Вы находитесь на странице: 1из 2

India's power struggle

The electricity grid failure that plunged millions into darkness in northern India this week was symptomatic of the myriad problems facing the country's power sector

This week, much of northern India was plunged into darkness for two consecutive days. About 700 million people were left without power, a situation that has affected transport, communication, healthcare, industries, agriculture and everything in between. The outgoing power minister, Sushil Kumar Shinde, blamed a few states for drawing more power than they were entitled to. He didn't name them, but Indian newspapers were less coy, identifying Uttar Pradesh, Punjab, Haryana and Jammu Kashmir as the offending areas. The regional grid could not cope with the increased demand, and because some of the grids are interconnected the system tripped. The power sector operates as if economic principles don't matter. India primarily depends on coal for its energy needs. It has vast coal reserves, but its extraction rate is inefficient. Stateowned Coal India, which controls 80% of production, is required to sell coal to industry at a hugely subsidised rate, considerably below market price, making production uneconomic. Transmission losses are huge: some result from ageing infrastructure, but many are due to electricity theft by politically connected individuals who give away electricity cheaply, or even for free, in return for votes. Customers who fail to pay bills on time not least state-owned companies are another culprit. Since 2003, the government has allowed private industry to generate power, but such companies are unable to operate viably since Coal India cannot guarantee a reliable supply. Approximately 55% of India's energy comes from coal, but Coal India's production rose by only 1% last year

(well below the expected growth rate). At a time of rapidly growing demand, this has led to increased imports. Private power producers are stuck between a rock and a hard place. Unable to rely on Coal India, they would like to import coal. But it costs a lot more in international markets, and they are prevented from passing costs to consumers. Most Indian consumers pay less for their power than it costs to generate and distribute. Politicians, fearful of the public backlash that has greeted previous price rises, won't increase fuel costs. The conventional wisdom is that parties can win elections by offering cheap electricity. And so the cycle continues. In the past year alone, the gap between demand and supply has grown to 10.2%, up from 7.7% the previous year. In the southern states of Andhra Pradesh and Tamil Nadu, which are unaffected by the current blackout, companies are investing in diesel-run generators for their own needs, which increases their fuel costs threefold. Fresh investment in coal mining has been difficult for several reasons. India's well-intentioned environmental laws have made prospecting for mines in protected areas more difficult; a Maoist insurgency rages in large parts of central India, including the mineral-rich region, making operations unsafe; and procedures to get capital investment approved are cumbersome and bureaucratic. Alternatives aren't promising. Gas output from the Bay of Bengal has not met its promise. India uses nuclear power, and would like to invest more, but post-Fukushima fears coupled with nimbyism have slowed efforts to build plants. Foreign investment in nuclear power generation is permitted, but investors have been deterred by India's refusal to put a cap on accident liabilities and insistence that equipment suppliers, not plant operators, should be held to account in the event of an accident. In the face of these problems, those who can afford it buy private generators and diesel-powered units to keep their homes and factories running; millions living below or close to the poverty line do not have access to electricity at all. Yet the situation is not altogether bleak. Some states are exploring innovations. As the Wall Street Journal reports, Tamil Nadu may allow a nuclear plant. Bihar is privatising distribution in one large city. In Maharashtra, some consumers can negotiate their tariffs directly with the generator. And Gujarat has not only cracked down on power theft, becoming a surplus state, but also set up a parallel distribution network to sell farmers electricity at competitive prices. By splitting residential and agricultural use, the state has stabilised supply. India needs an estimated $400bn investment in the power sector if it is to meet its development goals. Power failures shave percentage points off the country's's growth, inhibiting development and delaying the time when millions below the poverty line can live a life of dignity. Electricity is vital. It doesn't just keep the plasma TVs working, or the air conditioning humming it means students in rural India can study at night, medicines and vaccinations don't spoil due to a lack of refrigeration, and food in cold storage doesn't rot.

Вам также может понравиться