064 QEP 2023 Theme June 2023 Batch Energy theIAShub Pa PDF

QUALITY ENRICHMENT PROGRAMME (QEP): TARGET 2023/24
Under the Guidance of M K YADAV
THEME – ENERGY SECTOR (Part 1)

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1
INDEX
1 PREVIOUS YEAR QUESTIONS (2013-2022) 3
- Repeated Themes from PYQs
- Expected Questions For 2023/24
2 FACTSHEET 5
3 THEME WISE KEYWORDS: As per Usage in Body of Answer & Way forward 7
4 CASE STUDIES & BEST PRACTICES: LOCAL, NATIONAL & INTERNATIONAL 9
5 FROM THE SPEECHES: PM, PRESIDENT, & VP 11
6 ENERGY SECTOR IN INDIA: Introduction, Issues & Challenges, Causes, Way Forward, 12
Government Initiatives, PM Ujjwala Yojana (An Assessment) etc.
- ANNEXURE I: Uday Scheme – Debt Restructuring Scheme For Discoms, New Initiative:
Reforms-Based And Results-Linked, Revamped Distribution Sector Scheme (RDSS)
- ANNEXURE II: SAUBHAGYA Scheme: Ensuring Power For All
- ANNEXURE III: NITI Aayog - Strategy For New India @75
7 RENEWABLE ENERGY IN INDIA 23
8 INDIA’S ENERGY PARADIGM & PILLARS OF ENERGY SECURITY 26
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1 PREVIOUS YEAR QUESTIONS (2013-2022)
2013
GS3
• Write a note on India’s green energy corridor to alleviate the problems of conventional energy.
•
2014
GS3
• Should the pursuit of carbon credit and clean development mechanism set up under UNFCCC be
maintained even through there has been a massive slide in the value of carbon credit? Discuss with
respect to India’s energy needs for economic growth.
2015
GS3
• To what factors can the recent dramatic fall in equipment costs and tariff of solar energy be attributed?
What implications does the trend have for the thermal power producers and the related industry?
2016
GS3
• Give an account of the current status and the targets to be achieved pertaining to renewable energy
sources in the country. Discuss in brief the importance of National Programme on Light Emitting Diodes
(LEDs).
2018
GS3
• With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the
facts and fears associated with nuclear energy.
• Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable
Development Goals (SDGs). Comment on the progress made in India in this regard.
2020
GS 1
• India has immense potential of solar energy though there are regional variations in its developments.
Elaborate.
GS3
• Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy
generation. What are the initiatives offered by our Government for this purpose?
• Explain the purpose of the Green Grid Initiative launched at the World Leaders Summit of the COP26 UN
Climate Change Conference in Glasgow in November 2021. When was this idea first floated in the
International Solar Alliance (ISA)?
2022
GS3
• Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your
answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective?
Explain.
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REPEATED THEMES FROM PREVIOUS YEAR QUESTIONS (PYQs)

• THEME 1: RENEWABLE ENERGY & SUSTAINABLE DEVELOPMENT
- India’s status & targets, India’s Progress, Challenges, Access to Sustainable & Modern Energy etc.
- Renewable energy Initiatives: Green energy corridor, Carbon Credit & Clean Energy, Nuclear Energy
programme, Solar Energy etc
- Solar Energy: Potential, Benefits, Challenges, Green Grid Initiative, International Solar Alliance (ISA) etc
• THEME 2: CONVENTIONAL ENERGY Vs. RENEWABLE ENERGY
- Shift from Conventional/Fossil Fuel to renewables; impact of shift (on Thermal Power producer).
• THEME 3: POLICY & INITIATIVES
- National Programme on Light Emitting Diodes (LEDs)
OTHER EXPECTED TOPICS FOR 2023/24
• PRIVATISATION OF POWER DISCOMS

• ASSESSING EFFECTIVENESS OF GOVT. REFORMS IN POWER SECTOR
- UDAY SCHEME: Success & Limitations
• INDIA’S TRANSITION TO A SUSTAINABLE ENERGY: Need, Benefits, Options, Challenges & Solutions
• INDIA’S NEW RENEWABLE ENERGY TARGET: Too ambitious, or Achievable? (Panchamrit)
- India’s Performance on Previously set RE Targets (Esp. Solar Energy – 100GW)
• WIND ENERGY: Potential, Challenges & Solutions
• ENERGY STORAGE SYSTEMS
• ENERGY CONSERVATION & EFFICIENCY: Need, Measures, Challenges, Govt. initiatives
- Energy Conservation (Amendment) Act, 2022
• CURRENT TOPICS: Green Hydrogen Based Economy, Biofuels (National Bioenergy Programme), Gas Based
Economy etc.
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2 ENERGY SECTOR: KEY FACTS

Standing in the World • 3rd largest producer of electricity
• 3rd largest consumer of electricity
• 5th largest installed capacity in the world [>400 GW]
Total Installed Capacity • Central Sector: 24%

• State Sector: 25%
- Sector
• Private Sector: 51%
Production of Renewables
• Centre: <1%
• State: 3.5%
• Private: >96%
Fuel Options available • Conventional Sources – Coal and lignite, Natural gas, Diesel, and Nuclear
for Power Generation • New and Renewable Energy Sources - Solar, Wind, Hydro, Small hydro project, tidal,
Geothermal, Biomass power, Urban & Industrial Waste to Power etc.
Power Sector of India • Fossil Fuel Based Thermal Power: About 58% (Coal based – 50%, Natural Gas - 6%,
Diesel – 0.1%, Lignite – 1.5%)
(% of Total Installed
Capacity) • Non Fossil Fuel Based Renewable Energy Sources: >40% (4th Largest, globally)
- Hydro power – 11.5%
- Wind Power – 10% (4th Largest, globally)
- Solar Power – >15% (5th Largest, globally)
- Bio-power (Bio- mass + Urban & Industrial Waste to Power) – 2.5%
- Small Hydropower (projects <25 MW) – >1%
• Non Fossil Fuel Based Nuclear Power – 1.5% (approx)
Targets for Renewable Total Target: 175 GW by 2022

energy (excluding
TARGET (BY 2022) ACTUAL ACHIEVEMENT
Hydro Power)
Total 175 GW 125 GW
Solar 100 GW 67 GW
Wind 60 GW 42 GW
Small Hydel Projects 5 GW <5 GW
Biomass 10 GW >10 GW
India’s Panchamrit Commitment at COP 26 Summit, 2021 (Updated NDCs)

• Increase non-fossil energy capacity to 500 gigawatt by 2030.
India’s New Pledges
• Meet 50% of energy requirements till 2030 with renewable energy.
under Paris agreement
• Reduce projected carbon emission by one billion tonnes by 2030.
• Reduce the carbon intensity of economy by 45% by 2030.
• Achieve net zero by 2070.
Other Targets • India’s Gas Economy: Target to increase natural gas consumption in India’s energy mix
from 6% to 15% by 2030.
• Hydrogen Economy: increase the share of green hydrogen to 25% in the next five years
(Annual production of 5 MMTPA of green hydrogen by 2030).
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Power T&D Losses in • >20% (highest in the world).

India • Global Average - 8%
Per Capita Electricity • Just 1/3rd of the global average (1255 KwH)
consumption (2021-22)
Sector-wise electricity • Industrial Sector- 40%
consumption • Domestic – 25%
(MOSPI) • Agriculture – 20%
• Commercial sector – 10%
Oil Production &
• India is the world’s 3rd largest consumer of oil, the 4th largest oil refiner and a net
Consumption
exporter of refined products.
[International Energy
• India’s import dependency: above 80%
Agency]
PM Ujjwala Yojana • LPG coverage (connections) in India has gone up from 60% in 2016 to >104% in 2022
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S 3 ENERGY SECTOR: KEYWORDS

Sr.# KEYWORDS FOR USE IN BODY OF THE ANSWER
Energy Trilemma - higher energy access & affordability + higher energy security + higher sustainability
1
• DISCOMS as weakest link in the Power supply chain
• DISCOMS as Achilles’ heel of the power sector
2
• Decarbonization of India’s power sector/Indian Economy
• Decoupling of GDP growth from emissions
3
4 Mantra Guiding Govt's Approach to Power Sector – Reach, Reinforce, Reform, Renewable energy
4
3 pillars of Energy Transition - Energy security and accessibility, Economic prosperity, and Mitigating GHGs
5
Benefits of Solar Energy
• ‘Sooraj Se Rozgaari’ (Earnings from sunlight)
• ‘Annadata se Urjadata’
KEYWORDS FOR USE IN WAY FORWARD

From Jungle of Tariffs to Cost Reflective Tariffs
7
From Regional Disparity to ‘Roshan India’
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From ‘Energy Poverty’ to ‘Energy for Prosperity’
9
From Consumers to Prosumers
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Renewables as a ‘fulcrum for sustainable energy transition’
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Waste to Energy, Waste to Wealth, Waste-to-Value cycle, Garbage to Gold, Kachre se Kanchan
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4 CASE STUDIES & BEST PRACTICES

NATIONAL & LOCAL
• Bijli panchayats, Haryana
- Encourage consumers to pay arrears in electricity bills and in return government will waive off any
surcharge. Option to pay in instalments. Conduct raids to eliminate big players in power theft.
- Benefits - Decline in power losses and surplus electricity in Haryana.
• ‘Litter of Light’ portable lights: Self-Help Groups (SHGs) have been trained to produce portable room
lights in Aspirational District of Ranchi in Jharkhand.
- Recycled plastic bottles filled with water and a bit of bleach are fitted into the roof to provide
lighting during the day, while at night, the same is upgraded with an LED bulb, micro-solar panels
and a battery to provide a low-cost night lighting system.
• Solar Based Renewable Energy Model, UP Village (Amroha District)
- 100% dependence on solar power for all its needs. Solar panels installed at every house in the village
- The facility was introduced in the village by local MP under a government scheme.
• Narmada canal solar project - covers 5.5 km section of Narmada canal with photovoltaic grid to produce
10 MW electricity while preventing water from evaporation.`
• Floating solar PV project: Ramagundam project: India’s largest floating solar PV project with ‘Made in
India’ solar PV modules.
• Biomass for electricity, Kasai (Tribal) village, Madhya Pradesh
- The village is endowed with abundant biomass resources in the form of wood (from forests and
farmland), crop residues, cattle dung and oil seeds.
- 100% capital costs funded by government, but the project is managed by the local community,
with some technical support from the local Forest Department.
- Self Sustainable: Maintenance fee Rs.120 a month from each household & User charge based on
the amount of electricity consumed. Monitoring – by a village committee (mainly women).
- Benefits: The plant generates all the lighting for households, school and streets.
✓ Supplies electricity for a flour mill, water pumping and a milk-chilling unit ➔ additional income
from selling these products ➔ Helped stem migration from the area.
✓ Trebling of agricultural production due to the availability of water for irrigation.
• 100% LPG coverage in Himachal Pradesh
- Himachal Grihini Suvidha Yojana to supplement Ujjwala scheme through wider coverage.
- Aadhaar card collected of not just the applicants but the entire family to conduct de-duplication
process, thus ensuring no leakage for commercial purposes. Wide publicity of scheme
• Clean Energy (Micro Hydro) for Udmaroo, Ladakh
- Approach - Decentralized approach of energy production so as to make the region self-reliant
making use of renewable resources mainly sun and water (abundant availability).
- User cash of Rs 1000 per Household contributed towards capital cost whereas user in-kind
contributed unpaid labour for installation.
- Outcomes - The villagers in addition have taken initiatives to install carpentry and saw machine, a
flour machine, and an oil expeller machine ➔ improved livelihood, and income generation.
• Small Wind Power Plant in Maharashtra
- Installed at Shri Bhavani Museum situated on the hilltop in Aundh, Satara district, Maharashtra.
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- Wind solar hybrid system - With this wind turbine and 3.6 kW solar panels, storage batteries, and
inverter, the hybrid power plant provides most of the electricity required by this museum.
• Rural Electrification: Coming together of Private Sector, Government and People - Chhattisgarh Solar
Rural Electrification Project
- Challenge - Difficult terrain for development activities ➔ dense forests and mountainous landscape
- Solution - A joint project of the Chhattisgarh Renewable Energy Development Authority and TATA
BP Solar, aimed at electrifying 113 villages using solar power plant covering over 2000 households
• Tirupati: The Green Temple
- Installed solar powered lights, solar cooking system, windmills and a water recycling station.
- Solar energy is converted into steam and is utilised for cooking. Tirumala is relying entirely on clean
energy to feed over 70,000 people every day. This helped to save 1.2 lakh litres of diesel every year.
- The windmills on the hill ensure that the temple town is able to meet 40-45% of the power
requirement by itself through non conventional sources.
- Water recycling station purifies all wastewater which is then re-used in the temple city's gardens.
• Green Hydrogen Fuel
- Green Hydrogen Mobility Project at Leh, Ladakh: Pilot project aimed at 5 Fuel Cell Buses to be run
in and around Leh. First ever deployment of Fuel Cell Electric Vehicles for public use in India.
- Green Hydrogen Blending Pilot Project at NTPC Kawas Township will be India’s first Green
Hydrogen Blending Project helping in reducing the usage of natural gas.
• Artificial intelligence (AI) to answer complaints, Bangalore Electricity Supply Company (BESCOM),
Karnataka - AI with speech-to-text and text-to-speech capability
- Ability to understand which area a complaint is related to, find an answer from the server and reply.
- Transfers complaints to human assistants if the system senses a customer getting frustrated.
- Ability to recognise different languages, dialects, accents, interpret contexts with Natural language
processing (NLP), identify intent of question, learn and get trained, scalability at minimal costs.
- Pilot basis - smart grid network to optimise power supply, high economic efficiency, low losses,
high quality, security of supply.
INTERNATIONAL
• Austin, US where the Green Choice Program active since 2001 has stimulated the initial demand for
renewable-based electricity, facilitating municipal and community procurement of renewable energy.
• Sao Paolo, Brazil where a local regulation requires new residential, commercial and industrial buildings
to install solar water heating systems (SWH) to cover at least 40% of the energy used for heating water.
• Dezhou, China which has actively supported (through incentives & concessions) the establishment of
renewable energy industries with the Dezhou Economic Development Zone for solar technology.
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5 SPEECHES OF PM, VP & PRESIDENT

5.1 FROM THE SPEECHES OF HON’BLE PRIME MINISTER
• Sustainable growth is possible only through sustainable energy sources.
• We need to be Aatmanirbhar in our energy sector. From solar energy to Mission Hydrogen to the
adoption of EVs, we need to take these initiatives to the next level for energy independence.
• The potential of segments like solar, wind energy, and biogas in India is no less than any gold mine or oil
field for our private sector.
• India’s commanding position in renewable energy generation can help energy transition globally.
• Hydrogen: ‘Fuel of the future’.
• Circular economy is a part of the lifestyle of every Indian. The mantra of Reduce, Reuse and Recycle has
been ingrained in our values.
• Energy plays a key role in achieving the goals of sustainable development and poverty eradication.
5.2 SOME QUOTES

• Our ancient scriptures speak of "Ekam Adityam" - "the one sun" as the source of inexhaustible energy.
• “There can be no sustainable development without sustainable energy development.” — Margot
Wallstrom
• “Sustainable energy + food security + healthy environment = full employment + better future.” — Phil
Harding
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6 ENERGY SECTOR IN INDIA
6.1 ENERGY SECTOR – INTRODUCTION

• The central government recently reiterated that India had become a power surplus country, attaining
the feat of “One Nation, One Grid, One Frequency”.
• However, the manner in which this surplus was achieved was concerning. Supply was greater than
demand because of inability of power DISCOMS to buy power.
• In actual terms, India continues to face power deficit.
6.2 ENERGY SECTOR – ISSUES & CHALLENGES

• Problem with definition of ‘Demand for power’:
- Demand = Includes only number of power connections (does not take into account population who
demands electricity but lacks connection).
• Faulty definition of electrification: Even if villages are ‘electrified’, houses are not electrified – For eg.
While 100% villages have been electrified at present, >15% rural households remain without electricity
due to ‘definitional’ reasons.
DEFINITION OF ELECTRIFIED VILLAGE

I. Basic infrastructure such as Distribution Transformer and Distribution lines are provided in the inhabited
locality as well as the Dalit Basti hamlet where it exists.
II. Electricity is provided to one of the public places like Schools, Panchayat Office, Health Centers,
Dispensaries, Community centres etc.
III. Number of households electrified should be at least 10% of the total number of households in the village.
• Regional Disparity: South & west states are power surplus, whereas, North, East, & NE are power deficit.
• Poor Access to Power - Per capita consumption in India is 1/3rd of world average and lowest among
BRICS countries, due to Poor Access. >300 million people do not have access to electricity due to:
- Low per capita income and high fuel prices (Poor Affordability).
- No access to electricity even when income is not a constraint (Poor Availability).
• Poor Quality of Power – Those who have access, face intermittent and unreliable supply, and frequent
power cuts. For eg. >50% of villages receive electricity for less than 12 hours in a day for domestic use.
• Inadequate Infrastructure - The last mile energy connectivity being provided under existing
electrification scheme is highly inadequate, unreliable and unsustainable.
• High Fossil fuel dependence (60% of Installed Capacity) leads to environmental problems, forex outgo
(>85% import dependence), & social costs (health).
6.3 CAUSES OF ENERGY SECTOR CHALLENGES: ACROSS THE SUPPLY CHAIN

POWER GENERATION
• Stalled power sector projects, delay in commissioning of new power projects - due to delays in govt
clearances, environment/land clearances, lack of finances, lack of inputs, litigation, PPP problems,
Twin/Triple Balance Sheet problem etc.
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• Over capacity/Under utilization (< 50%) – Many thermal power plants have been ‘lying idle’ due to
inadequate coal/gas supply, inability of power companies to pay for coal due to low returns, low demand
for power from DISCOMs, competition from other sources (for eg. Solar plants) etc.
• Rising NPAs – There were more than 15 stressed thermal power plants with an outstanding debt of Rs.
50, 000 crore (2021). A major reason has been a delay in payments by the DISCOMs to the power plants.
- For eg. An amount of ₹ 68, 000 crore was overdue to Power producers (2021).
• Hydro power limitation - due to constraints in getting timely environmental clearances.
• Nuclear power – constraints due to civil nuclear liability clause and fears around Nuclear disaster.
POWER TRANSMISSION - Poor Transmission network and infrastructure affect the power supply to end users.
POWER DISTRIBUTION: Challenges faced by Power DISCOMs

• Huge financial losses – estimated at Rs. 90, 000 cr in FY 21, due to structural issues such as:
- High operational inefficiencies – AT&C (Aggregate technical and commercial) losses of Indian
DISCOMS are the highest in the world at >20% (40% in some states) due to overloaded systems,
theft, pilferage, lack of metering, poor billing & collection system etc. (Global average is 8%).
- Tariff inadequacy - Power Tariff revisions have not been timely and adequate, despite increasing
cost of inputs, thus, adding to the losses.
- Delays in payment of subsidies by the respective state governments.
- Lack of political will & Populist policies - cheap or free power to farmers and other voter base,
corruption, diversion of power to certain constituencies, turning blind eye to theft etc.
• Deleterious Impact of Poor finances
- Inability of DISCOMs to repay loans, exacerbating NPAs, making Banks averse to lend further.
- Inability of DISCOMS to buy power from Power producers, who are then unable to sell power in
the market, thereby facing losses, & default on their loans ➔ negative domino effect on economy.
- Inability to invest in the T&D infrastructure (including renewable energy), thus, Power consumers
do not get good quality of power. It is also a setback to India’s commitment to achieve 500 GW of
renewable capacity by 2030.
• High & Rising indebtedness
- Outstanding Dues to Power Producers
- Impact of COVID – With weak power demand & high cash losses, the discoms’ outstanding dues
accelerated to ₹ 1.4 lakh by end of 2020, breaching the pre-UDAY peak of ₹ 1.3 lakh crore in 2015.
• Suboptimal impact of government interventions - State DISCOMs continue to make losses despite
multiple bailouts. While UDAY addressed the outstanding debt of DISCOMs partially, they have not been
able to achieve all the goals mandated under the scheme.
• Differential pricing and subsequent cross-subsidising raise the input costs for manufacturing and
service sectors, to the benefit of agriculture sector.
• Foreign investor averse to invest despite 100% FDI – due to lack of visible reforms, financial
incompetency, long gestation period, huge delays in commissioning, etc.
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Poor Financial
Health of Discoms
+
High Rates of
Subsidies
Less average billing borrowings to make

rate up the loss
Loss compensated
by charging high
Low competitiveness rates from private
of corporates sector
(cross subsidization)
6.4 WAY FORWARD

• Permanent solution will come with holistic reforms- Restructuring to focus/reform on entire value
chain of electricity – Fuel suppliers (CIL), transporter (rail), lenders, investors, generation & transmission
companies, etc
• Structural Reforms
- Greater autonomy for state-owned discoms: operational and financial autonomy.
- Good corporate governance practices, including the use of independent directors.
- Tariffs reforms - revise tariff frequently and adequately.
- Better models of participation:
✓ Franchising models are more scalable as they do CASE STUDY: BHIWANDI FRANCHISEE
not put as much pressure on the private player to MODEL
invest upfront. Franchisee model was successfully
✓ PPP models can be useful in loss-making areas (for implemented in Bhiwandi, where there
eg. rural areas), where commercial operation have been rapid improvements in
might not be feasible without support in the form metering, billing, and collection, and a
of Viability Gap Funding (VGF) from the reduction in loss.
government.
• Regulatory Reform
- An effective SERC is essential to a well-functioning distribution sector. The state governments
should promote autonomy, competence, and transparency of the SERC.
- Subsidy reforms - DBT could be linked to smart metering. This solves two persistent problems – of
irregularities and ensuring 100% metering – in one go. For eg. implemented in parts of MP.
• Operational Reforms
- Reforms-based, result-linked financial assistance for eg, Recently launched Revamped Distribution
Sector Scheme.
- Improve Billing efficiency through better metering & Collection efficiency. For eg. Smart metering
- Reduce technical losses through investment in grid (transmission lines, transformers etc) & better
monitoring technologies for eg. in Gujrat
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- Measures for Agriculture Demand Management – For eg. Large agricultural consumer bases such
as Rajasthan, AP, Gujarat, Karnataka, and Maharashtra, have reduced leakages by separating
feeders for agricultural use from non-agricultural use.
- Reduced power procurement cost
✓ Long term Power Purchase Agreement to be replaced by short term market based platforms.
States like Chhattisgarh, Gujarat, Maharashtra, UP have banned new thermal PPAs till 2022.
✓ Discoms can significantly decrease their power procurement costs by encouraging the use of
solar pumps for agriculture. For eg. The KUSUM scheme
• Managerial Reforms - Improve customer relations - Easily accessible call centres, convenient bill
payment facilities, etc. can help reduce customer dissatisfaction, ensure timely bill payment and
increased revenue.
6.5 GOVERNMENT INITIATIVES

6.5.1 POWER GENERATION
• Development of Power Projects On Tariff Based Bidding: Competitive procurement of electricity by the
distribution licensees is expected to reduce the overall cost of procurement of power and facilitate
development of power markets.
• Development of Ultra Mega Projects (UMPPs) using Supercritical Technology to achieve faster capacity
addition and to minimize the cost of power to consumers due to economy of scale.
• Privatization of Commercial Coal Mining
• Augmentation of Indigenous Equipment Manufacturing Capacity - Advisory issues to all the Central
and State power generating companies for sourcing of supercritical units from indigenous manufacturer.
• SHAKTI (Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India): It provides for
allocation of coal among thermal power plants in a transparent and objective manner.
• PRAKASH (Power Rail Koyla Availability through Supply Harmony) portal
- Aim – To bring better transparency and coordination for coal supplies among all stakeholders viz
- Ministry of Power, Ministry of Coal, Coal India, Railways and power utilities
- Intended outcome - ensuring adequate availability & optimum utilization of coal at thermal plants.
• PRAAPTI (Payment Ratification and Analysis in Power procurement) - A Web portal and an App for
bringing Transparency in Invoicing of generators.
• Renewable Energy Sources – Target of 500 GW by 2030
ACHIEVEMENT - India emerged as net exporter of electricity supplying power to Nepal, Bangladesh and Myanmar.
6.5.2 POWER DISTRIBUTION

• Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) ➔ For 24X7 power supply to rural areas
- Achievement – 100% village electrification achieved.
• Integrated Power Development Scheme (IPDS) ➔ For improving and augmenting the distribution and
sub-transmission systems in Urban areas with a view to improve reliability.
• PM Sahaj Bijli Har Ghar Yojana (SAUBHAGYA): To achieve universal household electrification by
providing last mile electricity connections to all remaining un-electrified households.
• Power for All - It is a joint initiative of GoI & respective State Governments for preparation of State
specific documents for providing 24x7 Power for All to all households/homes, industrial & commercial
consumers and adequate supply of power to agricultural consumer as per State Policy.
• UDAY Scheme – Debt Restructuring scheme for DISCOMs
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RECENT INITIATIVES
• Under Aatmanirbhar Bharat - Rs. 90, 000 cr liquidity support for power Discoms in the form of funds
from Power Finance Corporation and Rural Electrification Corporation.
• One Nation-One Grid-One Frequency: To enable inter-regional transfer of power. India has already
attained the status of 'One Nation, One Grid, One Frequency' and there are now no constraints in inter-
regional transfer of power.
• Smart Metering - Guidelines issued to all States to convert all existing consumer meters into Smart
meters in prepaid mode.
• Electricity (Rights of Consumers) Rules, 2020 - DISCOM inefficiencies not to burden consumers.
Standards of Service and associated penalties for DISCOMs will be defined, prompting Discoms to ensure
adequate power and avoiding load-shedding.
• Market Based Economic Dispatch (MBED) – To ensure that DISCOMs have access to cheapest power
generating resources across India.
• Reforms-based and Results-linked, Revamped Distribution Sector Scheme (Read Ahead)
- Announced in Budget 2021-22, with an outlay of 3 lakh crore for 5 years (2025-26).
- Aim – To provide assistance to DISCOMS (excluding private) for infrastructure creation, including
pre-paid smart metering and feeder separation, upgradation of systems, etc., tied to achieving basic
minimum benchmarks.
• Draft Electricity (Amendment) Bill, 2020 that aims at setting up Electricity Contract Enforcement
Authority, introducing Cost-reflective tariff, state govt to directly provide subsidy to the consumer as
DBT, Regulation of cross-subsidy, National Renewable Energy Policy etc.
• Introduced Real Time Market (RTM) and Green Term Ahead Market (GTAM): Two new products in
Power Exchange were launched
- RTM would enable Discoms and other buyers to procure power nearer to delivery time.
- GTAM would enable procurement of renewable power from Power Exchanges and facilitate
achievement of green energy targets in a most efficient and cost optimized manner.
6.5.3 ENERGY EFFICIENCY

• National LED Programme - For promoting use of most efficient lighting technology at affordable rates.
The programme includes two components
- Unnat Jyoti by Affordable LED for All (UJALA) providing LED bulbs to domestic consumers with a
target to replace incandescent bulbs with LED bulbs.
- Street Lighting National Programme (SLNP) to replace conventional street lights with smart and
energy efficient LED street lights.
• ECO-NIWAS Portal: for promoting energy efficiency in residential building sector
• Simplified Digital Hands-on Information Energy Efficiency in MSMEs (SIDHIEE): A knowledge portal that
has variety of knowledge resources like case studies, best operating practices, details of latest energy
efficient technologies etc.
• National E-Mobility Programme
• Building Energy Efficiency Programme (BEEP)
• Retrofit of Air-conditioning to improve Indoor Air Quality for Safety and Efficiency (RAISE) programme
(RAISE programme)
• Bureau of Energy Efficiency is taking up number of programmes for energy conservation -
standardisation & labelling of appliances, buildings, passenger cars and heavy duty vehicles etc.
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6.5.4 PETROLEUM & NATURAL GAS

• Complete mapping of 26 sedimentary basins to launch future Exploration and Production activities.
• National Gas Grid
• PM Urja Ganga natural gas pipeline project - To connect India’s Eastern part of with National Gas Grid.
• Pratyaksh Hanstantrit Labh (PAHAL) - A well-targeted system of subsidy delivery to LPG consumers
through Direct Benefit Transfer (DBT)
• Pradhan Mantri Ujjwala Yojana (PMUY) - Providing universal Free LPG connections in the name of
women in BPL households, replacing unclean cooking fuels, especially in the rural India.
PMUY BENEFITS
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ANNEXURE I: UDAY SCHEME – DEBT RESTRUCTURING SCHEME FOR DISCOMS

• Launched in 2015 to enable a financial turnaround of loss-making DISCOMs with support from their
State governments.
• Objective: Improve the financial health and operational efficiency of India’s debt-ridden power
distribution companies (Discoms) ➔ In long term - affordable and accessible 24x7 Power for All.
• How? –
- Under UDAY, DISCOMS can convert their debt into state government bonds, but on fulfilment of
certain conditions such as AT&C loss reduction, mandatory metering, power purchase planning,
performance monitoring etc.
- In return, the state governments took over 75% of discom debts, thus reducing the interest burden.
IMPACT OF THE SCHEME BENEFITS TO PARTICIPATING STATES

• Financially & Operationally sound DISCOMs • Reduction in Cost of power through Central Support
• Increased demand for power • Increased supply of domestic coal
• Reduction in stressed assets • Coal price rationalization
• Increased capital investment • Faster completion of Interstate Transmission lines
• Development of Renewable Energy sector • Power purchase via transparent competitive bidding
UJWAL DISCOM ASSURANCE YOJANA (UDAY)

ACHIEVEMENTS
• Aggregate Discom debt had fallen from
₹2.7 lakh crore in September 2015 to ₹1.5
lakh crore in FY17.
• Visible impacts - Out of the 28 states that
implemented UDAY, 10 states have shown
either reduced losses in 2019.
• Cost Savings - More than Rs.34,000 Crores
interest cost saved by DISCOMs.
• India’s rank improved on World Bank’s Ease
of doing business - "Getting Electricity"
Ranking.
TARGETS MISSED
• Burgeoning AT&C Losses: for major states stood at >20% against target of 15% by the end of 2019.
• Mixed Progress: Operational efficiency targets such as the installation of feeder metering, smart metering
and feeder segregation, still not completely met.
• Inadequate Power Subsidy - Discoms have reported financial losses to the tune of Rs 21,600 cr.
• Economic Roadblock: UDAY bonds were issued at a premium ➔ the cost of debt servicing has gone up for
the UDAY states.
• Reversing of Reduction in Debt levels: debt levels of discoms have again gone up post implementation of
UDAY at Rs 6 trillion in FY22. ➔ constraining state finances
• Long term power purchase agreement with power generators ➔ doesn’t allow discom to revise prices
• Rigid Tariffs - Discoms are constrained by the inability to change politically sensitive electricity tariffs.
• Despite UDAY, discoms have increasingly delayed payments to power generation companies
19
NEW INITIATIVE
REFORMS-BASED AND RESULTS-LINKED, REVAMPED DISTRIBUTION SECTOR SCHEME (RDSS)
• Objectives:
- Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.
- Reduction of Average Cost of supply - Average Realisable Revenue (ACS-ARR) gap to 0 by 2024-25.
- Developing Institutional Capabilities for Modern DISCOMs.
- Improvement in the quality, reliability, and affordability of power supply to consumers through a
financially sustainable and operationally efficient Distribution Sector.
• It comprises two components:
- Part A: Financial support for Prepaid Smart Metering & System Metering and up-gradation of the
Distribution Infrastructure.
- Part B: Training & Capacity Building and other Enabling & Supporting Activities.
• Validity: Available till the year 2025-26.
• Implementation: based on action plan for each state rather than a “one-size-fits-all” approach.
- Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) are the nodal agencies.
• Implementation Subsumes ongoing schemes
- Integrated Power Development Scheme (IPDS) – For Urban Areas
- Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) – For Rural Areas
- Prime Minister’s Development Program (PMDP), 2015 – For the UTs of J&K and Ladakh.
Key Features:
• Focus on farmers: major focus on improving electricity supply for the farmers and for providing daytime
electricity to them through solarization of agricultural feeders.
- Convergence - with the Pradhan Mantri Kisan Urja Suraksha Evem Utthan Mahabhiyan (PM-KUSUM)
Scheme, which aims to solarize all feeders, & provide additional income to farmers.
- Feeder Segregation - funding for feeder segregation for unsegregated feeders, which would enable
solarization under KUSUM.
• Enable consumer empowerment: by way of prepaid smart metering to be implemented in Public-Private-
Partnership (PPP) mode.
- Prioritizing the urban areas, UTs, AMRUT cities and High Loss areas for prepaid Smart metering.
- For Prepaid Smart metering, grant of Rs 900 or 15% (whichever is lower) of the cost per consumer will
be provided for general category states while it would be Rs 1350 or 22.5% of the cost per consumer of
Special Category States.
• Leverage Artificial Intelligence: to analyse data generated through IT/OT devices including System Meters,
prepaid Smart meters.
==========================================================================================
20
ANNEXURE II: SAUBHAGYA SCHEME: ENSURING POWER FOR ALL
SALIENT FEATURES
• SAUBHAGYA - Pradhan Mantri Sahaj Bijli Har Ghar Yojana.
• Objective - to ensure last mile connectivity and electricity connections (“Energy Access”) to all remaining
un-electrified urban and rural households in the country ➔ achieve universal household electrification
• Cost of electricity connection: For Poor Households : Free of Cost
- For Others: on payment of Rs.500 only (which shall be recovered by the DISCOMs/Power
Departments in 10 instalments along with electricity bills)
• No provision to provide free power to any category of consumers - The cost of electricity consumption
need to be paid by the all consumers as per prevailing tariff of the DISCOM/Power Dept.
BENEFITS OF SAUBHAGYA SCHEME
• Demand creation - By providing electricity access to all households with prepaid and smart meters,
demand will be created which in turn will compel the DISCOMs to supply to these villages.
• Enhance Per capita power consumption- which currently is 1/3rd of world average.
• Removes definitional error – Takes into account electrification of households rather than villages.
• Energy Access for all - Despite the availability of basic infrastructure, some rural and urban households
are not yet connected due to the inability to pay initial connection charges. Saubhagya initiative will
address issues of entry barrier by providing electricity connections to un-electrified houses.
• Health benefits- Access to electricity would substitute use of Kerosene for lighting purposes resulting in
reduction in indoor pollution thereby saving people from health hazards.
- Electricity access would help in establishing efficient and modern health services.
• Boost education services
• Enhanced connectivity & improved communications through radio, television, mobiles, etc.
• Women safety & quality of life - Lighting after the sunset provide a sense of enhanced personal safety.
• Economic benefits
- Substitution of use of Kerosene with electricity for lighting purposes help reduce the import of
petroleum products.
- Facilitate establishment of new shops of daily use goods, fabrication workshops, flour mills, cottage
industries etc., generating direct as well indirect employment
- Implementation of scheme itself would result into employment generation ie. requirement of semi-
skilled / skilled manpower for execution of works of household electrification.
• Environmental benefits - help India meet its global climate change commitments.
OUTSTANDING CHALLENGES
• Root cause not addressed - The scheme doesn‘t address structural issues that plague the power sector.
• Affordability challenge - While the scheme provides for free connections, the ability of these
households to pay for the electricity they consume may be a concern.
• DISCOM Challenges - The aim of improving affordability would require that supply be increased
drastically to lower the price paid by retail consumers. Paradoxically, India is a power-surplus nation but
the power generation utilities remain vastly under-utilized.
• Poor cost recovery can result in poor maintenance and, thus, huge investments in network
infrastructure can go waste.
• Implementation capacity at the local level for enrolling new consumers will be a challenge.
SUGGESTED MEASURES: HOLISTIC POWER SECTOR REFORMS (Discussed earlier)
21
ANNEXURE III: NITI AAYOG - STRATEGY FOR NEW INDIA @75 ENERGY
• Objectives - provide access to affordable, reliable, sustainable and modern energy
- Make available 24x7 power to all by 2019.
- Achieve 175 GW of renewable energy generation capacity by 2022.
- Reduce imports of oil and gas by 10 per cent by 2022-23.
- Reduce emission intensity of GDP to enable India to achieve INDC target of 2030.
• Constraints
- Overall energy
✓ Variety of subsidies and taxes distort the energy market and promote use of inefficient over
efficient fuels.
✓ Energy taxes are not under GST, hence no input tax credit is given. This makes Indian exports
& domestic production uncompetitive.
- Power –
✓ Inefficient plants continue to operate & efficient ones remain underutilised,
✓ Unmetered power supply to agriculture leading to inefficient use of electricity.
✓ Regulatory Commissions unable to regulate DISCOMS and fix ration tariffs.
✓ Lot of hidden demand because of unreliable supply and load shedding.
✓ High AT&C losses, cross-subsidy regime, poor financial health of Discoms.
- Oil & gas - Lack of market-driven gas prices, inadequate pipeline infrastructure.
- Coal - tendency to expand opencast mining and discourage underground operation → land
availability problem. Lack of competitive coal market.
- Renewable energy – high energy costs, integration & supply chain issues.
- Energy efficiency - Limited technical capabilities, high initial capital expenditure, insufficient credit
facilities, limited market and policy issues.
22
7 RENEWABLE ENERGY IN INDIA

7.1 RENEWABLE ENERGY SOURCES
Renewable energy sources are those that are continually replenished by nature and derived directly from the
sun (such as thermal, photo-chemical, and photo-electric), indirectly from the sun (such as wind, hydropower,
and photosynthetic energy stored in biomass), or from other natural movements and mechanism of the
environment (such as geothermal and tidal energy).
1. SOLAR POWER
• Solar Photovoltaic:
- Solar photovoltaic (PV) systems directly converts solar energy into electricity.
- Solar PV has advantage of economies of scale as module manufacturing can be done in large plants.
- In addition to direct sunlight, it can use diffused sunlight which helps it to produce power when sky
is not clear.
• Concentrated Solar Power
- Concentrated Solar Power (CSP) technologies concentrates direct beam solar irradiance. This is
then used to heat a liquid, solid or gas that is then used in a downstream process for electricity
generation.
- CSP technology can be applied to produce electricity from small distributed systems of tens of kW
to large centralized power station of hundreds of MW.
- Metering of distribution transformer/feeders/consumers in the urban areas.
2. WIND POWER - Wind power is produced through the conversion of kinetic energy associated with wind into
mechanical energy first and then into electrical energy.
23
3. BIOMASS POWER
• Biomass energy is the use of living and recently dead biological material as an energy source.
• As an energy source, biomass can either be used directly via combustion to produce heat, or indirectly
after converting it to various forms of bio fuel.
• Biomass used for electricity generation range from forest by-products (wood residues), agricultural
waste (sugar cane residue & rice husk) and animal husbandry residues (poultry litter etc.).
4. SMALL HYDRO POWER - It utilizes the flow of water to rotate the blades of the turbine which in turn drives
the generator for producing electrical energy.
5. WAVE AND TIDAL POWER - Wave power, which captures the energy of ocean surface waves, and tidal power,
converting the energy of tides, are two forms of hydro power with future potential. However, they are not yet
widely employed commercially.
7.2 RENEWABLE ENERGY SOURCES: ISSUES & CHALLENGES

• Regional concentration of RE potential
- Wind – Tamil Nadu, Maharashtra, Gujarat, Andhra Pradesh etc
- Solar – Rajasthan, Gujarat etc
- Hydro – Himalayan States
• Variability & uncertainty – Together with issues with energy storage technologies.
• Issue of unaffordability - Even though the cost per unit of Wind and Solar energy has been on a
continuous decline, they are still outside the reach of the population, esp. the vulnerable section.
• Inadequate infrastructure for transmission of RE generated in remote locations to load centres.
• Huge investments - RE technology require large capital investment, and large contiguous land, which
are in short supply.
• Inadequate R&D and Lack of skilled manpower.
• No single regulator or policy for setting performance standards, rules, testing etc
• Social acceptance of Renewable Energy – lack of awareness, adoption inertia etc.
INTEGRATION OF RENEWABLE ENERGY SOURCES IN THE GRID

• Variability and uncertainty are the two aspects associated with generation from Variable Renewable Energy
(VRE).
• Variability refers to the variation of generation over a period of time. For example, generation from solar
plants is expected to follow a fixed pattern like maximum generation during noon time and “NIL” at night.
Similarly, generation from wind follows seasonal pattern- maximum during monsoon
• Uncertainty refers to the unpredictability of generation from VRE. For example, generation from solar plants
is expected to be maximum during noon. But due to cloud cover, the generation may get affected.
• Due to this, requisite balancing power from conventional sources is required to be made available as reserve
to ensure that demand at any time is fully met.
7.3 RENEWABLE ENERGY - GOVERNMENT INITIATIVES

WIND ENERGY
• National Offshore Wind Energy Policy, 2015: Use of offshore area within the Exclusive Economic Zone
(EEZ) of the country.
24
• National Wind-Solar Hybrid Policy, 2018 - To provide a framework for promotion of large grid connected
wind-solar PV hybrid system for optimal and efficient utilization of wind and solar resources,
transmission infrastructure and land.
SOLAR ENERGY
• National Solar Mission - The solar power capacity target principally comprises
- 40 GW Rooftop Solar Power Projects - Ministry has tied up with ISRO for Geo tagging of all the
Rooftop plants using ISRO’s VEDAS Portal.
- 60 GW through Large and Medium Scale Grid Connected Solar Power Projects.
• Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): To provide energy and
water security, de-dieselise the farm sector.
• Atal Jyoti Yojana (AJAY) - To provide Solar Street Lighting Systems for public use.
• Solar Parks Scheme - To facilitate large scale grid connected solar power projects.
• Solar Cities - To support urban local bodies to prepare a road map to guide their cities in becoming
renewable energy cities or solar cities.
• Central Public Sector Undertaking (CPSU) Scheme: A scheme for setting up 12 GW Grid- Connected
Solar PV Power Projects by Central Public Sector Undertakings with domestic cells and modules.
• Skill Development - Surya Mitra Scheme for training solar photovoltaic technicians.
• Production Linked Incentive (PLI) Scheme - To promote manufacturing of high efficiency solar PV
modules ➔ Self Reliant India (Aatmanirbhar Bharat)
• Global Forums – International Solar Alliance (ISA) and One Sun, One World, One Grid (draft prepared
by MNRE).
OTHER CLEAN & SUSTAINABLE ENERGY INITIATIVES

• National Biofuels Policy, 2018
• Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME India): - To promote eco
friendly vehicles, the Government has been offering incentives on electric and hybrid vehicles.
• National Hydrogen Mission: To make India a global hub for Green Hydrogen production and export.
• Promotion of Methanol Economy & Circular Economy
RENEWABLE ENERGY MANAGEMENT
• Renewable Energy Management Centre (REMC): To enable forecasting and scheduling of renewable
resources and efficient management of intermittent & variable renewable generation.
• Green Energy Corridor: Aims at synchronizing electricity produced from renewable sources, such as
solar and wind, with conventional power stations in the grid.
• Strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation
Obligation (RGO).
• National Energy Storage Mission (NESM) - focuses on demand creation, indigenous manufacturing,
innovation and necessary policy support for proliferation of Energy Storage in India.
• IREDA - Indian Renewable Energy Development Agency (IREDA) has been awarded Mini Ratna Status.
==========================================================================================
25
8 INDIA’S ENERGY PARADIGM & PILLARS OF ENERGY SECURITY
8.1 INDIA’S CURRENT ENERGY PARADIGM
26
==========================================================================================
27

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QUALITY ENRICHMENT PROGRAMME (QEP): TARGET 2023/24

Under the Guidance of M K YADAV

THEME – ENERGY SECTOR (Part 1)

1 PREVIOUS YEAR QUESTIONS (2013-2022)

REPEATED THEMES FROM PREVIOUS YEAR QUESTIONS (PYQs)

OTHER EXPECTED TOPICS FOR 2023/24

• PRIVATISATION OF POWER DISCOMS

2 ENERGY SECTOR: KEY FACTS

Total Installed Capacity • Central Sector: 24%

Targets for Renewable Total Target: 175 GW by 2022

India’s Panchamrit Commitment at COP 26 Summit, 2021 (Updated NDCs)

Power T&D Losses in • >20% (highest in the world).

S 3 ENERGY SECTOR: KEYWORDS

• DISCOMS as Achilles’ heel of the power sector

• Decoupling of GDP growth from emissions

• ‘Sooraj Se Rozgaari’ (Earnings from sunlight)

KEYWORDS FOR USE IN WAY FORWARD

From Regional Disparity to ‘Roshan India’

4 CASE STUDIES & BEST PRACTICES

5 SPEECHES OF PM, VP & PRESIDENT

5.2 SOME QUOTES

6 ENERGY SECTOR IN INDIA

6.1 ENERGY SECTOR – INTRODUCTION

6.2 ENERGY SECTOR – ISSUES & CHALLENGES

DEFINITION OF ELECTRIFIED VILLAGE

6.3 CAUSES OF ENERGY SECTOR CHALLENGES: ACROSS THE SUPPLY CHAIN

POWER DISTRIBUTION: Challenges faced by Power DISCOMs

Less average billing borrowings to make

6.4 WAY FORWARD

6.5 GOVERNMENT INITIATIVES

6.5.2 POWER DISTRIBUTION

6.5.3 ENERGY EFFICIENCY

6.5.4 PETROLEUM & NATURAL GAS

ANNEXURE I: UDAY SCHEME – DEBT RESTRUCTURING SCHEME FOR DISCOMS

IMPACT OF THE SCHEME BENEFITS TO PARTICIPATING STATES

UJWAL DISCOM ASSURANCE YOJANA (UDAY)

ANNEXURE II: SAUBHAGYA SCHEME: ENSURING POWER FOR ALL

SUGGESTED MEASURES: HOLISTIC POWER SECTOR REFORMS (Discussed earlier)

7 RENEWABLE ENERGY IN INDIA

7.2 RENEWABLE ENERGY SOURCES: ISSUES & CHALLENGES

INTEGRATION OF RENEWABLE ENERGY SOURCES IN THE GRID

7.3 RENEWABLE ENERGY - GOVERNMENT INITIATIVES

OTHER CLEAN & SUSTAINABLE ENERGY INITIATIVES

8 INDIA’S ENERGY PARADIGM & PILLARS OF ENERGY SECURITY

8.1 INDIA’S CURRENT ENERGY PARADIGM

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