Switching rural India on to renewable energy sources could help the country bridge its widening energy deficit, according to the Planning Commission. The panel has suggested diversification of the rural energy basket as a measure to deal with the shortage of fuel at thermal power stations and to check the government’s rising subsidy burden.
“There is a need to change the basket of our energy sources,” a Planning Commission official said. “Meeting the needs of rural India through renewables seems like a good way to go and we will try to do that in the 12th Five-Year Plan.” In an assessment done jointly with the ministry of new and renewable energy, the commission has pointed out that the cost of setting up and maintaining biogas infrastructure for rural India would be just 9% of what the government would spend on supplying liquefied petroleum gas (LPG) to villages over the next 15 years.
According to the ministry’s estimates, setting up biogas plants would cost the government. ‘4,300 crore over the next 15 years as against Rs43, 200 crore required to enhance production and distribution of LPG over the period.
The commission has said that the government’s plan to provide electricity to all of India’s villages under the Rajiv Gandhi Grameen Vidyutikaran Yojna by 2020 would not be feasible unless it enhances alternative sources of energy. At present, about 40% of the country’s rural households have no access to electricity.
“We have gone over the issue and it is a cause of concern,” the commission official quoted earlier said. “Going ahead, rural needs for energy will increase and we are nowhere close to providing them with sustainable electricity supply.” In a presentation to the commission, the ministry of new and renewable energy admitted that providing electricity to all the villages was difficult. “It is unlikely that all households will get electricity by 2020, as utilities have no incentive to provide electricity to villages because the delivered cost is higher and recovery is lower,” the ministry said.
It said an alternative was to ensure supply of lighting first and electricity later through the renewable sources. For doing so, the ministry has suggested introducing more incentive-based schemes and expanding the scope of existing schemes which provide 60% subsidy for rice husk based power generation plants and 90% subsidy for setting up solar charging stations in villages, which are only applicable in few states as of now. “Such incentives need to be increased,” said a ministry official. “Currently, most of the work is being done by village groups themselves, but incentives should be given for the private sector to be actively involved as well.”
