Energy Scenario

Energy Scenario in India

Submitted by-

Anju Dubey (111308)Divyanshu Shukla (111326)

Chandrapal Singh Panwar (111327)Nithya Venkatachalam (111329)

Agenda• Definition• Classification of Energy• Sources of Energy• Energy Scenario: India• Energy Conservation Act• Energy Problems• Factors Dependents on Energy• Energy Challenges, Controversies, Concerns• Recommendations for Efficient use of

energy

What is Energy?

The ability of a physical system to do work on other physical systems.

One of the major inputs for the economic development of any

country. Assumes critical importance in

developing Ever-increasing energy needs

require huge investments to meet them.

Classification of Energy

1. Primary and Secondary energy Primary energy - sources found/stored in nature. E.g. coal, oil, natural gas, biomass Secondary energy - Primary energy sources converted in industrial utilitiescoal, oil or gas converted into steam, electricity.

2. Commercial and Non commercial energy Commercial – sources available in the market for a definite price. E.g. Electricity, lignite, coal, oil, natural gas Non commercial - sources not available in market for a price.E.g. Firewood, agro waste in rural areas

3. Renewable and Non-Renewable energy Renewable energy - obtained from inexhaustible sources(wind power, solar power, geothermal energy, tidal power)Non-renewable energy - which are likely to deplete with timeE.g. conventional fossil fuels such as coal, oil and gas.

Sources of Energy1. Conventional Sourcesa. Thermal energy :- Coal , Oil , Natural Gas(chemical energy created and stored within the earth’s crust during past geological ages)b. Hydel energy:-Water power as an inexhaustible source of energy which is continually replenished through evaporation.2. Nonconventional Source of EnergyRenewable contribute only 6 percent of India's total power mix.• Solar Energy• Wind Energy• Tidal & Wave Energy• Biogas Energy• Nuclear Energy

Energy Scenario: IndiaPrimary Energy demand rise to 1,633 MTOE by 2031-32 (GDP

rate :8%)

0

500

1000

1500

2006-07 2011-12 2016-17 2021-22 2026-27 2031-32

Hydro Nuclear Coal Oil Natural Gas

ENERGY GENERATION COSTS : COMPARISON

2.53.9

10.49

3.82.5

3.55.7

4.2

15.317.1

02468

1012141618

Levelized Cost (Rs/ Kwh)

CSTEP July 2011 Source : LBNL, CERC , CSTEP & NPCIL

ENERGY RESOURCE AVAILABILITY IN INDIA

CSTEP July 2011

Source

Capital cost

(crores/MW)

Emissions

(CO2-eq/MWH)

Reserves Longevity

Coal 4-5 1.1 10 5820 MT 70 years

Oil 2.5 0.62 1200 MT ~ 10 years

Gas 3.5 0.47 1.5 TCM ~ 20 years

Hydro 6- 20 (Site and size

dependant)

0 148.7 GW NA

Nuclear

8-13 0 70,000 tonnes of Uranium

~ 200 tonnes of Pu

40 years with Uranium

About 70% of India's energy generation capacity is from fossil fuels with coal accounting for 40% of India's total energy consumption followed by crude oil and natural gas at 24% and 6% respectively Source : BP statistical review report, NHPC,NTPC

Key aspects of Energy sector1. Energy elasticity - a term used with reference to the

energy intensity of GDP. It is "the percentage change in energy consumption to achieve one per cent change in national GDP".

2. India's national Integrated Energy Policy of 2005 noted current elasticity at 0.80, while planning for 7-8% GDP growth

3. Energy Policy of India:largely defined by the country's burgeoning energy deficit

and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy4. Energy Conservation Act - passed by the Indian Parliament in September 2001

Major Provisions of Energy Conservation actEC act amended in 2010 for Energy efficiency institutional

practices and programsFive major provisions of EC Act relate to:

1. Designated Consumers :- comply with the specific energy consumption norms for the manufactured products and services.

2. Standard and Labeling of energy consuming appliances, gadgets and equipment to ensure promotion of energy efficiency.

3. Energy Conservation Building Codes :-new buildings to have less electricity consumption.

4. Creation of Institutional Set up (Bureau of Energy Efficiency) for effective coordination of the energy conservation efforts.

5. Establishment of Energy Conservation Fund to provide necessary financial support.

ISO 50001 :- The standard aims to help organizations establish the systems and processes to improve their energy performance, including efficiency and consumption.

Energy Problems (Conventional Sources)• Coal depletion and pollution. • Rising oil imports. • Natural gas demands. • Inefficient electric systems, 30 – 40% power loss. • Energy-related water shortages. • Limited nuclear energy, Nuclear power plants operate

at 50% loads, due to shortage of uranium.• India’s tradition of state-dominated, centralized

planning slows progress in the energy sector.• Capacity utilization is very poor:- Most hydro and

thermal power stations operate at 87% load factor.• Few private players, investors jittery• government also subsidizes energy prices, at times

limiting profitability for both private and state investors

Energy Problems (Nonconventional Sources)• Perception that Renewable are more expensive• Requirement of skilled personnel• High nominal cost of generation

The biggest problem is lack of data• No correlation with the actual ground-level data.• Financing is difficult:• the promise of first-mover advantage and attractive returns in the long

term is drawing a mixed bag of investors, many of them either inexperienced or in the game to make a quick profit.

• Biomass – Lack of M&V (many plants seeking coal linkages!)• Tidal - Limited availability of sites with sufficiently high tidal ranges or flow

velocities, thus constricting its total availability• Limited Uranium resources

Waste Management:• Waste volume; Significant reduction in waste volume is possible only

through closed fuel cycle route

Factors Dependent on Energy

• Energy is major determinant of Human Development Index (HDI)

• Increase in HDI to 0.6 in 90’s achievable with lower energy consumption per capita than during 1960’s.

• change is facilitated by higher energy efficiency and better governance

• Energy Facilitates National Product• Less energy per unit of national product – higher

energy efficiency.• For 1% of the GDP growth countries require more

than 1% more energy.

Factors Dependent on Energy……Contd.• Growing Energy Efficiency Facilitates Employment• Quality of growth is better as higher incomes improve

investment opportunities• Lower Energy Efficiency Affects Security• More energy imports mean more difficulties in national and

human security.• Energy Use Generates Pollution• NOx, SO2 affects housing, agriculture and human health

affects the poor dis-proportionally more than the better off.• Poor Housing is Foundation of Poor Energy Efficiency• inefficient heating methods within poor housing• People tend to reduce heated living space in response to

high energy costs.

Impending Energy Challenges by 2030Issues with energy policies and plans …• Land, water, local environment, and social

issues • Demand forecasts, investment projections

have been off the mark– Effectiveness of polices is rarely

evaluated• Policies favor the rich & the powerful at the

cost of efficiency, equity– Need for 3 E perspective (overlap of

Economic efficiency, Environment, Equity)

Economic Efficiency

EquityEnvironment

C: 3-E Approach for pro-poor policies

Present focus is on Economic efficiency, modulated by vested interests

We need to focus on the overlap of 3-E

By obtaining finance from Annex-I countries, we should move the Economy sphere downwards – to increase the overlap…

Some Examples of 3-E approach

• Promote

–Solar home lighting for un-electrified houses – instead of grid based MW size PV plants

– Improved and modern biomass stoves for 60% houses – instead of LPG

– Improve efficiency of biomass use (total of 125 Mtoe)

Energy Concerns Global warming and Clean Development drive forcing

countries to reduce polluting industries Carbon Credits encouraging companies to go in for

captive renewable energy investments. India’s choice of energy partners like Iran, Libya,

Syria and Sudan leading strained relations with the United States.

Environmental concerns– India 3rd largest emitter of CO2 behind China and US–38% of emissions from power sector

Energy security concerns–67% power from coal-based thermal plants - need to

depend on imports–Prototype breeder reactors to exploit thorium

reserves

Energy related Controversies

• Enron Dabhol Gas Power Plant-Lack of transparency, environmental hazards.

• Russian-built Koodankulam nuclear – Concerns on Environmental impact of nuclear power, Radioactive wast, nuclear accident.

• Jaitapur Nuclear plant - to seismic activity (Zone 3 category) . similar to the radiation leak in March at Japan's Fukushima nuclear disaster

• No trust on the Government in providing them with

adequate safeguards and preserving the Biodiversity

• The Indo-US civilian nuclear agreement - Nuclear Co-operation treaty - lifting of the 34 year old nuclear technology ban after India and US signed the nuclear cooperation treaty in 2008.

• Kyoto protocol.

Recommended practices for energy efficient uses• Clean Coal Technologies, carbon capture and

sequestration• New and affordable materials for photovoltaic• Cellulosic ethanol• Energy storage – efficient batteries and condensers• Demand side management of power• Trained human resource• Usage of renewable energy resource• Modernization of power transmission & distribution

system• Alternative fuels for surface transportation- bio-fuels,

electric vehicles, hydrogen and fuel cell vehicles.• Hydrogen has significant potential as a clean energy

source

Recommended practices for energy efficient uses……Contd.• Need for coordination among various ministries for

sectors with overlapping jurisdictions (e.g., biofuels)• Need for investment in R&D to capitalize on local

technological skill base (e.g., clean coal technologies)• The workshops presented analysis on Policy options,

for guiding way forward to Low Carbon Technologies.• Hope for technology breakthrough – Solar Thermal /

PV or CCS (& continue BAU)• Avoid anti-poor mitigation measures (land grab under

name of ‘bio-fuels’)• Indian should reduce Carbon intensity of energy

– Adopt pro-poor policies for its own interest (development & Energy security)

References

• http://www.cfr.org/india/indias-energy-crunch/p12200

• http://en.wikipedia.org/wiki/Energy_policy_of_India• http://www.adb.org/documents/events/2010/asia-

clean-energy-forum/QLW-Policy-Evaluation-India.pdf• http://in.reuters.com/article/2011/05/24/idINIndia-

57208520110524• http://csis.org/files/media/csis/pubs/sam98.pdf• http://en.wikipedia.org/wiki/

Kyoto_Protocol_and_government_action• www.undp.org.yu