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:
- 2
- 4
- 4
- 5
- 2
- 5
- 3
- 1
- 1
- 1
- 2
- 4
- 1
- 3
- 4