A career civil servant with over 37 years of experience, Shri Gireesh B Pradhan was born in Mumbai on 20th December, 1952. His academic credentials include a Bachelor of Arts with Honours in History (St. Stephen’s College, Delhi University), Master of Arts (History) (Delhi University), Master of Public Administration, (School of Public Administration, Carleton University, Ottawa, Canada) and Masters in Strategic Studies (National Defence College, New Delhi).
Shri Pradhan has held distinguished portfolios both in the Central Government and in the State of Maharashtra, including assignments in the office of the President of India and the Speaker of the Indian Parliament. He has a monograph to his credit on Civil Services reforms in Independent India and has authored a number of crucial reports on the Power Sector.
1. India simultaneously recorded one of the highest energy consumption growths and the highest CO2 emission growths in 2014. How are you balancing future sustainability efforts and delivering energy access?
Delivering energy access and ensuring energy sustainability are important priorities for India. India’s per capita consumption of electricity increased from 612.5 kWh in 2004-05 to 957 kWh in 2013-14. However, this compares poorly against the world average. The total primary energy supply per unit of GDP in terms of Tonnes of oil equivalent (toe) per thousand in terms of GDP calculated using PPP, India has significantly reduced its average from 0.34 in 1971 to 0.18 in 2010 and less than the world average, which is approximately 0.19.
In 2012, the per capita emission of CO2 by India stood as 1.58 tonnes, while the world average was 4.51 tonnes. In 2014, the share of India’s CO2 emissions was limited to just 5.7%. Therefore, India consumes far lesser energy and emits far less CO2 into the environment.
In terms of access, around 300 million people in India are still to be provided with electricity. Absence of electricity denies them their fair share of economic growth, access to education, healthcare, transportation, entertainment etc. As a nation we would be energy secure only when we are able to meet basic energy needs of the entire populace on a sustainable basis and at affordable prices.
In terms of sustainability, the country has a total electricity generation capacity exceeding 267 GW. Out of this, thermal generation constitutes 69.5%. Present RE capacity is 35.8 GW. However, we have critical operational issues to resolve for ensuring smooth integration of RE generation into the grid. Therefore, we will have to continue to depend on fossil fuels for electricity generation at least in the short run. Beyond that, i.e. for medium and long term, we will have RE generation playing a big role in providing sustainability to the sector.
In order to provide impetus to the RE generation, the country has big growth plans which includes 165 GW of capacity addition in solar and wind. We are working towards addressing the operational issues for evacuation of the energy. We are also working towards providing a facilitative framework for the RE generation to integrate. Accordingly, by the time RE takes the bigger share, we will be ready with appropriate structures in place to enable the sector to absorb RE generation effectively and efficiently.
For energy access, Government of India has launched an ambitious program of Deendayal Gram Jyoti Yojana. It is envisaged that on successful completion of this scheme India will have 24×7 electricity supply. Another step towards delivering energy access lies in bringing energy supply to the rural consumer base. Providing access to energy is being pursued by either connecting the villages to the electrical grid, or wherever this is not possible, through DDG projects based on renewable fuels. Grid extension involves developing dedicated transmission and distribution infrastructure to reach each and every village while on the other hand, DDG comprises of small, modular, decentralized off-grid energy
2. What do you think are the policies and potential energy sources that can help bridge the demand-supply gap and boost the country’s energy security?
During FY 2014-15, out of the total requirement of 1067 BU power, the generation capacity has met 1028 BU only, thereby leaving a deficit of 3.6%. During the same year, out of the peak demand of 148.2 GW, the sector could not meet 4.7% of demand leaving a gap of 7,006 MW. This clearly indicates the gap between demand and supply as far as electricity is concerned.
Looking forward, considering a growth rate of 6% per annum, by 2032, the peak load in the country is likely to touch 400 GW. Taking all constraints into consideration, by 2032, the total generation capacity is required to reach 700 GW.
As I have stated earlier, we have the responsibility to connect all areas to the grid. In addition, we have the ambitious target to provide affordable 24x7 power to households by 2019. All this will add to the demand.
India has accordingly initiated measures on supply side. The other focus areas include ensuring continuous supply of fuel to the generating stations, bringing the stranded generation capacities into the grid, addressing the issues of transmission congestion, augmentation and strengthening of sub-transmission / distribution network, reduction of Aggregate Technical and Commercial (AT&C) loss level, demand side management, energy efficiency etc.
Apart from the above, on a wider scale the efforts spread over increasing RE generation capacities, seamless integration of RE sources, adoption of smart grid technologies, including micro grid and off grid distribution network etc. This mammoth objective includes important target for separating agriculture and non-agriculture feeders, strengthening and augmentation of sub-transmission and distribution infrastructure including metering in rural areas and rural electrification including micro grid and off grid distribution network.
3. India has set a target of increasing its solar capacity to 100 GW by 2020. What needs to be done, in terms of infrastructure development, to ensure efficient access to this power?
By 2022, we have the target to increase the solar capacity by 100 GW and wind by 65 GW, taking the total RE to 165 GW. Renewable energy has emerged as the key to sustainable development. There is a vast potential of underexploited renewable energy sources such as small hydropower, wind power, and solar power in the region. These technologies are particularly useful when providing energy services to the rural populations, which form the majority of poor population in almost all the member countries. But all of these technologies require effective government interventions to address legal, regulatory, and financial barriers.
RE generation by nature is considered intermittent, uncertain and variable. Therefore, a blue-print (Green Corridor Report) has been prepared to facilitate transfer of RE power from the RE rich potential States to other States as well as absorption of RE power within the RE rich states (host state), transmission system strengthening both at intra state and inter-state level.
The blue-print inter alia includes strategic planning along with cost estimates for transmission strengthening requirement within each State to facilitate integration of RE capacity into grid to facilitate absorption of RE power by the host State to fulfill their RPO targets, Inter State transmission strengthening scheme to facilitate transfer of power beyond host state boundary and planning for last mile connectivity for transmission interconnection of RE plants to a common pooling station in the grid.
4. What are the opportunities for the private sector to get involved in developing the energy market in India and how can CERC facilitate this?
In India, the legal, policy and regulatory framework in the electricity sector provide adequate opportunities for both public and private sector. Competition is the hallmark of the present policy intervention. Private sector has significant (36%) presence in generation, especially in the renewable energy, transmission and trading market segmentIn the distribution segment, some States have witnessed private distribution licensees while some others have encouraged a public private partnership (PPP) though distribution franchisee model. India allows 100% FDI in the power sector.
The Electricity Act of 2003 has encouraged the sector towards a market-driven situation. CERC has been playing a major role in creating a facilitative regulatory framework that makes this competition work. Open access is central to bringing about competition in the power sector and CERC has put in place rules of the game for operationalisation open access. Open access has had a remarkable positive impact on power market development. Transacted volume (i.e. number of units) in both segments of the power market, viz., bilateral and collective transaction (i.e. through Power Exchange) has increased.
Two power exchanges approved by CERC are operating in the country and as many as 45 traders have been in existence. This market segment has helped optimum utilization of assets and transfer of power from surplus region to the deficit region. Open access in inter-state transmission system has guaranteed market access to generators and buyers and encouraged competition.
While the Government has announced ambitious and commendable targets for renewable energy, particularly wind and solar, the ecosystem of the sector has to enable and support the same. There are challenges on integration of this ‘infirm’ power. CERC is working on solutions in the context. A framework for bringing in competition in retail electricity supply in India through separation of carriage and content in electricity distribution has been proposed by the Ministry of Power, as part of the Electricity (Amendment) Bill, 2014.
5. India’s power system became one of the world’s largest operating synchronous grids with the completion of the “One Nation, One Grid” plan in 2014. What are some learnings from this development that you would offer ASEAN as the region develops its own ASEAN Power Grid?
“One Nation – One Grid” was a challenging task and enormous efforts have gone into achieving this.
The economic development of South Asia largely depends on Energy Security which is currently the focus of the region’s energy policies. Being an importing region, increasing oil prices, shortage of coal and increasing energy demand has had serious economic and social implications on the energy security of all South Asian Countries.
We are so closely connected yet our resource availability is so diversified that regional cooperation will result in mutual benefits to economies of all South Asian countries.
We have seen electricity trade taking place between India-Bhutan, India-Nepal and India-Bangladesh. The current initiatives and existing and proposed bilateral trading arrangements provide an ideal environment for a regional power market. The present bilateral trade arrangements can graduate to multilateral trade arrangements. These will need to be established in a phased manner to ensure their reality
The ASEAN Region has a long history of regional integration and many successes. Regional power trade can play an important role in ensuring energy security and harmonious development of the region. As a result, there would be optimum use of resources through increase in market size. Grid connectivity will result in inter regional trade and investment in the sector.