Team from PDPU. Author

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3 Team from PDPU Author Dr. V.K Srivastava Associate Professor and Head Department of Sciences, SoT Pandit Deen Dayal Petroleum University (PDPU) Gandhinagar Research Team 1. Mr. Nidish Parikh, M.Tech 2. Ms. Riya Dabhi, B.Tech 3. Mr. Shantanu Taneja, B.Tech 4. Mr. Ankit Mirani, B.Tech 5. Ms. Swetha Gokavarapu, B.Tech 6. Ms. Nikita Matreja, B.Tech 7. Ms. Darshi Shah, B.Tech 8. Ms. Jahnavi Patel, B.Tech Team from GEC Editor Shri.A.K.Verma, IFS Member Secretary, GEC Project Co-ordinators Mr.Nischal Joshi Senior Manager-Projects, GEC Ms.Krupa Jha Project Officer, GEC Dr.Ankur Patel Project Officer, GEC

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5 Acknowledgement The Gujarat Ecology Commission, Forest & Environment Department, Government of Gujarat would like to thank Pandit Deendayal Petroleum University (PDPU), Gandhinagar, for their collaboration in creating the State of Environment Report-2011(Energy Sector) for Gujarat. A sizeable number of individuals and organisations have contributed to this study. We would like to thank them all for their help, cooperation, comments, and suggestions. In particular, we would like to place on record our sincere thanks and gratitude to the following organizations and persons: Energy and Petrochemical Department (EPD), Gujarat Energy Development Agency (GEDA), Gujarat Mineral Development Corporation (GMDC), Oil and Natural Gas Corporation (ONGC), Gujarat Pollution Control Board(GPCB), The Energy Research and Resources Institute (TERI), Gujarat Urja Vikas Nigam Limited (GUVNL), Gujarat Energy Transmission Corporation Limited (GETCO), Sardar Sarovar Narmada Nigam Limited (SSNNL), Central Electricity Authority (CEA), Ministry of Petroleum and Natural Gas (MoPNG), Ministry of Road Transport and Highways (MoRTH), Ministry of Statistics and Programme Implementation (MoSPI) Ministry of Coal, Geological Survey of India, Ministry of Power and Ministry of New and Renewable Energy GEC acknowledges the support, encouragement and guidance provided by all the stakeholders that made publication of the SOE 2011 for Gujarat possible.

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7 List of Contents List of Contents List of Tables List of Figures List of Abbreviations Executive Summary Page I III V IX Chapter 1: Introduction The Rationale The Approach and Methodology PSIR Framework 5 Chapter 2: Pressure 9 Chapter 3: State 15 Energy Supply 3.1 Lignite Coal Crude Oil and Natural Gas LNG Domestic Natural Gas Refined Products Alternate Fuels Biofuels Biodiesel Bio-Ethanol Coal Bed Methane Oil Shales Hydroelectricity Nuclear Power Power generation and Distribution 42 Page i

8 List of Contents 3.8 Renewable Energy Resources Solar Wind Small Hydropower Plants Tidal 67 Energy Demand 3.9 Energy Demand In Gujarat State Agriculture Industry Transport Domestic 74 Chapter 4: Impact Lignite and Coal Wood Oil and Natural Gas Oil Refineries Vehicular Emission Power Generation and Distribution Hydropower Solar Nuclear Wind Bio fuels: Biomass, Ethanol and Biodiesel Indoor Air Pollution 87 Chapter 5: Response Promotion of Renewable Energy and Major Programs Important Initiative for Biomass Energy Important Initiatives for Wind Energy Important Initiatives for Solar Energy Important Initiatives for Energy Conservation 94 Page ii

9 List of Contents 5.6 Important Initiatives for Rural Energy Important Initiatives for Village Electrification Important Initiatives for Bio-Energy Important Initiatives for Decentralized Energy System Important Initiatives for Power Sector Reforms 98 Chapter 6: Recommendations 99 References 107 Page iii

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11 List of Tables List of Tables Chapter- 2:Pressure Table: 1 Year wise % increase in Growth rate of Gujarat (in terms of Energy and GDP) Table 2: Statistics of Districts, Takukas, Towns and Villages in Gujarat Chapter-3: State Table 3: Lignite resources of states and Union Territories (million tonnes) as on 1 st April 2011 Table 4: Lignite mined out till 31 March 2011 Table 5: Year wise Lignite demand (in MT) in Gujarat State Table 6: Lignite Consumers in Gujarat State Table 7: Coal Import and custom duty Table 8: Coal Resources of states (million tons) as on 1 st April-2011 Table 9: Coal Resources (million tons), by category as on 1 st April-2011 Table 10: Comparison of Gross Calorific Value (GCV) and Useful Heat Value (UHV) for non coking coal (with 6% moisture content) Table 11: Coal Consumption by GSECL station in Gujarat Table 12: Production of Crude oil ( 000 tones) Table 13: Production of Natural Gas (in mmscf) in Gujarat State Table 14: Existing LNG Terminals in Gujarat Table 15: City Gas Distribution (Company and Operational Region) Table 16: Total Refinery Production Table 17: Refining Capacity and Utilization in Gujarat Table 18: Production of Kerosene (in KL) Table 19: Production of Petrol Table 20: Production of Diesel Table 21: Year wise total Electricity Generation at Sardar Sarovar Hydro Power House Table 22: Previous four year generation statistics Table 23: Previous four year generation statistics in Gujarat State Table 24: Fuel -wise generation capacity addition (MW) Page Page I

12 List of Tables Table 25: Power Supply position: Peak demand Vs Peak met Table 26: Power Supply position: requirement Vs availability Table 27: Year wise per capita consumption of electricity in Gujarat State Table 28: Installed Capacity (MW) in Gujarat, as on 31 March 2011 Table 29: Comparison of Installed Capacity (MW) in Gujarat State with India (as on 31 March 2011) Table 30: (T&D) losses as % of availability in Gujarat State Table 31: Length of transmission and distribution lines (ckt km) in Gujarat state, as on 31 march 2009 Table 32: Solar Energy Development Potential Table 33: Details of Present Energy Consumption of town proposed to be Carbon Neutral by Solar Energy Table 34: Year wise Wind Power installed capacity in Gujarat Table 35: Details of Wind Energy use proposed by SMC Table 36: Identified and Installed Small Hydropower projects on Gujarat, as on 31 January 2011 Table 37: Tidal Energy Potential in Gujarat State Table 38: Category wise Energy demand as on 31 March 2011 Table 39: Total Number of Registered Vehicles Table 40: Analysis of consumption of Petrol and CNG Table 41: Per household per month consumption of fuels for cooking and lighting in Gujarat ( ) Table 42: Percentage distribution of households by primary energy source used for cooking in Gujarat( ) Table 43: Percentage distribution of households by primary energy source for Lighting in Gujarat ( ) Table 44: Installation of off-grid/decentralized renewable energy systems/devices by Gujarat state during Chapter- 4 : Impacts Table 45: Fuel Usage for Rural Gujarat at House Hold H Level NFHS 3 89 Page II

13 List of Figures List of Figures Chapter-3: State Fig 1: Map Showing Lignite Deposits in Gujarat Fig 2: Year wise Lignite Demand in MT in Gujarat State Fig 3: Lignite Consumers in State Fig 4: Year wise Lignite Production in Gujarat State Fig 5: Gross Geological Coal Resources by States as on 1st April, 2010 Fig 6: Coal Fired Power Plant Fig 7: Oil and Gas Fields in Gujarat Fig 8: Year wise Production Crude Oil in Gujarat State Fig 9: Year wise Production of Natural Gas in Gujarat State Fig 10: Year wise Refinery Production in Gujarat State Fig 11: RIL, Jamnagar Refinery Fig 12: Offshore Platform Fig 13: Biofules Fig 14: Biodiesel Fig 15: Bio-Ethanol Fig 16: Coal Bed Methane Well Fig 17: Location of Sardar Sarovar Dam Fig 18: Year wise total Electricity Generation at Sardar Sarovar Hydro Power House Fig 19: A view of Kakrapar Atomic Power Station Fig 20: Year wise Power Supply position: Peak demand Vs Peak met Fig 21: Year wise Power Supply position: requirement Vs availability Fig 22: Per Capita Consumption of Electricity as per 31st March 2009 Fig 23: Installed Capacity (MW) in Gujarat, as on 31 March 2011 Fig 24: Gujarat Power Sector at a Glance Fig 25: Renewable Energy, end of 2008 (GW) Fig 26: Map showing the solar energy potential in various states of India Page Page III

14 List of Figures Fig 27: Geographical Location for Solar Power Projects in Gujarat Fig 28: Wind Capacity Addition (in MW) per year Fig 29: Category wise Energy Demand (in %) as on 31 March 2011 Fig 30: Per household per month consumption of fuels for cooking and lighting in Gujarat ( ) Page IV

15 List of Abbreviations List of Abbreviations AUDA : Ahmedabad Urban Development Authority BCM : Billion Cubic Meters BEE : Bureau of Energy Efficiency CBM: Coal Bed Methane CCO : Coal Controller Organistaion CEA: Central Electricity Authority CEE : Center for Environment Education CEPT : Center for Environmental Planning and Technology CERC : Central Electricity Regulatory Commission CGD: City Gas Distribution CNG: Compressed Natural Gas DMIC: Delhi Mumbai Industrial Corridor DST: Department of Science and Technology EPD: Energy and Petrochemical Department ESPs: Electro-Static Precipitators FERC : Federal Electricity Regulatory Commission GAIL : Gas Authority of India Limited GCPC : Gujarat Cleaner Production Center GCV: Gross Calorific Value GEB: Gujarat Electricity Board GEC : Gujarat Ecology Commission GEDA: Gujarat Energy Development Agency GERC : Gujarat Electricity Regulatory Commission GETCO: Gujarat Energy Transmission Corporation Limited GIDC: Gujarat Industrial Development Corporation GIPCL : Gujarat Industrial Power Company Ltd. GMDC: Gujarat Mineral Development Corporation GOG : Government of Gujarat GOI : Government of India GPCB : Gujarat Pollution Control Board P a g e V

16 List of Abbreviations GPCL : Gujarat Power Corporation Ltd. GSECL : Gujarat State Electricity Corporation Limited GSI : Geological Survey of India GSRTC : Gujarat State Road Transport Corporation GUVNL: Gujarat Urja Vikas Nigam Limited HSD : High Speed Diesel IEA : International Energy Agency IGBC : Indian Green Building Council IIFCO: Indian Farmers Fertilizer Cooperative Limited IMD : Indian Meteorological Department ISGF: Indian Smart Grid Forum IWEA : Indian Wind Energy Association KAPS: Kakrapar Atomic Power Station KWh :Kilo Watt hour LNG: Liquefied Natural Gas LPG : Liquefied Petroleum Gas MCF : Million Cubic Feet MCIT: Ministry of Communication and Information Technology MNCER : Ministry of Non-Conventional Energy Resources MNRE: Ministry of New and Renewable Energy MoC: Ministry of Coal MoP : Ministry of Power MoPNG: Ministry of Petroleum and Natural Gas MoRTH: Ministry of Road Transport and Highways MoSPI : Ministry of Statistics and Programme Implementation MoU: Memorandum of Understanding MW : Mega Watt NELP: New Exploration Licensing Policy NFHS: National Family Health Survey NSSO : National Sample Survey Organisation NTPC: National Thermal Power Corporation ONGC: Oil and Natural Gas Corporation P a g e VI

17 List of Abbreviations PDS: Public Distribution System PGCIL : Power Grid Corporation of India Limited PSIR: Pressure-State-Impact-Response PV : Photo Voltaic SEC : Surat Electricity Company SEZ: Special Economic Zone SGTF: Smart Grid Task Force SHP: Small Hydropower Plant SIR: Special Investment Region SMC: Surat Municipal Corporation SMES: Small and Medium Enterprises SoER: State of Environment Report SPV: Special Purpose Vehicles SSNNL: Sardar Sarovar Narmada Nigam Limited STE : Solar Thermal Electricity T&D : Transmission and Distribution TEDDY : TERI Energy Data Directory and Yearbook TERI: The Energy Research Institute UHV: Useful Heat Value UMPPs: Ultra Mega Power Projects USD: United States Dollars WEC : World Energy Council P a g e VII

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19 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT EXECUTIVE SUMMARY

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21 Executive Summary Executive Summary The task of meeting the energy needs of development has become more complex in recent times due to the imminent threat of global warming. This poses a challenge to the world as a whole including Gujarat and points to the need for an acceptable international approach to deal with the problem. Gujarat s energy strategy has, therefore, to bear in mind the need for action as part of a reasonable international agreement which is consistent with Gujarat s development objectives. The State of Environment Report (SoER) pertaining to the energy sector in Gujarat state provides an overview of current state of energy resources like coal, lignite, natural gas, coal bed methane, crude oil, biogas, wind power, hydro, solar, nuclear and tidal energy etc., its environmental implications and responses undertaken by the Government. It gives an opportunity to assess how the power generation from various sources affect the environmental conditions and their implications on human health and economic well - being. State of Environment reporting pertaining to the Energy sector, is a process undertaken so as to understand, describe, analyze and communicate information on conditions and trends in the environment. It seeks to document the condition of natural resources and the environment; and to assess the effect of any changes in the environment on health, economy and lifestyle. It is a method by which the ecologically sustainable use of natural resources can be measured, which is an effective and vital input for policy planning and implementation related to sustainable development. The present State of Environment report (SoER) pertaining to energy sector has collected & compiled sound and reliable database as well as analyzed the meaningful policy undertaken by Page IX

22 Executive Summary the State Government to achieve the sustainable development. It provides a roadmap for immediate action and conservation majors. We have adopted ecosystem based approach to come out with the State of Environment Report [SoER] where in above mentioned applicable parameters are studied and temporal changes in each of the parameters are studied based on PSIR [Pressure, State, Impact and Response] methodology along with the vulnerability in certain areas. As far as methodology is concerned, it is based on data and perception. Data based approach includes data collection, data collation for synthesis and consultation to find the gaps and possible responses. Pressures are the more specific economic, social, institutional or other pressures on the environment that may contribute to or cause particular environmental states and impacts of concern. Specific pressures for priority issues are presented in State of Environment report under Energy sectors. Various factors creating pressure on environment are population growth rate, urban growth rate, annual energy consumption levels, growth in per capita energy consumption etc. Moreover energy is demanded in Gujarat state mainly by four sectors i.e. Agriculture, Industry, Transport and Domestic. Tremendous demand has brought the following pressures on the energy sector. State: It is the condition or quality of the environment and trends in that condition brought about by human or other pressures which have negative impact on environment because of energy production and consumption.. These are described for priority issues by presenting quantitative and qualitative data of Energy sector. As far as Energy supply is concerned, the various sources creating pressure on environment are lignite, coal, crude oil and natural gas, alternative fuels (like bio-fuels, biodiesel, ethanol, CBM, oil shale etc.), hydroelectricity, nuclear power and other renewable sources of energy (like solar, wind and tidal). P a g e X

23 Executive Summary Impacts: The consequences of pressures and states in particular those on human health, the economy, equity and quality of life. For energy demand and supply, all above mentioned sources of energy are leaving certain environmental impacts affecting the human health, the economy, equity and quality of life because of the various sources of energy like coal and lignite, crude oil and natural gas, alternative fuels, hydroelectricity, nuclear power and other renewable sources of energy. In our study, the impacts because of rural energy requirement and its impacts in form of indoor air pollution is also included. Responses: These include all actions and initiatives taken to address environmental issues by Government, NGOs, businesses, research institutions or other initiatives. Important initiatives taken by State Government are promotion of Renewable Energy, Biomass Energy, Wind Energy, Solar Energy. Gujarat Energy Development Agency (GEDA) has implemented LED village project at Village Amrapura, Taluka Mansa District: Gandhinagar as the first LED Village Demonstration Project in Gujarat in the year Introduction of Jyotigram yojna for village electrification has also significantly reduced the T & D losses, it is an innovative scheme to make available 24 hours three phase quality power supply to Rural areas. Government of Gujarat has also taken some important initiatives in the Bio-energy, decentralized energy system, along with power sector reforms. Recommendations: Based on our study, we have included several recommendations in chapter no.6 which can be taken into consideration and incorporated by the Government, NGOs and other environmental agencies to reduce the impact created by energy resources on the environment. P a g e XI

24 Executive Summary P a g e XII

25 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT CHAPTER-1 INTRODUCTION

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27 Chapter-1: Introduction Chapter-1 Introduction The challenge for the 21st century is how to develop sustainably and maintain the quality of life for a growing population with higher expectations for well-being. Underlying this challenge is the need for sufficient and sustainable supplies of energy to provide the economic activity underpinning these expectations. Issues concerning energy security pose multiple challenges for Gujarat. Access to energy sources is a major challenge, not only for rural areas but also for the urban areas. We have had limited success in exploring new oil and gas reserves and we are heavily import dependent. Climate change concerns have added a new dimension to the energy equation and there are increasing pressures, both from within and outside, to reduce coal consumption and move towards renewable and nuclear energy. Energy production and use, particularly of fossil fuels, have a number of environmental impacts including air pollution, greenhouse gas emissions and adverse impacts on ecosystems. Availability and access to energy are considered as catalysts for economic growth. This report assesses the key drivers, environmental pressures, state and some impacts from the production and consumption of energy (energy demand and supply), taking into account the main objectives of the policies on energy and environment including: security of supply, competitiveness, increased energy efficiency and renewable energy, and environmental sustainability. Meeting the energy access challenges and ensuring lifeline supply of clean energy to all is essential for empowering individuals. Page 1

28 Chapter-1: Introduction In the recent years, the Government of Gujarat has recognized the energy security concerns and more importance is being placed on energy independence. Some of the strategies for energy security are as follows: Power Generation Strategy will focus on low cost generation, optimization of capacity utilization, controlling the input cost, optimization of fuel mix, Technology upgradation and utilization of non-conventional energy sources. Transmission strategy will focus on development of Smart Grid including Inter-state connections, technology upgradation and optimization of transmission cost. Distribution strategy (to achieve distribution reforms) will focus on system up gradation, loss reduction, theft control, consumer service orientation, quality power supply commercialization, decentralized distributed generation and supply for rural areas. Conservation strategy (to optimize the utilization of electricity) will focus on demand side management, load management and technology up gradation to provide energy efficient equipment / gadgets. The State of Environment Report (SoER) pertaining to the energy sector in Gujarat state shall provide an overview of various resources of energy like coal, lignite, wood, natural gas, coal bed methane, crude oil, biogas, wind power, hydro, solar, nuclear and tidal energy etc. and also the overview of environmental implications. It shall give an opportunity to assess how the power generation from various sources affect the environmental conditions and their implications on human health and economic well - being. State of Environment reporting pertaining to the Energy sector, is a process undertaken so as to understand, describe, analyze and communicate information on conditions and P a g e 2

29 Chapter-1: Introduction trends in the environment. It seeks to document the condition of natural resources and the environment; and to assess the effect of any changes in the environment on health, economy and lifestyle. It is a method by which the ecologically sustainable use of natural resources can be measured, which is an effective and vital input for policy planning and implementation related to sustainable development. The present State of Environment report (SoER) pertaining to energy sector wishes to go a step further in collecting & compiling of sound and reliable database as well as analyzing the meaningful policy in the State to achieve the sustainable development. It would also provide a roadmap for immediate action and conservation majors. 1.1 The Rationale The State of Gujarat is rapidly growing in industrial sector with a growth rate of around 22 to 25 % in In recent years ( ) the real GDP growth in Gujarat has been 11.3% as against 11% in Haryana, 9.6% in Bihar, 8.5% in Karnataka, 8.1% in Kerala and 7.4% in Andhra Pradesh. Gujarat state has also taken steps to market itself as an attractive investment destination through the Vibrant Gujarat summit held every two years since last decade. Gujarat has achieved leadership in the chemical industries with 35% share of all investments in this sector in past 5 years. With a substantial presence of the chemical, pharmaceutical, textile and engineering industries concentrated in the Golden Corridor extending throughout the state, management of hazardous waste, becomes indispensible in order to mitigate negative impact on the environment. Industries have often grown around existing urban support services and GIDC industrial estates. The State has also achieved phenomenal growth in energy sector since last decade. The State of Gujarat is in the fast track of growth but has also taken strong & serious measures for the conservation of the Environment which has been discussed in detail under the response section. An overall awareness is required amongst the Page 3

30 Chapter-1: Introduction citizens, for understanding the ill effects of various pollution hazards and environmental degradation arising out of rapid industrialization. Gujarat has continued to witness impressive industrial development. Government of Gujarat while announcing Industrial Policy in 2003 had given strong emphasis on making Gujarat based industries competitive enough to meet with the challenges of globalization. For this purpose Government also announced various schemes such as empowerment of cluster, assistant for technology/up gradation, quality up gradation, subsidy for R & D activities and interest subsidy to Small and Medium Enterprises (SMES) etc. An important feature of the Industrial Policy, 2003 is the scheme of cluster development. In the state 83 clusters have been identified with a range of industries. They are being strengthened with Government assistance in the form of developing common facilities centers, up gradation of infrastructure, conducting training programmes for skill up gradation etc. Gujarat Industrial Development Corporation (GIDC) develops industrial estates in the State so that industrial units get developed plots/sheds with all amenities for setting up their units. There are 182 industrial estates spread throughout the State covering an area of 3200 hectares. Also 60 Special Economic Zones (SEZs) have been notified in the State so far. Special Investment region (SIR) Act was enacted by the State in 2009 for creating large size investment regions and industrial areas in the State to develop them as global hubs of economic activity having world class infrastructure. Eleven such SIRs have been notified so far and are various stages of planning and development. Also a major part of Delhi Mumbai Industrial Corridor (DMIC) i.e. 38% is going to pass through Gujarat. Out of 20 proposed industrial nodes of DMIC, 06 are in Gujarat. P a g e 4

31 Chapter-1: Introduction The State of Environment report pertaining to the energy sector is an opportunity which takes into account our assets, recognizes the enormity as well as the complexity of the environmental problems being faced today and attempts analysis of the underlying casual factors. 1.2 The Approach and methodology We have adopted ecosystem based approach to come out with the State of Environment Report [SoER] where in above mentioned applicable parameters will be studied and temporal changes in each of the parameters will be studies on PSIR [Pressure, State, Impact and Response] methodology along with the vulnerability in certain areas. As far as methodology is concerned, it will be based on data collection and perception. Data based approach will include data collection, data collation for assesment and consultation to find the gaps and possible responses. Perception based will include identification of issues, priorities and response for synthesis and consultation to find the gaps and possible responses. Then these two approaches shall be merged for validation, data gap filling and verification with the stakeholders. 1.3 PSIR Framework For the preparation of State of Environment Report (SoER) pertaining to Energy sector, PSIR (Pressure-State-Impacts- Response) Framework has been used. The format outlines are as following: Pressures: They are the more specific economic, social, institutional or other pressures on the environment that may contribute to or cause particular environmental states and impacts of concern. Specific pressures for priority issues are presented under Energy sectors. Various factors creating pressure on environment are population growth rate, urban growth rate, annual energy consumption levels, growth in per capita energy Page 5

32 Chapter-1: Introduction consumption etc. Moreover energy is demanded in Gujarat state mainly by four sectors i.e. Agriculture, Industry, Transport and Domestic. State: It is the condition or quality of the environment and trends in that condition brought about by human or other pressures which have negative impact on environment. These are described for priority issues by presenting quantitative and qualitative data of Energy sector. As far as Energy supply is concerned, the various sources creating pressure on environment are as follows: Lignite Coal Wood Crude Oil and Petroleum Products Natural Gas, CNG LNG Kerosene Petrol Diesel Alternative fuels like biofuels, biodiesel, ethanol, CBM, oilshale etc. Hydroelectricity Nuclear power Traditional Fuels Power Generation and Distribution Renewable Energy like solar, wind, small hydro power plants and tidal energy As far as sector wise Energy demand is concerned, it includes the following: Agriculture Industry Transport Domestic P a g e 6

33 Chapter-1: Introduction Thus increase in energy supply diversity is State as well as National goal driven by concerns about energy security, climate change mitigation and environmental protection. Impacts: These are the consequences of pressures and state in particular those on human health, the economy, equity and quality of life. For energy demand and supply, all above mentioned sources of energy are leaving certain environmental impacts affecting the human health, the economy, equity and quality of life because of the following sources of energy: Coal and lignite mining Wood Oil & Natural Gas Oil Refineries Vehicular Emissions Power Generation and Distribution Hydropower Nuclear Renewable Sources of Energy Indoor Air Pollution Responses: These include all actions taken to address environmental issues by government, NGOs, businesses, research institutions or other initiatives. Initiated Policy Reforms for Power Sector Promotion of Renewable Energy Solar Energy Wind energy Biomass Energy Rural Energy Plantation Energy Conservation Decentralized Energy System Page 7

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35 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT CHAPTER-2 PRESSURE

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37 Chapter-2: Pressure Chapter-2 Pressure Energy production and consumption place considerable pressures not only on the environment, but also on society and the economy. Environmental pressures are easier to quantify than social or economical ones. However, these ones should not be omitted, according to the influence they for sustainability. The demand for energy in Gujarat has been growing due to increasing industrial and agricultural activities. Gujarat state faces a challenge to optimally use resources vested in its land for production of energy and thus providing to state of sixty million. As inferred from the below table, Gujarat has shown substantial increase in both i.e. Gross Domestic Product and energy. This substantial increase tends to increase the pressure on environment and thus calls for the optimal use of energy resources vested in the state. Table: 1 Year wise % increase in Growth rate of Gujarat (in terms of Energy and GDP) Year GDP* Energy** Source: *Planingcommission.nic.in/plans/stateplan/present/gujrat.pdf and **GUVNL Page 9

38 Chapter-2: Pressure Gujarat has witnessed a moderate growth in its population in the last 60 years. From a small figure of Lacs in 1951, it has gone passed 6.03 Crore in Gujarat is now the 10th most populous state. It has 5 per cent share of the country's population and 6 per cent of geographical area. Gujarat's population has increased by 97,12,611 during the decade of 2001 to While the urban population has risen from per cent in 2001 to per cent in 2011, making it one of the fastest growing urbanised states, according to the Census. In terms of Population, Ahmedabad is the largest city of Gujarat with 7.2 million people living here. Surat and Vadodara are other two major cities with high number of urban population residing here. Rajkot is the fourth largest city of Gujarat with population of 1.50 million. The cities like Bhavnagar, Bhuj, Junagadh and Jamnagar constitutes a large number of urban populations in Gujarat. Thus Concentration of population and urbanisation make huge pressures on Energy sector. Ahmedabad ranks 52nd and Surat 77th in most populated urban cities in the world. Table 2: Statistics of Districts, Takukas, Towns and Villages in Gujarat Serial Level Variation No. 1 Districts Talukas Towns Industrial Notified Areas 5 Villages Source: Planingcommission.nic.in/plans/stateplan Above data shows that there is an increase in number of District, towns, and industrial notified and it also shows the net decrease in number of talukas and villages. Increase in number of Districts, towns and Industrial notified areas are creating more pressure on Energy sector. Page 10

39 Chapter-2: Pressure The Pressures of the Driving Forces on the environment, society and economy (Pressures) are the measures of the effects of the Driving Forces on the natural environment, on the social setting and on the economical scene, for the transitory considered scope. Greenhouse gas emissions, waste resulting from energy production and consumption or emissions of pollutants are examples of Pressures on the environment. However, the problem exceeds the environmental aspect and affects the socio-economic context. Thus, for example, production of radioactive waste, that is an environmental Pressure, also constitutes an economical Pressure because of the high costs of management and storage of this type of waste. Similarly, for example, greenhouse gas emissions are produced by refineries are environmental Pressures, but there is also a social Pressure on them, because of the accidents that may occur. The Pressures are directly related to the Driving Forces, because they are direct consequences of them. The Pressure placed on the environment, society or economy by any activity using energy depends on: Driver: the volume of activity that generates demand for an energy-related service (e.g. Gross Domestic Product, industrial value added, demand for road freight delivery or passenger transportation, etc.) Gap in demand and supply of energy in different sectors like industry, domestic, agriculture etc. The production of cleaner energy through renewable and non-renewable sources e.g. while the fossil fuels like lignite and coal are highly polluting ones, the renewable energy sources such as solar, wind, tide, biomass, etc., have little negative impact on the environment. The electricity, on the other hand, may be clean at the consumer's end but its production might be polluting, depending on the fuel and technology used. P a g e 11

40 Chapter-2: Pressure The cost of energy: In general, cleaner fuels are costlier than the polluting fuels and therefore environmental costs were generally ignored against the fiscal costs. The choice of use of energy, on the other hand, varies according to income level of consumers and availability of technology for efficient use of energy. Policy framework that integrate energy-environment sectors Lack of integration between renewable sources of energy with that of conventional sources. Energy intensity: the amount of energy required per unit of Driver. Pressure intensity: the level of the Pressure per unit of energy use. Following Pressure indicators have been considered in this report: o Green House gas emissions by energy uses. o Pollutant emissions by energy uses. o Production of radioactive waste. o Accidents/Hazards/Risks as a result of energy uses. o Use of resources like cutting of trees as fire wood for cooking o Emissions (per driving force for numerous compounds) o Direct emissions to air, water and soil o Indirect emissions to air, water and soil o Production of waste, noise, radiation and vibration Apart from above pressure indicators, tremendous demand has brought the following pressures on the energy sector: Increasing demand for energy & limited alternative sources impose a huge pressure on this sector. Coal based thermal power is the only viable source of energy available. P a g e 12

41 Chapter-2: Pressure Poor quality of coal (with 30 to 40% ash) is the main cause of air pollution and land degradation. Locally available lignite has similar problems. Low energy efficiency is a major concern for the State. In hydro power generation, the construction of dams and multipurpose reservoirs has many positive effects like hydropower generation, water supply, irrigation, low flows regulation, flood mitigation etc.), but also causes adverse effects. For example, the volume of biological active sediments may decrease, erosion and/or sedimentation processes in riverbeds may change, and migration of fish may become impossible. Intense sedimentation, erosion of embankments and changes in the hydrological regime, resulting in a decrease in the self-purification capability of aquatic ecosystems, occur in lowland reservoirs. Eutrophication, a typical problem of reservoirs in lowlands, is intensified due to the shallowness and large water surface of many water bodies. P a g e 13

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43 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT CHAPTER-3 STATE

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45 Chapter-3: State Chapter-3 State The different phases of the energy production and consumption process place pressures on the society, the environment and the economy. The State of the society, the environment and the economy (State) is the set of measures that represent the conditions characterizing the social, environmental and economical context, for the transitory considered scope. State of environment relates to an analysis of trends in the environment of the particular place. This analysis can incorporate aspects such as water quality, air quality land use ecosystem health and function along with social and cultural matters. Therefore the State is very relevant in the energy process. For example, in the particular case of an environmental State, concentration of pollutants is essential to estimate the impacts that Pressures may have. The State determines if the Pressure placed is leading to surpluses of tolerable levels or not. Other indicators affecting environmental State, for example, are the accumulation of radioactive waste or the fossil resources availability in the state. Universal access to electricity and other advanced energy forms, as a State indicator, is included on the social State. In the same way, energy security of supply is a characteristic of the social State, but it also indicates the situation of the economical State, because of the implications that energy security of supply has on energy prices, both locally and globally. Page 15

46 Chapter-3: State For the analysis of the energy context, the considered state indicators are: Greenhouse gas concentration in the atmosphere. Pollutants concentration in the atmosphere. Accumulation of radioactive waste. Fossil fuels resources and its duration. Energy security of supply: installed capacity and energy dependency. World-wide accessibility to electricity and other advanced energy forms. To access the state of environment pertaining to the energy sector, it is necessary to analyse all the sources of energy. 3.1 Lignite Gujarat is overall third largest producer of lignite in the country. Lignite occurrences in state are in Bharuch, Bhavnagar, Kachchh and Surat districts as depicted in Fig 1. The Gujarat State was also the second largest producer of lignite in the country during and production of lignite got increased by 4.17% followed by decrease in the production by 27.1% for the current fiscal year. Fig 1: Map Showing Lignite Deposits in Gujarat Page 16

47 Chapter-3: State Table 3: Lignite resources of states and Union Territories (million tonnes) as on 1 st April 2011 State Proved Indicated Inferred Total Tamil Nadu Rajasthan Gujarat Pondicherry Jammu & Kashmir Kerala West Bengal Total Source: Geological Survey of India, 2011 Table 4: Lignite mined out till 31 March 2011 State District Mine Mined (million tonnes) Cuddalore Neyveli - Mine I and Tamil Nadu Expansion Neyveli - Mine IA Neyveli - Mine II and Expansion Total Kutch Panandhro Matanomadh Bharuch Rajpardi Gujarat Bhavnagar Surkha North 1.9 Alapur(Khadsaliya) 1.41 Surat Tadakeshwar 4.98 Vatsan Mangrol 0.68 Total P a g e 17

48 Chapter-3: State State District Mine Mined (million tonnes) Bikaner Barsinghsar 0.43 Rajasthan Gurha East 0.67 Barmer Giral 7.14 Nagaur Kasnau/Matasukh 0.66 Total 8.9 Grand Total Source: Geological Survey of India, 2011 Table 5: Year wise Lignite demand (in MT) in Gujarat State Year Demand in MT Source: Report on Coal and Lignite, Ministry of Coal ( ) Fig 2: Year wise Lignite Demand in MT in Gujarat State Demand in MT 10 Demand in MT From above data it is obvious that every year the demand of lignite is increasing, as a result of it excessive mining would have the degrading effects on environment. Following table shows the various consumers of lignite in the state. Page 18

49 Chapter-3: State Table 6: Lignite Consumers in Gujarat State Industry % Sales Food Processing 4.20% Paper and Paper 7.20% Board Dying and Printing 25.77% Silk Fabric 2.80% Fabric other than 5.70% Silk Cement 1.40% Bricks and similar articles 7.00% Roofing Tiles 1.00% Ceramic Article - Glazed Tiles 12.60% Iron and Steel 1.70% Soda Ash 9.50% Chemicals and Allied Industry 4.10% Others 17.10% Total Lignite Sales = Source: GMDC As shown in Fig 2 during , Lignite was consumed by various industries across the state of which the bulk of value of total Lignite sales of about 25.77% was accounted for dying and printing industry only. Next in order was Ceramic article - glazed tiles industry with a share of 12.60% followed by Soda ash industry (9.50%), Paper and paperboard industry (7.20%), Brick industry (7.00%), Fabric other than silk (5.70%), Food Processing industry (4.20%) in the total value of Lignite sales. Remaining other industries have share of 17.10% of total value during the year under review. Lignite being immature contains elemental sulphar which is genrally not removed in brick industry and thus leading to degradation of environment. P a g e 19

50 Chapter-3: State Fig 3: Lignite Consumers in State Food Processing Paper and Paper Board Dying and Printing Silk Fabric Fabric other than Silk Cement Bricks and similar articles Source: GMDC Figure 3 shows the consumption of lignite in the Gujarat State by various industries. Out of all these consumers, drying and printing industries are the major consumer of lignite. Fig 4: Year wise Lignite Production in Gujarat State Lignite Production Lignite Production Source: GMDC Figure 4 shows the year wise production of lignite in the Gujarat State which is progressively increased from 1998 to Page 20

51 Chapter-3: State 3.2 Coal Around 18 million tons of coal is consumed in the Gujarat state annually, mostly for power generation. None of this coal is produced in the state. The coal comes mostly from Madhya Pradesh and about 4 million tonnes are imported. Coals as straight or in blend which on carbonization produce hard coke are known as coking coals. Depending upon coking capacity, coking coals are divided into prime or hard coking coal, medium or soft coking coals and weakly or semi-soft coking coals. The coking coals are classified based on CSN, LTGK coke type, gieseler fluidity, vitrinite contents, mean maximum reflectace of vitrinite etc. On the other hand, coals which on carbonization produce powdery mass are known as non-coking coals. The current custom duty on coking and non coking coal is as following: Table 7: Coal Import and custom duty Import of Coal Current custom duty (%) Coking Coal Ash content less than 12% Ash content more than 12% Non coking coal 5 Coke Source: CCO (2011) Page 21

52 Chapter-3: State Table 8: Coal Resources of states (million tons) as on 1 st April-2011 State Proved Indicated Inferred Total Andhra Pradesh Arunachal Pradesh Assam Bihar Chhattisgarh Jharkhand Madhya Pradesh Maharashtra Meghalaya Nagaland Odisha Sikkim Uttar Pradesh West Bengal Total Source: Ministry of Coal, 2011 Table 9: Coal Resources (million tons) by category as on 1 st April-2011 Type of Coal Proved Indicated Inferred Total Coking Prime Coking Medium Coking Semi Coking Subtotal Non Coking Tertiary Coal Total Source: Ministry of Coal, 2011 P a g e 22

53 Chapter-3: State Fig 5: Gross Geological Coal Resources by States as on 1 st April, 2010 Page 23

54 Chapter-3: State Table 10: Comparison of Gross Calorific Value (GCV) and Useful Heat Value (UHV) for non coking coal (with 6% moisture content) Grade UHV(kcal/kg) Ash % GCV(kcal/kg) From To From To From To A >6200 <13.56 >6406 B C D E F G GCV: Gross Calorific Value, UHV: Useful Heat Value Source: TERI (1997) The gradation of non-coking coal is based on Useful Heat Value (UHV), the gradation of coking coal is based on ash content and for semi coking/weakly coking coal it is based on ash plus moisture content. Coal continues to remain the mainstay Fig 6: Coal Fired Power Plant of Gujarat s energy sector, accounting for more than 50% of the total commercial energy consumption in the state. The contribution of coal to the total commercial energy supply in Gujarat as on 31 st March-2011, was about 54%. In fact, several studies have indicated that despite significant increase in power generating capacity based on renewable and other energy forms, coal would continue to play a key role in Gujarat s energy sector. Page 24

55 Chapter-3: State Table 11: Coal Consumption by GSECL station in Gujarat Year Mus Coal Consumption in '000 MT Source: Ministry of Coal, 2011 In order to meet increasing demand of coal, transportation facility should be strengthened. In the long term, with the expected increase in energy demands, especially in terms of power generation requirement, coal imports are expected to increase and hence the effects of usage of coal will keep on increasing and subsequently degrading the environment. 3.3 Crude oil and Natural Gas Gujarat has oil & gas reserves located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambussar, Palej, Kalol and isolated gas fields around Ahmadabad. In addition to this, it has discovered oil reserves in Dholka and Khambat. Gujarat accounts for 54 percent of India s onshore crude and 39 percent of onshore Natural Gas Production. It has about 46 percent of India s installed refining capacity and 60 percent of India s total crude oil import facility. The Government has announced MoU s worth USD 4.5 billion and investments worth USD 5.7 in Gujarat. Gujarat is second state after Assam having 19.39% share of total crude oil reserve of India at present. While Gujarat is the number one state with 8.79% of total natural gas reserve of India. Next to Gujarat is Assam with 8% of total resources. P a g e 25

56 Chapter-3: State Fig 7: Oil and Gas Fields in Gujarat Source: For more exploration of oil and gas, New Exploration Licensing Policy (NELP) has been introduced by Government of India to attract private participation in the sector. As of now, nine round of bidding have taken place under the NELP. With NELP being introduced, the extensive exploration for oil and gas add up to further degradation of the environment. Page 26

57 Chapter-3: State Table 12: Production of Crude Oil ( 000 tones) Year Production Source: MoPNG (2011) Fig 8: Year wise Production Crude Oil in Gujarat State 8000 Production Production From above data, there is general increasing trend in the production of crude oil every year, leaving behind a degrading effects on environment. Gujarat has a well established gas grid of 550 kms and it plans to expand the same to 2,200 kms with investment worth USD 500 million. Investments have been proposed to build new LNG terminals in addition to the existing terminals in Dahej and Hazira, are underway. Gujarat has well established distribution gas network and the LNG terminals at Hazira and Dahej have led to a strong local consumer base. Presence of cooperatives such as IIFCO, KRIBHCO, power companies like NTPC and GEB and industrial majors such as Reliance have led to a vibrant energy sector in Gujarat. The Jamnagar refinery is the largest in India in terms of refining capacity and also is considered as the biggest grassroots refinery in the world. Page 27

58 Chapter-3: State Table 13: Production of Natural Gas (in mmscf) in Gujarat State Year Production Source: MoPNG (2011) Fig 9: Year wise Production of Natural Gas in Gujarat State Production Production From above data, there is general increasing trend in the production of natural gas every year, which is reducing the dependency on others fuel resourses. Page 28

59 Chapter-3: State 3.1 Liquefied Natural Gas (LNG) In Gujarat, at present two LNG terminals namely LNG Petronet Ltd. at Dahej and Shell & Total LNG terminal at Hazira are operational. The details are as follows: Table 14: Existing LNG Terminals in Gujarat Project and Developer Dahej LNG Terminal (Petronet LNG Ltd) Hazira LNG (Shell and Total) Location Capacity Supplier (MTPA) Dahej 10 RasGas and Spot Cargos Hazira 3.6 (Phase I) Spot Cargos Status Commissioned in Feburary 2004 and commercial sales began in April 2004 Commissioned in April 2005 Source: MoPNG Page 29

60 Chapter-3: State Domestic natural gas pipeline and City gas distribution in Gujarat A limited natural gas pipeline network exists in Gujarat for the development of domestic natural gas market. With the increase in gas supply, there are plans to extend the present gas pipeline network. Gujarat has also progressed in setting up of City Gas Distribution (CGD) networks within selected cities. The details are as follows: CGD Company Table 15: City Gas Distribution (Company and Operational Region) Operational region Gujarat Gas Ltd. Surat, Bharuch and Ankleshwar Adani Energy Ltd. GSPC Gas Ltd. Ahmedabad and part of Vadodara Vapi, Valsad, Nadiad, Navsari, Rajkot, Morbi, Hazira and Gandhinagar Sabarmati Gas Ltd. Gandhinagar, Mehsana and Sabarkantha Vadodara Municipal Vadodara Corporation Source: TERI compilation P a g e 30

61 Chapter-3: State Table 16: Total Refinery Production ( 000 tones) Year Production Source: MoPNG Fig 10: Year wise Refinery Production in Gujarat State Production Production From above data, there is general increasing trend in the refinery production in the Gujarat state, leaving behind a degrading effects on environment. Page 31

62 Chapter-3: State Fig 11: RIL, Jamnagar Refinery Fig 12: Offshore Platform Source: RIL With crude touching an all time high, alternative fuels, viz; natural gas and bio-diesel will play an important part in driving the growth of Gujarat s economy. With huge wasteland as its assets, the State should encourage production and consumption of bio-fuel. This will reduce its dependency on expensive fuel. The State can also leverage its proximity to the Middle- East and well developed gas infrastructure to become selfsufficient in natural gas. The reduced dependency on oil and gas would have two fold benefits i.e. cost and impact on environment. Gujarat has the potential to develop itself as a preferred destination for strategic storage of oil reserves. Gujarat is looking at moving forward to become the Petro capital of India. Page 32

63 Chapter-3: State Refined Products: Refining capacity and utilization in Gujarat State: The refining capacity and utilization in Gujarat state (as on 1 April 2010 and 1 April 2011) is as following: Table 17: Refining Capacity and Utilization in Gujarat Refining company Installed Capacity as on 1 April (MTPA) Crude throughput (MT) Utilization (%) / / / /11 IOCL Koyali RIL, Jamnagar Essar Oil Ltd. Vadinar RIL, SEZ, Jamnagar Source: MoPNG, TERI Production of petroleum products: In June 2010, the Government of India deregulated petrol prices, which are now linked to international prices. The prices of diesel, PDS kerosene, and domestic LPG were also increased by Rs.2 a litre, Rs.3 a litre, and Rs.35 a cylinder, respectively. Further, in June 2011, the government increased the prices of diesel, PDS kerosene, and domestic LPG by Rs.3 per litre, Rs.2 per litre, and Rs.50 per cylinder, respectively. Deregulated and increased prices of oil and gas would encourage us to think for alternative fuel generating less environmental impact. P a g e 33

64 Chapter-3: State Table 18: Production of Kerosene (in KL) Year Productio n(in KL) Source: MoPNG Table 19: Production of Petrol Year Production(in KLs) IOC BPC HPC PSU's Table 20: Production of Diesel Source: MoPNG Year Production(in KLs) IOC BPC HPC PSU's Source: MoPNG In order to meet increasing demand of refinery petroleum products, transportation facility should be strengthened. In the long term, with the expected increase in energy demands, especially in terms of petroleum products, crude oil imports are expected to increase and hence the effects of usage of petroleum products will keep on increasing, subsequently degrading the environment. P a g e 34

65 Chapter-3: State 3.4 Alternative Fuels Biofuels Biofuels are liquid or gaseous fuels derived from biomass resources (biodegradable products, wastes, and residues arising from agriculture, forestry, and related industries, and industrial and municipal wastes) and are renewable in nature. These fuels are relatively cleaner (and cheaper) as compared to mineral oils and are, therefore, good substitutes for the latter. To provide an impetus to biofuels in the country, the Government of India notified the National Policy on Biofuels in December 2009 under which the government aimed to achieve 20% blending of biofuels, both for biodiesel and bioethanol, by Gujarat state is having good prospects for the production of Biofuels. Fig 13: Biofules Page 35

66 Chapter-3: State Biodiesel Fig 14: Biodiesel As per the National Policy on Biofuels 2008, biodiesel is a methyl or ethyl ester of fatty acids produced from vegetable oils, both edible and non-edible, or animal fat of diesel quality and can, therefore, be utilized as a substitute for diesel as it contains low levels of sulphur or aromatics. Further, biodiesel possesses superior lubrication qualities and is completely compatible with petroleum diesel and, hence, can be blended in any ratio with the latter. However, the most common blend in India is B20, which is a mix of 20% biodiesel and 80% mineral diesel. Gujarat state is having good prospects for the production of Biodiesel Bio-Ethanol Fig 15: Bio-Ethanol production Ethanol is regarded as an alternative to gasoline and is blended with it. It is an oxygenate containing 35% oxygen, which reduces vehicular emissions of hydrocarbons and CO, thus reducing the emission of pollutants. Blending 10% of ethanol (E10) with gasoline does not cause any problem the blend can be used directly with existing engines without any modification. Although ethanol is mainly produced from molasses in India, it can also be produced from potato, sweet potato, tapioca, cassava, rice, millets, maize, wheat, cellulosic biomass (such as biogases, cane trash, cane tops, Page 36

67 Chapter-3: State and crop residues), and so on. The Government of India issued a notification on the ethanol-blending program (EBP) in It made 5% ethanol blending mandatory in petrol in nine sugar-producing states (Andhra Pradesh, Goa, Gujarat, Haryana, Karnataka, Maharashtra, Punjab, Tamil Nadu, and Uttar Pradesh) and three union territories (Dadra and Nagar Haveli, Daman and Diu, and Pondicherry) Coal Bed Methane Fig 16: Coal Bed Methane Well Coal bed methane (CBM) refers to the methane-rich gas extracted from coal beds. It has emerged as one of the important sources of energy across the world. India has the third largest proven coal reserves and is the fourth largest coal producer in the world, indicating significant prospects for the commercial recovery of CBM in India. To facilitate realizing the CBM potential of India, the Government of India adopted the CBM policy in The policy paved the way for allocating CBM blocks for exploration and development through a process of competitive bidding. In addition, several other fiscal incentives were extended by the government as part of the policy. As Gujarat is not having any coal reserves therefore prospects for CBM production in Gujarat is not favorable. Page 37

68 Chapter-3: State Oil Shale Oil shales are usually finegrained sedimentary rocks containing relatively large amounts of organic matter from which significant quantities of shale oil can be extracted by destructive distillation. The presence of oil shales has been recorded in wells drilled by the ONGC and OIL. Gujarat state is having good prospects for the production shale oil. 3.5 Hydroelectricity Fig 17: Location of Sardar Sarovar Dam One of the key component in this sector contributing to power generation in Gujarat is the Sardar Sarovar interstate project involving Gujarat, Madhya Pradesh, Maharashtra and Rajasthan with a terminal major dam on westward flowing river Narmada in Gujarat. The river Narmada is the largest perennial river in Gujarat and had a major irrigation and hydroelectricity project. The project envisages construction of a 1210m long and m high Concrete Gravity dam on the river Narmada in the Nandod taluka of Narmada district; Main canal and distribution system to create an irrigation potential of laky ha. In Gujarat the Underground River Bed Power House having installed capacity of 1200 MW and the Canal Head Power House having installed capacity of 250 MW. The power allocation as per Narmada Water Dispute Tribunal award to Madhya Pradesh, Maharashtra & Gujarat is 57%, 27% and 16% respectively. Page 38

69 Chapter-3: State Apart from this Gujarat has small hydro project all over the state adding another 125MW of power. The River bed power house is an underground power station on right of river located about 165 m downstream of the dam. It is having 6 units of 200MW each and deploying Francis type reversible turbine generator. The runner for this pumped storage unit having diameter of 6.95m (23ft) weighting 120 tones and is produced in one piece. Table 21: Year wise total Electricity Generation at Sardar Sarovar Hydro Power House Year Generation(million units) Source: SSNNL (2011) Page 39

70 Chapter-3: State Fig 18: Year wise total Electricity Generation at Sardar Sarovar Hydro Power House Generation(million units) Generation(million units) 3.6 Nuclear Power Indian Scenario The present total installed capacity In the country for generating electricity is about 51,000 MWe which 1s made up of 65X thermal, 32X hydro and 3% nuclear power. Oil is used as auxiliary fuel on a small scale. By the end of this century, the total capacity is expected to reach 1,25,000 MWe contributing around 10% of the total energy mix. Table 22: Previous four year generation statistics Year Gross Generation (Mus) Capacity Factor(%) Source: KAPS Page 40

71 Chapter-3: State The nuclear power programme in India for the next fifteen years is based on installation of a series of 235 MWe and 500 MWe capacity pressurised heavy water reactor units. The current nuclear capacity of 1330 MWe is expected to increase to over Mwe. Gujarat Scenario - Kakrapar Atomic Power Station The Kakrapar Atomic Power Station (KAPS) is a nuclear power station in India, which lies in the proximity of the city of Surat in the state of Gujarat. It consists of two 220 MW pressurized water reactors with heavy water as moderator (PHWR). KAPS-1 went critical on 3 September 1992 and began commercial electricity production a few months later on 6 May KAPS-2 went critical on 8 January 1995 and began commercial production in September 1, In January 2003 the CANDU Owners Group (COG) distinguished KAPS-1 as the worldwide best PHWR of its class. The construction costs originally were estimated to be billion Rupees, the plant was finally finished at a price of billion Rupees. Construction of units 3 and 4 started on 22 November Fig 19: A view of Kakrapar Atomic Power Station Page 41

72 Chapter-3: State Table 23: Previous four year generation statistics in Gujarat State Unit Year Gross Generation (Mus) Capacity factor % Power Generation and Distribution Source: KAPS In Gujarat, power sector is at a crucial juncture of development and has witnessed significant changes in the last few years. The economy is growing fast and so are the aspirations for improved energy services in terms of availability, accessibility, and quality. Further, 2010/11 has witnessed significant developments related to renewable sources. The energy deficit and peak deficit have been gradually decreasing over the last few years because of significant capacity additions. The overall performance in terms of plant load factor (PLF) and transmission and distribution losses (T&D) has been relatively reduced. The sector has witnessed a significant increase in the private sector participation over the last few years. P a g e 42

73 Chapter-3: State Table 24: Fuel -wise generation capacity addition (MW) Fuel -wise generation capacity addition (MW) Energy Type 9 th Plan 10 th Plan 11 th Plan ( ) ( ) ( ) Hydro ,228 Coal ,220 Lignite Gas 298 1,415 1,270 Liquid 500 Fuels/residue Nuclear 229 Total 1,481 3,364 3,718 Source: CEA In Gujarat, during , the power supply position with respect to peak demand and peak met was MW and 9515 MW respectively which shows power supply deficit by 8.6% although during , the power supply position with respect to peak demand and peak met was MW and 9947 MW respectively which shows power supply deficit by 7.8%. P a g e 43

74 Chapter-3: State Table 25: Power Supply position: Peak demand Vs Peak met Power supply position Peak Demand (MW) Peak met (MW) Surplus/Deficit (MW) Surplus/Deficit (%) % -7.8 Source: Fig 20: Year wise Power Supply position: Peak demand Vs Peak met Peak Demand (MW) Peak met (MW) Above data shows the net increase in peak demand and peak met during two consecutive years. Page 44

75 Chapter-3: State Table 26: Power Supply position: requirement Vs availability Power supply position Requirement (MU) Availability (MU) Surplus/Deficit (MW) Surplus/Deficit (%) -4.5% -5.7 Source: Fig 21: Year wise Power Supply position: requirement Vs availability Requirement (MU) Availability (MU) Page 45

76 Chapter-3: State Per capita consumption In India, per capita electricity consumption is maximum in western region if we compare it with Northern, southern, eastern, western and north eastern region of India. Moreover Gujarat state is a part of western region. Following graph shows the region wise per capita consumption of electricity, during 2008/09. There has not been a significant change in the fuel mix of installed generating capacity in 2010/11 as compared to 2009/10. In 2010/11, the relative share of hydropower generating capacity has also contributed significantly, while that of coal generating installed capacity has increased marginally. Fig 22: Per Capita Consumption of Electricity as per 31 st March 2009 Source: CEA Page 46

77 Chapter-3: State Table 27: Year wise per capita consumption of electricity in Gujarat State Year Per capita consumption (KWh) Source: CEA (2010) Above table shows the increasing trend in per capita consumption of Electricity in the state of Gujarat. In the year , the per capita consumption of electricity in India was while the same for Gujarat was 1558 which is nearly twice as compared to the National average. Table 28: Installed Capacity (MW) in Gujarat, as on 31 March 2011 Source State Private Central Total Coal Gas Diesel Total Thermal Nuclear Hydro Renewable energy sources Total Source: CEA (2011) P a g e 47

78 Chapter-3: State Fig 23: Installed Capacity (MW) in Gujarat, as on 31 March 2011 % share of various sources Coal Gas Diesel Nuclear Hydro Renewable energy sources 13% 5% 0% 3% 54% 25% Table 29: Comparison of Installed Capacity (MW) in Gujarat State with India (as on 31 March 2011) Source Coal Gas Diesel Nuclear Hydo Renewable Total Gujarat India Source: CEA (2011) Above data shows the comparison of installed capacity of Gujarat state with India. In case of both renewable and non renewable resources the contribution of Gujarat state is significant. Page 48

79 Chapter-3: State Power supply position There has been tremendous improvement in the energy and peak deficit situation as compared to the past ten years. In 2001 Gujarat was the power deficient but as on now Gujarat has become energy surplus state. Village electrification As on 31 March 2011, all villages of Gujarat, representing 100% of the total villages (as per Census 2011), have been electrified. Electricity is available to all villagers for irrigation purpose also. In India there are seven states and five union territories, achieved 100% village electrification.(cea 2011). In Gujarat total number of rural households is , out of this total number of electrified households is (Source: MoP). Ultra Mega Power Projects (UMPP) Sixteen ultra-mega power projects (UMPPs) of 4000 MW capacity have been identified for procurement of power through tariff-based competitive bidding process. Special purpose vehicles have been set up for 12 UMPPS so far. Of these, two have been awarded to successful bidders: Mundra and Sasan in Gujarat. These two projects in Gujarat, are under different stages of implementation and they are progressing well at Mundra and Sasan. Smart Grids The concept of smart grid is emerging as an integral part of India s national electricity policy with the aim of addressing some of the critical issues being faced by the distribution utilities across the country, which include providing continuous, reliable, affordable, and sustainable power to the people of the country. To address these issues and achieve sustainable electricity access for the masses, the government has constituted an inter-departmental task force known as the Smart Grid Task Force (SGTF), which includes the Ministry of Power (MoP), the Ministry of New and Renewable Energy (MNRE), the Ministry of Communications and Information Technology (MCIT), and the Department of Science and Technology (DST). In addition, the MoP has P a g e 49

80 Chapter-3: State set up the India Smart Grid Forum (ISGF) as a public private partnership, bringing in utilities, subject matter experts from industry, academia and non-governmental research, and development organizations together to help the Indian power sector to deploy smart grid technologies in an efficient, cost-effective, innovative, and measurable manner. Now the concepts and tangible benefits of harnessing clean energy using smart grid technologies are well known and well understood. Not only does a smart grid enable energy saving, reduce cost and increasing reliability and transparency, it also improves energy efficiency and helps in maintaining energy security and sustainability. GETCO has been building up the transmission network capacity in Gujarat and it owns CKm transmission lines with 1272 substations ranging from 66 KV to 400 KV. GETCO has also played a significant role in developing transmission network for wind power and solar power. Transmission and Distribution (T&D) losses as % of availability in Gujarat State In Gujarat, T&D losses (as a percentage of total available electricity, comprising electricity lost in transformation and T&D system and electricity unaccounted for) during 2008/09 were 24.9% as compared to 26.1% in 2007/08, representing a decrease of 1.2%. Gujarat has been consistently effective in reducing the transmission and distribution losses over the years. It can also be concluded from the above data that T &D losses in Gujarat state is less as compared to India. P a g e 50

81 Chapter-3: State Table 30: (T&D) losses as % of availability in Gujarat State Year T & D Losses (%) in Gujarat T & D Losses (%) in India Source: CEA Table 31: Length of transmission and distribution lines (ckt km) in Gujarat state, as on 31 march 2009 T & D Lines Length (Ckt km) HVDC / / / / /2.2 0 Upto 500V Total Source: CEA P a g e 51

82 Chapter-3: State Inspite of having Ckt Km of transmission and distribution line, Gujarat has been able to curb T&D losses effectively with the use of high end tecchnology and proper management. 3.8 Renewable Energy Resources Projections made in the IEPR reveal that to achieve its development goals, India would need to rely increasingly on imported oil, gas, and coal in the medium term (2032). Against this backdrop, the role of new and renewable energy assumes added significance, irrespective of whether it replaces coal or oil. In this regard, IEPR recognizes the need to maximally develop domestic supply options as well as the need to diversify energy sources, although renewables are likely to account for only around 5% 6% of the primary commercial energy-mix by Given the growing concerns for climate change and energy security, it is imperative that this energy in the longer term will substantially increase its share in the fuel-mix. Continuing to support the growth of new and renewable energy is in the country s long-term interest, even though in the medium term this option might appear somewhat costlier. Thus, a balanced approach for new and renewable energy that factors in the need to develop domestic and renewable sources of energy has to be adopted. India s renewable energy installed capacity has increased at an annual rate 23%, rising from about 3.9 GW in to above 26 GW as on 30 th September Wind energy dominates India s renewable energy industry, accounting for 70% of installed capacity (18 GW). It is followed by small hydro power (3.4 GW), biomass power (3.4 GW) and solar power (1 GW). India ranks 5 th in terms of cumulative installed renewable energy capacity worldwide. It is third largest wind power market in the world in terms of annual capacity addition after China and USA. P a g e 52

83 Chapter-3: State Renewable Energy sector received a major boost during the last two Vibrant Gujarat summits held in 2009 and During the summit MoUs were signed for solar and wind power generation projects, which are estimated to generate 10,321 MW with capital investments proposed of Rs. 108, 320 crore. During summit 2011, 66 MoUs were signed for generating 7761 MW with proposed investment worth Rs. 66,281 crore. As per the current situation where the state is already a leader in solar and wind power generation, the state should also plan to co-harness the biomass potential in Gujarat by providing necessary policy interventions on the lines of Solar and Wind power policy. State should exploit the potential of Geothermal, Tidal and Wave energy. GEDA was instrumental in introducing various technologies for mass use through design of several innovative programmes, involvement of reputed NGO network and implementation strategies and promotional initiatives. A key link in GEDA s initiatives was the establishment of a network of reputed NGOs for grass root penetration and the development of a manufacturing base. The renewable energy technologies that have already been proven are: Bio, solar and wind resources as additional resources for power generation to supplement the grid. Electrification of remote and far flung areas where conventional energy cannot be made available because of various constraints. Solar and bio resources for process heat applications, heating and cooking. Bio, Solar and wind resources for water pumping. Cleaner non-polluting fuels for transport. Energy efficient practices, and devices, and efficient building designs. Page 53

84 Chapter-3: State The proactive Government of Gujarat has been and is already driving on the sustainable path way. Power generation projects/programmes from wind, solar photovoltaic and biomass have successfully demonstrated that renewables are here to deliver grid-quality power. Experiments in decentralized energy supply models especially for solar cooking, solar water heating systems in the domestic and industrial sectors and decentralized power generation projects are successful case studies that can be replicated from small to large -scale levels. India has an ambition of 20:20:20by 2020where it envisages reducing carbon emissions by 20%, increase energy efficiency by 20% and increase share of renewable energy to 20% by Gujarat has already taken measures to increase the share of renewable energy and reduce carbon emissions. Fig 24: Gujarat Power Sector at a Glance Page 54

85 Chapter-3: State Fig 25: Renewable Energy, end of 2008 (GW) Solar Energy is considered a prime agent in the generation of wealth and a significant factor in economic development. Limited fossil resources and environmental problems associated with them have emphasized the need for new sustainable energy supply options that use renewable energies. Page 55

86 Chapter-3: State Gujarat is blessed with abundant solar potential. By using about 0.1% of the total land, the realization potential is about MW. The Gujarat state has been pioneer in solar capacity installations and contributing about 67% of total installed solar capacity in India. Solar thermal power generation systems also known as Solar Thermal Electricity (STE) generating systems are emerging renewable energy technologies and can be developed as viable option for electricity generation. Gujarat is located in the equatorial sun belt of the earth, thereby receiving abundant radiant energy from the sun. The India Meteorological Department maintains a nationwide network of radiation stations, which measure solar radiation, and also the daily duration of sunshine. As per IMD report, Gujarat is one of the highest annual radiation receiving state in India. P a g e 56

87 Chapter-3: State Fig 26: Map showing the solar energy potential in various states of India Page 57

88 Chapter-3: State Fig 27: Geographical Location for Solar Power Projects in Gujarat Source: GETCO Kutch, Patan, Banaskantha and Surendranagar are the districts in Gujarat where direct solar insolation between 5-6 kwh/m2/day throughout the year. However these geographical advantages alone are not sufficient and thus, Gujarat came out with first of its kind Solar Policy in the country. Gujarat s proactive Solar Policy resulted in Power Purchase Agreements (PPA s) with 82 developers with a total installed capacity of MW. Once commissioned these would generate approximately 1550 million kwh of electricity annually. It would avoid 1.06 million tonnes of coal annually and reduce carbon emission of 1.54 million tons annually. Also the Solar Park at Charanka, Patan district in Gujarat, which is the first of its kind Page 58

89 Chapter-3: State in India, covers an area of 2024 hectares. It is estimated that once commissioned it will generate 500 MW of clean power from Solar. Apart from this there have been 1KW, 10KW, 2350KW, Solar Rooftop projects being established all over the state. Table 32: Solar Energy Development Potential Sr. No. District Total Latitude Longitude Solar 1 Ahmedabad Amreli Anand Banaskantha Bharuch Bhavnagar Dohad Gandhinagar Jamnagar Junagadh Kheda Kutch Mehsana Narmada Navsari Panchmahal Patan Porbandar Rajkot Sabarkantha Surat Surendranagar The dangs Vadodara Valsad Total Source: GEDA P a g e 59

90 Chapter-3: State Carbon Neutral Towns by using Solar Energy Use of Solar Energy for electricity production is possible either through Solar Thermal application or through Solar Photovoltaic (Solar PV) application. It is observed that global highest annual solar radiation is received in Northern Gujarat7, which comprises districts of Kuchchh, Banaskantha, Patan, Surendranagar etc. In comparison with Wind Energy, use of solar energy is more expensive and also requires more land, but it has the advantage that it can be certainly harnessed at all potential sites, whereas wind energy can be harnessed at very specific locations. Use of solar energy by installation of Solar PV is well known and it is being used by many municipalities of the State in street lighting with battery-backup system. It is experienced that Solar PV application is too expensive and has very long pay-back period, so the more advance concept of Solar Thermal can also be explored. Presently the cost of installation of one MW Solar PV is Rs. 15 to 16 Cr., where as the cost of Solar Thermal installation of same capacity is Rs. 12 to 13 Cr., which will gradually come down with advancement of more local manufacturing for harnessing Solar Energy, which is being developed at very fast rate. The Capacity Utilization Factor of Solar PV is 14%, whereas it is 23% in case of Solar Thermal. Municipal Towns of districts of Kuchchh, Banaskantha, Patan, Surendranagar has good potential for exploring Solar Energy Possibilities, also availability of land is not big issue in these districts. The following towns are suggested for making them Carbon Neutral by application of Solar Energy as they receive best Solar irradiation in the State, the another criteria of their selection is these are remote locations and Page 60

91 Chapter-3: State are mostly redeveloped after 2001 earthquake. All these towns are also near to Rann of Kutchh and near to country s international border. Solar Thermal: To compensate the energy requirement of the above five towns, it is estimated to install 3MW capacity Solar Thermal power plant, considering 300 shining days, it can be operated at 23% plant utilization factor, and will produce 51,84,000 units power per year. The cost of this development would be Rs Crores and land required would be 4-5 Ha. Solar PV: In case of installation of Solar PV, the estimation of installation will be 5 MW, considering 300 shining days, Plant Utilization factor will be of 14%. It will provide 50,40,000 units of electricity every year, and will cost about Rs. 75 to 80 Crores. Solar PV will have an advantage that it can be installed in part in each town as per their requirement, where as in case of Solar Thermal it is needed to be installed at single place and electricity need to be supplied through the use of grid. Sr. Table 33: Details of Present Energy Consumption of town proposed to be Carbon Neutral by Solar Energy Name of Town District Type of Electricity No. ULB Consumption (MWhr) 1 Radhanpur Patan C 15,00,000 2 Tharad Banaskantha D 3,50,000 3 Bhabhar Banaskantha D 1,50,000 4 Patdi Surendranagar D 7,50,000 5 Rapar Kutchh D 22,00,000 Total 49,50,000 Source: GEDA P a g e 61

92 Chapter-3: State Wind With 2,175 Mw, the Gujarat state holds per cent of India's total wind power generation capacity. In what can be called as a quantum leap for Gujarat's renewable energy sector, the wind power generation capacities have seen a sharp increase since 2006 from 338 Megawatt (Mw) to Mw in The share of Gujarat in the country's total wind power generation capacities has jumped from mere 6.32 per cent in 2006 to a respectable per cent in While Gujarat has shown a growth of over 545 per cent in wind power capacities in past six years, the country's wind power generation capacities have grown by 165 per cent from 5341 Mw in 2006 to 14,158 Mw by March Page 62

93 Chapter-3: State Table 34: Year wise Wind Power installed capacity in Gujarat Year During the year (MW) Cummulative (MW) March (Nov-11) TOTAL Source: GEDA Winds blowing from Arabian sea and winds in desert area of Kutch are believed to be favoring wind energy sector. The State of Gujarat with its longest coast line in the country and inland windy sites has a potential of over 10,000 MW of Wind Power. Over a period of last more than 25 years more than 65 sites have been monitored for the wind speed and wind power density, and over 50 sites have been found feasible for harnessing of the Wind Power. The data provided by the Indian Wind Energy Association (IWEA) showed that Gujarat has shown impressive growth in the wind power generation capacities. Some of the leading states in wind power generation in India include Tamil Nadu and Maharashtra. Gujarat has been conferred the Best Wind Power Developer State in India award by the World Institute of Sustainable Energy (WISE), Pune for registering maximum increase in installed Wind Energy Power generation during Gujarat Energy Development Agency (GEDA), the nodal agency of the Government of Gujarat for promotion and popularisation of Renewable Energy and Energy Conservation, said that the state has added 616 MW in wind energy generation in the above mentioned period. P a g e 63

94 Chapter-3: State On the wind energy front the state has also embarked upon an ambitious plan to tap the large wind power potential. In 2009, the Government of Gujarat announced an amendment in the Wind Energy Policy to tap the 10,000 MWe of the Wind Power potential along the coastal areas Saurashtra and Kachchh. Today, this policy has undergone major revisions to attract even more investors in the field. The amendments in the Wind Power Policy 2009 include: Power sale tariff increased from Rs to Rs per kwh Renewable energy power purchase obligation increased form the existing 2% to 10%. A mechanism for issuance of Renewable Energy Certificates a market-based tradable instrument to promote renewable energy in the state and facilitate renewable energy obligation of utilities/ Open Access and captive consumers, using conventional fuel, which are not otherwise able to meet the obligation of purchase of power from renewable sources. GETCO (Gujarat Energy Transmission Company) will provide grid connectivity to Wind farms or permit private producers to lay transmission lines. Today, Gujarat has already installed 1900 MWe of Wind Power Projects which is already catering to 7.6 % of the annual energy consumption of the State at an investment of Rs crore. These Projects annually generate 3800 million units of electricity, saving 2.60 MT coal and reducing the carbon emissions levels by 3.80 million tonnes. P a g e 64

95 Chapter-3: State Fig 28: Wind Capacity Addition (in MW) per year Source: GEDA Carbon Neutral Towns by using Wind Energy Gujarat is having the longest shoreline in the country, and thus the State has the highest potential of Wind Energy. Gujarat has the potential installed capacity for power generation based on Wind Energy is 10,000 MW, with already installed 1900 MW, generating 3800 million units of electricity every year. Making Carbon Neutral towns through application of Wind Energy is more possible in coastal region of the state, specifically in Districts of Kutchchh, Jamnagar, Porbandar, Junagadh, Amreli and Bhavnagar. Even towns far from coastal areas can also become Carbon Neutral by installing Windmills at appropriate locations and getting power at their point by using State Power Grid. Surat Municipal Corporation (SMC) has already done a feasibility study for harnessing renewable energy. P a g e 65

96 Chapter-3: State Use of Wind Energy - SMC Case Study Surat is the second largest city of the State, having annual energy consumption of almost 12,00,00,000 KWhr for Municipal Services. SMC is proposing to establish 3 MW capacity windmills, it is the first city in the country proposing use of Wind Energy for Municipal Corporation. Though Surat will have Windmill in Porbandar District of the State, it will use the State power grid to receive electricity at Surat, through paying 10% of total energy produced as wheeling charge as per provisions of Wind Power Policy 2007 Table 35: Details of Wind Energy use proposed by SMC Sr.No. Particulars Details 1 Capacity of Wind mill 1.5 MW 2 No. of wind mills 2 3 Total Capacity 3 MW 4 Capacity Utilization factor (CUF) of Wind mill 24% 5 Expected Power generation per year 64,00,000 KWhr 6 Capital cost/mw Rs Cr 7 Total capital cost Rs O & M cost per year Rs Cr 9 Simple Payback 7 years Source : GEDA There are almost 10 to 15 towns in the coastal district of Gujarat having good potentials of use of Wind Energy. Here five such towns with absolute possibility of windmill installation have been identified and proposed for making them Carbon Neutral Town. All five selected towns are also important as either tourist centre or industrial centre, and thus in priority of sustainable development. P a g e 66

97 Chapter-3: State Small Hydropower Plants (SHP) In India, hydropower projects with a station capacity of up to 25 MW are categorized as small hydropower (SHP). It is obtained by harnessing kinetic energy of running water through a turbine to electricity by coupling the turbine to an electric generator. An estimated MW potential of SHP is available in India. At present, there are about 5718 potential SHP sites with an aggregate capacity of MW in the country, as identified by MNRE, various state governments, and the private sector. In Gujarat, 292 sites have been identified for SHP with a potential of about MW. At present 4 sites for SHP have been developed with installed capacity of MW. Table 36: Identified and Installed Small Hydropower projects on Gujarat, as on 31 January 2011 Potential Projects Installed No. of sites Capacity (MW) No. of sites Capacity (MW) Source: Tidal Gravitational interaction between the moon, the sun, and the earth attributes to the rhythmic generation of tides that show harmonic motion. The moon being closer to the earth exerts 2.17 times greater force on the tides as compared to the sun (Hammons 1997), which is the primary cause of tides. As a result, the tide closely follows the moon during its rotation around the earth, bulging on the axis pointing directly to the moon. Page 67

98 Chapter-3: State Gujarat has approved a 50MW tidal power project to be constructed in the Gulf of Kutch. The 50 MW tidal power project, proposed to come up in Gulf of Kutch, seems to have run into an unexpected barrier. The project s developer, Singapore-based Atlantis Resources Corporation, wants the state government to hold stake in the ambitious project, the first of its kind in the country. The government, however, wants to restrict its role to that of a facilitator. The State Government of Gujarat formed a Special Purpose Vehicles (SPVs) with public private partnership and sponsored a study for large scale exploitation of tidal energy across the coastline of Gujarat. This study is based on one of the advanced technologies developed so for. In this technology kinetic energy of tidal currents has been proposed to be harnessed under the water and along the flow of water and without using the conventional methods like water wheel or other types of turbines. Site Table 37: Tidal Energy Potential in Gujarat State Maximum tidal range (m) Average tidal range (m) Gulf of Cambay Gulf of Kutch Economic Power potential (MW) Source: Even with its potential for providing predictable and sustainable electricity generation with no visual impact, tidal power still accounts for only a fraction of a percent of the world s total electricity generation. That is slowly changing though, with numerous tidal power plants being constructed or planned for Page 68

99 Chapter-3: State coastlines around the world. India is the latest country to wade into the tidal power waters with the announcement of its first commercial scale tidal current power plant to be constructed in the Indian State of Gujarat. 3.9 Energy Demands in Gujarat The energy sector in Gujarat is unique in terms of its organization and complexity, which results from the fact that Gujarat is a rapidly growing economy with huge disparity in incomes and lifestyles. The energy sector in Gujarat is complex due to a wide variation in lifestyle and use of different forms of energy by various sections of society. Major population of Gujarat still live in rural areas and depend largely on non-commercial sources of energy, such as fuel wood, biomass, and agricultural residue for their energy requirements for lighting, cooking, and heating. Some salient features of the energy demand and supply sectors in Gujarat are given below. Energy demand is mainly classified into following four categories. 1. Agriculture 2. Industry 3. Transport 4. Domestic Table 38: Category wise Energy demand as on 31 March 2011 Category Energy Demand (in %) Agriculture 29 Industry 35 Transport 16 Domestic 20 Source: TERI (2011) P a g e 69

100 Chapter-3: State Fig 29: Category wise Energy Demand (in %) as on 31 March 2011 Energy Demand (in %) Agriculture Industry Transport Domestic Source: TERI (2011) In Gujarat, agriculture and industry sectors take up a major share of the energy demand which is about 64% of the total energy demand. Innovation and technological improvement in these two sectors may help us in considerably reducing the pressure on environment Energy demand in Agriculture Agriculture has always played a key role in the Indian economy. It provides livelihood and employment to over 58.4% of the population and contributes nearly one-fifth of total gross domestic product (GDP) (ICAR 2011). It focuses on the importance of agriculture, with a primary focus on energy uses in the sector. Energy use in agriculture at farm level can be categorized as either direct or indirect. Direct energy use in agriculture is diesel and electricity to operate mobile and stationary equipment to prepare fields, plant and harvest crops, and transport inputs and outputs to and from markets. Indirect energy is consumed off the farm for the manufacture and production of fertilizers and pesticides. Page 70

101 Chapter-3: State In the agriculture sector, operating tractors and pumping water are activities that consume most energy. The use of tractors has risen significantly over the years. Mainly electric and diesel pump sets are used for irrigation. In all states, the governments have pursued programs for rural electrification and electrification of pump sets. This was acceptable to farmers mainly because the price of electricity was kept very low. With the move towards cost recovery through rationalization of power tariffs, the growth in the use of electricity in irrigation may be arrested. However, electric pumps are likely to retain a cost advantage over diesel pumps. Solar pumps, because of their high cost, are likely to play only a marginal role Energy demand in Industry The industry sector in Gujarat is a major consumer of energy, accounting for big proportion of the total commercial energy consumption (as fuel and feedstock) during 2008/09, with coal and lignite meeting 67% of the energy requirements of the industrial sector. Some of the industries in Gujarat, like cement and fertilizer industries are operating with their specific energy consumption being comparable to one of the best in the world. However, there exists a bandwidth of performance within each sub-sector, thus contributing to an energy-saving potential of about 10% 25%. Industrial units consume coal, lignite, fuel oil, LPG and natural gas. Not all fuels are suitable in all types of industries. Relative prices and environmental norms primarily Page 71

102 Chapter-3: State drive the choice of fuels. The technology changes rapidly in this sector so that stricter environmental norms can be satisfied using the same fuels Energy demand in Transport High economic growth has led to an increasing significance of the transport sector in Gujarat. Moreover, it is one of the major consumers of energy, second only to the industry sector. In view of these concerns, it indicates the impact of growth of transport on the energy consumption scenario in the Gujarat. Transport sector includes road transport, railways transport, aviation, port and shipping. The growth in the transport sector has made tremendous contribution to Gujarat s economic development. Accordingly, there have been focused policies and investments in the sector. Transport and energy are interdependent. The transport sector is the second largest consumer of energy after industry. Rising travel demand with higher economic growth and increasing dependence on road-based transport, both for passenger and freight transport, have led to greater energy demand and have increased its dependence on energy from fossil fuels. There is a wide choice of fuels available in this sector. Vehicles can use gasoline, diesel, fuel oil (in ships), CNG, LPG, Electricity from the grid or conventional batteries or fuel cells. Enforcement of stricter environmental norms, availability of cleaner fuels and compatibility of technology in new motor vehicles have driven fuel choice in this area. City buses are changing over to CNG. The introduction of ultra-low sulphur diesel is also being discussed. It is clear that Page 72

103 Chapter-3: State similar changes will be brought about in other major cities, although the time frame for them remains uncertain. As on 31 March 2011, the total number of registered motor vehicles is which include heavy motor vehicle, light motor vehicle, buses, taxis, cars, jeeps, tractors, trailers and two wheelers (MoRTH-2011). Table 39: Total Number of Registered Vehicles Year (As on) Total Number Registered vehicles 31 March March March March March Source: MoRTH (2011) Page 73

104 Chapter-3: State Retail CNG Sales Due to Government initiative to promote switching over of the vehicles to cleaner fuel CNG, the retail network for this started being established in Gujarat since The following table shows the percentage change in sale of petro and CNG for the years to Though there was a dip in retail sales of petrol in , it has stabilized in next two years. Table 40: Analysis of consumption of Petrol and CNG Year Petrol % CNG (in KL Eqv) % increase (in KL) increase % % % % % % Source: MoPNG, 2011 Above data shows that the percentage increases in the consumption of cleaner fuel i.e. CNG is much higher as compared to petrol which leads to reduced environmental impact Domestic Energy Demand The household domestic sector is one of the largest users of energy in Gujarat, accounting for a major component of the final energy consumption (excluding energy used for transport), reflecting the importance of the domestic sector in the total energy scenario of Gujarat State. According to the 66th Round of Consumer Expenditure Survey in 2009/10, 76% of the households in rural areas still use firewood as the primary cooking fuel and 33.54% of rural households used Page 74

105 Chapter-3: State kerosene as a primary lighting fuel (NSSO 2010). Access to modern forms of energy is essential for the provision of clean water, sanitation, and health care. It provides great benefits to development through the provision of reliable and efficient lighting, heating, cooking, mechanical power, transport, and telecommunication services. In rural areas, dependency on firewood as the primary cooking fuel has increased over the decade. However, the percentage of households depending on other traditional cooking fuels such as coke, coal, and dung cakes has decreased marginally over the decade. In urban areas, a transition has been observed while comparing percentage households using LPG as the primary cooking fuel. In rural areas, the overall percentage of households using firewood and LPG as the primary fuel for cooking increased over the decade. However, a slight fluctuation has been observed over the years. Following table provides figures for average per household per month energy consumption for cooking and lighting across Gujarat state. Page 75

106 Chapter-3: State Table 41: Per household per month consumption of fuels for cooking and lighting in Gujarat ( ) Fuel/energy source Rural Urban Coke and Coal (kg) Firewood (kg) Electricity (kwh) Dung cake (kg) PDS kerosene (liter) Other kerosene (liter) LPG (kg) Source: MoSPI (2010) Fig 30: Per household per month consumption of fuels for cooking and lighting in Gujarat ( ) Rural Urban 20 0 Coke and Coal (kg) Firewood (kg) Electricity (kwh) Dung cake (kg) PDS kerosene (liter) Other kerosene (liter) LPG (kg) In rural area of Gujarat, coke, coal and firewood are the major fuel used for cooking while urban area of Gujarat is more dependent on electricity and LPG. Page 76

107 Chapter-3: State Table 42: Percentage distribution of households by primary energy source used for cooking in Gujarat ( ) Fuel/energy source Rural (%) Urban (%) Coke and Coal Firewood and chips LPG Gobar Gas Dung cake Charcoal - - Kerosene Electricity Other No cooking arrangement Source: MoSPI (2010) In Gujarat, about 82.65% of rural households and 15.37% of urban households rely on firewood and chips as primary cooking fuel despite the fact that improving the access of the poor to modern energy has been on the agenda of the Government of India since independence. The percentage distribution of rural households using LPG as primary cooking fuel is increasing slowly. Electrification has received adequate attention within the policy arena in the decade; subsequently, major proportion of rural households today uses electricity as the primary energy source for lighting. P a g e 77

108 Chapter-3: State Table 43: Percentage distribution of households by primary energy source for Lighting in Gujarat ( ) Fuel/energy source Rural (%) Urban (%) Kerosene Other oil Gas Candle Electricity No lighting arrangement Others Source: MoSPI (2010) In Gujarat, about 91.2% of rural households and 95.6% of urban households rely on Electricity for lighting. Table 44: Installation of off-grid/decentralized renewable energy systems/devices by Gujarat state during Biogas plant (number) Solar lighting system (number) Solar cooker (number) Source: MoSPI (2011) In Gujarat, as far as renewable energy resources are concerned, about small biogas plant, about 9231 solar home lighting system and about solar cooker have been installed during P a g e 78

109 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT CHAPTER-4 IMPACTS

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111 Chapter-4: Impacts Chapter-4 Impacts 4.1 Lignite and Coal The lignite used for power generation has high sulphur content. The plant at Mangrol, Surat uses the fluidised bed technology to tackle this problem. The older plant at Panandhro does not have any safeguard against sulphur. Moreover, mining of lignite near Naryan Sarovar Sanctuary causes damaging effects on local flora and fauna and, more importantly, to the local hydrological regimes. Wastewater from power plants contains chemicals, oils and minerals which can also contaminate water streams. Coal mining has the potential to harm air, water and land quality if it is not done with proper care. Acidic water may drain from abandoned mines underground, and the burning of coal causes the emission of harmful materials including carbon dioxide, sulfur dioxide, nitrogen oxides, hydrogen chlorides, hydrogen fluorides, particulate matter and mercury which may have adverse health effects. Clean coal technology is being developed to remove harmful materials before they can affect the environment, and to make it more energy-efficient so less coal is burned. The coal industry also restores mined land to or prepares it for more productive uses once surface mining is done. P a g e 79

112 Chapter-4: Impacts 4.2 Wood Apart from Coal and Lignite, the rural population is dependent mainly on wood as a prime source of energy for their livelihood. Usage of wood can have an adverse effect on the environment. Burning of wood causes emission of harmful gases such as carbon dioxide, sulfur dioxide, carbon monoxide also leaves behind ash which adds as a source to environment degradation. It also leads to cutting down of large chunks of trees which in turn causes deforestation and adds to global warming due to increase in carbon dioxide concentration. Most of the fuelwood used in rural households is collected from not one, but several sources, such as common lands, reserved/protected areas (government controlled forest lands), panchayat land, privately owned land, and revenue wastelands. Mostly women and children transport wood and other biomass fuels as head loads. The wood fuel and other biomass are burnt in inefficient traditional mud stoves (~20% efficiency) in poorly ventilated kitchens. 4.3 Oil and Natural Gas Great strides have been made to ensure that oil and gas producers make as little impact as possible on the natural environments in which they operate. These include drilling multiple wells from a single location to minimize damages to the surface, using environmentally sound chemicals to stimulate well production and restoring the surface as nearly as possible to pre-drilling conditions. Most oil spills occur primarily during transportation, mostly involving the P a g e 80

113 Chapter-4: Impacts tankers that are used to move oil from where it is produced to where consumers need it. But oil spills from transportation have declined significantly during the past few years, and the growing use of double-hulled tankers provides extra protection. Another source of oil spills during transportation is pipelines. Unfortunately, a major reason for spills from pipelines in developing countries is civil unrest. Weather, such as hurricanes, is another factor in pipeline-related spills. Urban runoff and natural seeps are large sources of oil pollution. Urban runoff comes from rain washing away oil drips from cars or machinery and people pouring used oil into the gutter and using other improper disposal methods. Natural seepage is actually the largest single source of petroleum inputs in marine environments totaling 47%. When burned, petroleum products emit carbon dioxide, carbon monoxide and other air toxins, all of which have a negative effect on the environment. 4.4 Oil Refineries Refineries produce gaseous emissions as well as solid and liquid wastes. These pollutants are hazardous unless properly treated before discharge. The Koyali refinery is emitting 720 kg/hr of SO2. Solid and semi-solid wastes from refineries are also hazardous in nature as these contain oil and other harmful chemicals. Oily sludge is formed in the crude and product storage tanks and sometimes affect the quality of adjoining groundwater. The new refinery at Jamnagar has similar issues, but due to better sulphur recovery systems in place, they causes lesser degree of pollution. P a g e 81

114 Chapter-4: Impacts 4.5 Vehicular Emissions Use of fossil fuels (Petroleum products) plays an important role in vehicular emissions, particularly carbon monoxide (CO), which leads to a reduction of the oxygen carrying capacity of the blood. Scooters, motorcycles and auto-rickshaws, which mostly have twostroke engines, currently contribute nearly 80 per cent of the total CO emissions in Ahmedabad. Emissions of total suspended particulates and oxides of sulphur are also higher from diesel vehicles as compared with gasoline vehicles. Drivers, passengers, people living along the roads and walking along the sides, and traffic police, all complain of giddiness, headache, nausea, and burning of the eyes, and general lassitude. The problems are severe in old city areas with large commercial centers and slow moving, high volume traffic. P a g e 82

115 Chapter-4: Impacts 4.6 Power generation and distribution As a result of power generation from coal based power generation plants, there is increased emission of CO 2 contributing for increased concentration of green house gases in the atmosphere and rising the global temperature, resulting in the increased flooding, migration north and south of tropical diseases, more drought and more intense storms, change in cropping patterns and productivity. Geothermal power plants have relatively little environmental impact they burn no fuel to create electricity. These plants do create small amounts of carbon dioxide and sulfur compounds, but geothermal emissions are far smaller than those created by fossil fuel power plants. The wastes generated by thermal power plants are typical of combustion processes. The exhaust gases from burning coal and oil contain particulates, SOx, NOx, CO2, CO and volatile organic compounds. The sulphur concentration in the ambient air in the large coal fired plants in the state have at times exceeded the prescribed limits. Solid particles in the fuel gas are trapped by Electro-Static Precipitators (ESPs). Often the ESPs do not perform to the required standards due to poor maintenance. The result is precipitation of ash in the surrounding areas. Such problems have been reported frequently in Ahmedabad and Gandhinagar. By far the most serious environmental problem is the disposal of flyash. In the first instance, the ash is dumped in ash-ponds as slurry. When the pond fills up, the ash is transported in open trucks to P a g e 83

116 Chapter-4: Impacts landfill sites. This creates air pollution around the ponds, along the transport routes and near the landfills. Surface water is contaminated by ash-pond overflows. The combustion of fossil fuels by thermal power plants produces exhaust gases and ash residues. The SO2 emissions are high in KLTPS and Wanakbori, while it is within the standards in the other coal-based power plants in populated areas such as Gandhinagar, Sikka and Ukai. The principal health risk to people living around power plants is from exposure to SO2, CO, NOx, hydrocarbons, polycyclic organic matter, trace metals and radionuclide. Workers are subject to respiratory diseases caused by coal dust, other emissions, impaired hearing due to noise, etc. The use of electricity itself poses very little environmental concern. However, in certain cases, its unchecked use may lead to severe environmental damage, like the over-exploitation of groundwater from the aquifers in North Gujarat for irrigation purposes. 4.7 Hydropower While hydropower does not cause water or air pollution, it does have an environmental impact: Hydroelectric power plants may harm fish populations, change water temperature and flow (disturbing plants and animals) and force the relocation of people and animals who live near the dam site. Some fish, like salmon, may be prevented from swimming upstream to spawn. Technologies like fish ladders help salmon go up over dams and enter upstream spawning areas, but the presence of hydroelectric dams changes their migration patterns and hurts fish populations. Hydropower plants can also cause low dissolved oxygen levels in the water, which is harmful to river habitats. Reservoirs may also lead to the creation of methane, a harmful greenhouse gas. P a g e 84

117 Chapter-4: Impacts 4.8 Solar Solar energy produces no air or water pollution or greenhouse gases. However, it has some indirect impacts on the environment. For example, the manufacturing of photovoltaic cells (PV) produces some toxic materials and chemicals. Ecosystems can also be affected by solar systems. Water from underground wells may be required to clean concentrators and receivers, and to cool the generator, which may harm the ecosystem in dry climates. 4.9 Nuclear Energy (Uranium) Nuclear power plants produce no air pollution or carbon dioxide, but they do produce byproducts like nuclear waste and spent fuels. Most nuclear waste is low level (for example, disposable items that have come into contact with small amounts of radioactive dust), and special regulations are in place to prevent them from harming the environment. But some spent fuel is highly radioactive and must be stored in specially designed facilities. In addition to the fuel waste, much of the equipment in the nuclear power plants becomes contaminated with radiation and will become radioactive waste after the plant is closed. These wastes will remain radioactive for many thousands of years, which may not allow re-use of the contaminated land. Nuclear power plants use large quantities of water for steam production and for cooling, affecting fish and other aquatic life. Likewise, heavy metals and salts can build up in the water used in the nuclear power plant systems. When water is discharged from the power plant, these pollutants can negatively affect water quality and aquatic life. P a g e 85

118 Chapter-4: Impacts 4.10 Wind Wind is a clean energy source. It produces no air or water pollution because no fuel is burned to generate electricity. The most serious environmental impact from wind energy may be its effect on bird and bat mortality. Wind turbine design has changed dramatically in the last couple of decades to reduce this impact. Turbine blades are now solid, so there are no lattice structures that entice birds to perch. Also, the blades surface area is much larger, so they don t have to spin as fast to generate power. Slower-moving blades mean fewer bird collisions Biofuels: Biomass, Bio-Ethanol and Biodiesel Biofuels look like an ideal energy solution. Since plants absorb carbon dioxide as they grow, crops could counteract the carbon dioxide released by cars. They are also renewable, and can be planted to replenish supplies. Unfortunately, it s not that easy. It takes a tremendous amount of energy to grow crops, make fertilizers and pesticides and process plants into fuel. There is ongoing debate if ethanol from corn provides more energy than it uses for growing and processing the plants. Also, fossil fuels provide much of the energy in biofuels production, so biofuels may not replace as much oil as they use. Biomass creates harmful emissions like carbon dioxide and sulfur when it is burned, but causes less pollution than fossil fuels. Even burning wood in a fireplace or stove can create pollutants like carbon monoxide. Burning municipal solid waste, or garbage that would otherwise go into a landfill, can also cause potentially P a g e 86

119 Chapter-4: Impacts dangerous emissions. Combustion of these materials must be carefully controlled. Disposing of the resulting ash can also pose a problem, as it may contain harmful metals like lead and cadmium. Ethanol is often added to gasoline, and while these mixtures burn cleaner than pure gasoline, they also have higher evaporative emissions from dispensing equipment and fuel tanks. These emissions contribute to ozone problems and smog. Burning ethanol also creates carbon dioxide. Biodiesel creates less sulfur oxides, particulate matter, carbon monoxide and hydrocarbons when burned that traditional petroleum diesel. But biodiesel creates more nitrogen oxide than petroleum diesel. Initiative and action taken for such environmental issues has been discussed in detail under response section Rural Energy requirement and Indoor Air Pollution One of the important features of rural energy is the dependence on locally available biomass resources. Since they are collected at zero cash cost, data collection on consumption is primarily recall-based. Similarly, local-level supply and demand is difficult to capture. Hence, there is an inherent problem of data availability and authenticity. Micro-level experiences are at times contrary to the macro assessments provided. The claims, therefore, made of successful energy transitions (both in terms of fuel and technology) or popularly known as fuel switch, happening in the rural areas, is perhaps an over statement. The analysis has been presented with respect to the macro assessments and the micro-level evidence (surveys, case studies, etc.) bringing out the weaknesses in types of data available and assessments made vis-à-vis rural energy transitions. Burning of biofuels like wood, crop residue and dung cakes, mostly in inefficient cook-stoves, constitute the major domestic health P a g e 87

120 Chapter-4: Impacts hazard, particularly amongst women in the lower income households. Although there are several hundred chemical agents that have been identified in biofuel smoke, many of them carcinogens, the four most emphasised are particulates, carbon monoxide, polycyclic organic matter and formaldehyde. The diseases commonly associated with smoke inhalation are acute respiratory infections in children, chronic obstructive pulmonary disease, adverse pregnancy outcomes, etc. Inefficient use of biomass in traditional devices has a serious environmental impact at the local and global levels. Deforestation and fast reducing resource base along with inability of the poor to shift to commercial fuels like kerosene on account of low purchasing power make provision of energy to rural areas for achieving ecological sustainability crucial. In this context, the attractiveness of renewable energy technologies such as wind, solar and biomass lies primarily in abundance and in their green house gas mitigation impact. Thoughtful interventions in the rural energy sector could bring about a host of social and economic benefits, namely. Healthier lives, less strain during cooking, usage of lesser quantities of fuelwood leading to reduced time/resources spent procuring it, more time for economic activity due to lighting, and easy availability of ground water. In particular, decentralized energy production and distribution provide rural development opportunities and encourage local institutions to manage their own energy needs. However, renewable energy interventions in rural areas must take cognizance of key factors such as the high cost of technologies, high subsidies on commercial fuels, inadequate emphasis on R&D for technologies and limited local capabilities for repair and maintenance. Empirical studies on indoor air pollution have been conducted in Gujarat from 1981 onwards by NIOH and others. These studies have P a g e 88

121 Chapter-4: Impacts found very high levels of pollutants in indoor air at the time of cooking. Besides bringing out the differences between different fuels such as fuel wood, dung and crop waste, these studies have also estimated the improvements brought about by 'smokeless Chulhas'. Fuel Table 45: Fuel Usage for Rural Gujarat at House Hold H Level NFHS 3 Wood 68.7 Coal/Coke/ Lignite/ Charcoal 1.2 Dung Cakes 1.9 Crop Residue 5.5 Electricity 0.4 Kerosene 3.8 LPG 16.6 Biogas 1.5 Others 0.4 Percentage Usage Source: NFHS The household sector is the second largest consumer of energy in India after the industrial sector. National Family Health Survey-3 (NFHS-3) found that 71 per cent of India's households use solid fuels for cooking whereas this figure is 91 % for rural households. According to National Family Health Survey-3, more than 60 per cent of Indian households depend on traditional sources of energy like fuel-wood, dung and crop residue for meeting their cooking and heating needs. Burning of traditional fuels introduces large quantities of CO 2 in the atmosphere, when the combustion is complete, but if there is an incomplete combustion followed by oxidation, then CO is produced in addition to hydrocarbons. Since people on average spend two third of their daily time indoor, indoor air quality has profound effect on human health, sick building syndrome is a growing concern worldwide. Smoke from solid cooking fuels such as wood, charcoal, and animal dung leads to a range of serious health problems including respiratory infections, low birth weight, and eye problems. Cooking indoors can increase family exposure to smoke. Prevalence of TB can be associated to type of house and main cooking fuel. P a g e 89

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123 STATE OF ENVIRONMENT REPORT (ENERGY SECTOR) GUJARAT CHAPTER-5 RESPONSES

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125 Chapter-5: Responses Chapter-5 Responses The energy sector in the Gujarat is going through major institutional changes. Administered energy prices are being phased out and cost-reflective prices are being introduced. The elements of subsidy and cross-subsidy are being reduced. The shift in relative prices of energy products will affect future growth rates of consumption. Gujarat state has initiated major policy reforms in energy sector. 5.1 Promotion of Renewable Energy and Major Programs Gujarat is a pioneer in the field of renewable sources of energy. It was the first state to establish a state nodal agency, Gujarat Energy Development Agency (GEDA) for effective and systematic propagation of renewable energy in the state. Some of the major programs undertaken by GEDA to ensure the following: a) Balance between the demand and supply of energy b) Reduce the environmental and health related problems and, c) Provision of cleaner energy sources P a g e 91

126 Chapter-5: Responses 5.2 Important initiatives for Biomass Energy Following important initiatives have been taken for biomass energy: Energy Plantation on wastelands to meet rural fuel wood needs. Gasification of wood/wood waste and agrowaste to supply power for irrigation and electrical needs. Promotion of Institutional and Community Biogas Plants. Exploitation of Industrial and Municipal organic wastes. Encouraging Private Power Generation Projects and Co-generation in sugar mills. 5.3 Important initiatives for Wind Energy by GEDA: Following important initiatives have been taken for wind energy: Mapping the wind potential of Gujarat, and co-relating it with hydro-maps and cropping patterns for irrigation. Water Pumping Windmills design, development, research and popularization. Setting up stand alone Wind Turbine Generators. Setting up Wind farms for power generation. Encouraging privatization of Wind Power Generation in the state. 5.4 Important initiatives for Solar Energy Under the solar thermal extension program, solar cookers, solar dryers, solar stills, solar water heaters and solar timber-seasoning kilns have been promoted on a large scale. In Gujarat, solar water heating systems are in use in homes, hospitals, dairies, industries, circuit-houses, guesthouses, hotels, hostels, canteens, temples and education and P a g e 92

127 Chapter-5: Responses research institutions. Gujarat government has also taken following initiatives to fill the gap between energy demand and supply: Promotion of Solar Hot Water Systems to meet domestic and Industrial hot water requirements Promotion of Solar Hot Air Systems Distilled desalinated water for industrial, transport and drinking water needs of coastal areas through solar stills. Solar Photovoltaic Systems to meet lighting, irrigation, drinking water supply, education and entertainment. Encouraging Private Solar Photovoltaic Projects, Installed the solar power plant of about 500 MW capacity Encouraging solar roof top projects in Government offices. GPCB- Gandhinagar is an example of such initiative. Encouraging canal top solar power plant in villages. To fill the gap between energy demand and supply, following important solar projects have been undertaken by the Government of Gujarat and successfully completed: 1. In the year 2009, Gandhinagar was selected to promote the use of solar energy and declared as Solar City with a budgetary provision of Rs.5 crores, made by the State Government during the year In the year 2010, GEDA under the MNRE SPV demonstration program ( ) has installed 302 nos. of solar generator (450 Wp SPV system) for the milk collection centers in remote areas for powering the milk-tester, computer, printer, weighing machine, light & fan. P a g e 93

128 Chapter-5: Responses 5.5 Important initiatives for Energy Conservation GEDA is now the BEE designate to implement Energy to efficient programs in the state. Energy Audit in the domestic, commercial and industrial sectors to reduce wasteful use of energy. Popularization of energy efficient devices viz. improved stoves. Introduced the energy labeling program (comparative star-based labeling) for appliances such as fluorescent tube lights, air conditioners, refrigerator and washing machine etc. Hydrocarbon fuel conservation in transportation and agricultural sector. Gujarat Energy Development Agency (GEDA) has implemented LED village project at Village Amrapura, Taluka Mansa District: Gandhinagar as the first LED Village Demonstration Project in Gujarat in the year Important initiatives for Rural Energy Rural energy surveys to estimate energy needs; energy supply and demand and available local energy resources. Integrated Rural Energy Programs in villages and homogenous clusters in blocks/talukas, the emphasis on the development of decentralized total energy packages and maximum utilization of local resources. Page 94

129 Chapter-5: Responses 5.7 Important initiatives for Village Electrification: Jyotigram Yojna: It is State Government sponsored scheme for village electrification. Initially, the scheme started with peoples participation. Afterwards, Government has decided to give 100 % grant. The unique features of the scheme are as follows: An innovative scheme to make available 24 hours three phase quality power supply to Rural areas Feeders having Specially Design Transformers to supply power to farmers residing in scattered farm houses All the existing electrified Villages (18000) and Petaparas (9700) are covered under JGY within 30 months Average expenditure per Village is Rs.6.72 Lacs Total expenditure of the scheme is Rs Crores, Out of which, Rs Crores is grant from GOG Reduction in Distribution Losses by 3.74% and T/C failure by 1.17% during the year compared to year The advantages of Jyotigram yojna are as following: Reduction in Distribution Loss and Distribution Transformer Failure Rate. Promotion of industrial and commercial activities in villages leading to local employment generation; Buoyant revenue through prevention of power theft. Improved standards of living in rural areas on account of access to a wide variety of goods and instruments; Enhanced exposure of rural population to different parts of the world through electronic media, leading to updating of knowledge avenues; Impact on quality of education; Improved of health services and sanitation facilities; Page 95

130 Chapter-5: Responses Reduction in migration from rural areas to urban areas. Regulated but improved quality power supply to agriculture enabled efficient and optimum use of water, which in turn contributes to conservation of ground water resources. Speedy restoration of power supply due to parallel network in case of disruption. Potential for replication in other States. 5.8 Important initiatives for Bio- Energy During , by the initiative taken by GEDA under MNRE program, Sayaji Industries, Kathwada is dealing with Maize Starch products. As a result of maize corn milling, grinding and processing, about 14000nm3 biogas is generated. Earlier biogas was being used in the coal fired boilers. Under the MNRE program of Energy Recovery from Industrial & commercial wastes, the 1MW biogas based Power project was taken up. The project commissioned in April'2009, and has been running successfully at about 80% PLF since its commissioning. During , by the initiative taken by GEDA under MNRE program, 12000nm3 /day capacity Biomethanation plant is Completed & commissioned in Dec'2009 under MNRE Waste To Energy (WTE) scheme. Plant has been running successfully since its commissioning date. Produced Biogas gas is used in 100% Biogas engines in CPP. During , by the initiative taken by GEDA under MNRE program M/s Sayaji Industries, Kathwada, Ahmedabad is in the business of Maize Starch based various Products. Having its Maize grinding capacity increased from 325MT/day to 550MT/day, the effluent also increased with higher COD value of about to 20000KGs COD, one 10000nm3/day capacity biomethanation plant P a g e 96

131 Chapter-5: Responses has been installed & commissioned December-2011.The same is working with more than 80% efficiency. The produced biogas is used in its CPP. During , by the initiative taken by GEDA under MNRE program, 1000 com/day biogas bottling plant was installed by P.N. Aranyak Foundation, Valsad, plant has been running successfully since its date of commissioning. 5.9 Important initiatives for Decentralized energy system Renewable energy technologies are ideally suited to distributed applications, and they have substantial potential to provide a reliable and secure energy supply as an alternative to grid extension or as a supplement to grid-provided power. Because of the remoteness, renewable energy can offer an economically viable means of providing connections to un-electrified population. Some of the renewable energy technologies that are used in villages and rural areas as decentralized systems are: Family-size biogas plants. Solar street lighting systems. Solar lanterns and solar home lighting systems. Solar water heating systems Solar cookers. Standalone solar/ biomass based power generators. Akshay Urja / Aditya Solar Shops Wind pumps. Micro-Hydal plants. P a g e 97

132 Chapter-5: Responses Many of these systems have been found useful in urban and semi urban areas also to conserve the use of electricity and other fossil fuels. Solar water heating systems have helped in demand side management of electricity in various cities and towns during peak hours. Standalone roof top SPV systems are getting popular for day time diesel abatement in areas where power cuts are very high Important initiatives for Power sector reforms The government has opened up the energy sector to private investment. In electricity, private participation was first sought in power generation. With the advent of Electricity Act, (2003), involvement of the private sector including MNC in the distribution and explorations had increased in oil sector, Some important initiatives in power sector are as following: Increase in generation capacity State captive power policy Establishment of Gujarat Electricity Regulatory Commission (GERC) to decide the tariff of electricity Establishment of transmission and distribution companies Establishment of India s first Ultra Mega Power Project (UMPP) of 4000MW installed capacity at Mundra by using energy efficient and environmental friendly technology. Development of Smart Grid Introduction of Clean Development Mechanism (CDM) by GUVNL for its projects as CDM projects under Kyoto protocol. Installation of 11,000 energy efficient pumping sets to reduce the load by 60 MW and also setting up of Environmental cells by GUVNL for environmental preservation. P a g e 98