Eastern and Northeastern zones. The planning, development and generation of power were generally based on regional self-sufficiency. The generation is to match its demand without scheduled power flow from one region to another. However, the concept of planning has been changed and the concept of inter-regional transfer of power has gradually come within the network of National Power Grid38. All the regional grids except the eastern region are facing shortages of power especially during the peak hours due to a faster rate of load growth which is about 9%.

It is to be noted that, the present study intends to focus on the Eastern and the NorthEastern regions for the sake of the study on subregionalism though it also highlights the overall power scenario of India.

Hydropower:
The estimated economically exploitable hydroelectric potential is equivalent to 84,000 MW at 60% load factor. Out of this, 12,164 MW (14.47%) has been developed39. More than the two-third of the total hydropower potential (84,000 MW) exists in the  NorthEastern region comprising Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland and Tripura. The total hydropower potential of Northeast is about 32,000 MW40.

The state of Arunachal Pradesh is known as the powerhouse of Northeast India. The total hydel power potential of its river system is more than 30,000 MW, of which only 23.65 MW (just about 0.05% of the total potential) has been harnessed. Some fifteen projects with a total installed capacity of 49.25 MW are being set up41. For ecological reasons, the state favoured power generation projects based on ‘run-of-the-river system’ and mini and micro hydel projects.

Another Northeastern Indian state, Meghalaya, is one of the few states in the country with a surplus capacity of power generation. The total installed capacity of the state is 185.20 MW, which comes out of hydel power projects. The state has a power potential of about 3000 MW42. The excess power generated in the state is presently being sold to the neighbouring states of India.

In the case of Nagaland, there are several prospects for future power generation:  a)  Shilloi Hydroelectric project:   6 MW
 b)  Tizu-Zungki basin:  2000 MW. The current generation of power (micro-hydel) is about 2.3 MW and the projected generation (under way) is about 29.9 MW43.
The potential developed in the Northeast Indian states is only 253 MW, which is about 0.8% of the total available potential44. The table 2.10 shows the capacity of installed power generation from the different sources of the Northeastern Himalayan States and West Bengal.

Coal:
India ranks sixth45 in the world in terms of the availability of coal resources. About 90% of the total 192359 metric tonnes of coal reserves is concentrated in a few districts of Bihar, Orissa, Madhya Pradesh and West Bengal in the eastern part of India. (See table no. 2.11)

Though it may be true that the coal reserves are sufficient to meet the country’s coal requirements for the next hundred years, it is also true that a large portion of these reserves are is low quality non-cooking coal. It has been reported that the mineral reserves in Arunachal Pradesh are as follows: coal 84.23 MN Tonnes, dolomite - 154.13 MN Tonnes, limestone - 409.35 MN Tonnes and semi limestone - 45.82 MN Tonnes46. In Meghalaya, the coal reserves are concentrated in West Darrangiri area of the Garo hills possesing about 127 metric tonnes47.
 

Natural Oil and Gas:
The principal oil exploration, drilling and producing organizations in India are the Oil and Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). The recoverable reserves of oil and gas are estimated to be 779 MN Tonnes and 718 billion cubic metres respectively in the year 1994. The onshore crude oil reserves are located in the states of Gujarat (155MT) and Assam (150MT) while the offshore reserves are at the Bombay High (466MT). The onshore natural gas reserves are located in the states of Gujarat (93 bn. cu.m), Assam (156 bn. cu.m.) and Rajasthan while the offshore reserves are at the Bombay High (465 bn. cu.m)48.

In the Northeastern India, other than Assam, Tripura is known for the precious natural gas. “ONGC has been engaged in exploration activities in the state for the last two decades and has estimated the prognosticated reserves at about 400 BMC... The present production potential is 2.0 MMSCMD, which is expected to increase to 4.5 MMSCMD and is  by 2001 A.D... The utilization of gas at present is about 0.45 MMSCMD mainly for power projects. This is expected to increase to 1.25 MMSCMD, with the commissioning of 84 MW NEEPCO and other state power projects”49. The prospects of crude oil availability in Arunachal Pradesh have brightened after a few successful discoveries of new areas as potential reservoirs for the crude oil. According to an estimate, the oil reserves may be more than 30 MN Tonnes in Kumchai structure alone. The exploratory drilling is going on in Manabum, Kharsang and Jayrampur areas50.

The Renewable Energy in India
Small Hydel Power Generation:
The main objective of the small hydel power programme is to generate up to a 3 MW capacity of power.51 The Central Electricity Authority (CEA) estimated first that, the potentiality of generating power in this sector was about 5,000 MW for projects of up to a 5 MW in capacity which have increased 7,000 MW for the projects of up to 15 MW unit capacity. In the Annual Report of 1995-96, the MNES has highlighted the estimated potentiality at about 10,000 MW.

Among the hill states, the maximum potential for small-scale hydel power is in Arunachal Pradesh, followed by Himachal Pradesh and Uttar Pradesh. In the Eighth Plan, the portable micro-hydel sets of up to 15 KW capacity were introduced and up to September 1996, 15 sets had been installed in West Bengal, UP, Jammu and Kashmir and Himachal Pradesh.

Solar and Wind Energy:
Within the sector of solar energy, India has the Solar Photo-voltaic Programme and the Solar Thermal Energy Programme. The Department of Science and Technology of India initiated its Solar Photovoltaic Programme in 1975. On the other hand, the Solar Thermal Energy Programme was introduced in 1984 to promote the use of solar energy for direct thermal applications.
The Wind Energy Programme is aimed at the commercialization of the wind power generation. The Ministry of Non-Conventional Energy Resources of India, has already identified that the wind power potential in India is about 20,000 MW.52

Biomass:
In all the Himalayan states, among all fuels, fuelwood is the most widely used. It has been observed that commercial fuels such as electricity, coal and cooking gas are hardly used there. The table 2.12 shows the high dependence on biomass especially in the hilly areas of the Northeast India.

 In the Northeastern part of India biogas plants have been installed, but the results are not satisfactory. The reasons for their not functioning properly are the shortage of dung and lack of maintenance of the installed plants. In this region, biogas plants have been installed mainly for institutions and not for individuals.

The biomass gasifiers for electrical applications have not also been successful in the hilly regions of the Northeast India. There are two main reasons for this. First, the gasifiers require wood chopped in small pieces requires manpower. This increases the cost of operation. Secondly, as the electricity is heavily subsidized, the cost of generating electricity with a gasifier costs more than purchasing it from the State Electricity Board.53
 

Electricity Consumption, Transmission and Distribution:
A sizable share of energy requirement for the rural household sector is met by the non-commercial energy sources. The traditional sources of energy include fuel-wood, crop residue and animal waste as well as human and draught animal power. It may be pointed out tha the commercial energy resources like coal and oil have taken the place of the non-commercial energy resources to a great extent. The increase in the rate of commercial energy consumption between 1984 to 1994, which was about 8% per annum bears this out.54

Due to the lack of large-scale energy surveys in the Himalayan region, it is highly difficult to indicate the actual rate of energy consumption there. However, it has been reported by the NCAER in 1981 that, the annual per capita energy consumed in the hilly region is about 251 kg. CR, in compared to 199 kg. CR for the rural Northern India. In 1985, it had increased to 257 kg. CR in the hilly areas and 206 kg. CR in entire India.55 In 1995, the per capita energy consumption was 329 kwh56.

West Bengal has recently been a major power supplier to Eastern India. The table 2.13 indicates the figure of electricity scenario in West Bengal during the year 1994-95.

There exists a vast transmission network of 400 KV, 220 KV and 132 KV and below all over India to supply power to different parts of the country, This bulk transmission system consists of the extensive 400 KV lines over 32,000 cct. km. and 220 KV over 75,000 cct. km. Moreover, the connection with Bhutan through 220 KV lines brings power from the Chukha Hydroelectric Project of Bhutan (see map 2.5) and so from Nepal through 132 KV and 32 KV lines57.

The Indian power system also comprises a high-technology system like the 1500 MW HVDC bipole and HVDC back-to-back links between the regions and SVC. Recently initiatives have been taken to form a National Grid by integrating the regional grids. This work is being carried out by the Power Grid Corporation of India in different phases. There are two types of HVDC back-to-back lines - one of 500 MW capacity between the Northern and the Western Region and the other of 1000 MW capacity between the Western and the Southern Region. These two are already in operation. The other two links between the Southern and the Eastern Region and the Eastern and and Northeastern Regions are under different stages of execution and would be ready by 1999 and 2001 respectively. The combined power map (map 2.6) of Eastern and Northeastern Regions of India and Bangladesh shows the major transmission lines.

In the second phase, the interconnections between the regions have been strengthened due to planned initiatives to evacuate power from the mega-sized projects in the Eastern Region viz. Talcher II of 2000 MW and Ib valley of 3960 MW. It also envisages the construction of a high capacity HVDC bipole line of 2000 MW HVDC between the Eastern and the Southern Regions and 3000 MW HVDC bipole line between the Eastern and the Northern Regions.

In the final phase, for a long-term perspective of the next fifteen years, a 765 KV AC link to connect the Eastern, Western and Northern regional grids, and for interconnection with the Southern Region, additional HVDC bipole lines have been planned. This long-term scheme is for evacuating power from the major hydel projects in the Northeastern and the Northern regions and coal-based thermal projects in Orissa, Madhya Pradesh and Biihar58.

Rural Electrification:
Most of the hilly remote villages in the regions have not been electrified so far. Only the more accessible villages have been connected with the grid electricity. But it is generally of poor quality, with high voltage fluctuations and sometimes with long hours of power cuts. In other villages, the diesel generators supply electricity for lighting purposes.
By the end of 1993-94, more than 85% of the total villages of the country were identified for electrification59 But the number of households having electricity connections is only about 30%.60

Demand and Supply Scenario:
The growth rate of the total energy demand in India is expected to increase from 5.3% per annum during the 1980s to 5.8% per annum during the period between 1991-2005. It is expected that, by 2005, the energy demand would increase 2.5 to 3 times higher than the figure in 1990.61 In the earlier phase, the rise in demand for the petroleum products was due to the growth of the transport sector, but now it is because of the increased use of the High Speed Diesel (HSD) and gasoline for transport purposes, naptha and natural gas for manufacturing fertilizers and HSD for power generation.62

 It is expected that, out of the total primary energy demand, the demand for hydrocarbons, which would be about 60 MTOE by the year 2005, would be at the rate of 8-10% growth per year. The share of natural gas in the consumption of hydrocarbons is expected to increase from 12.5% to about 25% by the end of 2005. This trend of increase in the demand has given a hint that the demand for natural gas in India would be of the order of 50-60 MTOE per year.63

The power supply system in India is characterized by peak hour energy shortages. It has been already said that the Indian power system Coraprises five regions where the total annual unfulfilled demand is about 5000 to 6000 MW. A recent review of the CEA has indicated that the country is expected to face a peak deficit of 21,272 MW and an energy shortage of 61,021 Gwh. Table 2.14 shows the power demands in different regions during the year 1996-97.64

So far as the hilly areas of the Northeastern and the Eastern regions are concerned, it is difficult to construct and maintain the long transmission lines, which require large investment and time. This inaccessibility in the hilly terrain is further responsible for the transmission and distribution losses resulting in the very high costs of power supply. Due to this reason, the average tariff charged is highly subsidized by the local governments of the Northeastern States (see table 2.15). The Eastern and the Northeastern regions have experienced a very low load growth. As of now, the Eastern region alone has a surplus power of 1000-1500 MW on a continuous basis. In future, it is expected, that the Eastern and the Northeastern regions with their bulk share of natural resources comprising coal in the Eastern region and hydel power potentiality in the Northeastern part of the country, would be major power suppliers to the other regions.65 (It is true that the rates of growth of industrialization in these regions are very low compared to the other parts of the country. It could be the factor behind the power surplus in these regions). But due to the lack of necessary transmission and distribution facilities, it is not possible to evacuate the surplus power of certain regions to other regions of deficit.

Institutional Setup:
The Ministry of Power is responsible for power development in the country. Under the Ministry of Power there are the following institutions or agencies, which are important for power administration in India:

 1) The Central Electricity Authority: The CEA is a statutory organization constituted under the Electricity Supply Act of 1948. It is responsible for the technical coordination and supervision of programmes and to advise the Ministry of Power in all technical, financial and economic matters.

There are other organizations like the National Thermal Power Corporation (NTPC), the National Hydro Electric Power Corporation (NHPC), the North Eastern Electric Power Corporation (NEEPCO), and the Power Grid Corporation of India limited (Power Grid). The NTPC, NHPC and other state-owned enterprises besides the Power Grid Corporation are there to look after the transmission of power.

The Power Grid Corporation was incorporated in 1989 and since then is responsible for all the existing and future transmission projects in the central sector and also forming the National Power Grid. The Power Grid Corporation has already developed much in HV transmission lines and has succeeded in constructing 500 KV HVDC.

There are two other Joint Venture Power Corporations under the Ministry of Power. These are the Naptha Jhakri Power Corporation (NJPC) and the Tehri Hydro Development Corporation (THPC). The Damodar Valley Corporation (DVC) and the Bhakra Beas Management Board (BBMB) are also under the Ministry of Power. The programmes of rural electrification are within the domain of the Rural Electrification Corporation (REC). The Power Finance Corporation (PFC) provides term-finance to the projects in the power sector. The Badarpur Management Control Cell (BMCC) administers the management with the NTPC to make payments etc. to BTPS/BTPP and allied works.

In the state sector, there are several Electricity Boards responsible for the power generation and power development in their areas of supply. The private sector has also licences to supply power from their own generation systems. Out of the private sector, institutions three have their own generating systems, namely, Ahmedabad Electricity Company Limited in Gujarat, the Calcutta Electric Supply Corporation in Calcutta and Tata Electric Company in Mumbai.66

System Losses:
System losses comprise the energy losses in the transmission and the distribution system and those due to inaccurate metering, billing, unmetred supplies and theft. Energy losses in the transmission and the distribution system were about 15% till the year 1966. Since then it has increased to about 22% in 1992, and it further more in recent years.67

Nepal:
One of the major characteristic features of Nepal’s energy system is its excessive dependence on biomass, which has a very low efficiency in its use. It mainly consists of fuel-wood, agricultural basis and animal dung. It has been estimated that, about 23 million tonnes of biomass in fiscal year 1991-92 were available for purposes of producing energy.68 At present, almost 95% of the total energy consumption in Nepal is met by these biomass fuels. The fossil fuels and electricity account for the remaining 5%.69

Hydel Power :
Nepal is a country with enormous water resources. Five major river basins exist in the topography of Nepal. These five basins are:  1) Mahakali river basin, with a catchment area of 15260 sq.km. at Banbasa, and 658 cubic metres per second annual mean flow;
 2)  Karnali river basin, including its two major tributaries - the Seti and the Bhuri, with a catchment area of 42890 sq. km., and 1396 cubic metres per second annual mean flow;
 3) Gandaki river basin or Sapta Gandaki river basin including its five tributaries - Trisuli, Marsyangdi, Buri-Gandaki, Seti and Kali Gandaki, with a catchment area of 31600 sq. km. at Narayanghat, and 1590 cubic metres per second annual mean flow;
 4)  Kosi river basin including its six tributaries - Tannur, Dudh-Kosi, Tama-Kosi, Sun-Kosi, Arun and Indrawati, with a catchment area of 59550 sq. km. at Barahchhetra, and 1489 cubic metres per second annual mean flow; and
 5) Southern river basins including the rivers Kakai, Kamala, Bagamati, East Rapti, Tinan, West Rapti, Babai etc., with a catchment area of 48700 sq. km.70

Situated in this topographic location, Nepal has first witnessed its hydelpower generating capability in 1911.71 In that year, 500 KW Pharping Hydroelectric Plant (HEP) was commissioned in the southern part of the Kathmandu valley. About 23 years later, another power plant of 640 KW (Sundarijal Plant) was added to generate power for a large section of the population. Since then, Nepal has been able to instal plants of only about 250 MW hydropower, an average of less than 3 MW per year. However, Nepal’s theoretical potential has been estimated at 83,000 MW based on average river flow which is about 1.5% of the world’s total potential,72 but economically feasible potential is about 42,000 MW.73 Table 2.16 shows different river basins with their potentiality (see map 2.7).