Standing Committee on Energy 20 (2020 -21)
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STANDING COMMITTEE ON ENERGY 20 (2020 -21) SEVENTEENTH LOK SABHA MINISTRY OF NEW AND RENEWABLE ENERGY TIDAL POWER DEVELOPMENT IN INDIA TWENTIETH REPORT LOK SABHA SECRETARIAT NEW DELHI August, 2021/Sravana, 1943 (Saka) TWENTIETH REPORT STANDING COMMITTEE ON ENERGY (2020-21) (SEVENTEENTH LOK SABHA) MINISTRY OF NEW AND RENEWABLE ENERGY TIDAL POWER DEVELOPMENT IN INDIA Presented to the Lok Sabha on 5th August, 2021 Laid in the Rajya Sabha on 5th August, 2021 LOK SABHA SECRETARIAT NEW DELHI August, 2021/Sravana, 1943 (Saka) 2 COE NO. 337 Price: Rs................... ©2021 by Lok Sabha Secretariat Published under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Sixteenth Edition) and Printed by__________. 3 REPORT CONTENTS Page No. Composition of the Committee (2020-21) 5 List of Abbreviations 7 Introduction 8 PART –I NARRATION ANALYSIS I Introductory 9 II Harnessing of Tidal Power 10 A. Global Scenario B. Initiatives taken in India C. Tidal Power Potential in India D. Comparative Cost E. Budgetary Allocation for R&D F. Environmental Impact G. Problems/Constraints in Harnessing of Tidal Power H. Future Vision PART-II 18 RECOMMENDATIONS/OBSERVATIONS OF THE COMMITTEE ANNEXURES I Minutes of Sitting of the Committee held on 11th February, 2021 22 II Minutes of Sitting of the Committee held on 4th August, 2021 24 4 COMPOSITION OF THE STANDING COMMITTEE ON ENERGY (2020-21) LOK SABHA Shri Rajiv Ranjan Singh alias Lalan Singh - Chairperson 2. Smt. Sajda Ahmed 3. Shri Gurjeet Singh Aujla 4. Shri Chandra Sekhar Bellana 5. Dr. A. Chellakumar 6. Shri Harish Dwivedi 7. Shri S. Gnanathiraviam 8. Shri Sanjay Haribhau Jadhav 9. Shri Kishan Kapoor 10. Shri Ramesh Chander Kaushik 11. Shri Ashok Mahadeorao Nete 12. Shri Praveen Kumar Nishad 13. Shri Parbatbhai Savabhai Patel 14. Shri Jai Prakash 15. Shri Dipsinh Shankarsinh Rathod ^ 16. Shri N. Uttam Kumar Reddy 17. Shri Shivkumar Chanabasappa Udasi 18. Shri P. Velusamy 19. Shri Akhilesh Yadav 20. Vacant@ 21. Vacant@ RAJYA SABHA 22. Shri Ajit Kumar Bhuyan 23. Shri T. K. S. Elangovan 24. Shri Muzibulla Khan 25. Shri Maharaja Sanajaoba Leishemba 26. Shri Jugalsinh Mathurji Lokhandwala 27. Shri Surendra Singh Nagar 28. Dr. Sudhanshu Trivedi 29. Shri K.T.S. Tulsi 30. Vacant * 31. Vacant # 5 SECRETARIAT 1. Shri R.C. Tiwari Joint Secretary 2. Shri R.K. Suryanarayanan Director 3. Shri Kulmohan Singh Arora Additional Director 4. Ms. Deepika Committee Officer ^ Nominated as Member of the Committee w.e.f. 28.12.2020 @ Vacant vice Km. Shobha Karandlaje and Smt Anupriya Patel inducted in Union Council of Ministers w.e.f. 07.07.2021 * Vacant vice Shri Javed Ali Khan retired from Rajya Sabha on 25.11.2020 # Vacant since constitution of the Committee. 6 LIST OF ABBREVIATIONS AFD Agence Française de Développement BE Budget Estimates Committee Standing Committee on Energy (2020-21) CRISIL Credit Rating Information Services of India Limited GW Giga-watt IIT, Chennai Indian Institute of Technology, Chennai IREDA Indian Renewable Energy Development Agency IRENA International Renewable Energy Agency LCOE Levelized Cost of Electricity Ministry Ministry of New and Renewable Energy MNRE Ministry of New and Renewable Energy MoU Memorandum of Understanding MW Megawatt OTEC Ocean Thermal Energy Conversion R&D Research and Development RE Revised Estimates RPO Renewable Purchase Obligations WBREDA West Bengal Renewable Energy Development Agency 7 INTRODUCTION I, the Chairperson, Standing Committee on Energy, having been authorized by the Committee to present the Report on their behalf, present this Twentieth Report of the Committee on ‘Tidal Power Development in India’ pertaining to the Ministry of New and Renewable Energy. 2. The Committee heard views of representatives of the Ministry of New and Renewable Energy on 11th February, 2021. The Committee wish to express their thanks to the representatives of the Ministry for appearing before the Committee and furnishing the desired information in connection with the issues relating to the subject. 3. The Report was considered and adopted by the Committee at their sitting held on 4th August, 2021. 4. The Committee place on record their appreciation for the assistance rendered to them by the officials of the Lok Sabha Secretariat attached to the Committee. 5. For the facility of reference and convenience, the observations and recommendations of the Committee have been printed in bold letters in Part-II of the Report. New Delhi Rajiv Ranjan Singh alias Lalan Singh 4th August, 2021 Chairperson, 13 Sravana, 1943 (Saka) Standing Committee on Energy 8 REPORT PART I NARRATION ANALYSIS CHAPTER I INTRODUCTORY 1.1 As per the Government of India’ Allocation of Business Rules, 1961, the Ministry of New and Renewable Energy inter-alia has been entrusted with the subject matter pertaining to Tidal Energy. 1.2 Ocean Energy refers to all forms of renewable energy derived from the Sea. There are three main types of Ocean Energy: Wave, Tidal and Ocean- Thermal. Tidal Energy is harnessed by converting energy from natural rise and fall of ocean tides and currents to electricity. Wave Energy in the form of motion of ocean waves can be extracted using energy conversion devices. Ocean Thermal Energy Conversion (OTEC) is based on generation of electricity utilizing the temperature difference between warm surface seawater and cold seawater at around 1,000 meters depth. 1.3 All forms of Ocean Energy are at an early stage of development. Tidal Energy Projects have been deployed globally in only a few locations where there is a strong tidal resource. Wave Energy and Ocean Thermal Energy Conversion (OTEC) technologies are still at an experimental stage. 1.4 India has been playing an active role in harnessing of Renewable Energy in order to mitigate climate change. The Government has set a target to install 175 Giga-watts of Renewable power by the year 2022. However, Tidal Power has not been included in this target despite the fact that our Country is surrounded by sea on three sides and has a long coastline of around 7500 Kilometers with the estuaries and gulfs where Tidal Power can be harnessed. 9 CHAPTER II HARNESSING OF TIDAL POWER A. Global Scenario: 2.1 About the status regarding harnessing of Tidal Power in the World, the Ministry furnished the following: “Tidal Energy represents the smallest share (approx. 535 MW) of global installed capacity of Renewable Energy. Two Tidal Energy Projects, namely the 240 MW La Rance station in France (installed in 1966) and the 254 MW Sihwa plant in South Korea (installed in 2011), constitute more than 90% of the total installed capacity of Tidal Energy. At present Tidal Energy technologies are not cost competitive and the main focus is on technology development.” 2.2 On being asked about the capital cost and tariff of 240 MW project in France and 254 MW project in South Korea, the Ministry stated as under: “As per the report ‘Tidal Energy: Technology Brief’ published by the International Renewable Energy Agency (IRENA) in 2014, the estimated cost for 240 MW tidal power project in France and 254 MW tidal power project in South Korea were USD 817 million and USD 298 million respectively. The report also states that levelized costs of electricity (LCOE) for tidal power are in the range of EUR 0.25- 0.47/kWh with the lower range LCOE estimates based on high capacity factors and low capital cost estimates.” B. Initiatives taken in India: 2.3 Regarding efforts made in India to harness Tidal Power, the Ministry furnished the following: “In the 1980s, Government of India initiated efforts to assess the tidal energy potential in the Country. Initial surveys suggested that the Gulf of Kambhat and the Gulf of Kutch in Gujarat and the Gangetic delta in the Sunderbans in West Bengal have tidal energy potential. Based on these surveys, two projects of 3.75 MW and 50 MW installed capacity were initiated in West Bengal and Gujarat.” 10 2.4 About the 3.75 MW Durgaduani Tidal Power Project in West Bengal, the Ministry stated as under: “MNRE sanctioned a demonstration project to West Bengal Renewable Energy Development Agency (WBREDA) in October, 2007 for setting up of 3.75 MW capacity tidal energy plant at Durgaduani creek in the Sunderbans region at an estimated cost of Rs. 48 crore. An amount of Rs. 3 crore was released for this project. However, only one bid was received for the project and the project cost was placed at Rs 238 crore (i.e. Rs. 63.5 crore per MW). In view of such an exorbitant cost, the Government of West Bengal decided to drop the tidal energy project. MNRE grant was subsequently refunded by WBREDA.” 2.5 Regarding 50 MW Tidal Power Project in Gujarat, the Ministry furnished the following: “In 2011, the Government of Gujarat signed an MoU with M/s Atlantis Resources Limited (based in United Kingdom) for carrying out studies and for implementing a 50 MW Pilot Tidal energy project in the Gulf of Kutch at Mandvi. The Government of Gujarat sanctioned Rs. 70 crore as financial assistance for the project. Meanwhile, M/s Atlantis Resources Ltd. estimated the cost of the project at Rs 750 crore (i.e. Rs. 15 crore per MW). Due to techno-economic non-viability of the project, it was dropped by the Government of Gujarat. No financial assistance was sanctioned for the project by the Government of India.” 2.6 In 2012, West Bengal Renewable Energy Development Agency (WBREDA) made more attempts to harness Tidal Power; the information in this regard as furnished by the Ministry, is given below: “In 2012, WBREDA informed that M/s Blue Water, headquartered in the Netherlands, approached WBREDA and offered turn-key solutions for generating power from river and tidal currents.