One day power secretaries conference to discuss hydel and solar power unexplored potential

July 16, 2008. New Delhi. National Energy Security has today emerged as a major issue because of the increasing oil prices apart from the limited coal reserves. Renewable energy assumes crucial importance in the long run, particularly beyond 11th plan period to achieve sustainable economic growth of 9% and more.

Keeping the importance of National Energy Security in mind a One Day Conference of Power secretary is being organized at the PHD Chamber on July 22, 2008. This agenda of the conference is to discuss (i) Hydro Power: focus storage projects, (ii) Solar Power: unexplored potential, (iii) State level power sector reforms. PHD Chamber has highlighted the road map for accelerating the pace of hydro power projects, particularly storage projects in the next decade; considering the policy perspective and approach to develop solar- thermal power, and; calling upon the States to adopt appropriate policies for sustainable development of the power sector duly supported by unavoidable and bold power sector reforms.

This important Conference is going to be attended Mr. Anil Razdan, Union Secretary, Ministry of Power, and by power Secretaries from Punjab, Haryana, Uttarakhand, Uttar Pradesh, Delhi, Rajasthan, Himachal  Pradesh apart from other northern states.

The Government’s emphasis should shift to develop vast untapped hydropower resources, as only 23 percent of it has been harnessed so far. India’s energy portfolio today depends heavily on coal-based thermal energy. The Government of India has set the target for India’s optimum power system mix at 40 percent from hydropower and 60 percent from other sources. Therefore Northern states of Himachal Pradesh, Uttarakhand and J&K offer the key to development of new hydro power projects.

Hydro Power when developed in accordance with good environmental and social practices, has the advantage of producing power that is both renewable and clean, as they emit lesser greenhouse gases compared to traditional fossil fuel plants and do not emit polluting suspended particle matter (from the high ash-content of indigenous coal).

While hydropower plants have large up-front capital costs, they also have long and productive lives, which significantly help reduce costs over time. For example, the Bhakra Nangal plant, now more than 40 years old, has operating costs of only Rs 0.10 or US$ 0.002 per unit. Hydropower plants are thus generally cheaper in the long run than natural gas-based plants, which are constantly at risk from fuel price increases in the global market.

There is global thrust towards developing solar resources and, India needs to accelerate the solar policy initiative from the present level of 50 MW to the level of 5000 MW recommended by the IEP-2006. The major deterrent for adopting solar based power generation has been the high capital cost resulting in tariff levels which are perceived to be very high and unaffordable by the State utilities.

Promoting large scale solar based power generation is urgently required considering the high oil price and the high oil subsidy being borne by the government. Redirecting the savings in the oil subsidy achieved through solar power plants can enable a large number of projects to be taken up. It is proposed to extend the generation based incentive scheme from the present level of 50 MW to 150 MW within the existing scheme, and with the cabinet approval may be enhanced to 500 MW annually with the subsidy component tapered down after addition of every 500 MW of solar based power plants.

 Solar based power generation, specifically solar thermal based power generation of capacities greater than 50 MW have now become commercially viable with appropriate feed in tariffs.