Reading Comprehension based on IBPS PO Pre 2017 (SET 02)

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.

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.

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.

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.

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.

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

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Reading Comprehension based on IBPS PO Pre 2017 (SET 02)