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BPSC Mains GS-2 Masterclass · Science & Technology

Meeting India's & Bihar's Power NeedsDemand, Discoms, UDAY & Uranium

India's demand for electricity keeps rising while coal, oil and gas run down, and much of the power that is made is lost before it is billed. This page covers the science and technology that can close the gap, Bihar's own power needs, the UDAY rescue of the discoms, and Bihar's uranium oxide.

Capacity373 GWIndia's grid capacity

installed, 2020.

India1,181 kWhPer capita use, India

2018-19; low by world standards.

Bihar311 kWhPer capita use, Bihar

lowest in India; up 114% since 2012-13.

Losses21.4%AT&C losses

India's average.

UDAYNov 2015UDAY launched

to rescue state discoms.

Technology~50%HVDC saving

cut in transmission losses vs HVAC.

Part 1 · Ever-rising electricity demand

Why India Needs Ever More Electricity

A growing economy, a growing population and new connections push demand up, while the coal, oil and gas that meet most of it are running down.

Illustration of an Indian city at dusk with lit homes, factories and high-voltage transmission towers

Electricity drives growth

Electricity is critical to fuel the economic growth of India. The country is on the fast trajectory of development but to keep the momentum of growth high, availability of uninterrupted power supply is a must.

India needs electricity to fuel the growth of every industry, be it large-scale or small scale, manufacturing, healthcare or education.

Ever-rising electricity demand and depleting conventional energy resources

Currently (in 2020), the national electric grid in India has an installed capacity of 373 GW. However, with rising population and growing economy the energy demand has ever-rising trend.
India's energy consumption is expected to grow 4.5 percent every year for the next 25 years.
According to one estimate, India's energy demand could double by 2040, with electricity demand potentially tripling as a result of increased appliance ownership and cooling needs.
According to NITI Aayog exercise, the energy demand in India is likely to go up by 2.7-3.2 times between 2012 and 2040 and thus import demand could increase from 31% in 2012 to 36-55% in 2040.
Average electricity use (2018-19) was 1,181 kWh per capita. The per capita electricity consumption is low compared to most other countries despite India having a low electricity tariff. With economic growth and rising standard of living the demand of electricity would only increase in future.
The country has made huge strides to ensure full access to electricity, bringing power to more than 700 million people since 2000. As of now, 304 million Indians live without access to electricity. Once, these people get access to electricity, there will be further boost in the energy demand.
At present, most of the current energy demands are met by the conventional energy sources like natural gas, oil, coal, or nuclear which is 63% of the total installed energy capacity. But, these sources are non-replenishable in nature and are getting depleted as we use them.
- Based on BP's Statistical Review of World Energy 2016, we'd have about 115 years of coal production, and roughly 50 years of both oil and natural gas remaining.

Years of production remaining (BP, 2016)

Coal115 years
Oil50 years
Natural gas50 years

Oil and natural gas: roughly 50 years each.

Part 4 · Use of science and technology to overcome the gruelling energy demands

Science and Technology to Meet the Demand

From new sources of generation to smarter grids, efficient machines, digital billing and nanotechnology: the scientific initiatives for India and for Bihar.

The scientific initiatives which can be introduced

For electricity generation

Renewable energy:
- Solar energy: photovoltaic electricity and solar thermal electricity
- Biogas gasification
- Wind power
- Fuel cell technology
- Geothermal energy
- Energy production through biomass
- Tidal energy
- Energy from ocean waves
- Microbial fuel cells: it utilizes biotechnology for sustainable production of electricity.
- Biodiesel and bioethanol: Genetic Engineering can further enhance the Biodiesel Production
- Technology of hydraulic fracturing for shale gas production.
- Waste to energy technologies e.g. pyrolysis and gasification
Other:
- Nuclear energy
- Methanol production
- Methane gas production
Use of mobile apps to facilitate power purchase e.g. the Merit app (Merit Order Dispatch of Electricity for Rejuvenation of Income and Transparency).

For distribution

GIS mapping of power lines to check the power connectivity.
Better transmission system: Sub-station Automation system, Optical Ground Wire, Gas insulator system etc are already introduced.
A high voltage direct current (HVDC) system can reduce transmission losses by around 50 per cent compared to a high voltage alternating current (HVAC) system.

For energy conservation and efficiency

High end power turbine and generator
Ultra-Efficient Heat Pumps in buildings which warm and cool our home by moving heat from one space to another. It can reduce primary energy consumption by 30 percent.

For revenue realization

Spot billing through mobile app.
Remote meter reading done by the headquarter.
Pre-paid metering e.g. it has been started in Vidyut Board colony in Patna.
Smart Prepaid Metering:
- Smart metering functionalities such as connect/disconnect, load control, monitoring of daily consumption at consumer end, and prepaid functionality with arrear management are already commissioned and integrated with NIC billing solution of DISCOMs.
- The daily consumption is calculated in Meter Data Management solution and the corresponding amount is deducted from the prepaid balance. This information is updated on consumer App for being viewed by the consumer.
- Also, smart meters are being installed in new connection related to ‘Har Ghar Nal Jal Yojana’.
Bill on Missed Call through SMS: The consumer can get information through SMS on current payment due against electricity connection and due date, by giving a missed call on a specified number.
Suvidha Mobile App: DISCOMs have developed a mobile app (SUVIDHA) to facilitate various services to the consumers. These services include online bill payment, viewing energy bills, viewing payment transactions, registration of complaints, information on electricity theft, load change service, correction of spelling in the name and address, etc.
Social Media: DISCOMs are setting up a dedicated cell to answer the issues raised in social media for creating a good reputation for itself.

Nanotechnology

Further, nanotechnology is also said to provide solutions to electricity generation, transmission, storage and distribution, e.g.:

Nanotech solar cell is unique both for its energy efficiency and cost effectiveness.
Nanotechnology will help to improve the efficiency of electricity transmission wires. There are numerous nano-materials relevant to electricity transmission. Carbon nanotubes are one such nanomaterial which has potential to impact the energy transmission system.
Nano-electronics have the potential to revolutionize sensors and power-control devices. Nanotechnology enabled sensors would be self-calibrating and self-diagnosing. They could place trouble calls to technicians whenever problems were predicted or encountered.

Example: A prepaid smart meter works like a prepaid mobile SIM: the household recharges first, the meter deducts each day's use, and the app shows the balance. The discom is paid in advance, so it no longer loses money to unpaid bills.

Power for all

Government has taken various steps to provide round the clock electricity to the people like Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Saubhagya Yojna etc. Government is committed to supply power for all by 2022. The use of science and technology will take us a long way towards realising this goal.

Part 5 · What is UDAY (Ujwal DISCOM Assurance Yojana)?

UDAY: Rescuing the Power Distribution Companies

Launched in November 2015 to turn around loss-making discoms by moving their debt to the states and tying relief to efficiency and tariff targets.

The scheme

Government of India launched the Ujwal DISCOM Assurance Yojana (UDAY) in November 2015. It was designed to turn around the precarious financial position of state power distribution companies (discoms). Discoms are responsible for buying electricity from the generation companies and selling them to consumers.

Unpaid dues

According to PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators) portal, the discoms' total outstanding dues to power gencos (power generating companies) rose 48% to Rs 81,010 crore in October 2019.

The primary reason for this is the failure of discom to collect the full cost that they pay for power.

The issues in the power distribution sector

India now generates more power than it needs (surplus power). But, the practical experience signals that the scheduled and unscheduled power cuts are the norms in cities, and the situation in most rural areas is worse.
This means the consumption of power has consistently lagged behind availability.
Reasons for financial losses of discoms: the discoms suffer Aggregate Technical and Commercial (AT&C) Losses.
- Technical Loss: It is due to the flow of power in transmission and distribution system. Almost 25% of the power is lost, and never gets billed.
- Commercial Loss: It is due to the theft of electricity, deficiencies in metering, etc.
- The gap between the average per-unit cost of supply (ACS) (i.e. the cost incurred in procuring electricity from power generator and further distributing it) and average revenue realised (ARR) (i.e. the cost received by the Discom after selling it to final consumer).
The remaining 75% is sold at prices that are much lower than the discoms' procurement costs.
- In almost every state, the increase in tariff rates is avoided because of the associated political costs.
- Therefore, political unwillingness is at the heart of commercial losses.
- Due to this, there has been a gap between ACS and ARR.
Example: If a discom spends ₹7 to buy and deliver one unit but recovers only ₹6.50 from the consumer, it loses 50 paise on every unit it sells. That 50 paise is the ACS–ARR gap, and across crores of units it becomes a debt crisis.
As a result, by March 2015, discoms' accumulated losses were approximately Rs 3.8 lakh crore — more than 3.5% of the GDP.

The three critical components of UDAY

In order to make discoms financially viable, UDAY scheme was launched. The scheme has three critical components.

1
The takeover of discoms' debt by state governments
State governments took over 75% of the debt of their discoms and issued lower-interest bonds to service the rest of the debt.
2
Efficiency targets
In return, discoms were given target dates (2017-19) to meet efficiency parameters. Aggregate technical and commercial (AT&C) losses of discoms are to be reduced.
3
Tariffs and the ACS–ARR gap
This has to be matched up by timely tariff revisions and elimination of the gap between the average per-unit cost of supply (ACS) and average revenue realised (ARR) by 2019.

Positive outcomes

Out of the 28 states that implemented UDAY, 10 states have shown either reduced losses or profits in 2019.
Instead of just focusing on distribution, UDAY focused on interventions in coal, generation and transmission sectors as well.

However, several targets being missed

Burgeoning AT&C Losses: At the aggregate level, the AT&C losses for major states stood at 19.05% as against the target of reducing them to 15% by the end of 2019.
- In the case of some states, especially in the northern and central parts of the country, the losses are of a much higher magnitude, suggesting that pilferage continues to be rampant.
High ACS-ARR Gap: While the ACS-ARR gap was supposed to be eliminated by 2019, it remains as high as Rs 0.25 per unit.
- In many states, the gap is even higher. This can be traced to inadequate tariff hikes.
Mixed Progress: Operational efficiency targets under UDAY, such as the installation of feeder metering, smart metering and feeder segregation, are still not completely met.
- For instance, not much progress has been made in the case of smart metering above 200 and up to 500 kWh and above 500 kWh.
Inadequate Power Subsidy: Also, the power subsidy released by state governments to discoms appears to be inadequate.
- As a result, discoms have reported financial losses to the tune of Rs 21,658 crore at the end of 2019, reversing the declining trend since the launch of UDAY.
Economic Roadblock: Further, UDAY bonds were issued at a premium, due to this, the cost of debt servicing has gone up for the UDAY states.
- The impact on state finances is likely to continue due to interest payment on UDAY bonds and redemption of these bonds.
- This makes for a grim prospect for most states combating a tight fiscal situation amid a continuing slowdown.

Way forward

Government's announcement of the launch of UDAY 2.0 which seeks installation of smart prepaid meters, prompt payment by discoms, making coal available for short term and reviving gas-based plants is a step in the right direction.
There is an urgent need to address the issues of burgeoning outstanding dues of discoms towards power generators and stressed projects that are being dragged under insolvency proceedings.
Formulation of pragmatic power tariff policy is the need of the hour because without a financially viable power sector, the socio-economic growth of India will suffer.

Part 6 · How is Bihar going to benefit from UDAY?

Bihar under UDAY

Bihar issued all its UDAY bonds and completed feeder segregation and LED distribution, but its losses and smart-metering gaps remain large.

Data for Bihar

UDAY parameter	Bihar
Bonds issued	100%
AT&C loss	34.32%
ACS-ARR gap	Rs 0.57 per unit
Smart metering above 500 kWh	0%
Smart metering above 200 and up to 500 kWh	3%
Distribution of LEDs under UJALA	100%
Feeder segregation	100%
DT metering in urban areas	100%
DT metering in rural areas	34%

Example: Read the Bihar row against the national figures: Bihar's AT&C loss (34.32%) is far above the 19.05% average for major states and the 15% target, and its ACS-ARR gap (Rs 0.57) is more than twice the national Rs 0.25. Faster smart metering is where Bihar has the most to gain.

24x7 power for every home

The Indian government has vowed to provide 24X7 power supply to every village and every house in India. The fulfilment of this dream will rest upon a sustainable power sector. Therefore, the government should proactively address the concerns of these power distribution companies.

Part 7 · Uranium oxide found in Bihar

Uranium Oxide in Bihar and Its Economic Uses

The forms of uranium oxide, where it is found, why it changes over time, and its uses from reactor fuel to glazes, catalysts and semiconductors.

What is uranium oxide?

Uranium oxide is an oxide of the element uranium. It occurs in several forms e.g. UO2, U2O5, UO3 etc. The most common forms of uranium oxide are triuranium octoxide (U3O8) and UO2.

Triuranium octoxide is (depending on conditions) the most stable compound of uranium and is the form most commonly found in nature. Uranium dioxide is the form in which uranium is most commonly used as a nuclear reactor fuel.

Where it is found

Uranium deposits occur in Singhbhum and Hazaribagh districts of Jharkhand, Gaya district of Bihar. In Mica-field of Gaya, Munger, 30 uranium bearing pegmatite have been located.

The largest source of uranium comprise the monazite sands. Monazite sands occur on east and west coasts and in some places in Bihar. (But the largest concentration of monazite sand is on the Kerala coast.)

It is destroyed by itself even if not used

Raw uranium oxide is highly explosive as well as radioactive. Being radioactive it depletes naturally.
It is not always stable and great care must usually be used in handling it.
At ambient temperatures, UO2 will gradually convert to U3O8.

Economic aspects

UO2 is used mainly as nuclear fuel, specifically as UO2 or as a mixture of UO2 and PuO2 (plutonium dioxide) called a mixed oxide (MOX fuel), in the form of fuel rods in nuclear reactors.
- The thermal conductivity of uranium dioxide is very low when compared with uranium, uranium nitride, uranium carbide etc.
Uranium oxide (urania) was used to color glass and ceramics prior to World War II, and until the applications of radioactivity were discovered this was its main use.
- More commonly it is used in oxidation to produce bright yellow, orange and red glazes. It is used in formulations of enamel and porcelain.
Prior to the realisation of the harmfulness of radiation, uranium was included in false teeth and dentures, as its slight fluorescence made the dentures appear more like real teeth in a variety of lighting conditions.
Depleted UO2 (DUO2) can be used as a material for radiation shielding.
Depleted uranium dioxide can be also used as a catalyst, e.g. for degradation of volatile organic compounds in gaseous phase, oxidation of methane to methanol, and removal of sulfur from petroleum.
The use of uranium dioxide as a material for rechargeable batteries is being investigated. The batteries could have high power density.
Uranium dioxide is also the strongest known piezomagnet in the antiferromagnetic state observed at cryogenic temperatures below 30 kelvins.
It has semiconductor properties as well. The band gap of uranium dioxide is comparable to those of silicon and gallium arsenide.

Health risk

Being a radioactive material it poses certain health risk even cancers.

Breathing dust particulates and eating food can lead to lung collapse and organ failure.

“The Indian government has vowed to provide 24X7 power supply to every village and every house in India. The fulfilment of this dream will rest upon a sustainable power sector.”

— BPSC Mains answer · UDAY

Curated for BPSC, UPSC & State PCS Civil Services Aspirants | Science & Technology Master Module

Explore More Beyond the Book Modules

Meeting India's & Bihar's Power NeedsDemand, Discoms, UDAY & Uranium

Why India Needs Ever More Electricity

Ever-rising electricity demand and depleting conventional energy resources

Why India Still Faces a Power Shortage

Dependence on imported fuel

Distribution, not generation

Debt-ridden discoms

Losses and unstable supply

Bihar's Growing Need for Power