Karnataka Industries No.1 Problem: Being left Powerless

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Empower the power sector is the demand across industries in Karnataka. This sector’s issues are many and include Settlement Mechanisms; Tariff Setting; Centre-State conflicts; Fuel Issues; Public Private Partnerships; Peculiarities of the Indian Electricity Grid; Scheduling Nuclear, Fossil and Renewable power; Payment Security Mechanisms; Third Party Open Access; and Sanctity of Contracts.

Power Shortfalls that have the Karnataka Government in a tizzy

  • With our petroleum product import expected to reach 90 per cent of our consumption by 2015 AD, how are we going to ensure energy security?
  • The load growth forecast for Karnataka is expected to be a CAGR figure of about 5 per cent for the next ten years.

Table on Load forecast for Karnataka

Year 2006-07 2011-12 2016-17
Peak Demand (MW) 7,740 10,460 14,071
Annual Energy
Requirement (MU)
44,748 60,478 81,354

(Source: 16th Annual Power Survey, CEA)

  • Hydro: Against assessed potential of 6,602 MW (almost all of which is in Western Ghats), 3,400 MW has been utilized so far. The rest of the hydro potential will be difficult to harness due to huge impact on the environment and stiff opposition from the public.
  • Fossil Fuels: No known reserves in Karnataka.
  • Establishing power stations based on coal, gas or diesel is fraught with uncertainty of fuels; example of Yelahanka diesel station and the Bidadi gas project.
  • Nuclear: Kaiga is in operation however there is difficulty in getting adequate supply of Uranium.

Solutions for bolstering the power equation in Karnataka

In order to sustain the growth of its economy, Karnataka needs to implement an accelerated capacity addition as well as more efficient Transmission & Distribution system. Accelerating Public Private Partnership initiatives in the Electricity Sector is the way forward and also with regard to renewable energy like wind, energy ,solar, tidal or bio-gas. The state has an estimated potential to produce around 18,000 MW of power from non-conventional sources of energy. The state, so far, has accorded permission to the independent power producers to generate 9,000 MW of power through non-conventional sources Wind itself has got fantastic potential in Karnataka.

It is estimated at 12,000 MW. So far 2000 MW has been realized. The total installed power plant capacity in Karnataka is about 8500 MW including allocations from Central Generating Stations. The Karnataka Power Corporation Ltd (KPCL) currently has a capacity of about 5000 MW. The Renewable sector contributes to another 1800 MW. The state has planned to set up four 2000 MW gas based power plants at Belgaum, Gadag, Davangere and Tumkur at a cost of nearly 32,000 crore.

Table on Non-Conventional Energy potential in Karnataka

 

Potential

Remarks

1. Wind energy

1,180 MW

A number of potential sites

2. Small hydro

650 MW

A number of potential sites

3. Solar

over 5,000 trillion

kWH/year ( 2400 Mtoe/year)

Potential is more than the total energy needs of the country; against 4,500 Billion Units of electricity requirement in 2031

4. Biomass

(wood and biogas)

640 Mtoe/year (million tonnes of oil equivalent/year) or about 19,500 MW

Huge potential when compared to the total household energy consumption of 135 Mtoe in 1999-2000 for the country.

5. Wave energy

Huge but the details of potential not known

The state has a long coast line , and hence immense potential

(Source: Ministry of Non-conventional Energy Sources, Govt. of India)

The above table throws up revelations as listed below:

  • Karnataka has a huge potential in renewable energy sources, including ocean tidal energy.
  • Even if 75 per cent of the AEH consumers, and 50 per cent of the houses/offices/schools/street lights can be encouraged to install solar panels for water heating and for lighting, a conservatively estimated 1,500 MW of morning peak demand, about 800 MW of evening peak demand and about 1,000 MU of energy per year could be saved in Karnataka.
  • There is considerable scope for commercial and industrial establishments also to reduce their grid quality electrical energy requirements by harnessing solar power.
  • All these measures will result in many direct /indirect benefits like massive reduction of T&D losses, energy theft, and recurring expenditure on fossil fuels, environmental protection and reduced human displacements.

Moving on from the topic of renewable energy, substations should be constructed in industrial zones like steel, cement, automotive and aerospace; and dedicated feeders could be set up for industries. Hence under the ‘Nirantara Jyoti’ scheme continuous power supply would be ensured.

Faced with a large power deficit and transmission and distribution loses of 20 per cent, Karnataka is now looking to use information technology to plug in losses and increase efficiency. A smart grid pilot project is to be implemented in the Bangalore’s IT hub, Electronics City, under the public-private partnership model. At a cost of Rs 100 crore, the project is expected to get implemented in less than two years and the state plans to set up similar smart grids across the state. By putting IT into automation and distribution our aim is to see that voltage improves, fault location becomes quicker. A smart energy grid uses advance digital technologies to increase energy reliability, save energy and cost, and will allow greater consumer participation. Some of the other benefits include improved power quality; focus on renewables and resilience to attacks; and natural disasters with rapid restoration capabilities. Experts say smart grids help consumers change their power consumption trends and contribute directly to energy savings. Under the union government’s power reforms scheme — the ‘Restructured Accelerated Power Development and Reforms Programme’, State electricity boards can appoint IT firms as consultants or act as implementation agencies to distribution companies. States like West Bengal and Rajasthan have already awarded IT projects, while others including Madhya Pradesh and Maharashtra are in the process of doing so.

The much needed security of a reliable and quality electricity supply to all sections of the society has not been achieved in Karnataka despite the promises made by successive State Governments through the last many decades. Through suitable policies and initiatives, this situation must be arrested and improved if we are to aim at the all-round development of not just the present generation, but also of future generations. Highly objective consideration of the electricity scenario in the state will reveal that in reality there is no shortage of the electricity generating capacity if we can achieve international standards in the performance of the assets in generation, transmission, distribution and utilization. Hence, efficiency improvement, energy conservation and optimum deployment of distributed renewable energy sources will not only enable us to eliminate the deficits, but also will reduce the need for large additional power generating capacities. There is huge potential for this approach to be delivered to ultimately ensure improved status of social, environmental and economic arenas in Karnataka.