Easrern India Renewable Energy: Tatvita Analysts

Eastern India and Roadmap to Sustainable Energy Security

As a leader of the global south, India is pushing persistently towards its target of net zero by 2070. Renewable energy is indispensable in this quest. By investing in this sector, we are taking a leap towards a greener future for all.

Transitioning towards renewable energy and achieving energy security are twofold objectives before the policymakers. In this series, we are looking at how investment in green energy could ultimately be the way towards energy security.

In the previous articles, we looked at the standing of Northern and Central Zones in this regard. In this article, we shall see how the Eastern Zone fares in the same.

The Eastern Zone comprises five states. They are: Bihar, Jharkhand, Odisha, Sikkim and West Bengal. Later on, Sikkim became a part of the North-Eastern Zonal Council but as it was earlier a part of the Eastern Council, this article has included Sikkim’s analysis too

It is evident at first glance, that these states vary considerably in terms of size, geography, and demography. One thing, however, is a common thread in them. These states have a lot of untapped economic potential in them.

Demand-Supply Analysis of Energy Infrastructure:

Power Requirements and Demand Matching

There are glaring inequalities in the power requirements in the Eastern Zone. The state of West Bengal, being the centre of economic activity in Eastern India, has the highest power requirement in the cohort. This is followed by Bihar, Odisha and Jharkhand. Sikkim is the last in the group, with power requirement of only 54 crore units.

The states of West Bengal, Odisha and Sikkim fare well in the Demand-Supply matching, with all three states being able to supply the entire quantum of power demanded. This equilibrium is missing in Bihar and Jharkhand. The demand unmet in Bihar equals to 345 Megawatt, which adversely affects the overall economic growth too. Jharkhand, in 2023-24 was unable to provide 116 MW of power demanded. Being a state with prominent mining industry, shortage of power supply has compounding consequences in the state’s economic prospects.

Per Capita Power Availability:

Per capita power availability is an important indicator of the health of energy infrastructure in a state. Analysis of data brings out that in all the states in the Eastern Zone, per capita power availability is less than 1 MW per hour. Even amongst them, Bihar has the worst performance, with only 0.39 MW per hour.

Such a woeful picture spells of poor power availability in these states. Subsequently, this has negative impacts on the overall productivity and economic development of the zone. Measure need to be in place to increase affordable and uninterrupted access to power in these states.

Installed Power Capacity:

West Bengal and Odisha lead the zone in installed power capacity, both in traditional and renewable energy sources. Sikkim comes next when it comes to renewable energy installations. The state of Sikkim is taking rigorous efforts towards sustainability, whether through its organic farming measures or renewable energy investments. This is apparent in its installed renewable capacity being at par with West Bengal, despite being much smaller in size. Bihar and Jharkhand are the two states which need to take serious measure to increase their installed power capacity in renewable. Bihar especially shows a skewed preference towards power generation through non-renewables. This trend needs reversal for reaching sustainable development. It’s renewable capacity comes majorly from Ground Mounted Solar and Biomass. Jharkhand derives about half of its renewable capacity through large hydro projects.

It is clear that all these states need to step up their game when it comes to increase their renewable installed capacity. Also, in renewable energy, they need to target diversification of energy sources rather than relying on some select few. Expansion and diversification of renewable energy is the key towards harmonized growth.

Path Towards Sustainability: State-wise Approach

Bihar: Investing in Rooftop Solar and Biomass

As of 2023-24, solar and biomass power have driven the renewable revolution in Bihar.

Government Recommendations:

  • Make use of the dense population of the state to increase rooftop installations.
  • Invest in off-grid solar by increasing KUSUM beneficiaries.
  • Increase biomass power through bagasse and non-bagasse cogeneration.

Private Sector Role:

  • Invest in rooftop solar installations
  • Invest in biomass power harnessing techniques.

Jharkhand: Work on Solar Front

Being a mining state, resources need to be slowly shifted towards renewable energy.

Government Recommendations:

  • Work on solar installations, especially rooftop solar.
  • Work towards local participation in shifting away from traditional energy sources.
  • Efforts to make hydro projects more efficient.

Private Sector Role:

  • PPP participation for smoother transition towards green energy.
  • Increase awareness of rooftop solar installations in people.

Odisha: Hydro Energy Dominance

Odisha derives about 73% of its renewable energy from large hydro projects. Total hydro power has a whopping 77% share in its renewable energy.

Government Recommendations:

  • Increase awareness regarding PM-Surya Ghar Rooftop Solar Yojana.
  • Work on improving bagasse cogeneration capacity.

Private Sector Role:

  • Invest in off-grid solar installations.
  • Invest in improving biomass power generation capacity.

Sikkim: Kingpin of Green Transition

Sikkim has made progress in leaps towards green energy with various initiatives. However, its topography and climate limit the state’s capacity to branch out its renewable portfolio, restricting it to mostly hydro power.

Government Recommendations:

  • Work towards enhancing productivity of hydro projects in the state.
  • Enhancing solar capacity through state-of-the-art technologies

Private Sector Role:

  • Aiding government in solar installations.
  • PPP approach for localized strategies towards green energy transition.

West Bengal: Scope for Scaling up all Renewable Sources Capacity

West Bengal currently puts major thrust on large hydro projects. However, having good agrarian expanse, it can also work towards biomass and solar capacity enhancement.

Government Recommendations:

  • Increase ground level participation in solar installation, especially under PM Surya Ghar.
  • Enhancing biomass power generation.

Private Sector Role:

  • Investing awareness regarding solar power in the state.
  • Enhancing biomass energy production through efficient use of agricultural byproducts.

Conclusion:

The states in Eastern Zone have both great challenges and great opportunities in their road towards sustainability. While they differ in their needs and capabilities, they all can benefit from the shift towards renewable energy. Better use of available resources; whether it is population density, agricultural dominance or high rainfall; will be the key to success.

Authors

  • Vaibhavi Pingale

    Dr. Vaibhavi Pingale is the Founder and Chief Decision Strategist & Analyst of VP Research Company, a pioneering research firm that not only conducts in-depth research and provides detailed reports but also creates tailored content from this research to be utilized in digital media marketing.
    In addition, she leads Tatvita Analysts, the media wing of her company, where strategic research insights, articles, and reports are regularly published. Vaibhavi is also a professor of Public Finance, Policy, and Trade at Gokhale Institute, Pune University, and Symbiosis College.

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  • Tatvita Analysts

    Dhanashree Kandalgaonkar is a Research Assistant at Tatvita Analysts. She is pursuing Masters in Economics.

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