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Anoop Singh, S. C. Srivastava Indian Institute of Technology Kanpur Ram M. Shrestha

BAQ 2006 13-15 Dec 2006, Yogyakarta, Indonesia. Barriers to Adoption of Clean and Efficient Technologies in the Indian Power Sector: An Analysis Using AHP. Anoop Singh, S. C. Srivastava Indian Institute of Technology Kanpur Ram M. Shrestha Asian Institute of Technology, Thailand.

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Anoop Singh, S. C. Srivastava Indian Institute of Technology Kanpur Ram M. Shrestha

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  1. BAQ 2006 13-15 Dec 2006, Yogyakarta, Indonesia Barriers to Adoption of Clean and Efficient Technologies in the Indian Power Sector: An Analysis Using AHP Anoop Singh, S. C. Srivastava Indian Institute of Technology Kanpur Ram M. Shrestha Asian Institute of Technology, Thailand

  2. Indian Power Sector – Generation Capacity Note: Additional Captive Generating Capacity = 19485 MW Source: CEA (2006) • Generation capacity based on fossil fuels accounts for nearly 66.31% of the total generation capacity in the country. • The 16th electric power survey projects a peak demand of 157,107 MW and an energy requirement of 975,222 MU by the year 2012 • It is estimated that capacity addition of over 1, 00,000 MW would be required by the end of 2012.

  3. Reforms and Clean Technology • Liberalisation of Private and Foreign Investment in 1990s • Regulatory Reforms – setting up of Centrl Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commission (SERCs) • Electricity Act 2003 • National Electricity Policy and National Tariff Policy

  4. National Electricity Policy (NEP) • Lays down guidelines for accelerated development of the power sector • Supply of electricity to all areas • Protecting interests of consumers keeping in view availability of energy resources, technology available to exploit these resources • Economics of generation using different resources and energy security issues.

  5. Promotion of Renewable Energy • As per Electricity Act 2003, SERCs to promote electricity generation from co-generation and renewable sources of energy. • Suitable measures for connectivity to grid and sale of electricity to any person. • specifying a percentage of power to be purchased from such sources.

  6. Objectives • AARPEEC Project Phase II, three most promising clean and energy efficient technologies were identified • Integrated Gasification Combined Cycle Coal technology (IGCC), • Pulverised Fluidised Bed Combustion (PFBC) • Biomass Integrated Gasification Combined Cycle technology (BIGCC). • ARRPEEC Phase III - conduct a survey to identify and rank barriers to adoption of these technologies in the Indian power sector. • The responses are further analysed using Analytic Hierarchy Process (AHP) methodology to rank the barriers to adoption of identified technologies. • Further we also identify policy measures required to overcome these barriers and undertake a comparative evaluation.

  7. Clean and Energy Efficient Technology for Power Generation • National Thermal Power Corporation (NTPC) is introducing super critical technology. • A pioneering work on coal based IGCC has been undertaken by BHEL on a 6.2MW pilot plant at Trichy. • NTPC and BHEL, with assistance from the USAID, have taken up a detailed feasibility study for setting up of a 100 MW IGCC demonstration plant at NTPC’s station no.1 located at Dadri. • Only six commercial PFBC demonstration plants (each less than 100MW capacity) are in service around the world. In India, BHEL has undertaken R&D work on a pilot scale and has tested combustion characteristics of certain coal varieties.

  8. Barriers to Adoption of IGCC Technology • Higher capital cost of the option (0.291) • Reliability of the technology suggested is not proven (0.187) • Inefficient electricity pricing (0.087) • Lack of financing (0.066) • Low level of awareness about the technology (0.064)

  9. Barriers to Adoption of PFBC Technology • Reliability of the technology suggested is not proven (0.178) • Lack of infrastructure and technical support in the country (0.172) • Higher capital cost of the option (0.115) • Unavailability of efficient technology locally (0.112) • Lack of technical and financial information (0.105)

  10. Barriers to Adoption of BIGCC Technology • Low level of awareness about the technology (0.258) • Reliability of the technology suggested is not proven (0.178) • Lack of infrastructure and technical support in the country (0.101) • Higher capital cost of the option (0.089) • Lack of financing (0.069)

  11. Comparative Evaluation of Policy Measures for IGCC Technology

  12. Comparative Evaluation of Policy Measures for PFBC Technology

  13. Comparative Evaluation of Policy Measures for BIGCC Technology

  14. Conclusions • The identified policy measures to overcome the barriers include financial as well as technical measures. • Financial measures include tax incentives, financial support and utilization of CDM credits. • Technical measures emphasize demonstration of these technologies in the Indian context and improving awareness towards the same. • Availability of technical know how is not expected to translate to adoption of such technologies. Effective policy support, together with awareness and technical support would provide an impetus to adoption of clean and energy efficient technologies. • The National Electricity Policy and the National Tariff Policy can mandate technology choice as a part of generation or procurement portfolio and providing additional tariff support through appropriate regulatory measures.

  15. Thank you http://www.iitk.ac.in/ime/anoops anoops@iitk.ac.in

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