Industrial growth of India has been severely
hobbled by the lack of power production capacity. The state under greatest
power stress is the new state of Telangana. ‘Telangana has been facing acute
shortage of power as AP government has denied about 1,980 MW of its share so
far,’ declared the chief minister. It seems the state is spending Rs 5 crores a
day to buy power to meet essential needs. Several of its power stations are
suffering outage. It is unlikely that the Seemaandhra government will honour
its electric power sharing obligations, since a power crunch will limit the
state’s financial
resources available for social schemes. The technical problems of electricity
generation are compounded by party political rivalry induced by the prospects
of winning the next assembly elections.
To increase generating
capacity by another 20,000 MW in the next few years is a daunting task,
especially for a cash-strapped state. Several parallel strategies may be
followed simultaneously. The late Professor AKN Reddy’s work may be revisited
in which he showed that renovation and efficiency improvement of existing
thermal plants could almost double production throughout the country. A
spectacular increase in power production can also be achieved in Telangana by
following the innovative solar route, since the state is blessed with the
highest solar direct irradiation.
Solar energy units are modular enabling cautious financial
beginnings to be increased exponentially under successful conditions. Since few
villages require more than 5KW of power, rural demand-side management of energy
can optimize reliable supply by installing off-grid [photovoltaic] PV units to
size. Home lighting can be provided through energy-saving LED systems, such as
those developed by world-renowned expert, Prof. Dave Irvine-Halliday, now based
out of Hyderabad. The other important rural need for power is to energise
pumpsets. However, deep bore pumping is wasteful, both of water and power. It
would be best to integrate this need with community watershed development to
raise the water table, and use drip irrigation and SRI cultivation methods to
reduce water requirements to less than half, even for water intensive crops
like rice.
Since the plant-load factor for PV solar systems
is necessarily limited to around 20%, as they are dependent on sunshine hours,
industrial needs could be met with the newly developed Concentrated Solar Power
[CSP] systems, which use mirrors to focus sunlight, and convert water into
steam to turn turbines. The giant CSP 377MW Ivanpah station in California,
rated to produce over a billion units a year, focuses light on a receiver
tower, where water is turned into steam for the thermal station below. Spain is
dotted with dozens of smaller CSP power stations which use parabolic troughs to
heat the fluid passing through a pipe at their focal point. To meet energy
needs at night, molten salt storage, from which heat can be drawn during
non-sunlight hours, is used to drive the turbines. Denmark’s Aalborg and
Norway’s NEST companies have developed a radical new technology utilising
special concrete with embedded steel heat exchangers that are expected to work
even better. Whatever the technology preference, it powers conventional thermal
power stations without using polluting fossil fuels, or the very dangerous and
extremely expensive nuclear fuel system. Piyush Goyal has the distinction of
being the first minister to question the need for nuclear power, which despite
several decades of expensive development has accounted for no more than 1% of
the country’s energy consumption.
With central government help, the Telangana
government can invite bids from established CSP companies, such as the American
Bright Source, Danish Aalborg, or Spain’s Abengoa and Acciona. It would be in
the interest of these companies to offer competing bids to take advantage of
Telangana’s sunshine days.
The price of solar power has fallen dramatically
and uniquely to a fraction of its original cost, since it was first used in the
Sputnik satellite. With further developments, there is little doubt even among
pessimists that it will be the cheapest source of power in the future. However,
at present it is still more than thrice as expensive as fossil fuel power. If
the government takes the long view, and health and climate change factors into
consideration, solar power stations of the magnitude of Ivanpah are viable even
today. If we take into account the opportunity costs of not developing India’s
vast resources of low-calorific coal for valuable petrochemicals, there is no
question but we should switch from coal to solar to produce electricity.
Last year India imported 75% of its crude oil
needs, and the import bill stood at $150 billion. The present bonanza of
politically depressed oil prices at less than $75 a barrel cannot last, since
this dip in price was just a lesson the USA and Saudi Arabia wanted to teach
Iran and Russia, where production costs are much higher. When oil prices come
back to over $100 a barrel, India’s current account deficit will continue to
soar. Around half of the imports go to the transport sector, and 80% of the oil
is consumed by vehicles on roads. Diesel, which is subsidised, and accounts for
the great bulk of the imports, caused a loss of around Rs 140,000 crores last
year!
It is high time India, as a member of BRICS,
followed Brazil’s successful example and switched to ethanol as fuel for road
vehicles. Almost all Brazilian vehicles use ethanol, and some run on nothing
else. Ethanol was Henry Ford’s first fuel of choice, but the dirt cheap price
of crude oil from the Middle East a hundred years ago made petrol the main
fuel. Since ethanol and petrol are easily miscible the cars on the road can
immediately use a 20% mixture without difficulty or loss of power. Major car
manufacturers such as General Motors have models that run purely on ethanol.
Indian ethanol is derived from sugarcane, the
second most important commercial crop after cotton. Around four crore farmers
produce anywhere from 250 million tonnes to even 350 million tonnes of cane in
a good year. However, when there is a glut of sugar in the market, prices get
depressed, sugar factories stop buying cane and farmers lose. The cyclical
nature of the industry can be changed if a policy is created to encourage sugar
factories to increase ethanol production. At present from every tonne of cane
about 7 to 10 litres of liquor are produced as a by-product which can be
converted to ethanol fuel at little cost. Even 100 litres can be produced from
a tonne of cane if production is switched completely to ethanol when demand for
sugar is low. It would be a win-win situation for the government, farmers, the
sugar industry, and even vehicle owners, for domestic ethanol will drive down
fuel prices.
So far government has failed to offer a
competitive price for ethanol compared to the liquor industry which is the main
buyer of liquor from sugar factories. Government’s hesitation to push forward
such a policy is caused by obstruction from the liquor lobby which provides
more than 30% of excise revenue. While the cost of potable liquor will
certainly go up if India pushes forward an aggressive ethanol policy, the sugar
factories ability to increase production will stabilize prices in the near
future and the liquor industry will not be the loser.
There is no single simple solution for the energy
crunch. A package of several policies must be pursued simultaneously. Demand
side management is a vital necessity of the energy requirements of the various
sectors, industry, domestic urban and rural, and agricultural. These demands
must be disaggregated on the basis of location and size, and independent
solutions found for all of them utilizing various energy sources and
technologies. Piyush Goyal has said the present government does not ‘operate in
silos.’ Several ministries must collaborate actively if affordable and reliable
solutions are to be found to energize India’s future growth.
2014-11-28 PrimePost.in