Quantifying India’s energy security

Industry leaders and energy connoisseurs ideate and exchange their opinions on the need for energy security in India, whilst discussing the interconnected concerns that may be a barrier in addressing and concluding them.
The concept of energy security has been on the forefront and at the centre of quite a number of changes both nationally and internationally. Talking about the Indian requirement, it would be right to note that a country like India requires a sustainable and efficient energy supply to obtain its ambitious growth targets.

Energy security scenario in India
Initiating the discussion, Boben Anto, Director, ExactSpace explains that India was not using a transport model based on the Internet; India was instead using a plug-in plug-out model as well as reaching a scenario in which operation was being controlled on its own. “When smart city comes into the picture, the portability reaches a different level. The anti-control scenario will exist in the system. Right now, the demand forecast and system security will be taken care by the power quality in India. Power quality control has become a distributor’s responsibility in a power management scenario.”

Since the distributors assure the control of power supply based on the demand v/s supply and gap analysis, if a generator or a distributor is not abiding to the prescribed guidelines or the system availability part, they will be punished or prosecuted under the IC rule as well as the LBC system available with us.

Taking us through a micro view about the current scenario, Harshavardhan Reddy, Co-founder, Birds Eye Energy Technologies, says that India is aiming at becoming a global economic power, and this has a direct relationship with its electricity requirement. He adds, “I think around 90 percent of our power requirement is being satisfied by fossil fuels, of which 55 percent is extracted from coal and the rest of it is being generated from oil and natural gas. India ranks third in oil imports amidst the world leaders and we stand third in terms of energy consumption in the world. So I think we will grow more in the near future; moreover, going forward another critical aspect is being the net energy importer. So we have a huge energy need to address.” Apart from this, energy is also acknowledged as a key aspect related to human development. Though India is too low in per capita energy consumption, looking at the coal part, we are a big nation and our energy requirement has been huge constantly. He says, “So, I think we need to focus more on creating ways to address the needs in the long run by considering sustainability.”

Chandrakant Sonawane, Technical Head, GoodWe (India) feels, “India has a huge demand for power supply, particularly in a situation when there are several areas where power is out of reach. We happened to realise this during a CSR project in Lonavala. There are few particular and persistant areas in Lonavala where there is absolutely no power supply since ages. Not just in Lonavala, there exists several other areas, especially in rural india, where there is desperate need of efficient energy supply. With the growing trend of renewable energy in India, we now feel that solar might be one of the reasons to shape India’s renewed future.”

Energy security is basically ensuring access to energy for each and every citizen of India at a price which is economically viable, sustainable, reliable and affordable for everyone, says Kiran Kumar Perka, Head, Energy Trading Business, Fourth Partner Energy. Elaborating on this, he says, “Looking into the various fuel prices across the world, having access to them would remain the critical concern. Though we have achieved a target of 365 GW of generation capacity in India, several states are still facing persistent issues of power shortage, power outages, which are happening mainly due to issues like unavailability of coal, among others. Sixty percent to seventy percent of our energy supply is being generated through coal and the remaining power is generated through hydel power and other renewable energy sources.”

PPA, per capita energy consumption in India remain to be a challenge
Elaborating on the role of power purchase agreements (PPAs) in the energy sector, Anto says, “Till now, the market driven by finances and not by the PPAs alone has no such surprises in India until quality wasn’t assured. The problem starts when we have a scenario wherein both IP bantering and demand have to be considered. Hence, virtual metering will come in place, following which you will also get software to secure your system and your unit, which is already seen in some of the major advanced countries and restricted by subgrade system and steel mines. So, I think the technology we follow in the current scenario is driven by the market and not by the PPAs.”

Whereas, Sonawane explains that they propose their customers to use solar hybrid. Hybrid can aid in providing maximum power supply to the areas that can’t be reached by the distribution or supply sector. He further highlights, “Smart cities are also one of the impending reasons for the changing scenario of India’s energy security. For that, we must bring in solutions like solar energy, hybrid power and wind energy, among other renewables, so as to provide some energy security to the underdeveloped and developing cities. This can be possible only when we bring in a broad understanding amongst the DISCOMs.”

The DISCOMS may not be in favour of the concept of net metering, but they can be given a greater understanding about it and thereby recover their debts too. Sonawane adds, “To be more precise, in some states we are fighting for net metering, efficient power supply, and energy security. The urban cities can afford solar installation pertaining to their financial availability and installation space, but that’s not the case with rural and city outskirts due to some unavoidable shortcomings and limitations. Hence, I would suggest that we need to have energy security for our consumers.”

Agreeing to Sonawane’s suggestions, Shetty says, “Rather than looking into conventional ways to address the energy requirements of remote areas, it’s better to transfer or look forward on having smart grids for even and equal distribution. This would accommodate the conventional transmission system and we can accommodate renewable energy in these smart grids.”

Moreover, according to him, renewable energy through smart grids should become a mandate. This can be a commendable start to achieve the ambitious target of electrifying every single household of India. It’s highly essential that we start looking into hybrid needs to provide uninterrupted power supply to every household and achieve the target of total electrified India.

Talking about the per capita income and pricing issues, Perka adds, “For me, energy security is a global concern, and today, we have been witnessing the rise and downfall in the oil prices, affecting the overall pricing factor. There have been bilateral arrangements between countries for fuel supply or regulated oil and gas. Due to any such action taken by the country head in terms of oil and coal supply, it has had a great impact on global crude oil and fuel prices. As we know, post Paris Agreement, the government has announced achieving 100 GW by 2020 and I believe, in 2012 itself, we have achieved 25 GW of renewable energy and within seven years we have achieved 83 GW of additional energy. Government is doing its best in paving the way; also, the corporates are contributing very well in the growth of the renewable energy sector. Going forward, we need to rely more on natural resources and not on fossil fuels or crude oil. We also need to diversify the energy sources to ensure energy security and access of energy in a consistent, reliable and sustainable manner.”

Cost complications
Making an intense discussion about the power purchase pricing models, Anto mentions the models available, which includes three models — Switzerland model, Australian model, and European model. The Australian model follows the microgrid system, which is applicable to places that cover 100 km or more. Microgrid is a combination of biomass energy, solar energy, and available low sources of hydel energy, among others. But the price in Australia is $1.8 per unit, which is quite affordable for everyone.

The second point remains to be the unavailability of coal. Imported coal is cheaper than available in-house produced coal. He explains, “The concern was not non-availability of coal, but the inability to pay for the available coal, which is to be paid by the electricity generator. Those who have money can pay and purchase, but what about those who don’t have funds to access the available energy? I think New Delhi is the only city where power is being provided at an economical, sustainable, yet profitable cost because it gives the first 200 units for free and charges are applied for the units consumed beyond 200 units.”

Shetty notes that there is no cumulative effect following lack of demand and unavailability of efficient distribution system in place. He says, “It is, in fact, the economical berth. Those days are gone when there were 42 percent transmission losses. If you want to grow your economy, you must reduce the fancy of your renewable cost that requires high level. If you have any relative idea or concept in your mind, only then you can survive, or else it would be difficult to deal with the available obstacles and find a survival opportunity in the market, especially in terms of financial capability.”

In the current scenario, even the corporate companies, both industrial and commercial consumers, are interested in making investments in the solar sector under group capital so as to get better savings as well as power supply at a minimal and economical cost. According to Perka, “Even in the spot market, the prices today are in the range of ₹ 280 to ₹ 320, so yes, there is a reduction; because of the reversal in environmental conditions, there is a reduction in the spot market prices as well.”

Going forward, the regulatory bodies should have the power to make policies that will be beneficial for the country, rather than keeping them favourable to the government and the distribution companies that are currently facing huge debts. In future, support is needed from the regulatory bodies as well because in some of the policies in the southern states, there are restrictions in terms of supply. The government policies should be encouraging the non-conventional energy sources. Moreover, the regulatory bodies should not have the government’s interference while framing power policies and regulations, considering the broad future of the country in terms of sustainability and reliability.

With the growing trend of renewable energy in India, we now feel that solar might be one of the reasons to shape India’s renewed future.
Chandrakant Sonawane, Technical Head, GoodWe (India)

There is no cumulative effect following lack of demand and unavailability of efficient distribution system in place.
Harshavardhan Reddy, Co-founder, Birds Eye Energy Technologies

I think the technology we follow in the current scenario is driven by the market and not by the PPAs.
Boben Anto, Director, ExactSpace

We need to diversify the energy sources to ensure on energy security and access of energy.
Kiran Kumar Perka, Head, Energy Trading Business, Fourth Partner Energy