Sunday, 30 April 2023

Integrating Energy Use, Transport and Urban Planning


While infrastructure development is the key component to building livable and sustainable cities, energy is the fuel to keep the city running. From telecommunication systems, freight railroads, hospitals, schools, transportation, water and sewage network, buildings and parks, energy is a fundamental pillar of any economy. Electricity is the most commonly used form of energy in residential, commercial and industrial sectors. The International Energy Agency (IEA) has called electricity “crucial to human development” and “one of the clearest and undistorted indications of a country’s energy poverty status.” Experience from the recent pandemic further demonstrates the importance of electricity to all economic activity, prosperity, livelihoods and human well-being. 

Further, there is a desire and ambition to transition to “Net Zero” as articulated by the Government and private sector. Net-zero refers to a state in which the amount of carbon emitted by a country into the atmosphere is offset by absorbing an equivalent amount of greenhouse gases from the atmosphere. At the 26th Conference of Parties (COP26), India committed to a net-zero carbon emissions target by 2070. Given that India will continue to urbanize rapidly, it is possible for the Indian cities to adopt sustainability targets including the “Net Zero” goal well ahead of the national target by 2070. Achieving “Net Zero” by 2070 will require cities to take lead and adopt ambitious targets.

India has transitioned from an electricity deficient economy to a one with significant surplus and exports. However, the transition to Net Zero will require significant investments and institutional capacity to deploy clean energy projects, and strengthen the electricity grid. Downstream investments in the distribution systems will be crucial even though the grid has expanded to connect most households. The recent supply-side constraints due to fuel-related challenges, however, highlight the need for further reforms in the sector.

The increase in electricity coverage has however not been accompanied by improvement in the quality of power supply. India ranks 80 out of 137 countries on the quality of electricity supply (World Economic Forum, 2018). High losses and tariff below costs mean that distribution companies (Discoms) are unable to invest in network upgrades and maintenance. Achieving sustainable urbanization will require high-quality electricity as cities expand vertically, 24x7 operations become the norm and the digitalization levels expand with 5G networks. These trends will further accelerate with wider adoption of the Internet of Things (IoT), digital security systems and integrated utility management platforms (on the Integrated Resource Management principle).

Cities thrive on movement - it enables interactions, trade, and livelihoods. Transport is thus a key enabler for the cities. Traditional urban planning in India often ignored this critical dimension, though transport started to feature prominently in the urban discussions over the last two decades. Despite several interventions, the implementation of reforms has been challenging, resulting in a significant gap in the provision of safe and sustainable public transport. Advancements in the electric drive train and battery storage in the last few years mean that electric vehicles are increasingly available and economical, especially for public transport. 

The recent tender floated by Convergence Energy Services Ltd (CESL) for 5,450 electric buses, discovered very competitive prices, close to the operational cost of diesel buses. Therefore, the interlinkages between transport and electricity are expected to increase. The imminent electrification of the transport sector and centrality of electricity in the urban development and sustainability means that the integration of energy in policies and planning for cities is an unrealized opportunity. 

Indian cities have till now not placed due emphasis on sustainability. Further, fractured mandates across multiple agencies, lack of coordination across departments and a short-term “bandage approach” to infrastructure development have led to suboptimal outcomes. This approach has undermined sustainability, and compromised resilience and the quality of life. Limited budgets and the lack of financial autonomy at the municipal level have also been a barrier to high-quality infrastructure development and adequate focus on sustainability.