Do we require a coherent overarching national energy policy ?

thakur_ritesh

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Not been able to go through the posts as time hardly permits that luxury. Anyway, the little I have been able to read, the author has a focus on mini grids. Seems a nice concept as that safe guards against a lot of undesirable situations, also makes certain strategic sectors autonomous on electricity supply, much needed one might add.

Without going further into details, here are the key areas where the energy sector takes a beating in India, and need urgent solution:

1. Partial utilization of setup infrastructure. We work at 50% of installed capacity, the other 50% remains unutilized. And if we look at over all losses in various forms and shapes, we work at 30% capacity!
2. Theft.
3. Loss in transmission, and inadequate transmission infrastructure. Urgent upgrades required.
4. Non-recovery of bills raised.
Points 2, 3 and 4 have direct bearing on revenue generation and a direct correlation between debt raised.
5. Very low private participation.
6. Planning. India like Pakistan is on the verge of hitting gas shortage, the recoverables are low, and the government is helping a couple of companies to monopolize the market, quite literally.
7. Renewal energy. High potential, low level of investments being made. Policy making on the sector needs to keep pace with the needs of the market, not happening as desired.

If India can get its act together, pretty much every house on its own could become energy efficient.
 

The Vikas Sharma

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Strength Five
The promise of mimi/microgrids is that control lies in the hands of user community and hence dependence on central authority and all its attendant problems are either reduced or eliminated. Self sufficiency is a liberating experience.

In case of telecom industry, there was only one ministry. Look what we have done to telecom. In case of energy, there are multiple ministries. Energy is an equally regulation driven industry. If Murphy's law is applied, we can reasonably expect something or the other to be off-track at any point in time. We should shudder to think what the worst case scenario could be. Hence the DNA of our energy policy has to be right in order to have desirable future results.
 

The Vikas Sharma

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For a moment, think of water instead of electricity. No human can live without water. The longer the pipeline from the reservoir to our home, the more the losses.If the pipeline is broken or under maintenance for a few days, what will happen to us? Therefore, we have installed our own water storage tanks for each home as well as a well in the locality from which we pump water for minimum essential use till the main pipeline is restored.

What water is to human body, electricity is to electrical/electronic devices and systems. So the microgrid concept is actually plain common sense implemented in electrical domain.

Costwise it is a much lesser challenge than extending distribution line connection to each and every village. It is a socially responsible solution as it enhances electricity production and usage in an efficient and sustainable manner.

For military and police, it would be a big morale booster to have electricity in remote outposts without worrying about fuel supply limitations.

Energy Access + Energy Assurance + Recurring Savings in effort and resources.

Is there a better proposition?
 

TrueSpirit

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Not been able to go through the posts as time hardly permits that luxury. Anyway, the little I have been able to read, the author has a focus on mini grids. Seems a nice concept as that safe guards against a lot of undesirable situations, also makes certain strategic sectors autonomous on electricity supply, much needed one might add.

Without going further into details, here are the key areas where the energy sector takes a beating in India, and need urgent solution:

1. Partial utilization of setup infrastructure. We work at 50% of installed capacity, the other 50% remains unutilized. And if we look at over all losses in various forms and shapes, we work at 30% capacity!
2. Theft.
3. Loss in transmission, and inadequate transmission infrastructure. Urgent upgrades required.
4. Non-recovery of bills raised.
Points 2, 3 and 4 have direct bearing on revenue generation and a direct correlation between debt raised.
5. Very low private participation.
6. Planning. India like Pakistan is on the verge of hitting gas shortage, the recoverables are low, and the government is helping a couple of companies to monopolize the market, quite literally.
7. Renewal energy. High potential, low level of investments being made. Policy making on the sector needs to keep pace with the needs of the market, not happening as desired.

If India can get its act together, pretty much every house on its own could become energy efficient.
100% on the mark.

Without operating at an optimum percentage of installed capacity, curtailing T&D losses to a minimum, smooth downstream recovery of bills & massive investment in renewable energy+R&D efforts+IP acquisitions in this area, there can be no good in India's energy sector.
 

The Vikas Sharma

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Instead of arbitrary fuel budget cuts, if the Central Govt mandates that the Fuel budget of every department would henceforth include 5% compulsory annual expenditure on Renewable Energy Generators and Balance of System, the situation could be good by the end of 13th Plan Period. Departments should be able to get the job done ex-trade easily under present circumstances. Building captive capability is an equally feasible task.
 

The Vikas Sharma

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Based on my discussions with the environment, I felt the need to draw attention to the fact that Microgrids are not a one-size-fit-all panacea for all energy usage inefficiencies. It is not a mythical "Giant Step" but one important step among a hundred small steps one has to take in the journey to the energy efficiency objective. It has to be imbibed as a culture in the way wearing helmets and seatbelts have to be learnt for driving safety. In organisations it can be and should be implemented by diktat. In most walks of life a Newton's law of motion bears close correlation to human behaviour - A body at rest continues to be so until a force is applied to it.
 

The Vikas Sharma

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As we approach Independence Day and recount the areas in which we have actually achieved some degree of independence, we are forced to accept the fact that energy independence is at least some decades away. As a result our economic and foreign policy is also not likely to be truly independent till then. The first step towards reduced dependence is to live within the means. This implies removing wastage of resources wherever possible. The change must be driven Top-Down and Bottom-Up simultaneously for any discernible effect in short & medium term. This is where an overarching energy policy monitored by a parliamentary panel on energy could ensure that the various energy ministries work in co-ordination towards a quantified and time bound common goal. Coupled with measures at activity level to build a culture of energy consciousness in government departments and public services, we can quickly make significant savings on recurring basis. Microgrids are just one way of executing a part of the solution for immediate results.Other measures are no less important. I now invite discussion on other suitable measures towards the desired end state of energy independence.
 

Rage

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@theVikasSharma,

While I certainly agree that microgrids are not a panacea or one-size-fit-all solution, I am in no doubt as to their revolutionary potential, at least in the medium run while we explore alternative, more integral or otherwise more policy-coherent solutions. As an economist, however, I am of the view that an introduction of a novel technology, particularly one as plausibly wide-reaching as this, must be preceeded by a stochastic analysis of sorts: of the energy and therefore, wider economic market. How will the introduction of MGs change the way new technologies are adopted by the market? How will the heterogeneity of power sources within MGs affect the larger energy economy ? What will be the foreseeable impact on economic policy and decision-making of reduced external energy-dependence? How will scheduling and other algorithms in sensitive border regions be made cyber-secure and what happens if they are not? How will R&D impact the development of new technologies over time? A clearer, more evidentiary answer to these and other questions- to achieve, in a sense, a stochastic optimization gameplan with will help us understand what we're dealing with and how we should deal with it better. It might be a brave, new world out there but Prudence, as they say, is the better part of Valor in technology-adoption.
 
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SamwiseTheBrave

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if you take a look at human history over a period of say , the last 1000 years, we are actually in the "Energy Age" ever since the steam engine and machinaries have been invented. Technology decides the fate of countries today, and technology in turn is powered by energy (both human/mental as well as physcial i.e. electricity) What was once the position of metals are minerals like Stone, Bronze, Iron Age etc.... is now the Energy Age. The Western countires recognize this very clearly and hence place the utmost importance on Energy Independence over and above everything else. Anyone who has a decent modicum of leverage over this eg: the Wahhabi Saudi oil sheikhs can exploit their clout to the max as they have Uncle Sam by the cajones. This makes it all the more imperative for us to treat Energy Self-Reliance to be as important as Food Self-Reliance.
 

The Vikas Sharma

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@theVikasSharma,

While I certainly agree that microgrids are not a panacea or one-size-fit-all solution, I am in no doubt as to their revolutionary potential, at least in the medium run while we explore alternative, more integral or otherwise more policy-coherent solutions. As an economist, however, I am of the view that an introduction of a novel technology, particularly one as plausibly wide-reaching as this, must be preceeded by a stochastic analysis of sorts: of the energy and therefore, wider economic market. How will the introduction of MGs change the way new technologies are adopted by the market? How will the heterogeneity of power sources within MGs affect the larger energy economy ? What will be the foreseeable impact on economic policy and decision-making of reduced external energy-dependence? How will scheduling and other algorithms in sensitive border regions be made cyber-secure and what happens if they are not? How will R&D impact the development of new technologies over time? A clearer, more evidentiary answer to these and other questions- to achieve, in a sense, a stochastic optimization gameplan with will help us understand what we're dealing with and how we should deal with it better. It might be a brave, new world out there but Prudence, as they say, is the better part of Valor in technology-adoption.
When we discuss Microgrids for future implementation, we are discussing 'Smart Microgrids'. The communications and intelligence layer added to a dumb microgrid delivers optimisation of generation and load in practically real time. This leads to significant savings among other benefits. Also a Microgrid is designed to be heterogenous and operate independently of grid if required - it is a tailor-made architechture for a site. The grid sees a microgrid as a single load or even as a generator. If the grid is a smartgrid, it is able to communicate with the microgrid (seen as a single load and at times as a generator) and respond near instantaneously to demand variation and keep the overall grid stable and optimised. If the microgrid consumes power from the grid, it is seen as a load and if it generates more power than it consumes locally, it injects it into the grid and is seen as a generator.
The economic arguments exist but may not be available at popular sites. In some societies they have gained acceptance as a mainstream technology. Others are evolving but are able to discern the potential.
 

The Vikas Sharma

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Hydrocarbons and coal have an unassailable position for at least next one century. But if the nation is burdened with economic and environmental costs, it has no option but to reduce dependence on them and increasingly develop clean and renewable energy sources in it's energy mix. This involves creating an ecosystem for the future and planning a migration path for reaching the objective. The migration path has to be spelt out in policy. Since the Energy domain is split between various ministries, this challenge has to be identified and addressed at the executive level by a separate Cabinet Committee on Energy. At the legislative level, I have already opined the necessity of a Parliamentary Standing Committee on Energy. Once there is policy movement and co-ordination, R&D and industry will automatically pick up steam to address the wide canvas of unfulfilled opportunity. Everyone wins in such a scenario. But the challenge lies in the execution part where we seem to consistently fall short of requirement despite adequate capability at our disposal. I feel that it has something to do with our priorities and concern for public money and assets.
 

The Vikas Sharma

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As the events unfold in West Asia, as a country India will again experience the effect of geopolitical risk on oil prices and the entire span of economic activity. Coming in an election year, hopefully it will draw the attention of 'professional politicians' and their advisers to the expensive delay in formulating and executing a nationwide renewable integration strategy. Large projects are like making large dams. They are land intensive and have limited use as they contribute only to the grid and hence grid-served areas. Vast areas of unserved and underserved population can only be catered to by distributed power generation. If the Govt in keeping with it's Panchayati Raj model and structure, approves simultaneous rollout of village level microgrids and place the control of it's O&M in their hands, it could truly be a revolutionary and sustainable measure.
 

The Vikas Sharma

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This year's Renewable Energy India Expo is remarkable due to a significant presence of really heavyweight Japanese Companies. The technical threshold of Chinese technology companies is higher than last year. Some of them showcase truly lovable industrial design as compared to the pedestrian design standards of most local manufacturers. Having said that, I find some really useful products enabling early adoption of renewables at attractive prices. I think Silicon module prices have bottomed out in dollar terms and thin film is fast catching up. Small wind, especially VAWTs, is nearly invisible. Considering it's potential application, it is really surprising.
 
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The Vikas Sharma

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When we see the images of Uttarakhand being rebuilt from rubble, we will do well to remember that in times of crisis, the first response has to be local rather than central. To reach that level of response we have to redesign all our systems and resources in such a manner that their employment & control are distributed to local levels rather than kept centralised. Centralisation of only policy and resource reserves is desirable whereas collection and distribution of resources is best delegated to identified regional levels.

In difficult terrain and remote areas, the importance of distributed direct generation of power cannot be understated. One look at the map of India gives a sense of border and coastal regions as well as the regions with underdeveloped surface communications. Ideally each population centre should be self contained for a specified period for essential goods, healthcare, water and power to survive a breakdown in connectivity due to natural calamity or internal disorder - this is called 'Autonomy' in case of microgrids. Microgrids present a neat and viable approach to restructure our existing low voltage power paradigm. A similar approach could be used to design water supply networks as some countries are already doing. Intelligent use of ICT tools is limited only by awareness and imagination. These are compelling reasons to initiate actions to enhance resilience and survivability of our essential services including power and energy. Our principal impediments are, as always, ignorance and poverty of thought. Till the time the microgrid philosophy does not enter the mainstream discourse, the resistance to change will remain high.

In my humble opinion, schools could introduce the renewable energy topic using the "Microgrid" approach ab-initio. Are my thoughts correct and practical? I don't know at this stage. Perhaps people experienced in such matters maybe able to tell. Finally, history will judge the suggestions in hindsight.
 

roma

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bro we badly need coherent overarching national policies

- FOR everything !!

- for every single area that matters
 

The Vikas Sharma

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For all my friends who are not too interested in technology and have conveyed to me the need of giving out an example which can be communicated to the rural India, I hope this post meets the requirement.

Consider a village which has several small rain-fed water tanks and wells with a cumulative three days supply of normal daily water use. The village gets a water truck every day from the nearest town where there is a large water source. Since the road is long and prone to disruptions, the village does not get water for some days at a stretch. The people of the village have accordingly adopted a practice that the day their water supply does not come, each family reduces it's water consumption to drinking, cooking and essentials. Baths are postponed. The aim is to stretch the village tank reserves as long as possible to cater for longer disruption. This way the three day water tank reserves serve the village for 7 days. In 7 days, either the water supply resumes or evacuation of the settlement is organized after appreciating the size and extent of disruption.

If we substitute 'water' with 'power', the same practice is the fundamental basis of the microgrid approach. The wells correspond to the DG sets, rain is the equivalent of renewable energy generation and the water tanks are equivalent to energy storage devices. They are linked together by pipelines which serves each household exactly like generators, storage and consumers are connected by a local 220V/50 Hertz electricity transmission lines to form a microgrid. The water supply arrangement to the village by truck corresponds to the grid power supply - it may not exist in many cases in actual situation (an off-grid condition in power jargon). The practice of using water only for essentials on learning about water supply disruption is known as 'load-prioritization'. The duration for which the village can subsist after 'load-prioritization' is known as the 'Autonomy' of the village. The switch to usage of local water reserves on disruption of water supply from town is known as 'Islanding'. The switch back to supplied water on resumption of water truck arrangements is equivalent of 'Grid Restoration'. The act of using part of water supply to recharge depleted water tanks is exactly like recharging batteries or other forms of energy storage devices. If the village receives plentiful rain and a very large water tank is constructed to store the runoff, it may become perennially autonomous for water. Also it would be in a position to supply water to the town instead of importing it. This is a design decision. Similarly a microgrid can be perennially autonomous by design and export surplus power to the grid.

The concept is neither new nor original. In India we have been practicing this approach in various walks of life to overcome resource scarcity and uncertainty. It has worked well through the ages and is embedded in our culture. That is why Indians are great financial savers and able to face the vicissitudes of a poor economy. Applied to power, this translates into a distributed approach to generation and storage coupled to the distributed areas of power consumption. The physical implementation of this approach is the Microgrid.
 

The Vikas Sharma

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After discussing the concept of microgrids with friends and colleagues, I realised that the industry has to break out from the stereotype communication plans. I will explain what I mean. Is power a subject matter of relevance only to the power industry? Obviously not. Power is used by every industry and every domestic household fortunate to have a power connection. If that is so, why is the microgrid concept communication restricted to power industry events? Why isn't a speaker there in Telecom industry events? Or Railways, Automotive, Defence, Healthcare, Agriculture and so on. Any critical function requires energy assurance. This is the fact which must be understood and acted upon.
 

The Vikas Sharma

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The seemingly insurmountable obstacle to reduced hydrocarbon consumption is the existing transportation infrastructure. We are almost entirely dependent on hydrocarbons for our transportation requirements. Even the so called electric trains are powered by fossil fuel power plants. Personal vehicles are entirely hydrocarbon based. Electric cars and buses are not mainstream and amount to nothing in terms of population.

A few oil shocks later, the technology to migrate to a cleaner alternative is already in place. Some parts like energy storage would require more time to mature both technically and commercially. But there is adequate real technology existing to plan the next generation of electric transportation and the ecosystem to sustain it,i.e., a robust electric grid powered significantly by non hydrocarbon generation. New and renewable energy would play an equally significant role as nuclear energy - minus the environmental risk. The fastest, easiest and robust way to create the enabling infrastructure for affordable electric vehicles is by implementing smart microgrids as the fundamental unit of the power grid architechture. It will exist where it is required, with the necessary and scalable capacity and with inbuilt protection against grid-outages for the expected duration. There is no wastage of power due to availability of storage and optimal use of generators in synch with the smart-grid. While hydrocarbon fuel cannot be replaced entirely in foreseeable future, it's share could certainly drop significantly in the national energy mix.

The vision is powerful but then Rome was not built in a day. We have to start somewhere, sometime. The sooner the better.
 
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