Accomplishing Energy Targets through PEER by Ms Mili Majumdar, Managing Director of Green Business Certification Institute Pvt Ltd, India and Senior Vice President, USGBC
Current Energy Scenario – India is witnessing a rapid economic and industrial growth with a projected GDP of 7.8 % in 2019 by IMF. To achieve this growth, it is important to ensure power security for the nation and the power generation has grown at a CAGR of 7% since 2010. Ministry of Power reports the current installed power capacity as 346 GW with 64% thermal, 21% renewable generation and 13% large hydro balance 2% is met through Nuclear. Further, the Central Electricity Authority (CEA) projects a coal capacity addition of 41 GW by 2027 that leads to a CO2 emission of 117.3 million tonnes, which may cause an adverse impact on the environment.
Challenges to the Indian Power Sector – Outlined below are the major challenges to the Indian power sector.
Transmission & Distribution (T&D) inefficiencies – Though the generation is progressing, CEA reported that the peak power deficit was 2.1% while overall electricity deficit was 0.7% across the country in 2017-18. One of the major reasons for this power deficit may be attributed to the high T&D losses in the power network, which is currently around 22%. Additionally, AT&C (Aggregate Technical & Commercial) losses also stand around 21%, leading to huge financial and operational stress on the DISCOM’s.
Grid Resilience – Natural disasters have taken a toll on the power network leading to blackouts and brownouts across India. The country has faced its worst blackout in July 2012, when the entire northern grid across eight states failed due to demand mismatch between the northern and western grid. It has now become more common for coastal cities and states to face blackouts during cyclones due to damaged grid infrastructure, questioning grid resilience.
“During Vardah cyclone, in 2016, the state utility Tamil Nadu Generation and Distribution Corporation (TANGEDCO) lost 10,000 electric poles and 800 transformers were damaged causing a loss of more than 1,000 crores.”
In order to overcome the above challenges, the Govt. of India has announced programs to improve energy efficiency, reduce emissions and develop grid infrastructure. Initiatives that have been introduced, including UJALA (Unnat Jeevan by Affordable LEDs and Appliances for All), Renewable Energy – 175 GW target by 2020, 24*7 Power for all, Remote village electrification programme, all ensure the nation’s progress towards achieving a cleaner and equitable power supply to all.
With ambitious energy policies and programs on one side and challenges to the grid infrastructure on the other side, GBCI’s Performance Excellence in Electricity Renewal (PEER) program could bridge this gap, ensuring reliable, quality, resilient and safe power to the consumers, thereby improving the nation’s living standard and economy. PEER has the potential to accelerate the transformation of the power and energy market to meet these goals. It establishes global best practices, supports programs in achieving national goals and creates a common language between the electricity consumer, power distribution companies and energy professionals. This policy brief details how PEER can complement the Government’s work to achieve their target outcomes and holistically support grid modernisation in India.
This policy brief outlines how PEER can jump start a sustainable transformation in the power market and support national energy policies and achieve targets.
Overview of India’s energy policies
The Govt. of India has introduced several major energy initiatives:
• UJALA – 32 crore LED’s distributed leading to 42000 million units energy savings.
• Renewable Energy target – 175 GW target by 2022 – the country has already installed 40% of the target (72 GW) to date.
• National Smart Grid Mission (NSGM) – an institutional mechanism governing the implementation of smart grid policies and programs with 11 pilots and 5 projects in progress.
• PAT (Performance, Achieve & Trade) scheme – to reduce the specific energy consumption of energy-intensive industries. In the third phase of implementation, PAT aims for an overall energy consumption reduction of 1.06 MTOE.
• UDAY scheme – emphasizes the operational improvement of DISCOM’s through the deployment of energy efficiency measures. Achieved nearly 100% urban and rural Distribution Transformer metering, 68% feeder segregation to date.
• IPDS (Integrated Power Development Scheme)/R-APDRP (Restructured Accelerated Power Development and Reforms Programme) – focuses on IT enablement of the distribution sector. As of May 20, 2017, 493 projects with an aggregate cost of Rs 25,898 crore have been sanctioned and IT-enablement was taken up by 1,405 R-APDRP towns. A glimpse on the PEER credits associated with the national energy programs and how it drives them toward achieving the target is highlighted above. A detailed mapping on how PEER strengthens the PAT and UDAY schemes, their convergence and beyond, are discussed beneath.
India’s intended nationally determined contributions aim to reduce greenhouse gas emissions intensity by 20-25% by 2020 and to increase the share of renewables in installed capacity to up to 40% by the same year.
To achieve this, the Bureau of Energy Efficiency launched the PAT scheme – a regulatory instrument to reduce specific energy consumption in energy-intensive industries (Designated Consumers – DC).
PEER complementing PAT – through a structured framework.
PEER can holistically support the identified DC’s of PAT (DISCOM’s, aluminium, cement, chlor-alkali, fertilizer, iron & steel, paper industries etc.) in achieving their energy reduction targets through its structured framework. It helps to:
Effectively track their energy usage,
Track emission performance,
Emphasizing an integrated framework of operational policies to be in place (risk assessment, preventive and predictive approaches, load management); and Quantifying the economic, environmental and social benefits.
PEER directly compliments PAT through its 34 proven credits, which supports energy-intensive industries in achieving their designated targets and helps in improving power system performance.
PEER addressing energy sectors beyond PAT – PEER is a comprehensive program developed to address sustainability, reliability and resiliency of energy infrastructure across cities and utilities (DISCOM’s), campuses (airports, hospitals, IT parks, universities, SEZ etc.) and transits (railways and metros) thereby addressing various energy sectors going ahead of PAT. Here is a segmentation snapshot of PAT and PEER.
The UDAY scheme was launched to improve the financial and operational efficiencies of the weaker state DISCOM’s.
The UDAY scheme could majorly be referred as a debt restructuring plan for the financially weak DISCOM’s emphasizing on the operational improvements through mandating feeder segregation, transformer up-gradation, compulsory smart meter installation, AT&C loss reduction and deployment of energy efficiency measures.
PEER complimenting UDAY through proven programs & processes
PEER with its integrated approach could drive DISCOM’s towards UDAY targets and further through its proven programs & processes. The performance outcomes could also help Indian DISCOMs in benchmarking across regional and global peers.
The PEER framework as an approach towards UDAY is mapped here.
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