The Future of Alternate Energy in India: The World War-III Begins

Manu Srinath
Ipsit Aacharya
Satish Padhi
Anurag Tripathy
Abhinav Kumar
@ B.B.A.LL.B. (Hons.), National Law University Orissa

 Industrial & Economic growth creating an ever increasing demand for energy
along with burgeoning population worldwide.
 Heavy dependence on conventional energy sources like oil, coal coupled with
ever increasing demand created international markets and market linked pricing
structures leading to accelerated exploitation of conventional energy sources.
 High Volatility in the primary energy markets create untenable pricing and
balance of payment crisis for many governments.
 Abnormal increase in Oil prices in the 1970s was the first wake up call for many
governments.
 Depleting natural sources unable to meet demand growth in both developed as
well as developing economies creating demand supply shortages.
 Increasingly evident impact of fossil fuel usage on climatic conditions around
the globe.

Alternative Energy Sources are not an option, but
a necessity in the future.

Subsequent to the two oil shocks in the 1970s, Energy ‘self-
sufficiency’ was identified as the major driver for new and
renewable energy in the country. Various initiatives on this front
led to the establishment of
 Commission for Additional Sources of Energy (CASE) in 1981.
 Department of Non-Conventional Energy Sources (DNES) in
1982.
 Ministry of Non-Conventional Energy Sources (MNES) in 1992.
 Ministry of Non-Conventional Energy Sources (MNES)
renamed as Ministry of New and Renewable Energy (MNRE)
in 2006.
 Electricity Act, 2003

 Price Setting and Quantity forcing Policies
 Cost Reduction Policies
 Public Investment or Market Facilitation Policies
 Power Grid Access Policies

Solar power is still not cost effective with photovoltaics (PV) costing in
the neighborhood of 30 cents per kilowatt and 20-22 cents per kilowatt for
solar thermal plants.
There is hope in private companies, who have developed technology that
cuts the cost of solar thermal to 8 cents per kilowatt.
Initial cost for wind turbines is greater than that of conventional fossil
fuel generators.
The cost of energy from larger electrical output wind turbines used in
wind farm applications has dropped from more than $1.00 per kilowatt-
hour (kWh) in 1978 to under $0.05 per kWh in 1998.
It is projected to plummet to $0.025 per kWh when new large wind plants
come on line in 2009 and 2010.
The hardware costs of these wind turbines have dropped below $800 per
installed kilowatt in the past five years, under pricing the capital costs of
almost every other type of power plant.

IMPACT ON DEVELOPING COUNTRIES
 If developed countries cut carbon emission
slowly, less carbon space will be left for the
developing countries
 If carbon space is limited, developing countries
will
– Incur higher cost per unit of energy to lower
emissions
– Have to limit energy consumption

Comparative Figures
Countries Per Capita at ($)
Per Capita Consumption (k )
Per Capital Consumption (KWh )
Per Capita
Emissions(kgoe) KWhr) (CO2Tons)
 India 2,600 528 542 1.3
 China 5,085 1,484 2,332 4.3
 Germany 33,183 4,026 7,184 9.5
 US 43,031 7,766 13,651 20.0

This form of energy relies on the nuclear
fusion power from the core of the Sun which
can be collected and converted in different
ways. Mirrors, boilers and photovoltaic cells
are used for the conversion.
Disadvantages
•Initial cost of the equipment used to harness the
sun’s energy is very high.
•A solar energy installation requires a large area for
the system to be efficient in providing a source of
electricity.
•Pollution can be a disadvantage to solar panels, as
pollution can degrade the efficiency of photovoltaic
cells.
•During the night, expensive solar equipments will
be useless.
•The location of solar panels can affect performance,
due to possible obstructions from the surrounding
buildings or landscape.

Wind is caused due to the differences of
temperature at the Earth's surface when lit by
sunlight. Wind energy can be used to pump
water or generate electricity, but requires
extensive areal coverage to produce significant
amounts of energy.
Disadvantages
Wind itself is not dependable.
Set up cost is very high.-The compounds used to
make the parts of the wind mills are very high in cost,
and non usage of this causes damages like rusting.
Wind Farms are Unsightly and Wind Turbines are
Noisy
Wind Turbines Interfere with Television Reception.
Wind Turbines Kill Birds

HYDROELECTRIC POWER
This form uses the gravitational
potential of elevated water. It is not
strictly speaking renewable since all
reservoirs eventually fill up and require
very expensive excavation to become
useful again.
Disadvantages
1. Hydropower dams disrupt the natural
flow of rivers.
2. Impedes the natural flow of
sediments.
3. Scour holes.
4. Obstacles to fish migration.
5. Catastrophic Failure. If dam breaks it
would be a disaster and would kill many
people. One classic example in American
history is the Johnstown Flood of 1889.

Biomass is the term for energy from
organic things like plants. Modern forms
of biomass energy are methane generation
and production of alcohol for automobile
fuel and electric power plants. This
releases a lot of Carbon dioxide into the
atmosphere.
Disadvantages
1. Biomass produces greenhouse
emissions.
2. It takes more energy to plant, cultivate
and harvest the crops and trees than it is
worth to get a net energy gain.
3.Biomass collection is a difficult task.

Very abundant in availability and are
very low in pollution when utilized.
Solar power is used to produce the
hydrogen gas. Due to the need for
energy to produce the initial gas, the
pollution is relocated from the cities to
the power plants.
Disadvantages
It is very big and cumbersome.
The fuel cell has to be insulated to keep
it safe and protected.
Safety issues- Liquid hydrogen has the
ability to freeze air. Sometimes valves get
plugged up when there is too much
pressure in the cell
The hydrogen may sometimes
evaporates.

In certain areas the geothermal gradient (increase
in temperature with depth) is high enough to
exploit to generate electricity. This form of
energy can lessen the need for other power to
maintain comfortable temperatures in buildings,
but cannot be used to produce electricity.
Disadvantages
The area for a geothermal energy power plant should
consist of those suitable hot rocks at just the right depth
for drilling.
If the holes were drilled improperly, then potentially
harmful minerals and gas could escape from
underground.
Pollution may occur due to improper drilling at
geothermal stations.
It is also possible for a specific geothermal area to run
dry or lose steam.

In this, concentrations of wave power generate a low-
frequency energy that can be converted to a 60-Hertz
frequency.
The technology involves building a dam, or barrage,
across an estuary to block the incoming tide, the outgoing
tide, or both. The water is channelled through a turbine in
the dam in order to get to the other side, which produces
electricity by turning an electric generator.
Disadvantages
Marine population is greatly affected.
The exchange of water volume between a basin and the
sea is reduced, this leads to the potential for increased
pollution, because pollution is left accumulating in the
basin.
Power stations only generate power when the tide is
flowing in or out of the basin, which only happens during
certain times of the day.
Economical. Startup costs to build a tidal energy plant is
high

Nuclear fusion is the process in which two or
more atomic nuclei join together, or "fuse", to
form a single heavier nucleus. This is usually
accompanied by the release or absorption of
large quantities of energy. Fusion is attractive
as an energy source because of the virtually
inexhaustible supply of fuel and the promise
of minimal adverse environmental impact.
Disadvantages
Scientists have not yet been able to
contain a fusion reaction long enough for
there to be a net energy gain.
Many countries are phasing out fusion
research because of the failure to reach a
breakthrough

Ocean Thermal Energy Conversion(OTEC) - Is a
promising source of renewable, non-polluting energy
for the future. The oceans comprise over two-thirds of
the earth's surface, meaning they collect and store an
enormous amount of solar energy.
The final result of all forms of Alternate Energy is that each
suffer from one or another significant drawback and cannot
be relied upon fully at this time to solve the upcoming energy
crunch.

 Salinization of waters at
river estuaries as an energy
source
Nuclear fission
 Artificial photosynthesis

Employment- it will increase
the living standard
Rural/Urban- it will generate
electricity which will help
farmers, and in cities it is the
alternative available to reduce
the pollution and carbon
emission
Development- this will
generate sustainable growth.

Empowerment of Socially
Disadvantage- Marginalized
class
Health- environment friendly and
good for health.
Population-It has the capacity to
fulfill the increasing energy demand
and it will provide sustainable
development.
Education- Education is an essential
tool for achieving sustainability.
Public awareness, education, and
training are key to mobilising society
towards sustainability.

Environmental Impacts of Alternative
Energy

 Nuclear power produces little or
no greenhouse gas, but does have
other environmental concerns.
 “Energy Revolution” published by
Greenpeace and the European
Renewable Energy Council in
October 2008, states in relation to
nuclear power, “There are multiple
threats to people and the
environment from its operations.
 These include the risks and
environmental damage from
uranium mining, processing, and
transport the risk of nuclear
weapons proliferation; the
unsolved problem of nuclear
waste; and the potential hazard of
a serious accident.

In chapter 5 of “20% Wind Energy by 2030”, published
by the U.S. Department of Energy in July 2008, it states
“Wind energy production can also, however, negatively
affect wildlife habitat and individual species, and
measures to mitigate prospective impacts may be
required”.

Biofuels offer the potential to
lower the dependence on gasoline
which is a major contributor to
global greenhouse gas emissions,
but their production does have
environmental consequences.
“Impacts of Biofuels: A
Framework for Analysis”, by
Kemmen, Farrell et al. and
published by The International
Transport Forum in December 2007
says that “Crop based biofuels and
a growing demand to feed a larger
and more affluent global
population increases pressure on
forest and soil resources”.

Sustainable development is
development that meets the needs of the
present without compromising the ability
of future generations to meet their own
needs" (World Commission on
Environment and Development, 1987, p
43).
Sustainable development is generally
thought to have three components:
environment, society, and economy.
By the use of alternate energy, the
exploitation of resources is minimum.

Lack of government policy support. This includes the
lack of policies and regulations supporting development
of renewable energy technologies and the presence of
policies and regulations hindering renewable energy
development and supporting conventional energy
development. Examples include fossil-fuel subsidies,
insufficient consumer-based renewable energy
incentives, government underwriting for nuclear plant
accidents, and difficult zoning and permitting processes
for renewable energy.
Lack of information dissemination and consumer
awareness. And Poor perception by public of renewable
energy system aesthetics.

Lack of stakeholder/community participation in energy
choices and renewable energy projects.
High capital cost of renewable energy technologies
compared with conventional energy.
Inadequate workforce skills and training. This includes
lack in the workforce of adequate scientific, technical, and
manufacturing skills required for renewable energy
development; lack of reliable installation, maintenance,
and inspection services; and failure of the educational
system to provide adequate training in new technologies.

JIM ROGERS
(Investor and Financial Commentator)
He believes that there’s a lot scope in Alternate Energy
especially in Wind and Solar Energy.
If we don’t replace our pre-historic energy sources with
alternate energy , we may end up with the price hike of
all the basic necessities.

1. Acquisition of Land By the Government.
2. Identification of Arable land and non- Arable land.
3. Re-Distribution of Arable land to (big-time)farmers @ par and non-
Arable land to other private parties @ discounted rates.
4. But with a condition that for a minimum of 5 years, the land cannot be
transferred again. And in the mean time , wind mills are to be installed
for which TNERC will bear the costs.
5. The electricity produced will be State’s property.
6. Instead State will pay Rs.2.90 per Unit.

1. Lack of big Parties investing in Wind power Project
2. Competition from Gujarat, Karnataka and Kerala where Unit
cost is @ above Rs.3.
3. Drastic Climate Change
4. Destruction of Ecosystem
5. Destruction of Radio Communication

TECHNOLOGY TRANSFER
 The process of sharing of skills, knowledge,
technologies, samples of manufacturing
among governments and other institutions to
ensure that scientific and technological
developments are accessible.
 It can be broadly termed as knowledge
transfer.

 Displacement of existing economic activities
and process by the new technology
 Cost benefit analysis
 Environment-friendly technology
 Presently there is comparatively less
investment in this field for R & D in India

 India is looking towards Germany for
technological assistance and knowledge
transfer in the field of renewable
energy, especially for rural
electrification and grid integration.
 German companies are offering battery-
supported photovoltaic island systems
to provide uninterruptible power
supply for countries with unstable,
overloaded power grids like India.

Development process by the ideology of “a
socialistic pattern of society in accordance with
satisfying the present needs of all.”
The centrists have abandoned their original
sociological view and chose to adopt a more liberal
approach to adopt technological transfer policy.
Open to changes as they are secular and
democratic in nature and believe in the
participation of masses.
Development and skill comes into the society
when common man agenda is in the manifesto of
political party and centric parties follow this
welfare politics.

 In politics, right-wing refers usually to
conservatism.
 Rightists are generally traditionalists,
conservatives, reactionaries, monarchists,
aristocrats, and theocrats.
 They support free market capitalism, and also
some forms of nationalism, including fascism.
 The rightists support a decentralized economy
based on economic freedom, and advocate
policies such as property rights, free markets
and free trade.
 The right wing believe in free economy and
agree upon easy technology transfer.

THE RIGHTIST VIEW…
 The rightists favour policies that remove barriers to
private sector investment in technology.
 There has to be focused subsidies in those cases in
which a nation has the capability of producing a
world-class industry.
 India needs to do more technology transfer because of
the big potential of renewable energies. This also
relates to India’s energy security.

Beyond Electricity Act, 2003
1. Sections 61 (h) and 86 (1) (e) are the only real, clear developmental
provisions relating to renewable energy in the Electricity Act (EA),
2003.
2. Secondly, EA, 2003, speaks only of generation, transmission and
distribution of electricity.
POWER SECTOR REFORMS
Power sector reforms will improve market opportunities for renewable
energy equipment suppliers and developers.

 The World Institute of Sustainable Energy (WISE) has drafted a model Act.
 WISE sought the help of the National Law School of India University in
Bangalore, particularly of CEERA, the law school’s Centre for Environmental
Law, Education, Research and Advocacy, to prepare the Draft Renewable
Energy Law for India.
 The draft law proposes to increase the target for electricity generation from
renewables to 10% by 2010 and 20% by 2020, of the total electricity generated in
the country.
 BioFuels-Time-bound programmes for biodiesel engine production,
introduction of hybrid vehicles, fuel cell bus demonstration, increasing railroad
efficiency and development of ultra-efficient aircraft technology have been
proposed. Most importantly, modern concepts of Renewable Transport Fuel
Obligations have been proposed.
 Hydrozen Road Map- Hydrogen has extremely varied applications, from
electricity storage, as transportation fuel, to fuel cells which can power all
imaginable devices, as well as huge multi-storeyed buildings.

 Decentralized Renewable Microsystem- To address the energy problems faced by the
rural areas and to facilitate faster growth of grid-independent distribution and
small-scale (micro) generation, numerous provisions have been included in the
draft law.
 Special provisions for meeting dispersed pumping energy needs of the
agricultural sector using modern technologies have been included.
 Three separate time-bound Technology Missions have been proposed to achieve
the objectives of energy independence. Such technology missions are to be
established in the areas of: Solar Energy, Biofuels and Hydrogen.
 Growth without Subsidy- All the growth and development is proposed to be
achieved through introduction of innovative market based policies and
instruments.
 Establishment of Renewable Energy Development Funds in all states (on the
pattern of Maharashtra) has also been proposed.
 NATIONAL RENEWABLE ENERGY COUNCIL- To guide and advice
comprehensive achievement of the objectives of the Act, a national level apex
body called the Renewable Energy Council with the Central Minister for New
and Renewable Energy as its Chairman has been proposed.

 PENALTIES-
Penal Clause of the Electricity Act 2003 will be applicable. Section 135
deals with theft of energy, with provision of imprisonment up to 3 years,
fine or both.
o Section 136 deals with theft of electric lines and materials.
o Section 150 deals with connivance in theft.
o Section 152 deals with Compounding of offences
 Provision for hearing prior to penalty
 Appeal to Appellate Tribunal
 Civil Court not to have jurisdiction

 People’s Republic of China: Renewable
Energy Law, 2006-
o The stated objective of the law is, “to promote the
development and utilization of renewable energy,
improve the energy structure, diversify energy supplies
safeguard energy security, protect the environment, and
realize the sustainable development of the economy
and society”.
o According to the law, renewable energy includes
hydroelectricity, wind power, solar energy,
geothermal energy and marine energy, all of which
need to be taken consideration in state and local
development plans.
o It establishes cost-sharing mechanisms so the
incremental cost will be shared among utility
consumers.
o creates new financing mechanisms and supports rura
uses of renewable energy.
o provides for a long-term development plan, R&D,
geographic resource surveys, technology standards,
and building codes for integrating solar hot water int
new construction.

Major acts covering use of renewables.
United Kingdom-
Sustainable Energy Act 2003
Energy Act 2004
Renewables obligation relating to electricity [Under Section 32 (9) of the
Electricity Act 1989]
Climate Change and Sustainable Energy Act 2006
Czech Republic:
Act on the promotion of Use of Renewable Sources, 2005
Austria:
Green Electricity Act, 2003 (amended 2006)
Australia:
Renewable Energy (Electricity) Act 2000
Philippines:
Biofuels Act 2006

What more is necessary or desirable…..
(RECOMMENDATIONS)
 Specific targets for RE sources which are not commercial
 Efficient mechanism for purchase of RE
 Enabling mechanism for inter-state sales
 National Mechanism for purchase of RE
 Sufficient training and Awareness is a must for successful
implementation
 Clarity on wheeling/ banking facilities
 Preferential Treatment needs to be considered for promotion
of Renewable in terms of quantum of charges considering the
nature, quantum of generation so that the project viability
may be enhanced
 Stronger enforcement and penalty mechanism
 Choice between a Penalty driven policy or a Incentive based
mechanism

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