Strategic Plan For New And Renewable Energy Sector For 2011-17

Highlights:

  • India imports about 80% of its oil
  • India is facing huge energy-supply demand balance
  • Lack of rural lighting is leading to large-scale use of kerosene
  • More than 50% of the population has little or no commercial energy access for their living and livelihood
  • Renewable energy can make a substantial contribution in each of the above mentioned areas
  • Ministry of New and Renewable Energy(MNRE) is the only such Ministry in the world
  • MNRE’s goal is to increase the contribution of Renewable Energy in the total energy mix of the country to 6 per cent by 2022

The International Energy Agency (IEA) forecasts that world primary energy demand between now and 2030 will increase by 1.5% per year from just over 12,000 million tonnes of oil equivalent (Mtoe) to 16,800 Mtoe – an overall increase of 40%. Developing Asian countries are the main drivers of this growth, followed by Middle East. (See the report for chart: Page 5, Figure 1) (Highlights this in Box)

India’s substantial and sustained economic growth is placing enormous demand on its energy resources. The demand and supply imbalance in energy sources is pervasive requiring serious efforts by the government to augment energy supplies.

India imports about 80% of its oil. There is a threat of these increasing further, creating serious problems for India’s future energy security. There is also a significant risk of lesser thermal capacity being installed on account of lack of indigenous coal in the coming years because of both production and logistic constraints, and increased dependence on imported coal.

Significant accretion of gas reserves and production in recent years is likely to mitigate power needs only to a limited extent. Difficulties of large hydro are increasing and nuclear power is also beset with problems. The country thus faces possible severe energy supply constraints.

Economic growth, increasing prosperity and urbanization, rise in per capita consumption, and spread of energy access are the factors likely to substantially increase the total demand for electricity. Thus there is an emerging energy supply-demand imbalance. Already, in the electricity sector, official peak deficits are of the order of 12.7%, which could increase over the long term.

In view of electricity supply shortages, huge quantities of diesel and furnace oil are being used by all sectors – industrial, commercial, institutional or residential. Lack of rural lighting is leading to large-scale use of kerosene. This usage needs to be reduced, as it is leading to enormous costs in form of subsidies and increasing the country’s import dependence.

At the same time, a very large proportion of the citizens continue to live with no access to electricity and other forms of commercial energy. More than 50% of the population has little or no commercial energy access for their living and livelihood.

Role of Renewable Energy

Renewable energy can make a substantial contribution in each of the above mentioned areas. It is in this context that the role of renewable energy needs to be seen. It is no longer “alternate energy”, but will increasingly become a key part of the solution to the nation’s energy needs.

Renewable energy has been an important component of India’s energy planning process since quite some time. The importance of renewable energy sources in the transition to a sustainable energy base was recognized in the early 1970s.

At the Government level, political commitment to renewable energy manifested itself in the establishment of the first Department of Non-Conventional Energy Sources in 1982, which was then upgraded to a full-fledged Ministry of Non-Conventional Energy Sources (MNES) in 1992 subsequently renamed as Ministry of New and Renewable Energy (MNRE). This is the only such Ministry in the world.

 Installed Capacity

In April 2002, renewable energy based power generation installed capacity was 3475 MW which was 2% of the total installed capacity in the country. As on 31.12.2010, it has reached 18,655 MW, which is about 11% of the total installed capacity of 1,68,945 MW and corresponds to a contribution of about 4.13% in the electricity mix. (Chart: Fuel-wise installed capacity break-up: See the report. Page 9, figure 2)

 Strategic Plan

Ministry of New and renewable Energy (MNRE) has prepared this Strategic Plan for the period 2011-17 (covering the last year of the 11th plan and the next 5 years period of the 12th plan) and perspective till 2022, which seeks to articulate the goals of the Ministry, the strategy to be adopted by it during this period to achieve these goals and the corresponding action plan.

Vision

The Vision of MNRE is to upscale and mainstream the use of new and renewable energy sources in furtherance of the national aim of energy security and energy independence, with attendant positive impact on local, national and global environment.

Mission

The mission of MNRE is to:

  • Develop, demonstrate and commercialise technologies for harnessing new and renewable energy sources in close concert with corporate, scientific and technical institutions.
  • Replace use of different fossil fuels wherever possible, and increase access to electricity/ lighting in remote and rural areas, through Renewable Energy Systems.
  • Increase the contribution of Renewable Energy in the total energy mix of the country to 6 per cent by 2022, with about 10 per cent contribution to total electricity mix, in line with IEPR projections.

Targets And Goals For 2011-17

For next 5 years (2011-16), which is the focus of the present Strategic Plan, an attempt has been made to quantify the aspirations in terms of SMART (Specific, Measurable, Achievable, Realistic, Time-bound) targets for different renewable resources/ application areas, as detailed in next section.

Targets for an additional year 2016-17 have been included so that the exercise becomes co-terminus with the 12th five-year plan period of 2012-17. This reflects the short-term vision of the Ministry.

 Time-Bound (SMART) Targets For 2011-17

Grid Interactive Renewable Power: This comprises power generation from mainly the following resources:

(i) Solar power

(ii) Wind power

(iii) Biomass power /Bagasse Cogeneration

(iv) Small hydro power

(To see resource wise target refer to the report: page 19, table 4)

 Aspirations Of The Ministry

The long term aspirations of the Ministry are:

  • Develop, demonstrate and commercialise technologies for harnessing new and renewable energy sources in close concert with corporate, scientific and technical institutions. In particular, the aspiration would be to reach grid parity for both solar PV and solar thermal and achieve technological breakthroughs is second generation biofuels and hydrogen energy/fuel cells.
  • Replace use of different fossil fuels wherever possible in even greater quantities, and increase access to electricity/ lighting in all remote and rural areas where it is needed, through Renewable Energy Systems.
  • Increase the contribution of Renewable power in the total installed power generation capacity of the country from 16 per cent to about 18 per cent by 2022, with 7.3 per cent contribution to electricity mix. This would require an achievement of about 13% over the already ambitious targets proposed.

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