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The perspective of this paper is to categorize key factors which are projected to lead the
power generation and distribution in Urban and Rural India with associated opportunities and
challenges now a days. It provides an overview of the issues and challenges for distribution
quality. The preliminary investigation has discovered some interesting conclusion which is
tried to explain in detail in the paper. The paper exclusively confers the problems with respect
to urban and rural level electricity generation and distribution. Rural electrification is one of
the main requirements for a country like India with major population of approximately 70%
living in rural areas. Only 44% of rural household of India has access to electricity.7 out of
29 states have more than 70% of rural household without access to electricity. India faces
severe shortcomings in many areas of electrification. A considerable amount of electricity
generated is wasted due to transmission and distribution inefficiencies and power theft. The
Indian Govt. recently outlined an ambitious plan of electrification through solar energy to 400
million people who don’t have access to it. Indian govt. has initiated a major program for
strengthening of rural electricity infrastructure under Rajiv Gandhi Gramin Vidyutikaran
Yojana (RGGVY) 2005.
i
CONTENTS
CONTENTS iii
LIST OF FIGURES iv
LIST OF TABLES v
NOMENCLATURE vi
1 INTRODUCTION 1
2 LITERATURE REVIEW 2
3 OVERVIEW OF PRESENT SCENERIOP OF INDIAN 3
POWER SECTOR
4 CHALLENGES OF POWER SECTOR IN RURAL AREA 5
5 CHALLENGES RELATED GENERATION AND 6
DISTRIBUTION IN POWER SECTOR FOR RURAL
INDIA
6 OPPERTUNITIES RELATED GENERATION AND 10
DISTRIBUTION IN POWER SECTOR FOR RURAL
INDIA
7 REVIEW OF RURAL INDIAN POWER SECTOR 12
8 SOLUTIONS FOR CHALLENGES AND PLANNING 14
8.1 SOLAR POWER PLANT 14
8.2 MICRO GRID 15
9 MERITS AND DEMERITS 16
9.1 Merits 16
9.2 Demerits 16
10 CONCLUSION 17
11 REFERENCE 18
ii
LIST OF FIGURES
iii
LIST OF TABLES
iv
NOMENCLATURE
Symbols Discription
DG MG
CEA Central Electricity Authority
v
Challenges and Opportunities of Electrical Generation and Distribution in Rural India 2019-20
CHAPTER-1
INTRODUCTION
India faces the embarrassing truth of having energy underprivileged community and
areas because of the world‘s one of the most inefficient power infrastructure. The
accumulated losses worth a huge 40 billion and requiring spread over a period of time hikes
in tariff to make certain their sustainability. The power sector achieved lots of liberalization,
with entry of private financial investment through Restructure Deregulation Policy applied
over generation, transmission and distribution. But it is hard fact to accept that substantial
parts of the sector still stay under the control of state and central governments. The power
sector have a deficiency of fuels, not enough infrastructure and poor financial flaw of state-
central owned institutions because of unclear tariff mechanisms with revenue collection. After
two decades of reforms initiated by government calculated to bring about a profitable private
orientation in the power sector to get better services, India‘s power sector has made major
growth in accessibility, generation capacity in competitive markets with a national
transmission network.. The major issue because of insufficient and unreliable power supply
becomes a reason for curbing of India‘s growth in terms of objectives for developing country.
Regardless of major achievements in the policy and regulation, much of the states ‘power
sector reform agenda has yet to be accomplished. The whole sector is fully tangled with the
generation transmission and distribution sub sectors, and deficit of performance from
providing adequate and reliable power to consumers, results into addition to the cost of power
purchased by distribution companies, which is forwarded to consumers.
CHAPTER-2
LITERATURE REVIEW
CHAPTER-3
The grouping of burly and increasing demand against little electrifying program rates
and installed capability lead to make this segment a main concern for every government. With
hikes in power demand expected in rural and urban India over the incoming years, provincial
power markets may be uncovered to even more strict power shortages, forcing governments
to renovate and expansion of generation capacity. India‘s power sector is one of the most
diversified. Sources of power generation range from conventional sources such to feasible
non-conventional sources. Electricity in rural area of India has increased rapidly and will rise
further in the coming decades. In order to meet up for said demand for; huge addition to the
installed generating capacity is required. The Government of India has identified power
sector as a key sector of focus so as to promote sustained industrial growth.
The Government of India‘s focus on attaining Power for all ‘has accelerated capacity
addition in the country. Total installed capacity of power stations in India stood at 330,260.53
MW as on May, 2017. The annual growth rate in renewable energy generation has been
estimated to be 27 per cent and 18 per cent for conventional energy. The Government has
added 10.2 Giga Watts (GW) of conventional energy generation capacity and 12.5 GW of
renewable energy capacity in Financial Year 2017. The Overall Growth rate of generation
during the past financial year was recorded at 5.83 %. During the present year 2017-18 (till
end of August .2017), the Peak Demand will reach about 163.2 Giga Watts and the Installed
Capacity will be 329.2 GW.
The transmission lines carried under regulatory norms of CEA – (Central Electricity
Authority) in association with Central Electricity Regulatory Commission – CERC and State
Electricity Regulatory Commissions SERC‖. Power surplus States have been inter-alia, can
feed remaining additional power to power deficit State boards across the country.
Distribution is the main interlink in the power sector. As per the Constitution of our
country, power is a contemporaneous matter and the accountability for same and supply to
urban and rural customers rests with the states. of Indian Government has started a schemes
which was in nature centrally directed and funded for improving the distribution sector as
―Integrated Power Development Scheme (IPDS)‖ and Deendayal Upadhyaya Gram Jyoti
The Rural Electrification concept was applied in August, 2013 in the form of Rajiv
Gandhi GrameenVidyutikaranYojana(RGGVY) for 12th and 13th Plans got merged in to the
new scheme of DDUGJY. The erstwhile RGGVY scheme for village electrification and
providing electricity distribution infrastructure in the rural areas has been subsumed in the
DDUGJY scheme .
CHAPTER-4
Few years ago, Indian Government had formed a committee, headed by Mr. Deepak
Parekh, erstwhile Chairman of HDFC, to study and to suggest improvements for the
electricity sector in India. The report, along with other suggestions, remarked the following:
India‘s power sector can be compared with a leaking bucket; the holes deliberately crafted
and the leaks carefully collected as economic rents by different stakeholders that have power
over the system. The logical item to do would be to fix the bucket rather than to persistently
emphasize shortages of power and forever make exaggerated estimates of expectations
demands for power. Most initiatives in the power sector are nothing but ways of pouring
more water into the bucket so that the consistency and quantity of leaks are assured.
Distribution and retail supply is the most significant mechanism in the power sector which
connects end users and provides and earns revenue for the entire sector. Indian electricity
distribution provides nearly 200 million consumers with an approximate connected load of
400 GW that one of the largest electricity consumer bases in the world. These are served by
around 73 distribution companies. Over the last one and half decades, many states have
worked to improve the performance of state utilities by unbundling state entities, creating
independent regulatory systems, and measures taken to control T &D losses and theft. Here
considering challenges in power sector of India is dealt with Generation and Distribution.
CHAPTER-5
Investment into power sector at various stages is an account for 45 percentage of the
Indian budget provision for the 5 year plan from 2012-17. Required investment in the
distribution sector in every 5 year plan is expected at a overwhelming INR 4, 30,000
crore.
Tariffs applied in power sector at various level do not cover up costs because some
segments, principally agriculture consumers, are charged at very low tariffs, while and
household, industry and commercial users are overcharged comparatively. Due to
misbalancing formulation, the overcharged segments may involve into theft of
electricity with the involvement of the staff in the distribution.
It is also to be noted that during the last few years some of state utilities/boards
estimated the losses in the range over 30% to 50%. The reasonable acceptable
(technical) energy losses should be in range of 10 -15 percentages in different states.
While the losses in EHV type distribution network rests about 4- 5 %, massive losses
take place in sub transmission and distribution ST&D system
Bad management
Political hindrance in the management of State SEB has become the unsaid norms in
most States, which makes it complicated to make certain high levels of management
efficiency. Governmental hindrance is also a foremost barrier to serious reform.
Subsidies
The various opinions of experts working in the power tariffs areas are divided issue
the highly subsidized tariff for the agriculture sector. One group‘s opinion is that it be
unfair to subsidize prosperous farmers. Because it would encourage them to draw on
this cheap resource in bulk for wasteful. Electricity to the agriculture sector is
recovered at an average of only 12% of the average cost of supply.
Thermal plant capacity faces availability and secures sources. On other side a
foremost gas based capacity is found motionless due to non-availability of gas. It is
found that CIL is controlled about to 65% of actual requirement which further leads to
sort of supply and results into high power costs
Rising power generation costs owing to limited fuel availability, poor financial health
of SEBs, huge T&D losses have drawn into buried projections by SEBs. Presently
scheme announced and inaugurated by Prime Minister of India,- Saubhagya‖- is a great
example of this. Now more than 13 states have denied making power purchase
agreement with NPC because of higher Unit cost from private players.
During last few years, the rates have been increasing comprehensively, leads in project
cost swamped and therefore end tariffs set at high.
Land Acquisition
We can see that during last few years, the rates of appeals against project proposal or
approval have increased broadly from the point of Environment. This is associated
with rehabilitation activity too.
CHAPTER-6
Indian power sector achieved extensive growth in the last decade leading by policy
reforms with private players partaking. Use of electricity in India is far less per capita than
developed countries, only about 900 kilowatt hours (kWh) per capita, compared with 7,000
kWh per capita in Europe and 14,000 kWh in the US. But it seems to be projected to grow to
700 GW by 2032. Here it is well-built chance for power generation led by exponential
upstream in financial system, rising tendency. India made significant advancement and
improvement in ability, where our companies have shown a massive curiosity in generation
and the modern transform in power acquisition.
Scope in Generation
Considering all into account, we think that generation with coal has the greatest
chance. The fifty five percentage of the India‘s set capacity comes from coal fired
generation and that, also will be at 2032, remain 56 percentage of power will come
from coal will be continued
LPG, LNG or CNG is also smart option to have. Small sized and middle sized gas run
power plants should be cost-effective and gaining too if can be bought gas at the
correct price. In June 2013, the Government of India determined to let producing
companies raise prices to stimulate asset and boost production.
As said earlier gas became very attractive prospect for small and midsize plants. But
all options appear with rip of risks with rewarding booty. Few global utilities are
interested to come into power generation market of India, relying on their expertise
and assets.
India has the greatest potential from Solar Energy. India sets benchmark to avail from
solar power, to meet target of 22000 MW by 2022 (20000 MW on the grid and 2000
MW off grid).
Wind Power
CHAPTER-7
It is never the less that improvement on electrification program for rural area and
community is not experienced. During the past last ten years, census from the 2001-11, the
%age electricity in rural‖ area jumped from about 44% to approximately 55%. This was
possible because of grid extension largely. Let me say that, reaching up to all households in
such rural area through considered grid extension may never be a realistic solution. In the
beginning of 21st century i.e. 1999, nearby 18000 villages‖ was classified as -Difficult for
Electrification, suggestive of such remote locality has grid - extension extremely unlikely.
The reason for this noticeable non-connect is dual. First, such areas are identified and
probably noted by the administration to be electrified if at least ten percentages of those
houses are electrified and if their civic structures such as health centers, schools, and as well
other centers are also electrified. Second, outskirts hamlets are not included in the statistics
sometimes. Every reform existed in power sector with key focus on Energy for all by 2012;
Ministry of Power initiated RGGVY‖- Rajiv Gandhi Gramin Vidyuti Karan Yojna (RGGVY‖),
In March 2005 with the objective of electrifying over one lakh villages with free electricity
connections to 23.4 million BPL below poverty line‖ homes. Under phase-I of scheme
RGGVY Power Ministry has sanctioned ―576 projects for 546: Districts to electrify more
than 1, 10,000 villages with provision of free electricity connections to 22.9 million BPL
rural households.
Rural electrification has been back warding in expressions of service and reach.
Households in rural area have access to electricity, and the reliability of supply is vastly
affected from frequent power staggering condition and high fluctuations measured in
amplitude of voltage and frequency, with so- called blackouts-brownouts. A major log jam in
the development of the sector is the dull fiscal state of the utilities, of the total generated
output power, only 55 % of the -(kilowatt hours‖) - KWH‖ are only 41% of this is being
collected. This attached with the reality that the supplied electricity to irrigation is unmetered
that is non efficient utilization and theft. The SERC in several states have attempted to set
right those imbalances by raising the agricultural tariff, but at last governments reverse these
steps due to sturdy opposition thru farmers whose complaint of that the electricity supplied to
the rural areas is discontinuous and of poor quality .
CHAPTER-8
The World Bank identified Solar Home System as the cheap solution of rural
electrification suited for developing countries. This system has separate systems that consist
of Photo Voltaic (pv) panels, a secondary storage system, an optional charge regulator, and
rest equipments. It provides reliable electricity for a set load, more over it is required to know
that energy requisite should not exceed the supply capacity. The reliability and quality: of
power can be depressingly exaggerated by the lower quality of entity. The costing and
expenditure of installing a solar home system varies depending on the type and size of solar
panel module and any storage units included. The ability of a solar home system is determined
by the dimension of the PHOTO VOLTAIC (pv) panel array as well as the secondary storage
unit. SHS in general demonstrate lower efficiencies than a Micro Grid (MG) system. SHS
rely on each PHOTO VOLTAIC (pv) units and use solar ray‘s radiation for generation of
electricity .Because the largest part of in India has a high degree of exposure to sunlight
during the year, In addition, it does not need to be connected to any existing infrastructure or
grid distribution network, so it can be used in any place. Even though the setup is simple, it
requires proper operations and maintenance to gain cost-effectiveness. Most of the ecological
parameters related to the temperature, in that too upper temperatures decrease the life of a
secondary storage unit.
Micro Grid (MG) terms as a lone electric power sub system associated to a diminutive
number of DG Distributed Generators‖, may be powered by any of renewable‖ or conventional‖
sources of energy. Micro Grid (MG) can aid to improve the power feature and consistency and
also permit the locals to have supplementary control over power system. The core criteria for
distinguishing different kinds of Micro Grid (MG)s can be distinguished by either its
connections made to a central extended grid; or which type of generation sources are
connected to the Micro Grid(MG).Micro Grid (MG)s may experience some power quality
and reliability issues. DG implies elimination of need for long-distance transmission from end
to end localized generating capacity. It reduces the losses due to T and D, provides a practical
means of reaching far-off or geographically hard-to-reach areas .Not only that, it also leads to
reduce primary investment and time because bulky infrastructure edifice not required which
reduces the investment risk. In broad, Micro Grid (MG)s are capable to hold a multiplicity of
DG sources as renewable sources such as bio-mass, micro-mini hydro, solar and wind with
non-renewable‖ sources such as diesel or also hybrid sources as biomass-petro-diesel and
solar- diesel.
Chapter-9
9.1 MERITS
In undeveloped areas, the small amount of electricity can free large amounts of human
type and labor. In the poorest areas, people carry water and fuels by hand, their food
storage may be limited, and their activity is limited to day light hours. Adding
electric-powered wells for clean water can prevent many water-borne diseases, Eg:
Dysentery.
Refrigerators increase the time that food can be stored, potentially reducing hunger,
while evening lighting can lengthen a community’s day light hours.
9.2 DEMERITS
Depending on the source, rural electrification can bring problem as well as solutions.
New power plants may be built or existing plant’s generation capacity increased to
meet the demands of the new rural electrical users.
A Govt. may be inclined to use the cheapest generation source which may be highly
pollute and locate the power plant next to vulnerable minorities or rural areas.
Rural electrification in India has been almost entirely carried out by extending the
grid. Rarely have local recourses being utilized for generating power.
Distribution losses are very large and often the terminal voltages are poor.
CHAPTER-10
CONCLUSION
REFERENCE
[1]. Rajesh M Holmukhe, Major Issues and Challenges for Urban Customers
Satisfaction In Indian Electricity Distribution Sector – A Review. International
Journal of Management, 7(5), 2016,pp.52–57
[7]. Vijay Modi (2005) Improving Electricity Services in Rural India,Working Papers
Series Center on Globalization and Sustainable Development, The Earth Institute at
Columbia University, CGSD Working Paper No. 30.