INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Content List
- Introduction ………………………………………………………………………………………………………………..2
- Access of Electricity in India ……………………………………………………………………………………..2
- Problems without electricity ………………………………………………………………………………………….2
- Business Case ……………………………………………………………………………………………………………..3
- Innovation for problem: Micro Hydro Generation Units …………………………………………………..4
- Advantages of Micro Hydro Generation Units ………………………………………………………………..5
- Comparision with other portable sources ……………………………………………………………………….6
- Tangible Benefits ………………………………………………………………………………………………………..6
- Timeline and Milestone ……………………………………………………………………………………………….7
- Business Scenarios …………………………………………………………………………………………………….7
- Weakness and risk management ………………………………………………………………………………….7
- Conclusion ……………………………………………………………………………………………………………….8
Reference List ………………………………………………………………………………………………………………..9
- Introduction
The report is based on the innovation and sustainable business development. The current scenario of the report is based on the problems faced by the Indian citizens and the probable solution with an innovative idea for the problem. The chosen organization is Central Electricity Authority of India. It is a central government organization of India established on 1948 by an Act responsible for supplying electricity and controlling the sources of power in Indian constituent (ICMAI, 2014). The lack of electricity and the growing cost is the most reason for which the organization needs alternative to supply electricity to all over India at a cheap cost. As a solution, the importance of Micro Hydro Generation Units will be displayed in the report. The advantages, comparative structure in comparison to other portable sources, business scenarios, and risk management in context to the situation will be demonstrated in a detailed manner (CEA website, 2017).
- Access of Electricity in India
Being second in population in the world, India consists of 70% rural people and the provision of supplying electricity over a period of 24 years has increased to 70% from 45.1%. Still, most of the rural people don’t get the facility of electricity as the rural areas are covered with forests and hills (Kumar et. al. 2015). Approximately 30% of the people of India haven’t access to electricity, which is a major point to consider by finding a solution. As there are many problems, occur without electricity consumption. Living life depending on unhealthy and unsafe sources: – coal, kerosene oil and cow dung pies are a general scenario. The access of electricity is not sufficient to provide a comfort living to all corner of India, which need to find out a reliable solution with maximum advantage and benefit points. As Electricity is a limited source hence needed to utilize it carefully (IEEMA, 2015).
- Problems without electricity
Lack of electricity in the remote areas and uncertain power cut due to lack of supply source & catastrophic situations give tremendous problems to the society. Not only the people of rural areas face the circumstances but also the urban people also face problematic situations in the absence of electricity. (Ahn & Graczyk, 2012) The probable situations arise without electricity can be explained below in detail: –
A long term failure will stop the running of plants and offices depending on mostly electricity for the power sources.
The household works in urban areas will be stopped as most of the people are depending on several electric machines to perform their daily works.
The rural areas will not get the experience of advancement without the presence of electricity as most of the advanced mechanical tools run with electricity.
The possibility of theft will increase as it is not possible for the rural people to find out a regular source of power to lighten up their house at night.
Except for the plant and factory situation, there are many other areas which need a continuous, reliable power source to run which can only be possible through electricity.
The standard of living will not develop in a country without the absence of electricity as most of the developed countries are depending on electricity supply for the development of their country’s internal infrastructural structures.
(Biswas et. al. 2013)
- Business Case
Being a monopoly right to direct, control and regulate the electricity supply of India, Central Electricity Authority of India (CEA). As the central government is responsible for the electricity supply, they take big projects to conduct, and the process of making it successful has mostly a positive result. The total result can be derived from a large number of micro-investments made by the organization. As the collection of revenue from the electricity supply takes a huge percentage of the entire revenue sources but the purpose behind the supply is to develop the internal environment of India only (Dhawan et. al. 2016). By fulfilling the basic necessities of life through supplying consequent electricity is the basic aim of the organization. Mostly, the employees are dedicated to solving the electricity problem at catastrophic situations. In consideration to facilitate the people of rural and urban areas with continuous electricity supply, the alternative solution should be needed to find out. As CEA is the only organization who has the power to supply electricity in India, the organization should also engage its research and findings for an innovative solution. As the total electricity supply in India is divided into 5 zones, it will be easy for CEA to undertake the project to install the innovative solution at all the zones one after another (Arya et. al. 2013).
- Innovation for problem: Micro Hydro Generation Units
The probable solution for a continuous and uninterrupted electricity supply can be accomplished by establishing Micro Hydro Generation Units throughout the country. A huge investment is needed to make by the organization regularly to avail the benefit from the proposed project successfully. A systematic master plan is needed to prepare before making the innovation proposal. The master plan could be placed on five aspects; namely Irrigation Canal, Diversion Canal, Power Station, Small or No Grid, a well-established distribution network to give a successful effect of the proposal. Each of the aspects is vital in executing the plan (Nimje & Dhanjode, 2015). The irrigation canal is needed to invest as much as the infrastructural project will need a lot of time to complete. The diversion canal will take less effort than the Irrigation canal, or it is supportive to an irrigation canal. Still, a planned diversion could save both time and money to execute the micro hydro generation units within a less time. The existing power stations can be utilized by restructuring or replacing the damaged or old parts of the power station with new ones. The establishment of new power station should be done after finding out the necessary areas on a primary basis. Once the four aspects installed successfully, the distribution of electricity will be commenced by observing the actual with the projected power supply. Any deviation marked after the execution can be settled on an immediate basis to avoid any future circumstances (Bhoi & Ali, 2014).
- Advantages of Micro Hydro Generation Units
Installing the innovation plan of Micro Hydro Generation Units has some makeable advantages that increase its importance in supplying continuous electricity supply. The foremost advantage of the project is a reliable solution for the shortage or no electricity supply in urban as well as rural areas in India. The CEA would not face any much trouble in installing the project in remote areas as the project will help the people in the remote areas significantly. As the project will use water as the prior source of raw material for generating electricity so there wouldn’t be any wastage or misutilization of the natural resource. The environment friendly project would decrease the use of wood and hence will protect the forest from its destruction. The water would be preserved in dams for continuous use in generating the power and hence the people of remote areas could get the availability of water throughout the year (Pranti et. al. 2014). The unnecessary transmission losses will be decreased, and hence the possibility of under and over-utilization of electricity will be maintained. The diversity will be generated from 3KW to 500KW as per the requirement in the areas. The installation cost of Micro Hydro Generation units than the large units will be comparatively low as well as the risk. The cost per installation of Micro Hydro Generation Units on an average basis in an area of India will be $ 425 USD. As the units will be controlled by continuous water supply from the river water or the preserved water, the operating cost will also be low in comparison to the large units. The cost per energy power will be 0.02-0.04 INR per KW, which is cheapest of the all available alternatives (Patel & Pakale, 2015).
- Comparision with other portable sources
The advantages of installation of Micro Hydro Generation units are not only made with its result, but the comparative difference with other portable sources also indicates the importance. The priority is its long operation life of forty to sixty years in comparison to the life span of solar power from twenty to twenty-five years (Bhandari & Rahate, 2017). The installation cost of solar and fossil power sources are around $600 USD higher than that of Micro Hydro Generation Units. When the innovative hydro units need a zero operation cost, the solar units need a high operation cost along with careful maintenance. With a little maintenance, the hydro units will last for a long period. Regular change of battery for a better performance in power supply is mandatory in case of solar power units, which is very costly. This low operation cost and low maintenance are the most important points that increase the importance of hydro units among the other portable sources. In consideration to pollution addition, hydro contributes no share when the fossil units share a major part. As pollution minimization is the sole aim of the government, installation of hydro units will be helpful in achieving the aim. The generation of revenue from hydro units is high in comparison to solar and fossils units (Singh & Singh, 2013).
- Tangible Benefits
The probable tangible benefits of the project could be displayed as below: –
Selling price of per kWh is 0.1-0.2 USD
Minimal usage of a household is 2-3 kWh
Approximate revenue per year if we cover the whole market in case of 2 kW per household:
(Selling price) x (per annum usage) x (no. of houses) = Revenue
(2 kWh x 24 hrs x 365)
0.15 x 17520 x 77000000=2.023 billion USD
Estimated cost: –
(Installation Cost) + Operation cost (per year) = Cost
425 x 2 x 77000000+ 0.015 x 2 x 77000000 = 32.8 bn approx. (first year only)
32.725 bn + 0.0231 bn = 32.8 bn approx.
Profit over the project life (50 years)= (2.023 x 50) – (32.725 + (0.0231 x 50))= 67.72 bn
- Timeline and Milestone
The probable timeline to install hydro units in a rural area will take three to six months. The complete minimization of probable risks after the installation could be done within six months of the installation of the hydro units. Once the installation and risk minimization phase is done, the utilization can be done for a long period. The total investment could be retrieved within a period of ten to twelve years from the installation period, which is not bad for business purpose. The CEA would get continuous profit for up to 50 years due to the consequent supply of electricity of people (Anaza et. al. 2017).
- Business Scenarios
The actual business scenario of micro hydro generation units is far away than the planning in India. Still, 30% of the country has not covered with electricity which lessens the standard of living and shows the struggle of people for basic necessities. The interference of third parties or government in the projects controlled by CEA creates tremendous circumstances which decrease the installation in time. To make a success by using the innovative idea of hydro units, CEA need to be assembled the project without any interference of government or third parties ().
- Weakness and risk management
The installation of hydro units has not properly done in certain areas of India due to the unavailability of study reports of location choice. No direct order has given by the government to CEA which decreases the success possibility of the project. The flooding in the canal area in the rainy season and land sliding in hilly areas also increases the risks of execution of the project. These all catastrophic situations can only be minimized with a proper disaster management planning and execution activities in an urgent basis (Abdullah & Islam, 2014).
- Conclusion
The proposed innovation plan would be proved as a highly profitable business for CEA as well as for government of India. The basic necessities of people in India could be covered successfully within a short period by increasing their quality of life. The environment friendly and eco-friendly business image of CCA would increase its importance once the installation activities would complete successfully. As the proposed idea is universal in nature, it can be utilized by the government of other countries to taste the benefit (Gaius-Obaseki, 2010).
Reference List
Abdullah, R. & Islam, M. (2014). A Case Study and Model of Micro Hydro Power Plant Using the Kinetic Energy of Flowing Water of Surma and Meghna Rivers of Bangladesh. The International Journal Of Science & Technology, 2 (1). 87-95.
Ahn, S-J. & Graczyk, D. (2012). Understanding Energy Challenges in India. International Energy Agency.
Anaza, S. O. et. al. (2017). Micro Hydro-Electric Energy Generation- An Overview. American Journal of Engineering Research (AJER), 6 (2), 5-12.
Arya, A. K., Chanana, S. & Kumar, A. (2013). The role of Smart Grid to Power System Planning and Operation in India. Association of Computer Electronics and Electrical Engineers, 793-802.
Bhandari, K. Rahate, O. P. (2017). Micro Hydro Electricity Generation in S.T.P, A Case Study of S.T.P, Salawas-Jodhpur. International Research Journal of Engineering and Technology (IRJET), 4 (3), 278-281.
Bhoi, R. & Ali, S. M. (2014). Potential of Hydro Power Plant in India and its Impact on Environment. International Journal of Engineering Trends and Technology (IJETT), 10 (3), 114-119
Biswas, B., Mukherjee, S. & Ghosh, A. (2013). Conservation of Energy: a Case Study on Energy Conservation in Campus Lighting in an Institution. International Journal of Modern Engineering Research (IJMER), 3 (4), 1939-1941.
CEA website. (2017). Functions of CEA. Retrieved from http://www.cea.nic.in/functions.html. (Retrieved on 2017, May 31).
Dhawan, K., Gupta, D. & Sarda, V. (2016). Demand Side Management: The Unseen Resource in India’s Power Sector. The Journal of Governance, 21-35.
Gaius-Obaseki, T. (2010). Hydropower opportunities in the water industry. INTERNATIONAL JOURNAL OF ENVIRONMENTAL SCIENCES, 2 (3).
ICMAI. (2014). Economics of the Power Sector. THE JOURNAL FOR CMAs, 49 (2).
IEEMA. (2015). POWER POTENTIAL. IEEMA Journal, 6 (7).
Kumar, V., Kumar, R. & Maithani, A. (2015). Energy Policy in India. IOSR Journal of Electrical and Electronics Engineering (IOSR-JEEE), 10 (1), 67-72.
Nimje, A. A. & Dhanjode, G. (2015). Pico-Hydro-Plant for Small Scale Power Generation in Remote Villages. IOSR Journal of Environmental Science, Toxicology and Food Technology (IOSR-JESTFT), 9 (1-III), 59-67.
Patel, S. U. & Pakale, P. N. (2015). STUDY ON POWER GENERATION BY USING CROSS FLOW WATER TURBINE IN MICRO HYDRO POWER PLANT. IJRET: International Journal of Research in Engineering and Technology, 4 (5).
Pranti, A. S., Iqubal, A. M. S. & Saifullah, A. Z. A. (2014). Conceptual Design of Solar-micro Hydro Power Plant to Increase Conversion Efficiency for Supporting Remote Tribal Community of Bangladesh. American Journal of Engineering Research (AJER), 3 (11), 167-197.
Singh, P. & Singh, R. (2013). Technical Analysis of Micro Hydel Plant in Punjab. International Journal of Science and Research (IJSR), 4 (7), 961-965.