Distributed generation — basic policy, perspective planning, and achievement so far in India

Abstract

At the time of independence in 1947 India was having a meager generation of above 1,360 MW, that too in a highly decentralized manner in and around urban areas to meet the load of latter. It followed decades of development in power sector, aiming at optimum utilization of geographically dispersed resources, economy of scale, harnessing of hydro-energy in far-flung areas as well as thermal energy at mine-mouth power stations, development of gas-wells vis-à-vis gas-grid. Net result visible in this context has been formulation of state power grids, then regional grids, and now stepping towards evolution of national grid with transmission voltage going gradually from 132 kV to 800 kV class with intermediate voltages as 220 kV and 400 kV in AC system, while ±500 kV in DC system. In fact already thought process has started for going in favor of 1200 kV AC and ±800 kV DC. Size of thermal units moved up from as low as few MW to 660 MW. Of course side by side nineties saw a sea-change in policy that resulted in investment by private entrepreneurs consequent to unbundling of generation, transmission and distribution as distinct entities. Economy of scale did not remain a constraint. Distribution companies too joined the fray to supplement generation embedded into the system. Co-generation by manufacturers using otherwise waste or by-products and also captive generation, co-operative generation by a number of industries coming together have made it possible to enhance generation substantially. Added to this, in fact much more is picking up in the new and renewable type of generation, particularly wind turbine based ones in coastal areas and also at mid-lands where this natural resource is abundant in different seasons of the year. Today it is accounting for a significant amount of total power generation (about 9%). Technological innovations, marketing through competitive unit pricing at different point of time through power and energy trading are encouraging Distributed Generation to a large extent, requiring of course a good amount of coordination of stake-holders side by side. Government of India policies as well as initiatives in respect of Rural Electrification vis-à-vis Distributed Generation are quite encouraging.