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LIGHTING UP LADAKH

A LEGAL BRIEF

Realizing the importance of off-grid energy solutionsin the context of unique geographical reality

Mohd Shawahiq SiddiquiShilpa Chohan

Sanjay Upadhyay

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

Enviro Legal Defence Firm278, II Floor, Sector-15 A NOIDA

ELDF-HBF initiative on: 'Implementing National Solar Mission in India' Need for an effective Legal and Institutional Response

This publication has been supported by the Heinrich Boll Foundation, IndiaDESIGN EDITOR : ANANDA BANERJEE / PROJECT PHOTOGRAPHS: SHILPA CHOHAN

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

LIGHTING UP LADAKH

JAMMU AND KASHMIR: STATE CONTEXT AND THEELECTRICITY SCENARIO

One of the significant ways to bring stability inthe otherwise disturbed state of Jammu and

Kashmir is to create development opportunitiesfor improving socio-economic condition of peo-ple and quality of life which are primarily depend-ent on the energy potential available in the state.On that account the power sector in Jammu &Kashmir is one of the most underdeveloped sec-tors in the state and has been unable to keeppace with the growing demand. Its supply to ulti-mate consumers has also been poor. In additionto this large unexplored hydro potential, inade-quate transmission and distribution network,huge transmission and distribution (T&D) losses,low power tariff, power thefts as well as long ges-tation period of the power projects have con-tributed to the dismal situation.An assessment of the load, consumption, distri-bution and purchase of power by the state gov-ernment in the last fifteen years shows that thelocal existing capacity in the state could meetone third of the total demand only. Its is alsoestimated that the total requirement of power isgoing to increase as compared to previousyears, which leaves a deficit of roughly 702MW1 . Statistics also show that there is anincreased consumption of power in the domes-tic sector which has surfaced as the biggestconsumer in the state in the last decade fol-lowed by agriculture and industry and thedemand is likely to increase manifold if the gridis extended to rural areas. As it is known thatthe supply of power is measured by its owngeneration within the state, gross generation ofpower in the state is only 8.6 per cent of thetotal energy available as the remaining supplyis obtained from power purchase from theCentral Government and other sources2.

Huge Transmission and Distribution Loses:Need for Off Grid energy solutions in the contextof unique geographical realityThe State Power Report in the year 2001 tookinto account T&D losses in the state andaccounted that T&D losses were as high as 47.5per cent. These losses include transformationlosses as well as unaccountable consumption,of which latteraccounts for more than half of the losses. Giventhis reality it can be estimated that if grid isextended to remote and inaccessible areas,there is going to be huge amount of financial

and energy loss due to high amount transmis-sion and distribution losses in extending the gridto these areas. Though the State ElectricityRegulatory Commission Act, 20003 has beenenacted and the State Electricity RegulatoryCommission has been set up in 20064 with theJammu and Kashmir Power DevelopmentCorporation Ltd5, the power scenario in thestate especially in the rural electrification is farfrom being satisfactory. Therefore there is aneed to promote off-grid energy solutions con-sidering the cost of huge transmission and dis-tribution losses

STATUS OF RURAL ELECTRIFICATION IN J&K:

Kashmir has 6477 inhabited villages of whichmore than 654 villages and 1678 hamlets

are un-electrified6&7. The reliable statistics onexact number of un-electrified villages inLadakh is not known. The reason stated for noor slow electrification in Jammu and Kashmir isthat most of the villages are remote, sparselypopulated and inaccessible. It is also cited thatthe most of the remote villages in Kashmir donot fulfill the viability norms of the RuralElectrification Corporation (REC) loanAssistance which is the central assistance pro-vided by the Government of India for rural elec-trification8. Though the number of rural electrifi-cation schemes in the state had increased from137 to 189 in the 10th five year plan9 and it iscarried forward in the 11th Plan, there seems tobe very insignificant progress in this area.

It is also noteworthy that village electrificationwas made a part of the Prime Minister'sGramodya Yojna (PMGY) from the year 2001-02.The funds for this program now flow to the statein the form of central assistance. Allocationunder PMGY to Jammu and Kashmir was to thetune of Rs.19.60 crore in the 10th Plan (2002-2007) and very less work has commenced sincethen.

As discussed above, within the Kashmir regionthere are several remote and inaccessible areaswhere grid has not reached. Ladakh is beingone such and largest region with the presenceof strategically important Leh and Kargil regionsand an unique governance system falling within the twin Autonomous Councils, faces acutepower shortage and specially in some of theremote and areas and that are not easily accis-

sible. Even if the region is connected to theNorthern Grid in accordance with Prime Minister'sReconstruction Plan (PMRP) for Ladakh10, the costfor the grid power is going to be exceptionally highdue to the huge transmission and distribution loss-es. Therefore there is a need to understand theunique geographical and climatic reality of theLadakh region and available energy options differ-ently in a manner so as to create energy self suffi-ciency locally by utilizing natural resources such assolar or hydro potential in the region. It would thusbe important to look at the current scenario andpotential energy challenges that the Ladakh regionfaces today.

LADAKH: AVAILABLE ENERGY POTENTIAL ANDRESOURCES

The way forward for energy development in theLadakh region has to be understood in the con-

text of available natural resources and energypotential in the region and the portion of it that canbe used for lighting up most remote and not easilyaccessible areas in the region where grid cannotreach. Owing to the immense hydro potential in theregion, hydel energy is considered as the main andcheapest source of energy available in the state11.The Hydro potential in Ladakh is estimated to bemore than 1000 MW of which 90 MW is currentlyused by the two recently installed hydro projects inNimo Bazgo and Chutuk. Thermal energy is usedas standby to back the hydel plants whose genera-tion capabilities fall during winter season due to lowriver discharge12. Ladakh also receives abundantsunlight which provides unique opportunities forthe power sector, yet Ladakh is a power deficientregion, despite the tremendous need of power dueto strategic importance and local energy needs. Inaddition to this the region has immense potential fortourism which currently relies on diesel generatedpower, thus adding environmental cost in the frag-ile ecosystem in the region.

POWER AND ENERGY SCENARIO AS PER THELADAKH VISION 2025

The present demand for power in Ladakh is 59MW (approximately) of which a substantial por-

tion is used for the Army. The Ladakh Vision 2025which was formulated in 2005 estimated that at anannual rate of increase in power consumption of7%, this requirement of power is set to swell to 94MW in the coming year 2012, and 140.5 MW by

2025. Further the Vision Document also states thatthe current installed generation capacity in Ladakhis 13.5 (8.7 diesel, 4.8 hydel)13. Clearly, the powerdeficient situation in Ladakh is alarming. The otherreality is the power supply cut for long hours. Thecurrent situation is that an average household inLadakh gets only a few hours of electricity everyday. Needless to add that this scenario on extremepower poverty needs to change for the better in thisvery important and strategic geo-political region.

CONNECTING LADAKH TO THE NORTHERNGRID-NEED TO REVISIT THE PLAN IN THEINTEREST OF PRIORITIZING LOCAL SOLUTIONS AND IN THE INTEREST OF PRIOR-ITIZING LOCAL SOLUTIONSConnecting Ladakh, the cold desert region in thecountry with the Northern Grid for meeting its elec-tricity requirement was mooted about 4-5 yearsback and the scheme was also included in thePrime Minister's Reconstruction Plan (PMRP)announced by Dr Manmohan Singh during his firsttenure as Prime Minister. Subsequently, the PowerGrid Corporation of India Limited (PGCIL) startedsurvey for proposed transmission line. However, thescheme was dropped as the then Governmentbartered the transmission line in lieu of two hydroelectric projects-Nimo Bazgo in Leh and Chutuk inKargil districts, which it considered was the immedi-ate necessity. Later it was realized that in wintermonths, the electricity generation from Chutuk aswell as Nimo Bazgo hydroelectric projects willcome down to 10 Mega Watts thereby creatinghuge shortfall in the demand and supply. Thereafterit was also realized that both the hydro electric proj-ects, would be able to meet the electricity require-ment of Ladakh region up to certain extent only.Further, as per the estimates of the PlanningCommission the idea of having the twin power sta-tions is an expensive idea for reasons that the proj-ect would be generating the most expensive ener-gy (over Rs 10 a unit). The government sourcesalso state that in view of the restriction imposed bythe Indus Water Treaty no pondage is allowed onriver Indus. As a result of this, the generation willdrop down to less than one third of the installedcapacity during winter due to low discharge in theriver.Despite these estimates, Hindustan ConstructionCorporation (HCC) had set up NHPCs twin project- Rs 611 crores 45-MW Nimo Bazgo (Leh) and Rs621.27 crores 44-MW Chuttak (Kargil). The projectswere launched in June previous year with the activeinvolvement of the two Autonomous Hill

LIGHTING UP LADAKH

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

Development Councils in Leh and Kargil.Given the low pondage levels and massive fallin the availability of water, officials accept thatthe two projects will do no wonders. In additionto this, the State Government recently took upthe issue of connecting Ladakh region withNorthern Grid and Prime Minister agreed to thesame and sanctioned Rs 900 crore after theregion was affected by a natural calamityLaying down transmission line to connectLadakh region with Northern Grid by laying 325to 350 kilometers long transmission lines wouldtake three years. On the other side the Ministryof New and Renewable Energy led by Mr.Farukh Abdullah has sanctioned Rs 473 crorefor the installation to fulfill energy requirementsof the region more importantly by providing offgrid solutions.In the light of these developments, it seems thatthe two approaches to provide electricity toLadakh need to converge at some point in theinterest of local realities and cost of supplyingmost expensive power to the remote popula-tion, which in future might render the grid finan-cially unviable14.

AVAILABLE ENERGY POTENTIAL AND CHAL-LENGES FOR THE DEVELOPMENT OF SOLARENERGY IN THE LADAKH REGION

With more and more tourist influx andchange in the lifestyle of local people

where the rate of energy consumption hasincreased much more than it used to be in thepast, the following needs to be consideredi)There are no deposits of fossil fuel in theregion; energy based on fossil fuel is therefore

not the answer to the Ladakh's growing powerdemand.ii)The current dependence for powerrequirements is on the imported fossil fuel.

iii)Difficulties in Supplying Power to RemoteAreas. There are many regions in Ladakh thatare still largely isolated from the rest of theregion, especially during the winter months.Supplying power to such areas is a formidablechallenge, and it is virtually impossible to do soby the use of transmission lines from a central-ized grid, which is neither a technically feasiblenor an economically viable optioniv)Two major challenges are heavy reliance ondiesel and kerosene and multiple, overlappingand unclear administrative set up for powerdelivery especially in the context of solar power.

100 % ELECTRIFIED?It is indeed surprising that the entire LadakhRegion, covering both Leh and Kargil districts,is considered as 100% electrified region by theMinistry of New and Renewable Energy,Government of India15A. We are not surewhether it is considered electrified as per thedefinition of Remote Village ElectrificationPolicy or any other parameter. As per theRemote Village Electrification Policy, A village isconsidered electrified if the following criteriawere satisfied:■ The basic infrastructure (such as distributiontransformer and/or distribution lines) is madeavailable in the inhabited locality within the rev-

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

LIGHTING UP LADAKH

Ladakh's increasing diesel dependenceand environmental concernsCurrently, 8000 litres of diesel are needed to gen-erate sufficient power for a day's consumption inLadakh, and all of this fuel if imported from out-side. In the peak tourist season additionaldemand is increased by 3-4000 liters. Clearly,this is an unsustainable arrangement, economi-cally as well as environmentally. Conservativeestimates also suggest that power developmentdepartment, army and other appendages of thegovernment are burning kerosene worth Rs 1200crores a year for lighting purposes alone whichhas a huge impact on region's fragile ecology.This is notwithstanding the huge climate impacts.

Multiple and over lappingAdministrative Set up for power development in the regionThere are several agencies involved in Ladakh'spower generation with administrative overlaps-such as the Jammu & Kashmir PowerDevelopment Department (JKPDD), the Jammu &Kashmir Power Development Corporation(JKPDC), and the Ladakh Renewable EnergyDevelopment Agency (LREDA). The mandate forthese agencieshas not been clearly defined, andeven basic data to prepare new power projects isnot readily available. Further central assistancefor rural electrification is further controlled by theRural Electrification Corporation. An unclear andmultiple set up for power development especiallyin the context of an autonomous Ladakh Hillcouncil is not an ideal scenario especially for thedevelopment of local energy solutions

enue boundary of the village, including availablepower supply on demand at at least onehamlet/Dalit Basti as applicable, and any of thepublic places like schools, Panchayat Office (villagecouncil), health centers, dispensaries, communitycenters etc.; and■ The number of households electrified should beat least 10% of the total households in the village."As a consequence of this new definition for electri-fication, many villages that were previously consid-ered electrified fell by definition into the un-electri-fied category15B. Neither the State Government nor the local govern-ment in Ladakh (LAHDC) is aware of this assump-tion by the MNRE as there are statistics to prove thecontrary. The statistics provided in the LadakhVision Document 2020 and annual rural electrifica-tion targets by JKEDA16 show very clearly thatLadakh needs to go a long way as far as energysecurity and village energy self sufficiency in theregion is concerned17.

SOLAR ENERGY AS THE MOST VIABLE OPTIONBUT IS FACED WITH NUMBER OF REGIONALAND AREA SPECIFIC CHALLENGES

With the Jawahar Lal Nehru National SolarMission (JNNSM) on its way in the First Phase

which ends in 2012, the power scenario in thecountry is going through dynamic changes. Thereare number of new technologies and trends in solarenegy that are paving the way in the power sector. In Ladakh, there is substantial number of remote vil-lages in the difficult and inaccessible areas whereGrid can not reach. In addition, the topographicalconditions are such that villages are scattered overlong distances. Due to this, a central generatingand evacuating system with large T &D networkdoes not seem to be feasible. The power solutionfor the region lies in the dual strategy of concentrat-ed generating system for pockets where populationis concentrated and decentralized system for lesspopulated areas. The Solar potential in the statehas already been estimated and it has been identi-fied that more than 300 days in a year are sunnyand dry. However, the solar energy development inthe region faces multiple challenges which includebut are not limited to the following:i. The existing legal and institutional frameworkespecially with respect to the requirement of Land iscomplex.ii. Due to extreme weather conditions there is anincreased cost of the equipment.iii. Transportation cost increases the financial viabil-ity of the project.

iv. For the large solar projects interface with the J&K Power Development Corporation and StateElectricity Regulatory Commission is required,which increases the multiplicity of players in theareas and makes the clearance procedure for thesolar power plant complex. The Twin AutonomousHill Development Council plays the central role inany case. In the light of these challenges it is incum-bent to look at the existing legal framework con-cerning power generation and use of naturalresources in Ladakh that can be used for the devel-opment of solar energy in the region.

THE LEGAL AND THE INSTITUTIONAL FRAME-WORK ON SOLAR ENERGY DEVELOPMENT INTHE LADAKH REGION

Broadly, the Ladakh Autonomous Hill CouncilAct, 1995 governs all major functions in the

region. But several other legislations becomeimportant for the development of energy security inthe region that can be potentially used for improv-ing power scenario of Ladakha) Ladakh Autonomous Hill DevelopmentCouncil Act, 1997- a unique administrative set upwith the Presence of Twin Autonomous HillDevelopment Councils (Leh and Kargil) can helpin a great way for the development of SolarEnergyLadakh Autonomous Hill Development Council wasconstituted in accordance with the LadakhAutonomous Hill Development Council Act, 1995. Itwas introduced in Kargil during the year 2003. TheCouncil came into being with the holding of elec-tions on August 28, 1995. The Council has execu-tive powers to regulate number of functions anddevelopment activities in the Ladakh region18. Thepowers of the Council are vide and provide for theregulation of all the development activities in theregion. It is important to mention that power to reg-ulate development of non conventional energysources is with the Council19. The Council has videpowers for the formulation of development programfor the District in respect of district componentSchemes of the state government and CentrallySponsored Schemes and indicate priority for vari-ous schemes and consider issues related tospeedy development of district20. This provision isof specific importance for the development of alter-ative and more localized energy development in theregion and can be used for the successful imple-mentation of the National Solar Mission in Ladakh.The Council is empowered to take special meas-ures for creating employment opportunities and

LIGHTING UP LADAKH

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

poverty alleviation21. The Council also has pow-ers related to Budget and powers relating tomonitoring and implementation. Further, theland in Ladakh vests in the Council and councilcontrols the allotment, use and occupation ofLand in the area22. As per the LAHCDA Land inthe region may be transferred to the council inthe district unless the land may be required forpublic purpose23. The Council is also empow-ered to develop District Plan as the Council isalso the designated district planning and devel-opment board24. The Council is also empow-ered to regulate and issue executive instruc-tions on any other matter as may be entrustedto it by the notification in the Official Gazette25 .Thus there are number of powers with theLadkah Autonomous Development Hill Council(Leh and Kargil) that can be used for the suc-cessful implementation of National SolarMission in Ladakh. In addition to the Council'spower to control the allotment of land, the for-est land in the region is controlled and man-aged by the specialized department and requi-site permission of the forest department isrequired for the use of forest land for non forestpurposes such commissioning of SPV plants. Itwould thus be important to understand the pro-visions of Forest Conservation Act as applica-ble in Ladakh.

b) Jammu and Kashmir Forest(Conservation) Act, 1997In Ladakh, forest and forest land is regulatedunder the specific legislation namely the J&K

Forest Conservation Act, 1997. The Actbecomes particularly important for the purpos-es of solar energy development as it imposesrestrictions on dereservation or use of ForestLand for non forestry purposes26. Clearly,installation of solar power plants falls in the cat-egory of non forestry purpose and therefore asper the procedure provided in the Act, theinstallation of solar panels on the forest land inLadakh can only be done on a resolution of theCouncil of Ministers who will have to consultthe Advisory Committee constituted for recom-mending the diversion of forest land. Presently,the Act allows the construction of Border roador roads required for the development of ruralareas or construction work required for agricul-ture purposes to pass through demarcated orundemarcated forest with the permission of theMinister in charge and on the recommendationof the Advisory Committee constituted for thepurpose. Very clearly, the clearance procedurefor the use of forest land for non forestry pur-poses is very cumbersome and requiresinvolvement of high level officials in the state.This might act as a hindrance in the smoothcommissioning of Solar Energy projects in thevillages which are inhabited on the forest land.

B) Jammu and Kashmir Electricity Act, 2010The State Government of Jammu and Kashmirhas recently enacted its Electricity Act. The Actprovides that the state government shall frameprograms and polices for the development ofrenewable energy27. So far state governmenthas not been able to formulate any specific pro-gram or policy on the promotion of renewableenergy in the difficult areas where grid connec-tivity is not there. However, there is a potentialto use the provisions of the Act for the develop-ment of Renewable Energy.

C) State Electricity Regulatory CommissionAct, 2000The Regulatory Commission Act provides forthe establishment of a State ElectricityRegulatory Commission, rationalization of elec-tricity tariff, transparent policies regarding sub-sidies, promotion of efficient and environmen-tally benign polices. The significant power ofthe Commission is in reference to its tariff deter-mination28. In determination of tariff for the sup-ply and purchase of electricity including solarpower the Commission shall be guided by theprinciples provided under the Electricity Act of2010.

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

LIGHTING UP LADAKH

IDENTIFICATION OF CASE STUDIES ANDGOOD PRACTICES: Case Study 1:The 250 KVA Diesel Generator at Tangtse inDurbuk block of Leh district supplied electricity tothree villages for domestic lighting. The dieselgenerator besides polluting the fragile environ-ment consumed an average of 48,200 litresannually. Then in collaboration with India CanadaEnvironment Facility (ICEF), MNRE, LadakhAutonomous Hill Development Council (LAHDC)and people of Durbuk block, TATA BP Solar a4X25kWp solar photovoltaic power plant wasinstalled at Tangtse village, which completelyreplaced the existing Diesel Generator set. Thesolar photovoltaic plant is now managed by thelocal people through a cooperative societyknown as Renewable Energy DevelopmentCooperative Limited or REDCO. Some facts about the project: The project is implemented by LEDeG, with tech-nical support from one of the private developerTATA BP Solar India Ltd. It uses a participatory,approach since the time of conceptualizing of theproject. All the villagers were involved in theactivities of the project, including operation andmaintenance of the systems. The power plant isnow run and maintained by the REDCO, a coop-erative society formed by local people in the vil-lage. The operator of SPV system is a youth fromthe Tangtse village trained by the developer tomaintain and operate the system. The salary of

the operator is paid by the Developer as 10 yearsof operational cost is inbuilt in the project cost.The villages covered are Poon Poon, Laga,Tangtse, Shuchikul, Tharuk, Chilam, Aerat inDurbuk block.

Using Passive Solar Architecture: Linkingenergy conservation with clean energy■ With the temperature dropping down to -40Degree Celsius, room heating primarily in theevening and early morning is a necessity. Theconventional methods of room heating is the useof kitchen stove and Chullah (stove) fuelled withdung, wood and kerosene. Use of Trombe walltechnology is an extremely simple technologybuilt on the principle of passive solar gain andminimization of heat loss through various designand insulation techniques.

■ In 1984, in collaboration with Ladakh project,there was installation of 75 solar retrofitted hous-es. Trombe house can reduce reliance on heat-ing fuels by about two-third, besides reducingindoor air pollution and health hazards.

EMERGING ISSUES ON SOLAR POWERDEVELOPMENT AND RECOMMENDATIONS:

■ Increased transportation cost due to difficultterrain and the need to inbuild the cost: Underthe Ladakh project 100% grant is being given by

LIGHTING UP LADAKH

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

MNRE for SPV and 50% grant for SolarThermal. But the grant given falls short of thetotal actual cost required for the commis-sioning of solar power plants in the area dueto the increased transportation component.There is thus need to understand the geo-graphical reality while making the grantper/mw from renewable resources as thecost varies due to transportation costbecoming very high for the region. As anexample there is a hydro power projectbeing developed by NHPC at Alchi whichhas been given an extended cost support ofRs 20 crore per MW keeping in mind thehigher transportation cost and higher laborcost.

■ JNNSM has not taken off in Ladakh !Till December 2010, there have been no proj-ects approved under JNNSM due to refusalby the JK Department of Power. Sourcesreveal that the power department is refusingto sign MoU with the developers for pur-chase of power from the solar plant. ThisMoU is a prerequisite to be eligible for thebenefit under the schemes under theJNNSM. Two reasons that are cited in thelocal context by NGOs and specialist work-ing on renewable energy development in theregion are- pressure from diesel lobby and

other being that JKPDD does not want topurchase power at such a high cost as evenconventional power is being supplied to J&Kunder special scheme and the arrears of thesame are not recovered by the central trans-mission utility.

■ Subsidy ignores the geographical reality-The subsidy that is presently being given byMNRE for the Commissioning of the Plants istaking into account system cost in the plainarea; the cost of the same system is muchhigher in Hilly areas as in this region solarthermal system requires thick insulation tokeep the water from freezing. The cost ofsystems in areas like Ladakh should be cus-tomized taking into account the specific con-ditions. Further the schemes/policies that aredeveloped are keeping in mind the situationin the plains so are not workable in areas likeLeh in Ladakh. They need to be customizedfor such areas and the subsidy that areattached have to be scaled up accordingly.For example, the national scheme for settingup rural godowns specifies eligibility thatrural godown would be set up for minimumstorage of 25 metric tons which is not possi-ble in Ladakh as such a scheme can only beapplied in agricultural states of Punjab andHaryana.

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

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■ Component Subsidy as against Composite Subsidy:Under the current subsidies available there is asubsidy on components only. Whereas there is aneed for subsidy for composite project cost andnot just component as setting up SPV requirescivil works, controller room, fencing of the powerplant, small transmission lines from the local net-work. Thermal system requires anti freeze liquid,insulation of water pipes, indirect heating systemetc. Therefore there is a need for having compos-ite subsidy for equipments to be installed inLadakh.

■ Lack of power to create fund with the local gov-ernment-Need for customized policies and finan-cial powers with the local governmentThe LHDAC has no power to create post or fundthe running of LREDA. The persons employedwith the Agency are on contract basis. TheAgency is sustained on basis of the projects.

Therefore there is a need for strengthening theAgency with funds and human resources thathave technical expertise and are aware of localrealities.

■ Innovation in Technology to suit high altitude:Technology is to be developed in such a mannerthat it can be applied to a high altitude area likeLadakh as the standards equipments especiallyin solar thermal fail to work in extreme winter con-ditions due to freezing of water, so innovation insolar thermal technology is required for suchareas.

■ Decentralize Power Distribution Network: As seen in the case study 1 (Durbuk), there is aneed for increasing the decentralization of powerand creating local solar power stations managedand run by the community with assistance fromthe local government and LREDA and overallsupervision of LAHDC.

LIGHTING UP LADAKH

IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

Enviro Legal Defence FirmEnviro Legal Defence Firm aims at mainstreaming the discipline of environment and development law,resolving conflicts over natural resources and strengthening environmental jurisprudence. It's our belief thatthere is a great potential to contribute to this discipline by bridging the gap that exists between the field-based conflicts and the courts. 'Practicing law' has to grow beyond formal courts of law. We aim at provid-ing a unique institutional framework that would sustain major legal initiatives both within and outside thecourts. ELDF is an independent team of erudite legal professionals, which provides services to any onewho approaches us, including Governments, Non-Government Organizations, Educational Institutions,Individuals, Private and External Agencies engaged in areas of environment and development law. It is ourendeavor to ensure that the service provided by us are free from all biases and prejudices and speaksfrankly about legal aspects- as we understand them. ELDF follows a three-pronged strategy: " Consultancy based Research " Legal Interventions in courts and Legal Opinion " Field based environment and development law training

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IMPLEMENTING THE NATIONAL SOLAR MISSION ISSUES AND WAY FORWARD FOR SOLAR ENERGY DEVELOPMENT IN THE LADAKH REGION-2011

LIGHTING UP LADAKH

1 The total agreement load in 2008-09 in the State stood at 1,969 MW with number of consumers of all categoriesstanding at 12.16 lakh. Demand of power in the same year was 2,120 MW while as local availability stood between716 and 941 MW. Energy purchased in the same period was 9,147 MU, costing over Rs. 1,600 crore. Demand inthe State during 2009-10 is estimated at 2,247 MW, against availability of 1,545 MW, which leaves a deficit of 702MW.2 State Power Report 2002, State Government of Jammu and Kashmir3 http://www.jkserc.nic.in/act2000.pdf 4 http://www.jkserc.nic.in/jkStateElectricityGrid%20Code.pdf5 http://www.jkspdc.nic.in/sg.pdf6 10th Five Year Plan , 2002-2007, http://planningcommission.gov.in/plans/planrel/fiveyr/welcome.html7 jakeda.nic.in/RFP%20II.doc8 Kashmir: the economics of peace building : a report of the CSIS South Asia9 http://planningcommission.gov.in/plans/planrel/fiveyr/welcome.html10 http://www.dailyexcelsior.com/web1/10june09/news1.htm11 The state has a huge hydel potential estimated at 20,000 MW. Of which less than 10 percent has been exploit-ed so far. Among the primary sources of commercial energy, Jammu & Kashmir has proven reserves of coal andlignite. The production of non-coking coal in 1999-2000 was 28 thousand tonne and lignite reserves in the statewere 128 million tonne12 The installed capacity in thermal plants is 184 MW. 13 This capacity was accounted in the year 2005, Ladakh Vision Document, 200514 The Cost of Grid power in the remote villages of Ladakh region is estimated to cost Rs 10 per unit of electricity.15A http://mnre.gov.in/annualreport/2002_2003_English/ch4_pg11.htm15B O.M. No.42/1/2001-D(RE) dated 5th February 2004 , Ministry of Power, Government of India16 jakeda.nic.in/RFP%20II.doc17 See Ladakh Vision 202018 Chapter III deals with powers and functions of the Council, where Section 22 states the mechanisms to con-duct of business Section 23 mentions matters under the control and administration of the council. The council willhave the executive powers in the district where sub-section (xxxiv) mention about the local road transport and itsdevelopment. Sections 29 to section 37 mention the powers of the executive council.19 Section 23 (xxvii), power to regulate non conventional energy sources, LAHDCA, 199720 Section 23 (ii) LAHDCA, 199721 ibid22 Section 23 (i), LAHDCA, 199723 Section 42, Ladakh Autonomous Hill Council Development Act24 Section 48 of the LAHDCA deals with formulation of the district plan25 Section 23 (xxviii), LAHDCA, 199726 Section 2 of the J&K Forest (Conservation) Act, 200727 Section 3 (1), J &K Electricity Act, 201028 The tariff by the Commission.-(I) Notwithstanding anything contained in any other law, the tariff for interstatetransmission of electricity and the tariff for supply of electricity, grid, wholesale, bulk or retail, as the case may be,in the State (hereunder referred to as the "tariff"), shall be subject to the provisions of this Act and the tariff shallbe determined by the Commission in accordance with the provisions of this Act.

REFERENCES:Planning Commission Annual Report, 2009Ladakh Vision-2025Jammu and Kashmir Renewable Energy Policy, 2006Jammu and Kashmir Solar Policy, 2010

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