114
3 The Challenges of Energy Supply
vii. With vast majority of poor people, the price of electricity is a sensitive issue in
India, compelling the government to keep in check the costs of power generation, transmission, and distribution. The average cost of power generation is
expected to increase from around $65 per MW-hour (MWh) to over $70/MWh
in 2040 (India Energy Outlook 2015).
viii. Access to clean cooking fuels in rural India—the substitution of dirty fuels such
as firewood, dung, kerosene, coke, and coal to LPG, PNG, and electricity has
been a nightmare. LPG may be a preferred fuel by rural consumer, but the cost
of a bottle of 14.2 kilogram is prohibitive, supply is erratic, and there is hardly
any home delivery network. With around 50% of LPG being imported, there
is no assured supply to rural areas. Stacking of fuel being a norm in villages
especially remote ones, people will continue to use multiple fuels including
biomass in the coming decades. Besides electrification, one of the most critical
aspect of energy is the fuel for cooking. In India, household electrification and
provision of clean cooking fuel have been twin challenges, with the former
having received priority over the latter. This has led to poor redressal of this
issue, resulting in near 40% of our population without access to clean cooking
fuel. The situation in rural areas, with a significant section of the populace
below poverty line, is grim, and is changing at snail’s pace from firewood,
dung cake, kerosene, and coal to LPG and PNG.
ix. The complex web of rural electrification cannot be resolved easily. Government
efforts can create electricity infrastructure and provide connectivity to each
permanent household in a time-bound effort. But there will still large number
of migrant families (mainly laborer) who stay in makeshift houses with their
families for a substantial part in a year. Besides infrastructure and connectivity,
adequate supply of desired quality of power at affordable rates, providing clean
and sustainable power in an efficient manner for long term is a challenge that
has no easy answers.
x. A few issues that have kept the electricity development agenda on the backfoot
include:
a. Savings and willingness to pay: This is a big setback as a large proportion
of poor population residing in villages and hamlets either have very little
extra money to afford commercial electricity or they are not willing to pay.
The contrarian view, however, is that the rural consumers value electricity
as much as anyone else and are willing to pay reasonable tariffs. This view
may be acceptable for those villages which are close to urban areas and
where income levels are high. For poverty-stricken villages in economically
backward states, food, fuel, health, and savings are priority over payment
at commercial rates for electricity.
b. Unresponsive attitude: The poor rural consumer is indifferent toward electrification. Having born and brought up in dark (devoid of electricity)
household, many villagers have adapted to such life and livelihood and
therefore are not enthusiastic or frontrunner for change. Such persons or
families would either expect commercial electricity to be provided free of
3 The Challenges of Energy Supply
vii. With vast majority of poor people, the price of electricity is a sensitive issue in
India, compelling the government to keep in check the costs of power generation, transmission, and distribution. The average cost of power generation is
expected to increase from around $65 per MW-hour (MWh) to over $70/MWh
in 2040 (India Energy Outlook 2015).
viii. Access to clean cooking fuels in rural India—the substitution of dirty fuels such
as firewood, dung, kerosene, coke, and coal to LPG, PNG, and electricity has
been a nightmare. LPG may be a preferred fuel by rural consumer, but the cost
of a bottle of 14.2 kilogram is prohibitive, supply is erratic, and there is hardly
any home delivery network. With around 50% of LPG being imported, there
is no assured supply to rural areas. Stacking of fuel being a norm in villages
especially remote ones, people will continue to use multiple fuels including
biomass in the coming decades. Besides electrification, one of the most critical
aspect of energy is the fuel for cooking. In India, household electrification and
provision of clean cooking fuel have been twin challenges, with the former
having received priority over the latter. This has led to poor redressal of this
issue, resulting in near 40% of our population without access to clean cooking
fuel. The situation in rural areas, with a significant section of the populace
below poverty line, is grim, and is changing at snail’s pace from firewood,
dung cake, kerosene, and coal to LPG and PNG.
ix. The complex web of rural electrification cannot be resolved easily. Government
efforts can create electricity infrastructure and provide connectivity to each
permanent household in a time-bound effort. But there will still large number
of migrant families (mainly laborer) who stay in makeshift houses with their
families for a substantial part in a year. Besides infrastructure and connectivity,
adequate supply of desired quality of power at affordable rates, providing clean
and sustainable power in an efficient manner for long term is a challenge that
has no easy answers.
x. A few issues that have kept the electricity development agenda on the backfoot
include:
a. Savings and willingness to pay: This is a big setback as a large proportion
of poor population residing in villages and hamlets either have very little
extra money to afford commercial electricity or they are not willing to pay.
The contrarian view, however, is that the rural consumers value electricity
as much as anyone else and are willing to pay reasonable tariffs. This view
may be acceptable for those villages which are close to urban areas and
where income levels are high. For poverty-stricken villages in economically
backward states, food, fuel, health, and savings are priority over payment
at commercial rates for electricity.
b. Unresponsive attitude: The poor rural consumer is indifferent toward electrification. Having born and brought up in dark (devoid of electricity)
household, many villagers have adapted to such life and livelihood and
therefore are not enthusiastic or frontrunner for change. Such persons or
families would either expect commercial electricity to be provided free of