Harry Dhaul, Founder and Director General of Independent Power Producers Association of India (IPPAI), speaks about the challenges India's power industry faces and how successful alternative energy sources can be in our country
Q: What is IPPAI's key value add to the power industry and the consumer?
A: IPPAI is the first and unique entity which provides a neutral platform for discussion amongst the various stakeholders, both in Government and the private sector. It has been doing this through various seminars, conferences, workshops, as well as position papers on various issues across the industry spectrum of supply and demand side of the power sector. The power sector in India is going through a transition. There are numerous issues in the sector -- both at the local state and the national level. There are issues related to fuel, transmission, losses, billing, and recovery; besides the issue of the richer consumers subsidizing the poorer consumers to give a more equal footing. The consumer will find it difficult to get a correct assessment of the power situation except in the form of the tariff that he is charged. At this point of time there is a depression in the prices of electricity across the country. Ultimately the consumer will benefit.
Q: Independent and 24-hour power back up seems to be the selling point of many real estate and housing ventures these days. How does that affect the masses that don't have it?
A: Independent 24-hour power is extremely expensive as it is normally based on diesel. This is unaffordable and therefore is not for the masses. Alternative energy in the form of wind and solar cannot replace baseload power requirements since there is no sun at night and wind is erratic. At best, with the state of technology as it is today, support power can be provided to baseload operations and that is the reason why it is not popular.
Q: Can alternative energy sources be put to practical use in India? If so, why haven't they become widely popular?
A: Electricity from alternative energy sources such as wind and solar power continue to be more expensive than grid supplied power. Moreover, they are infirm i.e. they vary depending on the duration, strength/intensity of wind and daily sunshine, cloud cover in the case of solar power. Thermal power is still required to back up such power.
Power from bio mass sources or from storage devices, supplementing solar or wind power could be considered. However, bio mass procurement availability on a continuous and affordable basis is limited and there is no clear cut policy framework to incentivize energy storage in the country. Biomass etc for power will be cheaper and contributory in rural and remote ares only but not for Industries or urban areas.
Further, the market for renewable energy is languishing with few utilities willing to buy RECs or procure substantial amounts of renewable energy through high feed-in tariffs.
Q: According to you, what are the key challenges faced by the power industry at the moment?
A: According to us, the key challenge that lies before the power industry is true empowerment of the consumer through competition and subsidy for the weaker consumer wherever necessary.
It is extremely difficult to disconnect politics from energy and in this context, since electricity is a concurrent subject under the constitution, the states have the ability to manipulate electricity issues and use electricity tariffs and supply as a political tool. Till the separation of politics from energy takes place, this will not happen.
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