Twelfth Five Year Plan (2012–2017): Faster, More Inclusive and Sustainable Growth Volume I

Meta Data

Draft:

Revision of previous policy?:

Draft Year:

2013

Effective Start Year:

2012

Effective End Year:

2017

Scope:

National

Document Type:

Plan/Strategy

Economic Sector:

Power, Multi-Sector, Other

Energy Types:

Power, Renewable, Other

Issued by:

Planning Commission (Government of India)

Source:

NITI Aayog, Government of India (EN)

File:

Twelfth Five Year Plan (2012–2017)(EN)

Twelfth Five Year Plan (2012–2017)(HI)

Overall Summary:

The Twelfth Plan relies on an extensive range of government programmes, which cover a wide variety of sectors, to help achieve the inclusive and sustainable growth. These include health, education, drinking water and sanitation, provision of critical infrastructure in rural and urban areas, programmes of livelihood support for the weaker sections and disadvantaged sections of our population. The broad vision of the plan is to achieve a ‘Faster, Sustainable, and More Inclusive Growth’. The Plan document outlines an ambitious agenda for policy change. As for energy this includes policies related to energy pricing, energy efficiency and technology and greater involvement of the private sector in exploration and development of primary energy sources. The Volume 1 is structured as follows: 1 Overview; 2. Macroeconomic Framework; 3. Financing the Plan; 4. Sustainable Development; 5. Water; 6. Land Issues; 7. Environment, Forestry and Wildlife; 8. Science and Technology; 9. Innovation; 10. Governance; 11. Regional Equality.

Access

Energy access targets:

Provide electricity to all villages and reduce AT&C (aggregate technical and commercial) losses to 20 per cent by the end of Twelfth Five Year Plan.---Electricity, gas and water supply are projected to grow at 7.3 per cent on an average compared with 6.1 per cent achieved in the Eleventh Plan.

Efficiency

EE targets:

The targeted energy saving in the first commitment period of 3 years (2012–2015) is estimated at 10 million metric tonnes of oil equivalent (mMtoe), which will amount to 4.2 per cent energy intensity reduction over three years. Please, see Table 4.2 "Initial Estimate of Energy Consumption and Energy Reduction Targets" for details.---Provide electricity to all villages and reduce AT&C (aggregate technical and commercial) losses to 20 per cent by the end of Twelfth Five Year Plan.

EE action plans:

During the Twelfth Plan period, the Super-Efficient Equipment Programme (SEEP) for super efficient fans, LED bulbs and tube lights, seeks to incentivize the sale of these products to increase their volumes and bring down their prices for large-scale adoption.---Energy Conservation Building Codes, formally launched in May 2007, specifies the energy performance requirements of commercial buildings in India. [...] The purpose of this code is to provide minimum requirements for the energy-efficient design and construction of buildings. The code is presently in the voluntary phase of implementation and is expected to become mandatory during the Twelfth Plan.

Renewable Energy

RE priorities:

Promoting alternative energy options;

RE targets:

Add 30,000 MW of renewable energy capacity in the Twelfth Plan

RE capital subsidy, grant, or rebate:

Solar Energy Research Initiative—Support 250 doctoral-level researchers from 10 institutions.

Public investment loans or grants:

The government should immediately classify solar power projects as ‘priority lending’ so that banks start giving it due importance in their credit plans.

Environment

Energy environmental priorities:

Development cannot take place without additional energy and the energy requirement of development will have to be reconciled with the objective of protection of environment.---During the Twelfth Plan period, attempt will be made to create capacity at the state level, and to provide some resources to incentivise state action in the area of adaptation and mitigation.

GHG emissions reduction targets:

Reduce emission intensity of GDP in line with the target of 20 per cent to 25 per cent reduction over 2005 levels by 2020.

Decarbonization strategy:

During the Twelfth Plan, financing of climate change related actions will be a major challenge. Low carbon strategies will particularly require enhanced deployment of renewable and clean energy technologies, and capital finance for improvements in technology. [...] Given that energy supply and end-use technologies are evolving rapidly, policy instruments should reflect the contemporary state of technology.

Energy-water nexus:

New policies should support the new land use arrangements, enhance investment in water harvesting, promote small-farm mechanisation and efficient water use technologies. A package of financial incentives for improved land management, including resource conservation (water, carbon, energy) [...] may facilitate quicker adoption of these measures.

Pricing

Energy pricing:

Coal: a system of pricing pooling [...] should be explored and it should be implemented urgently.---The electricity tariff policy of the Government should be neutral to the type of solar technology being deployed in the approved projects.---Export subsidies (explicit and implicit) available to foreign manufacturers must be matched by tariff/domestic policy to the extent it provides a level playing field to the domestic solar manufacturers.

Carbon tax:

With a view to generate additional resources, a cess at the rate of `50 per tonne of coal was levied in the budget of 2009. The cess has become operational and its revenue[...] will go to a newly created National Clean Energy Fund (NECF), which will be used to finance innovative projects in clean energy technologies and to harness renewable energy sources to reduce dependence on fossil fuels.

Energy Supply and Infrastructure

Infrastructure development priorities:

The next important short-term action must be to remove the impediments to implementation of projects in infrastructure, especially in the area of energy. The following steps are especially urgent. Fuel Supply to Power Station: [...] Coal India must take steps to enhance its domestic production capability as much as possible, including by exploring possible PPP arrangements with mine development operators working on a contract basis [...].

Trade

Energy export financial incentives:

Export subsidies (explicit and implicit) available to foreign manufacturers must be matched by tariff/domestic policy to the extent it provides a level playing field to the domestic solar manufacturers.

Advance rulings:

Our customs duty structure should not be inverted along solar industry’s value chain (basic and intermediate inputs should not attract higher tariffs than finished products).

Investment

Financial incentives for energy infrastructure:

The NCEF (National Clean Energy Fund) will support projects, programmes and policies that promote clean energy technologies. This fund can be used to establish a focused investment vehicle for companies investing in green technology, and environmentally supportive businesses such as renewable energy, green transport, and water and waste management among others.---With a view to generate additional resources, a cess at the rate of `50 per tonne of coal was levied in the budget of 2009. The cess has become operational and its revenue[...] will go to a newly created National Clean Energy Fund (NECF), which will be used to finance innovative projects in clean energy technologies and to harness renewable energy sources to reduce dependence on fossil fuels.---Innovative domestic markets mechanisms are being evolved under the Perform, Achieve & Trade (PAT) Scheme that is being implemented by the Bureau of Energy Efficiency for designated industries[...]. Efforts are being made to support this scheme by creating a Partial Risk Guarantee Fund with help from the Global Environmental Facility.

Public Private Partnerships:

Fuel Supply to Power Station: [...] Coal India must take steps to enhance its domestic production capability as much as possible, including by exploring possible PPP arrangements with mine development operators working on a contract basis [...].

Technology

Clean energy technology priorities:

Focus on the research areas of national relevance such as energy and food security, [...] and water-related areas needs to be accorded high priority.---Encourage and facilitate Indian Science to address the major developmental needs of the country like[...]energy and environmental needs, [...]. To realise these objectives, it will be necessary to build technology partnerships with States and socio-economic ministries through new models of technological solutions, design, development and delivery.---Nuclear Energy: [...] much greater attention will have to be paid towards improving the confidence of the people and especially in providing world-class systems to counter the risks associated with this form of energy.---The primary objective of developing green technology is to replace the obsolete and inefficient systems with more energy-efficient and clean technologies.---During the Twelfth Plan, financing of climate change related actions will be a major challenge. Low carbon strategies will particularly require enhanced deployment of renewable and clean energy technologies, and capital finance for improvements in technology. [...] Given that energy supply and end-use technologies are evolving rapidly, policy instruments should reflect the contemporary state of technology.---Leverage the large-scale innovative component of strategic research spin-offs from defence, space and atomic energy for civilian benefits in a much larger segment.

Clean energy technology deployment:

The NCEF (National Clean Energy Fund) will support projects, programmes and policies that promote clean energy technologies. This fund can be used to establish a focused investment vehicle for companies investing in green technology, and environmentally supportive businesses such as renewable energy, green transport, and water and waste management among others.---The government should support research and development to promote indigenous manufacturing of USC (ultra-supercritical) units. The first USC plant, which is a joint effort of BHEL, NTPC and IGCAR, is expected to be operational in 2017. Deployment of USC plants may be suitably incentivised and targeted during the Thirteenth Plan period.---Consolidation of deep sea mining technology such as integrated deep sea mining system, soil tester, Remotely Operated Vehicle (ROV) and manned submersible would be carried out, besides developing Marine Sensors and underwater equipment.---The Global Centre for Nuclear Energy Partnership (GCNEP), the sixth R&D centre of DAE, is being set up in Haryana near Delhi. The main objective of setting up GCNEP is to enable India in establishing the leadership in the field of nuclear energy through research and training and organise workshops, schools and seminars by Indian and international scientists/experts on topical issues.---Establishment of [...] CSIR Network Institute for Solar Energy.

R&D renewable energy:

R&D efforts for indigenous manufacturers should be incentivised by permitting them to compete with government laboratories for research funding through the budgetary sources.---CSIR Initiative on Inclusive, Participative and Collaborative R&D: This new initiative for CSIR during the Twelfth Plan would comprise the following [...] sub-components: [...] Centres for Collaborative Research—CSIRAcademia, CSIR-R&D Institutes and CSIR Industry: The centres would focus on collaborative R&D in the identified domains through desired networking. They would be state-of-the-art setups and work in a fluid networked organisation mode. The R&D in such centres would be in domains such as [...] sustainable energy and infrastructure engineering.---Solar Energy Research Initiative—Support 250 doctoral-level researchers from 10 institutions.