DDG (Decentralized Distributed Generation) may be based on conventional and non conventional source of energy, may be a stand alone system or grid connected, Site specific (Rural or Urban).
India is facing acute power shortage and it is predicted by CEA that the situation may worsen in 2009-10 when peak deficit of some states may touch around 30%.This keeps the alarming bell ringing and India need to address these concerns as soon as possible.
Talking about the need of urban areas where Industrialization is growing at fast pace, the hunger for power keep growing at an alarming rate and the need for 24 x 7 power supply is a must to sustain the growth momentum. In the need of the hour, it is the rural segment which is affected badly, as if load shedding is to be made; the first area to go without power is jhuggi jhopdi areas in urban and the rural areas. The reasons are plenty, we can not afford for power cuts in urban areas as economic activity stops without power and the loss to overall growth of the country is very huge.
Now, the big question is that whether the DDG could make for the peaking shortage of urban areas. What would be the cost factor and where is the fuel resource for such type of systems. Can this type of system economically, financially and commercially viable. If the answer is yes, then what is stopping the private entrepreneurs to tap the area? Is there any policy which supports this type of activity? Is there any hurdles regarding the regulatory mechanism. If not then, why such systems are not coming up in a large numbers in India.
As it is now evident that everyone seems to be consensus to the point “Generate where required”. By this, lot of problems could be solved at one go. There will be virtually no technical losses in the system as the power is not to be transported to a large distance by wires. There will be less carbon foot print as the power will be generated by less polluting fuel such as gas and renewable sources. Grid connectivity will not be a problem as the power generated will be used locally and at time of need it can be supplied to the grid so s to help the grid functioning better.
So many advantages, so what is stopping us going forward? The huge cost factor and the private developers are demanding grants and subsidies from the government. Do they find the customers who are willing to take the power .If customers are willing to pay for the power, then these systems must be encouraged but who will guarantee the long term fuel supply .As these DDGs are planned to operate at gas based fuel and we are very much aware about the gas supply scenario of India, Due to want of the gas, many gas based power plants are running at a PLF of only 30 to 40%. The KG basin gas is a hope for the future prospectus but the problem is that the fertilizer lobby is so strong that they have the first right to use the gas and then comes large gas based power plants of CPSUs and the IPPs and then if any gas is available, the govt might think of allocating the remaining gas for DDG type of schemes.
So, the fuel is the main problem as of now. We may hope the situation to improve when the national power grid takes shape in India but that is also a distant dream right now.
Moreover we must remember that more than 1 lakh villages in India are still to be electrified and the policy makers are rightly pointed out for a possible solution with implementation of DDG systems as a stand alone system in rural areas where it is very difficult to lay the grid lines. Under the scheme of RGGVY and MNRE, several financing options are available to make the system viable. On the other hand, the private players are demanding same incentives to develop the model in urban areas as they are not willing to go to the rural areas and develop the same as they very well know that those areas are not commercially exploitable.
Some argue instead of focusing rural areas Govt may come up with some policies so as to mitigate the demand of urban areas first as this could help them save substantial power and power supply will be reliable and sustainable and peak deficit may be addressed in case of urban areas. The idea is good but then why urban areas .As we know that people in urban areas can pay more and they should be paying according to their use. The recent phenomenon at the power exchange suggests that the peak rate is hovering around at Rs 15 per unit. I think this could better trigger to the point that if they go with DDG with less space requirement, less water requirement and overall price of power will be less as it is also used for heating and cooling effect. The malls , office spaces and other loads if they can afford such type of power, they must be encouraged to go for DDG systems and DLF utility has already implemented the same in some of their buildings and they plan to implement it for their upcoming housing areas as well as market establishments.
Some experts argue in favour of having the DDG system only for rural areas where the requirement is small and the fuel resource is abundantly available locally. The technology must be developed so as to make the system reliable and financially viable.
In a recent round table conference organized by Infraline Energy, Mr Shahi , former secretary to MoP has suggested PPP model for DDG generation scheme. He has advocated for viability gap funding for the project where as the Govt would be ready to pay for a particular tariff which will be a pass on to the consumers and for the gap cost the generators must compete against each other to get the required benefit from the government.
Or can we think of a franchise kind of structure where in some players are selected by the government to establish the plant on a BOOT ( Build, own, operate and transfer scheme) basis.
Though Wartsila is strongly advocating of DDG system in urban areas there are very few takers to their argument but then the scope is very vast and if they can find the right customers who are willing to take that extra foot forward, it’s a better solution to go in for this type of systems as we very well know that India need power and it does not matter from where and how the power comes from like in 20-20 cricket, it does not matter the kind of risk or the shot selection of the players, what matters the most are the valuable boundaries.
What say!!!!!!!!!!!!!!
India is facing acute power shortage and it is predicted by CEA that the situation may worsen in 2009-10 when peak deficit of some states may touch around 30%.This keeps the alarming bell ringing and India need to address these concerns as soon as possible.
Talking about the need of urban areas where Industrialization is growing at fast pace, the hunger for power keep growing at an alarming rate and the need for 24 x 7 power supply is a must to sustain the growth momentum. In the need of the hour, it is the rural segment which is affected badly, as if load shedding is to be made; the first area to go without power is jhuggi jhopdi areas in urban and the rural areas. The reasons are plenty, we can not afford for power cuts in urban areas as economic activity stops without power and the loss to overall growth of the country is very huge.
Now, the big question is that whether the DDG could make for the peaking shortage of urban areas. What would be the cost factor and where is the fuel resource for such type of systems. Can this type of system economically, financially and commercially viable. If the answer is yes, then what is stopping the private entrepreneurs to tap the area? Is there any policy which supports this type of activity? Is there any hurdles regarding the regulatory mechanism. If not then, why such systems are not coming up in a large numbers in India.
As it is now evident that everyone seems to be consensus to the point “Generate where required”. By this, lot of problems could be solved at one go. There will be virtually no technical losses in the system as the power is not to be transported to a large distance by wires. There will be less carbon foot print as the power will be generated by less polluting fuel such as gas and renewable sources. Grid connectivity will not be a problem as the power generated will be used locally and at time of need it can be supplied to the grid so s to help the grid functioning better.
So many advantages, so what is stopping us going forward? The huge cost factor and the private developers are demanding grants and subsidies from the government. Do they find the customers who are willing to take the power .If customers are willing to pay for the power, then these systems must be encouraged but who will guarantee the long term fuel supply .As these DDGs are planned to operate at gas based fuel and we are very much aware about the gas supply scenario of India, Due to want of the gas, many gas based power plants are running at a PLF of only 30 to 40%. The KG basin gas is a hope for the future prospectus but the problem is that the fertilizer lobby is so strong that they have the first right to use the gas and then comes large gas based power plants of CPSUs and the IPPs and then if any gas is available, the govt might think of allocating the remaining gas for DDG type of schemes.
So, the fuel is the main problem as of now. We may hope the situation to improve when the national power grid takes shape in India but that is also a distant dream right now.
Moreover we must remember that more than 1 lakh villages in India are still to be electrified and the policy makers are rightly pointed out for a possible solution with implementation of DDG systems as a stand alone system in rural areas where it is very difficult to lay the grid lines. Under the scheme of RGGVY and MNRE, several financing options are available to make the system viable. On the other hand, the private players are demanding same incentives to develop the model in urban areas as they are not willing to go to the rural areas and develop the same as they very well know that those areas are not commercially exploitable.
Some argue instead of focusing rural areas Govt may come up with some policies so as to mitigate the demand of urban areas first as this could help them save substantial power and power supply will be reliable and sustainable and peak deficit may be addressed in case of urban areas. The idea is good but then why urban areas .As we know that people in urban areas can pay more and they should be paying according to their use. The recent phenomenon at the power exchange suggests that the peak rate is hovering around at Rs 15 per unit. I think this could better trigger to the point that if they go with DDG with less space requirement, less water requirement and overall price of power will be less as it is also used for heating and cooling effect. The malls , office spaces and other loads if they can afford such type of power, they must be encouraged to go for DDG systems and DLF utility has already implemented the same in some of their buildings and they plan to implement it for their upcoming housing areas as well as market establishments.
Some experts argue in favour of having the DDG system only for rural areas where the requirement is small and the fuel resource is abundantly available locally. The technology must be developed so as to make the system reliable and financially viable.
In a recent round table conference organized by Infraline Energy, Mr Shahi , former secretary to MoP has suggested PPP model for DDG generation scheme. He has advocated for viability gap funding for the project where as the Govt would be ready to pay for a particular tariff which will be a pass on to the consumers and for the gap cost the generators must compete against each other to get the required benefit from the government.
Or can we think of a franchise kind of structure where in some players are selected by the government to establish the plant on a BOOT ( Build, own, operate and transfer scheme) basis.
Though Wartsila is strongly advocating of DDG system in urban areas there are very few takers to their argument but then the scope is very vast and if they can find the right customers who are willing to take that extra foot forward, it’s a better solution to go in for this type of systems as we very well know that India need power and it does not matter from where and how the power comes from like in 20-20 cricket, it does not matter the kind of risk or the shot selection of the players, what matters the most are the valuable boundaries.
What say!!!!!!!!!!!!!!
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