3rd June 2024 (12 Topics)

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Addressing Poor Electricity Supply for Farmers

Context

The Centre for Energy, Environment and People (CEEP) organized a dialogue called 'Vidyut Samvad' to discuss the systemic issues of poor electricity supply faced by farmers in Rajasthan. The panel suggested establishing a farmers’ cooperative-based distribution model under the Electricity Act, 2003, to address regulatory accountability and improve electricity supply. The role of solar and energy-efficient pumps for irrigation was also emphasized as a potential solution.

Issues faced by Farmers

The farmers suffers from the inadequate electricity supply, with only four hours of power against the mandated six hours, causing voltage fluctuations that damage irrigation motors and transformers.
This results in crop losses and increased farming costs, posing a significant concern for farmers.

Significance of farmers’ cooperative-based distribution model

A farmers’ cooperative-based distribution model involves organizing farmers into cooperatives to collectively manage and distribute electricity in rural areas.
In this model, farmers work together to address their common energy needs, such as irrigation and powering agricultural equipment, by establishing their own electricity distribution system.
Overall, the farmers’ cooperative-based distribution model empowers rural communities to take control of their energy resources, improve access to electricity, and address the specific challenges they face in agricultural production.
It also promotes local economic development and resilience.

Fact Box:

The Electricity Act, 2003

The Electricity Act, 2003 aims to foster growth and development in the electricity sector by reducing government involvement in regulation.
Objectives: The Act seeks to create a liberal framework for the power sector's development.
Establishment of Regulatory Commissions:
- The Act sets up Electricity Regulatory Commissions at both central (CERC) and state levels (SERCs).
- Their functions include regulating tariffs, issuing licenses for transmission and distribution, and resolving disputes.
Central Electricity Regulatory Commission (CERC):
- CERC is India's power sector regulator.
- Its goals are to promote competition, efficiency, and economy in bulk power markets, improve supply quality, and advise the government on addressing demand-supply gaps.
- CERC operates as a statutory body with quasi-judicial authority under the Electricity Act, 2003.
Offences under the Act: Theft of electricity, tampering with electric meters, and theft of electric lines and materials.

Current State of Power Sector

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 429.96 GW as of January 31, 2024.
As of January 31, 2024, India’s installed renewable energy capacity (including hydro) stood at 182.05 GW, representing 42.3% of the overall installed power capacity. As of January 31, 2024, Solar energy contributed 72.31 GW, followed by 44.95 GW from wind power, 10.26 GW from biomass, 4.99 GW from small hydropower, 0.58 from waste to energy, and 46.93 GW from hydropower.
The non-hydro renewable energy capacity addition stood at 15.27 GW in FY23, up from 14.07 GW in FY22.

Overview of India's Electricity Sector:

India ranks as the world's third-largest producer and consumer of electricity.
By January 31, 2024, India had an installed power capacity of 429.96 GW.
Renewable Energy Capacity: As of January 31, 2024, India's renewable energy capacity (including hydro) reached 182.05 GW, accounting for 42.3% of the total installed power capacity.
- Solar energy contributed the most with 72.31 GW, followed by
  - wind power with 44.95 GW
  - biomass with 10.26 GW
  - small hydropower with 4.99 GW
  - waste to energy with 0.58 GW
  - hydropower with 46.93 GW
Capacity Addition: In the fiscal year 2022-23, non-hydro renewable energy capacity increased by 15.27 GW, compared to 14.07 GW in the previous fiscal year (2021-22).

Government Schemes for Power Sector:

Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA): To achieve universal household electrification by providing last mile connectivity and electricity connections
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY): It was launched in 2014 to improve the quality and reliability of power supply in rural areas.
Restructured Distribution Sector Scheme (RDSS): It was launched to enhance the efficiency of power distribution, the government has implemented initiatives.
Ujwal Discom Assurance Yojana (UDAY) Scheme: To ensure the availability of affordable and accessible 24x7 power supply to all citizens.
100% FDI allowed in the power sector has boosted FDI inflow in this sector.
Other Schemes:
- Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY)
- Integrated Power Development Scheme (IPDS)
- PM-Surya Ghar: Muft Bijli Yojana

PYQ

Q. Which one of the following is a purpose of ‘UDAY’, a scheme of the Government? (2016)

Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
Providing electricity to every household in the country by 2018
Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
Providing for financial turnaround and revival of power distribution companies

Solution: (d)

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Addressing Poor Electricity Supply for Farmers

Issues faced by Farmers

Significance of farmers’ cooperative-based distribution model

Fact Box:

PYQ

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