Karnataka state extends over an area of 1.92 lakh sq.kms. of the total geographical area of the country. It occupies about 5.84%. The state is situated in the West-Central part of the deccan peninsula of the Indian union and is stretched between 13⁰ 3' and 18⁰ 45' north latitudes & 74⁰ 12' and 78⁰ 40' east longitudes. Major portion of Karnataka lies in the elevation range between 450 and 900 metres above the mean sea level. With a population of 4,49,77,201 accounts for 5.4% of the country's population. For administrative purpose, the state has been divided into divisions, districts and taluks. There are 27,024 villages spread over 175 taluks. 69.07% of population resides in rural area (3,10,69,413 persons). Economy of the state is predominantly agriculture based with around 45% state domestic product being accounted by this primary sector (Government of Karnataka 1990).

1.2.1 Karnataka's Energy Scene: As Karnataka does not have any coal deposits, It gets its coal from outside. The electrical energy for Karnataka was purely hydro for a long time and only now with the commissioning of Raichur thermal power station, it gets electrical energy from coal also. The other major source of commercial energy - oil - is also not available in Karnataka. Hence the main source of commercial energy for the state is from hydroelectric plants. Karnataka state depends both on commercial and non commercial forms of energy (Government of Karnataka 1990 and Government of Karnataka 1994). Non commercial energy has a major share of 53.16%, met mainly by sources like firewood, agricultural residues, charcoal, cowdung. While commercial energy's share is only 46.84% met mainly by electricity and oil. Electricity is the major commercial energy source with a share of 55.64% of commercial energy consumed for 1990-91. Firewood consumption is around 7.44 million tons of oil equivalent, i.e. 42.99% of the overall energy consumed. Agro wastes have a 8.73% share. This demonstrates that we depend mainly on biomass to meet our rural energy needs. Sectorwise energy consumption shows that industries sector has a major share of 51.4% similar to the national scene. This is followed by transport sector (23.0%), household (11.2%), and agriculture (3.5%).

1.2.2 Electrical Energy Use in Karnataka: Since electrical energy plays a dominant role in the energy scene of Karnataka, it is being looked at in detail in this section (Government of Karnataka 1990 and Government of Karnataka 1994). Installed electrical energy capacity as on March 1993 is 3005 MW, out of which 79% is by Hydel source (2375 MW) and balance 21% is by thermal power station (630 MW). The gross energy generation from these sources for four years shows that it ranges from 12,430 - 14408 million units (million kwh). And electrical energy met from central source during these years ranges from 3061 - 3502 million units. The plant load factor for only thermal power plant at Raichur varies from 33.5% (in 1985-86) to 76.9% (in 1990-91). Transmission and Distribution losses varies from 24.6% (in 1980-81) to 19.3% in 1991-92. The losses have increased to 20.9% in 1992-93. Study of number of consumers and percentage of households electrified at five years interval for the period 1970-71 to 1990-91 shows that at the end of 1970-71 about 24.66 % households were electrified in Karnataka, and at the end of 1990-91 60.43% households are electrified. Percentage growth of consumers over a period of five year shows maximum growth of 61.69% during 1980-81 to 1985-86 period. This is followed by 40.86% growth during 1975-76 to 1980-81 period. The high percentage during 1980-81 to 1985-86 period may be attributed to the introduction of popular schemes such as Bhagya Jyothi (at least one bulb for social and economic backward categories of society).

Per capita consumption of electrical energy varies from 101.5 kwh (1971-72) to 295.4 kwh ( in 1990-91). Based on districtwise Percentage of households electrified, districts can be grouped into four categories based on a range of percentage households electrified in each district. These categories are a) Category 1 - more than 90% of households are electrified, b) Category 2 - wherein more than 60% - 90% households are electrified c) Category 3 - wherein 40 - 60% households are electrified d) Category 4 - wherein households electrified is less than 40%. In Category 1, Bangalore stands alone with 92.13% of households are electrified. Category 2 consists of Belgaum (70.65%) followed by Tumkur (70.01%), Mandya (69.88%), Mysore (68.81%) and Shimoga (68.55%). Uttara Kannada (49.42%) and Dakshina Kannada Districts (49.02%) with moderate performance are in category 3. While Category 4 consists of districts such as Bellary (34.79%), Raichur (31.83%), Gulbarga (30.16%), Bidar (29.59%) and Bijapur (29.51%). Coincidentally the category 4 districts are also economically backward districts in Karnataka.

Sector wise electric energy consumption data indicates that during 1989-90, Industries sector consumes 4780 million units constitutes share of 44.86%,followed by irrigation pumpsets with a share of 28.63%. It is seen share of irrigation pumpsets is gradually increasing. 8.82% of pumpsets energised till 1991-92, is already consuming 36.26% of total electrical energy. This is followed by industries with a share of 34.34%.

A look at overall energy consumption does reveal how energy is used. The profile of connected load from 1969-70 to 1985-86 in various sectors shows that the annual increase for the year 1985-86, is greatest for Agricultural pumpsets (11.9%) followed by AEH consumers (11.86%) and LT installations (10.5%). When we look at the increase for the three years from 1980-81 to 1985-86, the connected load AEH category grows faster (57.2%) than that of LT industries (46.5%) HT industries show a small growth rate. The overall annual growth rate is only 8.9%. AEH, LT and Agricultural installation have growth rate greater than the overall growth rate. In the case of 1980-81 to 1985-86 growth rate AEH and LT industries, agricultural sector have greater increase than the overall values. The sector wise annual consumption of electrical energy in various sectors reveals that in last 20 years the total electrical energy consumption varies from 2338.5 - 12568 million units. It is seen that increase in energy consumption for agricultural pumpsets is about 30.52 times (from 149.3 to 4557 million units), domestic sector 9.7 times ( 150.3 to 1929 million units) and in HT industries 2.84 times (1519 to 4316 million units) in last 20 years.

A shortfall of 30 per cent in power availability versus demand exists even today. Accentuating the shortages, every month about 30,000 new installations with a peak demand of 45 MW, are being added to the system. At present there are 55,83,207 installations with a connected load of 8713.9 MW or which is almost thrice the present installed capacity. These includes 2,151 high tension installations and 7,67,991 irrigation pumpsets, with connected loads of 1,460 MW and 2,763 MW respectively. In the last two decades Karnataka faced power cuts due to vagaries of monsoon (as Karnataka mainly depends on hydel-power) ranging from 25 per cent to 80 per cent on different categories of consumers. This resulted in the lay off of industries and loss of revenue to the tune of Rs. 9000 crore. Heavy transmission and distribution losses of the order of 20-22%. A five per cent reduction in T & D losses would mean extra availability of 700 million units, which means additional revenue of Rs. 70 crores, to State Electricity Board.

Environmental impacts associated with large scale energy projects has necessitated to look at eco-friendly energy projects (Ashenayi and Ramakumar 1990). Submersion of land, rehabilitation of local people, destruction of natural gene pool, flora and fauna and desiltation problem, earth quake, spread of diseases like malaria are associated with construction of big dams of large hydel projects (e.g. Linganamakki, Kali, Kodasalli), air quality, visibility, polluted air with fly ash has led to the diseases of respiratory system in the case of thermal power station (at Raichur district in Karnataka). These has necessitated to look for alternative energy technologies and conservation measures.