Times of a nation

24 May 2007

Introduction of two time zones would be a very small step in facilitating efficient use of resources in the power sector. But today every little bit would help

The deficit in supply of electricity against demand in the country is affecting the economy adversely. While estimates of the cost of electricity shortages vary from 0.5 per cent to 1.5 per cent of the GDP, even more serious is the enormous loss of human welfare on account of an erratic and unreliable supply of power. While official figures indicate a peak shortage of 13.9 per cent and energy shortages amounting to 9.3 per cent, the recent performance of the power sector does not provide any assurance that relief is in sight. One basic flaw lies in the sole emphasis on adding supply capacity without adequate regard to bringing about efficiency improvements and implementing measures for demand management.

In the mid-1980s the Advisory Board on Energy, which reported directly to the prime minister, entrusted TERI with the task of assessing the efficacy and economic viability of demand-side measures including the possibility of introducing two time zones in the country. The logic behind two time zones is simple. A large part of the demand for electricity is clock related. Office timings would determine the routine that even households follow in consuming power which would have a direct relationship with working hours. So would be the case with factories and the timings they follow. On the other hand, several activities for which electricity is used are essentially sun related. A farmer, for instance, would generally begin his day based on the time when the sun rises and end it when it sets. Morning walkers in a city, for instance, would get up and switch on their lights and water heaters based on early sunrise hours in the summer and somewhat later hours in the winter.

The attractiveness of daylight saving time (DST) for India lies in the fact that on June 23 sunrise and sunset in eastern India occur at 4:53 am and 6:24 pm whereas in the western part they occur at 6:03 am and 7:19 pm respectively. On December 23, the timings are 6:13 am and 4:58 pm in the east and 7:08 am and 6:07 pm respectively in the west. India is currently at GMT+5.5 hrs. If we were to demarcate the country longitudinally into two time zones with the western part at GMT+5 hrs and the eastern at GMT+6hrs, solar timings would be better reflected in clock timings and a differential of an hour would be created in the two time zones over which greater exchanges of power could take place effectively.

The introduction of DST would have the advantage of phasing out the peak demands between the two time zones by about an hour or so. The power demand curve in the east would start rising and dipping an hour ahead of that in the west allowing transfer of energy from the east to the west towards the end period of the morning peak and, in a similar manner, at the beginning period of the evening peak. In a detailed survey done in households in Delhi by TERI, it was found that in the summer months, lighting and space conditioning contributed to around 17 per cent and 55 per cent of the evening peak respectively and 16.5 per cent and 33 per cent of the morning peak. In the winter months, the morning peaks are significantly higher and water heating contributes to over 45 per cent of this demand!

A quick look at the bilateral exchanges of power in the northern region (courtesy: Northern Regional Load Despatch Centre) reveals curiously that most such exchanges take place in the months of June to September, peaking in July. Even more curious is the fact that the maximum exchange happens in the completely off-peak time period between midnight to the early morning hours - this is largely to meet the energy requirements for the paddy crop in Punjab. This points to the fact that in our energy starved situation, there exists a huge potential for benefit sharing even during off peak hours that has not been exploited fully.

Of course, we would need to carefully evaluate the states that would constitute the eastern zone and those that constitute the western. It would not make sense to demarcate India longitudinally as this line would cut through the middle of some states creating administrative nightmares!

The concept of two time zones must also be seen as part of a larger philosophical issue. Innovation in the power sector has remained stillborn despite the changes in legislation in recent years. An unfortunate example of how intentions can be thwarted by measures not correctly implemented is provided by the regulatory commissions in various states. These bodies have woefully inadequate expertise and, in several cases, inadequate freedom to act. The result has been the addition of bureaucracies at the state level which, except for some, have not met fully the objectives for which they were established.

Power sector development in the developed countries is supported by continuous research on economic issues, a range of possible policy innovations and technological improvements in operations. In the power sector in India, research of any kind is rare. The result is that this massive infrastructure and supply industry, on which the economic growth and welfare of the country depends, is unable to innovate. The introduction of two time zones would be a very small step in facilitating efficient use of resources in the power sector, but today every little bit would help. However, the mindsets, professional expertise and leadership in the relevant bodies in this sector must undergo a substantial change for the better. Most important would be the imperative of transforming the central and state regulatory commissions into bodies staffed by outstanding professionals, functioning with autonomy and fairness to both consumers and producers, and as an agent of change for the better.