Directions (Q. 1-15): Read the passage carefully and answer the
questions given below it. Certain words/phrases are given in bold to help you
locate them while answering some of the questions.
On India’s 65th Independence Day in
2012, Prime Minister Manmohan Singh made a promise to the people that every
house in every village will be electrified in five years. Despite several such
announcements in the past, the ultimate goal of complete electrification eludes
us, though the Union government has achieved significant success in rural
electrification, primarily through its Rajiv Gandhi Grameen Vidyutikaran
Yojana.Efforts are also being made to generate and distribute electricity to
remote rural areas (where the grid supply hasn’t reached or is severely
restricted) through small-scale energy generation systems in an off-grid mode
using locally available renewable resources such as bio-mass, water, sunlight
and wind. Such rural electricity access based on decentralised renewable energy
(DRE) can bolster socio-economic development and alleviate poverty. Sadly
though, a number of commissioned DRE projects have failed to survive in the
long run due to unresolved technical, socio-economic and institutional
problems. The sustainable development of the DRE sector is hampered
particularly by the high and inequitable tariffs for poor consumers, a lack of
performance-based incentives and the perceived threat from the expanding
centralised grid at the DRE project location. This article explains these
concerns and offers suggestions.
DRE is primarily used by the rural poor, but they are often required to pay higher electricity tariffs than those paid by the consumers connected to the grid. DRE systems are thus unattractive for poor households, which have no choice but to restrict their electricity usage. The prohibitive tariffs result from the high costs of electricity generation, caused in turn by the high specific capital costs, high operation and maintenance expenses and low utilisation factors in remote rural areas. Yet, there is no policy-regulatory mechanism to ensure that the tariffs of DRE and grid-connected consumers are equitable. Recently, the Forum of Regulators (FoR), which comprises chairpersons of the Central and State Electricity Regulatory Commissions (ERCs), has taken welcome steps in this regard. The Forum has approved two business models which will ensure that DRE consumer tariffs are in line with their grid counterparts, and yet provide sufficient returns on investments to developers. According to one model, the developer shall provide electricity to consumers and collect revenue (consumer tariffs). An electricity distribution company will then provide the difference, that is, the viability gap for a kilowatt-hour between the generation tariff (also known as feed-in-tariff, decided by the State ERC) and the consumer tariff to the developer. The Forum’s guidelines for this model are likely to be released soon. According to the second model, the developer shall provide electricity to consumers at grid-based tariffs and obtain a renewable energy certificate (REC) for the energy generated, which can then be exchanged on specially approved power exchanges. The Forum has requested the Central Electricity Regulatory Commission (CERC) to amend its REC regulations to enable RECs for off-grid projects.
In view of the burden of high-capital
investments in setting up DRE projects, the Ministry of New and Renewable
Energy (MNRE), the nodal Union ministry for the promotion of renewable energy,
provides capital subsidies to developers through various schemes. Similarly,
various funding agencies also offer grants for starting projects. While capital
grants are helpful to kickstart any new initiative, the lack of focus on
long-term performance remains unaddressed by such grants. Hence,
performance-based incentives in the DRE sector must be promoted for giving
incentives for higher generation. Such incentives demand an effective
institutional and governance framework for the sustainable operation of the project.
The effectiveness of this framework in making the DRE sector successful will
pivotally depend on a robust process of monitoring and verification (M&V).
Comprehensive M&V should focus on technical aspects (energy metering and
conformity with standards), operational requirements (validation of protocols,
subsidy disbursal and safety) and socio-economic measures (impact assessment
and user feedback). Since DRE systems are widely dispersed in remote areas, the
costs of M&V rise. Simple, streamlined procedure to reduce transaction
costs to a acceptable level can be part of the solution. Additionally, all
those who have a stake in DRE systems, including villagers, developers,
distribution companies, State nodal agencies and State ERCs, must endeavour
towards coordination among themselves for effective M&V.
1. Which of the following statements regarding decentralised
renewal energy (DRE) is correct?
(A) There is a
well-established regulatory mechanism to ensure that the tariffs of DRE and
grid-connected consumers are equitable.
(B) Under
DRE system, poor rural people have to pay higher electricity tariffs in
comparison to those who are connected to the grid.
(C) The
cost of electricity generation under DRE system is not so high.
1) Only (A)
2) Only (B)
3) Only (A) and (B)
4) Only (B) and (C)
5) All (A), (B) and (C)
2. What efforts are being made to solve electricity problem
and alleviate poverty?
1) Every effort is being made to supply electricity free of
cost during summer season.
2) Banks have been advised to give interest-free loans up to
twenty thousand rupees for purchase of generator sets in rural areas.
3) Rural people using decentralised renewal energy have to
pay very little amount of electricity tariff.
4) Small-scale energy generation system using locally
available renewal resources are being installed in the areas where grid supply
has not reached as yet.
5) All the above
3. Which of the following is correct regarding the Forum of
Regulators (FoR)?
(A) To ensure
that decentralised renewal energy consumer tariffs are in line with the tariffs
of consumers connected to the grid, the Forum has suggested two business
models.
(B) FoR
comprises chairpersons of the Central and State Electricity Boards.
(C) According
to one model, the developer shall provide electricity to consumers and collect
revenue.
1) Only (A)
2) Only (B)
3) Only (C)
4) Both (A) and (C)
5) All (A), (B) and (C)
4. Which of the following is true regarding electrification in
rural areas in India?
1) It has been assured by the Prime Minister Manmohan Singh
that every house in every village will be electrified by the end of 2017.
2) The assurances made by the politicians are usually
fulfilled.
3) It is true that the Central Government has achieved
significant success in rural electrification.
4) Only 1) and 2)
5) Only 1) and 3)
5. What should comprehensive M&V do? Give your answer in
the context of the passage.
(A) Comprehensive
M&V should focus on technical aspects such as energy metering and ensure
conformity with standards.
(B) It
should also focus on operational requirements and socio-economic measures.
(C) It
should file a case against those who do not follow the guidelines mentioned in
the framework.
1) All (A), (B) and (C)
2) Only (A) and (B)
3) Only (B) and (C)
4) Only (A) and (C)
5) None of these
6. How is the requirement of high-capital investment in
setting up DRE projects met?
1) Foreign countries are making the loans readily available
for setting up such projects.
2) The Ministry of New and Renewable Energy provides capital
subsidies to developers.
3) Different funding agencies also offer grants for starting
projects.
4) Only 1) and 2)
5) Only 2) and 3)
7. What steps should be taken for making M&V effective?
(A) All those
who have a stake in decentralised renewal energy system must endeavour towards
coordination among themselves.
(B) The
cost of M&V can be minimised to an acceptable level through simple
streamlined procedures.
(C) A
regulator should be there to have a vigil over the functioning of M&V.
1) Only (A)
2) Only (B)
3) Only (A) and (B)
4) Only (B) and (C)
5) All (A), (B) and (C)
8. Which of the following is/are not true in regard to the
second model approved by the Forum of Regulators?
(A) The
developer shall provide electricity to consumers at subsidised rate.
(B) The
developer shall provide electricity to consumers at grid-based tariffs.
(C) The
developer will obtain a renewal energy certificate for the energy generated
which can then be exchanged on specially approved power exchanges.
1) Only (A)
2) Only (B)
3) Only (A) and (B)
4) Only (B) and (C)
5) All (A), (B) and (C)
9. What suggestion(s) has/have been made to enhance the
electricity generation through DRE projects. Give your answer in the context of
the passage.
(A) Performance-based
incentives in the DRE sector must be promoted for giving incentives for higher
generation of electricity.
(B) Such
incentives demand an effective institutional and governance framework for the
sustainable operation of the project.
(C) The
effectiveness of this framework will depend upon a strong process of monitoring
and verification.
1) All (A), (B) and (C)
2) Only (A) and (B)
3) Only (B) and (C)
4) Only (C)
5) Only (A)
Directions (Q. 10-12): Choose the word/group of words which is
MOST SIMILAR in meaning to the word/group of words printed in bold as used in
the passage.
10. Conformity
1) in accordance with
2) for the sake of
3) in lieu of
4) proximity
5) different
11. Eludes
1) classify
2) evades
3) interprets
4) demoralize
5) suppress
12. Endeavour
1) favour
2) ensure
3) prosper
4) try
5) strike
Directions (Q. 13-15): Choose the word/group of words which is
MOST OPPOSITE in meaning to the word/group of words printed in bold as used in
the passage.
13. Viability
1) difficulty
2) possibility
3) capability
4) depravity
5) vicinity
14. Bolster
1) empower
2) strengthen
3) weaken
4) harden
5) crumble
15. Robust
1) rough
2) tough
3) vigorous
4) weak
5) boisterous
Answers:
1. B) 2. D)
3. D) 4. E) 5. B)
6. E) 7. C) 8. A)
9. A) 10. A) 11. B)
12. D) 13. A) 14. C)
15. D)