ENERGY
Indian
energy sector has witnessed a rapid growth to meet the demands of the nation.
Areas
like the resource exploration and exploitation, capacity additions, and energy
sector reforms have been revolutionized.
However,
resource augmentation and growth in energy supply have failed to meet the
ever-increasing demands exerted by the multiplying population, rapid
urbanization and progressing economy.
Hence,
serious energy shortages continue to plague India, forcing it to rely heavily
on imports.
Energy Sectors -
Renewable Energy
ü
Solar
ü
Wind
ü
Small
Hydro
ü
Biomass
ü
Geothermal
ü
Waste
to Energy
ü
Other
New Technologies
Petroleum & Natural Gas
Coal
Power
ü
Thermal
ü
Hydro
ü
Nuclear
ü
Transmission
& Distribution
Distributed Generation
Energy Efficiency and Conservation
ü
Residential
ü
Agriculture
ü
Rural
/ Community
ü
Transportation
ü
India
is the fourth largest consumer of energy in the world after USA, China and
Russia.
ü
The
per capita primary energy consumption in India is about 1/3rd of the world
average per capita primary commercial energy consumption.
ü
Energy
intensity (energy required to produce a unit of GDP) is a measure of the energy
efficiency of a nation’s economy.
ü
India’s
energy intensity has been declining over the years.
2001
– 0.85 Kgoe (Kilograms of oil equivalent)/US$
2011 – 0.62 Kgoe/US$
ü
Falling
energy intensity implies that the growth in energy used is less than the growth
of GDP, which in turn implies that energy elasticity is less than unity.
Energy elasticity = Ratio of the
growth of energy to the growth of GDP
ü
A
National Mission on Energy Efficiency
(NMEE) has been launched to improve energy efficiency in all areas of the
economy including power, transport, urban housing, consumer goods and
industries.
ENERGY DEMAND AND SUPPLY
ü
The
annual average growth rate of the total energy requirement is expected to
accelerate from 5.1 per cent per year in the Eleventh Plan to 5.7 per cent per
year in the Twelfth Plan.
ü
Demand
for non-commercial energy is declining over commercial energy.
ü
Coal
remains the dominant source of primary energy.
ENERGY PRICING
ü
Rational
energy prices help to balance consumer energy demand with producer supply.
ü
Misalignment
of energy prices poses both microeconomic and macroeconomic problems.
Microeconomic problems –
ü
Underpricing
energy to the consumer reduces the incentive to be energy-efficient
ü
Promotes
leakage of subsidized products for sale in open market and adulteration.
ü
Underpricing
to the producer reduces the incentive and the ability to invest in the sector.
It slows down the production and increases reliance on imports.
Macroeconomic problems -
ü
Misalignment
leads to excessive import dependence with implications for the balance of
payments
ü
Necessitates
a subsidy, which places a burden on the budget.
ENERGY SECURITY
ü
Domestic
production of coal, oil and gas and other energy sources has to be stepped up.
ü
A
stable and attractive policy regime has to be provided to ensure substantial
private investment in oil and natural gas blocks and new capacities for
renewable energy.
ü
Investments
in renewable energies need to be strongly emphasized.
ü
Investments
in energy assets in foreign countries should be stepped up.
ü Storage capacities need to be
created for any possible disruption in oil supplies.
POWER SECTOR
ü
The
electric power sector consists of a mix of plants depending on different
primary fuels, including conventional and non-conventional sources.
ü
Coal
remains the dominant primary energy source used in power generation accounting
for 67 per cent of total generation.
ü
The
pace of capacity creation picked up in the Eleventh Plan,
Electricity Act, 2003
ü
Electricity
Act of 2003 was fully operationalized in the 11th plan.
Main objectives –
ü
To
consolidate the laws related to generation, transmission, distribution, trading
and use of electricity
ü
To
take measures conducive for the development of electrical industry
ü
To
protect interests of consumers and supply of electricity to all areas
ü
Rationalization
of electricity tariff
ü
To
ensure transparent policies regarding –
ü Subsidies
ü Promotion of efficient and environmentally
benign policies
ü Constitution of regulatory
commission and
ü Establishment of Appellate
Tribunals
National Electricity Policy (12.02.2005)
ü
Urgent
need of promotion of renewable sources of energy
ü
Efforts
need to be made to reduce the capital cost
ü
Cost
of energy can be reduced by promoting competition
ü
Adequate
promotional measures would have to be taken for development of technologies and
its sustained growth
ü
SERCs
to provide suitable measures for connectivity with grid and fix percentage of
purchase from Renewable sources
ü
Progressively
the such share of electricity need to be increased
Areas where reforms are required –
ü
Open
access to consumers remains ineffective.
ü
Energy
audit of power utilities has not been undertaken.
ü
Electricity
retail tariffs have remained static for many years because of political
pressure, widening the gap between the average tariff and average cost of
supply.
ü
The
distribution companies suffer from serious financial stress. Losses of the
distribution utilities remain high.
Ultra-Mega Power Projects
ü
The
Ultra Mega Power Projects (UMPPs) Programme, which brings in private investment
into power generation, was a major initiative of the Eleventh Plan.
ü
Power
purchase agreements have been signed for four UMPPs of 4,000 MW each on the
basis of competitive tariff-based bidding.
ü
An
important element of this Programme is the induction of supercritical
technology, which is an important shift towards energy efficiency.
ü
For
the Thirteenth Plan, it has been decided that all coal-fired capacity addition
shall be through super- critical units.
Distribution
ü
Distribution
is the weakest link in the power system with large losses leading to financial
unviability.
ü
Distribution
companies have not been able to recover the cost of supply through tariff
ü
The
gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR) has
widened and the same has been increasing over the years.
ü
Restructured Accelerated Power Development
and Reform Programme (R-APDRP)
ü
To
address the problems of distribution losses, the APDRP in 2002–03 as an
Additional Central Assistance (ACA) scheme was launched to finance the
modernization of sub-transmission and distribution networks.
ü
Original
programme was not effective in reducing losses. A Re-structured APDRP was
approved as a Central scheme in 2008.
ü
Private
distribution utilities are not covered under the programme, which has been a
point of criticism.
Rajiv Gandhi Grameen Vidyutikaran Yojana
(RGGVY)
ü
For
providing access of electricity to all rural house- holds.
ü
The
scheme involved electrification of all un-electrified villages plus a free
connection for BPL households.
ü
The
scheme provided a subsidy of 90 per cent of the total project cost and balance
10 per cent of the project cost was to be provided by the Rural Electrification
Corporation (REC) as loan.
ü
The
RGGVY programme has several deficiencies in implementation –
ü Nearly 6,000 villages (electrified
till December 2011) were not energized due to lack of supporting network or
other resources.
ü Access to electricity in rural
areas is still limited, especially in smaller hamlets.
ü Poor financial health of
utilities and high cost of power act as a disincentive for States to give new
connections.
ü Some States do not have supporting
network and are unable to provide enerzisation.
ü A viable revenue model is yet to
emerge. This has hindered larger access to new consumers.
TWELFTH PLAN PROGRAMME
Addition to Generation Capacity
ü
A
capacity addition requirement of 88537 MW is required during the Twelfth Plan
period.
ü
The
share of the private sector in the additional capacity will be 53 per cent,
compared to a target of 19 per cent in the Eleventh Plan.
ü
The
share of power based on non-fossil fuel plants is very low at present and
should be increased.
ü
The
share of coal and lignite in the additional capacity is 79 per cent.
ü
The
projected capacity addition in non-fossil fuel plants covers addition of hydro,
solar, wind and nuclear capacity.
Power Generation
The
projected growth rate in power generation will be 9.8 per cent.
Renovation and Modernization and Life
Extension of Thermal Power Plants (R&M and LE)
ü
Most
of the old and smaller size non-reheat type units are on the verge of
retirement.
ü
R&M
and LE is an economical option to supplement the capacity addition programme.
R&M of Hydro Plants
ü
The
normal life expectancy of hydro plants is about 30–35 years after which they
need life extension.
ü
Many
of the existing hydro power stations could be modernized to generate reliable
and higher yield by restoration and modernization schemes.
Exploitation of Hydro Electric Potential
ü
A
major part of the unexploited potential is in North-East and Himalayan regions.
ü
With
the deployment of latest technologies we can harness the remaining potential
without damaging the ecology.
Peaking Power and Reserve Plants
ü
Since
our system has wide variation in demand during peak and off-peak periods there
is a need for peaking support with very high ramping rate.
ü
Peaking
power can be provided by reservoir-based hydro plants or gas-based generation.
Pollution and Ash Utilization
ü
An
important positive development in the power sector is that the utilization of
ash has increased impressively from 9.63 per cent in 1996–97 to 56 per cent in
2010–11.
ü
There
are 13 thermal power stations in the country, which have achieved 100 per cent
or more ash utilization during the year 2010–11.
ü
The
quantity of fly ash that has to be disposed off in ash ponds shall be reduced
significantly which will help in addressing problems of pollution.
Fuel Supply Problems
ü
Although
the pace of creation of generation capacity has picked up considerably, the
fuel supply capability has not kept pace.
ü
Clearly
domestic supply of both coal and gas needs to be augmented by imports.
Expansion in Transmission System and
Capacity
The
large expansion in production and consumption of electricity has to be
supported by a significant expansion and strengthening of the transmission
network.
Creation of a National Grid
ü
The
power system in the country is demarcated into five regions.
ü
Four
regional grids have been operating in synchronous mode as a single system.
ü
Only
the southern grid is yet to be connected to the rest of the system and is
likely to be completed by January 2014.
Evacuation of Power from the North-East
ü
The
North-East has very large potential for producing hydro power—close to 50,000
MW— but the pace of implementation has been poor.
ü
The
evacuation of power from the North-East poses a major challenge for several
reasons.
ü The entire capacity has to be
evacuated through a narrow strip of about 25 km in West Bengal. Although no
forest clearance is needed, land acquisition issues could pose problems.
ü A number of States including
Arunachal Pradesh, Tripura and Manipur do not have adequate 132/220/400 KV
systems and this may cause problems in evacuation of power.
ü The distribution system is
inadequate and consequently leads to large power losses.
The Distribution System
ü
The
viability of the power sector as a whole is critically dependent on the health
of the distribution sector.
ü
The
key focus of the Twelfth Plan must be to strengthen the performance of the
distribution system to achieve improved financial viability of Discoms and to
expand access to power in rural areas.
ü
A
National Electricity Fund (NEF) had been set up. It will pro- vide interest
relief to the distribution utilities to cover loans taken from financial
institutions for development of the distribution sector.
Management of Energy Demand and Energy Efficiency
ü
The
Bureau of Energy Efficiency (BEE) and the Ministry of Power (MoP) had
introduced a number of schemes during Eleventh Plan for promotion of energy
efficiency in India.
ü
The
schemes of BEE include –
ü Standards and Labelling (S&L)
ü Energy Conservation Building Code
(ECBC)
ü Energy Efficiency in Existing
Buildings
ü Bachat Lamp Yojana (BLY)
ü SDA strengthening
ü Energy Efficiency in Small and
Medium Enterprises (SMEs)
ü Agriculture and Municipal Demand
Side Management (DSM)
ü Contribution to State Energy Conservation
Fund (SECF)
ü
Schemes
implemented by the Ministry of Power include –
ü Energy Conservation Awards and
ü National Mission for Enhanced Energy Efficiency (NMEEE).
ü National Mission for Enhanced Energy Efficiency (NMEEE).
National Mission for Enhanced Energy
Efficiency (NMEEE)
ü
NMEEE
is one of the eight Missions created by India’s National Action Plan for
Climate Change.
ü
It
is based on the Energy Conservation Act, 2001.
ü
The
Mission will enable transactions in energy efficiency.
ü
Specific
initiatives envisaged by the NMEEE include:
ü
Perform,
Achieve and Trade (PAT) scheme—a market- based mechanism to enhance energy
efficiency.
ü
Market
Transformation for Energy Efficiency (MTEE)
ü
Financing
Energy Efficiency—tax exemptions, revolving fund, Partial Risk Guarantee Fund
ü
Promotion
of performance contracting business model—enabling upgradation of existing
buildings, streetlights, municipal pumping and so on through Energy Service
Companies
Policy Reforms in the Power Sector
ü Resolution of fuel supplies
problems.
ü
The
introduction of open access must have top priority. State Governments, SERCs
and Discoms need to conform to the Electricity Act, which prohibits tariff
regulation for consumers of 1 MW and above.
ü
Need
to develop ancillary power markets.
ü
Some
initiatives may be taken through the National Clean Energy Fund –
ü Suitable incentives for low-cost
transmission,
ü Linking the renewable energy
generation sources,
ü Development of smart grid for
evacuation and transmission of renewable power
ü Creation of spinning reserves
ü
There
is a need to strengthen measures for increasing share of renewable energy over
time.
ü
Power
procurement and allocation of power must be done in line with the Tariff Policy
and the guidelines/standard bid documents (SBD) issued in the Electricity Act,
2003. The National Electricity Policy (2005) may need to be suitably amended to
ensure State Governments abide by these provisions.
ü
Consumer
Grievance Redressal Forum (CGRF) should be made a multi-member set-up comprising
representation from all stakeholders.
ü
Reforms
in the distribution sector.
ü
The
State Government should clear all the outstanding dues to the utilities, and
ensure timely payment of subsidy.
ü
There
is a need for an independent oversight over programmes like RGGVY and R-APDRP
on a concurrent basis.
COAL AND LIGNITE SECTOR
ü
Coal
accounted for over 50 per cent of primary commercial energy supply in 2010–11.
ü
An
important feature of the Eleventh Plan was the attempt to augment domestic coal
production from captive mines.
ü
CIL
will continue to play a major role in meeting the coal requirements of the
country.
ü
The
target for coal production in 2011-12 was 630 million tonnes. The actual
achievement was only 540 million tonnes.
ü
A
large demand–supply gap of 100 million tonnes that was only partially met by
imports.
ü
In
2011-12, targeted lignite production was 54.96 million tonnes. However,
achieved production was 43.10 million tonnes.
Review of the Central Sector Schemes
Regional/Promotional Exploration
Aims
at widespread drilling to establish broad framework of the deposits to
facilitate planning for detailed exploration and subsequent projectisation and
mine development.
Detailed Drilling
in Non-CIL Blocks
ü
Detailed
exploration surveys focus on establishing adequate geological resources data
for projectisation and mine development.
ü
The
blocks outside the purview of CIL have been proposed to be explored in detail
for reducing the time lag between offering the blocks to potential
entrepreneurs and starting of the operation by them through budgetary support.
Productivity and Benchmarking
One
of the important areas to improve productivity is benchmarking of operations
and equipment productivity.
Clean Coal Technologies
ü
Coal
beneficiation aims at supplying washed coal to the pulverized coal combustion
boilers of power plants.
ü
Restricting
the use of coal of not more than 34 per cent ash content at thermal power
stations has also contributed to improvement in economics of operations of such
power stations.
Conservation and Safety in Coal Mines
ü
Safety
of miners and safe mining operations are of paramount importance in coal
mining.
ü
These
two schemes are under the statutory provisions of Coal Conservation and
Development Act (CCDA).
Development of Transport Infrastructure in
Coal Field Areas
ü
It
is essential to ensure the timely evacuation of coal produced in mines to the
railheads or railway yards.
ü
Four
critical rail links that have been pending for years are –
ü Tori–Shivpur– Katholia rail link
in North Karanpura coalfield
ü Bupdevpur Baroud rail link
connecting coal blocks in Mand Raigarh coalfield,
ü Jharsuguda–Barpalli railway line
in IB valley coalfield and
ü Sattapalli–Bhadrachalam rail link
ü
Commissioning
of these lines would facilitate movement of around 125–130 million tonnes of
coal to end-users.
Environmental Measures And Subsidence
Control
The
purpose of this scheme is to improve environmental conditions in old mined-out
areas, particularly Jharia and Raniganj coalfields through implementation of a
number of schemes for mitigating the damage caused by unscientific mining.
Application of Information Technology
ü
IT
has been used by the coal industry in India for improving productivity and
decision-making.
ü
Some
of the applications already in use are:
ü
Enterprise
resource planning (ERP).
ü
Real-time
trip counting system at opencast mines with latest technologies like GPS, GIS,
GSM,
RFID, Wi-Fi and so on.
ü
Proximity
warning system for HEMM at opencast
mines.
ü
Truck
movement monitoring system at weigh-
bridges and coal handling plants mines
with latest technologies like GPS, GIS, GSM, RFID, Wi-Fi, and so on.
ü
Online
underground air and gas monitoring systems (CH4, CO, Temperature).
ü
UG
communication system and miners’ tracking with warning system for the miners
entering the unsafe areas.
Coal Pricing
ü
Globally,
pricing of coal is based on gross calorific value (GCV) of coal and so now in
India.
ü
The
revision to GCV is likely to increase the prices of domestic coal to some
extent.
ü
This
is desirable adjustment because domestic thermal coal continues to be
underpriced compared to internationally traded coal prices.
ü
This
price differential creates distortions in the power sector.
ü
Increased
reliance on coal imports is necessary since Coal India is not in a position to
provide domestic coal to meet the demand of all power generating units.
ü
However,
power generators supplying power at a regulated tariff will not be able to pass
on the higher cost of imported coal.
ü
There
is a need to consider a mechanism of price pooling under which Coal India
combines domestic and imported supplies’ price to define a uniform price.
Coal Movement Constraints
ü
Currently
the share of rail in movement of coal in the country is around 52 per cent.
ü
The
share of other modes of transportation is 15 per cent by merry-go-round (MGR),
7 per cent by belt/rope and 27 per cent by road.
Coal Quality and Beneficiation
Coal
washing - to encourage implementation of clean coal technologies.
Amendment to the Coal Mines Act
ü
The
Coal Mines (Nationalization) Act, 1973 does not allow private companies to mine
coal for sale to third parties though captive mining is allowed for specified
end use sectors.
ü
This
is a limited opening that is helpful but unlikely to attract big investment.
ü
Development
of large coal blocks holds the key to rapidly increase production.
ü
The
energy security of the country needs full involvement of all concerned in
producing coal. Hence, amendment to the Coal Mines (Nationalisation) Act is
needed.
ü
A
Bill to amend the Act for this purpose was introduced in Parliament in 2001 but
has not been pursued. Allowing private sector mining does not involve
privatisation of Coal India but only entry of new mining companies.
New Initiatives to Expand Coal Availability
ü Coal exploration must be stepped
up. An independent organisation should be created to develop and maintain the
repository of all geological information in the country.
ü To expedite clearances, a
coordination committee at the Centre and State level may be set up.
ü Enactment of a central
legislation to ensure uniform R&R policy and speedy land acquisition on
appropriate terms is absolutely necessary.
ü Coal companies should develop a
comprehensive plan for increasing the share of production from underground
mines and suitable policy initiatives need to be introduced.
ü
A
coal sector regulator should be set up on a priority basis.
PETROLEUM AND NATURAL GAS SECTOR
ü
The
oil and gas import bill is likely to be around 6–7 per cent of GDP during the
year 2011–12.
ü
Demand
for petroleum products grew at an annual rate of 4.15 per cent during the 11th
plan and is likely to increase at an annual rate of 4.7 per cent during the 12th
Plan.
ü
LPG
consumption in has increased at a rate of 7.21 per cent per annum CAGR and is
likely to grow by about 19.2 per cent during 12th plan.
ü
The
crude oil production was 14 per cent below the target.
ü
Natural
gas production was a shortfall of about 17 per cent.
New Exploration Licensing Policy (NELP)
Programme
ü
The
NELP programme is a major initiative aimed at attracting private investment
into oil and natural gas.
ü
Various
operators in E&P (Exploration & Production) sector till 2010–11, have
made a total investment of US$ 15.88 billion.
Equity Oil, Gas from Overseas Assets
ü
Oil
PSUs have invested US$ 13 billion up to 31 March 2011 on acquisition of assets
abroad, mainly in oil producing assets.
ü
There
are nine major production assets in Russia, Sudan, Brazil, Syria, Vietnam,
Venezuela and Colombia.
ü
Production
from overseas oil and gas blocks is presently about 10.22 per cent of India’s
domestic production.
Policy Initiatives during the Eleventh Plan
Regulatory Measures
The
Government has set up Petroleum and Natural Gas Regulatory Board to regulate
downstream activities of oil and gas sector under the PNGRB Act, 2006.
Allocation of Natural Gas
The
Government has prioritized allocation of gas produced from NELP blocks in the
following order:
ü
Fertilizer
plants producing subsidized fertilizers
ü
LPG
plants
ü
Power
plants
ü
City
Gas Distribution (CGD) for CNG and
domestic PNG
ü
Steel,
petrochemicals, refinery, captive power
plants and CGD for industrial and
commercial customers.
Strategic Storage of Crude Oil
The
Government is in the process of creating strategic crude oil storage capacity
for 15 days at Vishakhapatnam, Mangalore and Padur through Indian Strategic
Petroleum Reserve Ltd. (ISPRL).
Promoting Bio-Fuels
A
programme of 5 per cent blending of ethanol with petrol is already underway and
the percentage of blend can be enhanced to 10 per cent.
Pricing of Petroleum Products
ü
In
2002, the Government dismantled the Administered Pricing Mechanism, and
announced deregulation of prices of all petroleum products. This decision could
not be implemented.
ü
In
2010, Government announced deregulation of the price of petrol.
ü
Diesel
price deregulation is yet to be implemented.
ü
Prices
of LPG and kerosene remain under price regulation by the Government.
Pricing of Natural Gas
ü
The
NELP provides freedom to price the gas by the operator at a market-determined
price for gas produced from the NELP blocks, subject to the Government
approving the pricing formula.
ü
There
is a need to review the provision of pricing under PSC to clarify the extent to
which producers will have the freedom to market the gas.
ü
Legally,
gas as a resource belongs to the Government and the Government has the right to
fix an appropriate price.
ü
However,
if the intention is to attract private investment into this sector, the
Government should state clearly what degree of pricing freedom would be given.
Focus on Research and Development
Focus areas in oil and gas sector are:
ü
Producing
waxy crude
ü
Smart
horizontal well completions
ü
Long
heated insulated pipeline for crude evacuation
ü
Improving
energy efficiency in refineries
ü
Product
yield maximization
ü
Exploration
of unconventional energy resources,
ü
Oil
shale and study of gas hydrates in eastern and western offshore areas of India
Infrastructure and Capacity Building
ü
The
unlicensed offshore areas and Deccan basins are technologically challenging due
to higher water depths and sub-basalt sediments, respectively. It is important
to access latest technology from global centers of excellence to address the
specific needs of these balance areas.
ü
Strengthen
and empower technical and scientific manpower.
ü
Need
for an independent upstream regulator.
ü
Marketing
and distribution infrastructure facilities for the petroleum products
ü
Strategy
for refining capacity additions consider- ing current market situation
ü
Additional
development of new LNG import and regasification capacity both on the East and
the West coasts of India
ü
Gas
Pipeline transportation infrastructure both on the East and the West coasts and
also in southern and northern parts of the country for supply of gas throughout
the country.
ü
Facilitating
development of city gas distribution in about 300 identified cities in the
country.
ü
Improving
efficiency of operations of various oil and gas sector installations.
Reforms Required in the Oil and Gas Sector
ü
Eliminate
the uncertainty regarding gas pricing from NELP production sharing contracts by
implementing a new design of contracts. The recommendations of the Rangarajan
Committee may be an important input in finalizing this policy.
ü
Operationalize
a road map to move petroleum product prices received by marketing companies to
prices aligned with global prices.
ü
Phasing
out subsidies on domestic LPG and PDS kerosene.
ü
Kerosene
supplies can be progressively reduced considering improved electricity access
provided under RGGVY and LPG connections provided in rural areas.
ü Promote development and
production of bio- fuels by the oil sector E&P and marketing companies at
commercial level.
ü Expand exploration and production
of domestic oil and gas sources.
ü
Provide
‘Declared Goods Status’ for natural gas/ LNG so that it is available at uniform
price in most of the States.
ü
Market
forces must also determine natural gas prices charged to producers.
ü
Develop
a policy framework to exploit shale gas.
ü
Acquisition
of equity oil and gas abroad including conventional and shale gas assets.
ü
Contracting
LNG imports both on long- and short-term basis considering market price
affordability.
NEW AND RENEWABLE ENERGY
Some of the key issues –
ü
Regional Concentration of Renewable Energy Potential
ü
Insufficiency and High Cost of Evacuation
Infrastructure
ü
Regulatory Issues
ü
Financial Barriers
ü
Low Penetration of Renewables for Urban and
Industrial Applications
Focussed Areas –
ü
Renewable
Energy for Rural Application
ü
Renewable
Energy for Urban, Industrial and
Commercial Applications
ü
Research,
Design and Development for New and
Renewable Energy
ü
Strengthening
of Institutional Mechanism for
enhanced deployment and creation of public
awareness.
Major New Initiatives
ü
National
Institute of Solar Energy: An
autonomous institution for undertaking applied research, demonstration and
development in solar energy including solar hybrid areas.
ü
National
Bioenergy Corporation of India: to
implement bioenergy mission including cook stove programme.
ü
Renewable
Energy Development Fund: to
address the financing constraints for the grid connected as well as the
off-grid applications of renewables.
ü National Bioenergy Mission: to attract investment and to
facilitate rapid development of commercial biomass energy market based on
utilization of surplus agro-residues and development of energy plantations.
ü Renewable Power Evacuation
Infrastructure: to
support the large expansion in consumption and production of renewable power.
ü National Biomass Cook Stove
Programme: to
universalize access of improved biomass cook stoves.
Major New Initiatives
ü
National
Institute of Solar Energy: for
undertaking applied research, demonstration and development in solar energy
including solar hybrid areas.
ü
National
Bioenergy Corporation of India: will
be set up to implement bioenergy mission including cook-stove programme.
ü
Renewable
Energy Development Fund: to
address the financing constraints for the grid connected as well as the
off-grid applications of renewables
ü
National
Bioenergy Mission: for
attracting investment and to facilitate rapid development of commercial biomass
energy market based on utilization of surplus agro-residues and development of
energy plantations.
ü
Renewable
Power Evacuation Infrastructure:
to support the large expansion in consumption and production of renewable
power.
ü
National
Biomass Cook Stove Programme: to
universalize access of improved biomass cook stoves by providing assistance in
exploring a range of technology deployments, biomass processing and delivery
models leveraging public-private partnerships.
Why Wind Energy?
ü
Renewable
Source
ü
Clean
Energy - No Carbon Emission & Thermal Pollution
ü
Energy
price stability
Why Offshore Wind Energy?
ü
Wind
speeds are stable and high
ü
Significant
Potential in India
ü
Most
of the potential onshore sites already utilized
ü
Coastal
Areas are best benefitted less transmission Coast
ü
Low
Noise Pollution and Visual Intrusion
ü
Cost
competitive electricity to coastal region.
Wind Energy – Global Deployment Status
ü Developing countries have more
than 1/3rd global wind power capacity.
ü In India - onshore wind energy
deployment has crossed 19600 MW - attracted $16.5 billion of investment in
2012, created 179,000 ‘green collar’ jobs in manufacturing, project
development, installation, operation, maintenance, consulting etc., saving 131
million tons CO2/year.
ü
India
is the second largest wind turbine manufacturer next to China.
Off shore Wind Power Development
First
Offshore Wind Turbine – Sweden (1990)
ü
First
Offshore Wind Farm – Denmark (1991)
ü
Global
Installed Capacity - 5.5 GW
ü
Europe
is the global leader in offshore wind energy installation.
ü
Globally
installations have reached over 5,000 MW (Europe: 4995 MW followed by China:
390 MW and Japan: 25 MW).
ü
China
-
Largest onshore wind power developer
ü
USA
-
2nd largest onshore developer. But, no Offshore Projects till date
ü
Japan
-
First offshore wind farm 16 MW - 2004
ü
India
– Onshore and Offshore (Policy being formulated)
ü
India
has significant off shore wind power potential - Offshore wind potential of
Tamil Nadu estimated as 127 GW.
Offshore Wind Energy- India Status
ü
India
is blessed with coastline of about 7600Km.
ü
United
Nations Convention on Law of the Sea gives India exclusive rights over its
Exclusive Economic Zone (200 nautical miles from baseline) to develop offshore
wind energy.
ü
Efforts
so far limited to preliminary resource assessment.
ü
Preliminary
studies suggest potential along Tamil Nadu, Gujarat and Maharashtra coasts.
ü
Scottish
Development International’s study has indicated potential of 1 GW each at
Kanniyakumari and North of Rameshwaram.
Offshore Wind Energy Development in India-
Relevant Issues
ü
High
Cost- The cost of offshore wind farms almost 1.5 – 2 times than that of onshore
wind farms.
ü
Development
of a policy framework including the regulatory process.
ü
Capability
creation for understanding the nuances of turbine and array design
consideration and grid integration.
ü
Creation
of support services infrastructure - specialized turbine installation vessels;
under sea electricity transmission including additional grid infrastructure.
ü
Developing
an approval protocol.
ü
Involvement
of multiple agencies for clearances.
ü
Operation
and Maintenance related issue
ü
Security
of Installations.
COMPONENTS EFFECTING INVESTMENT COST
ü
Capital Cost
ü Super
Structure – Turbine and Installation
ü Sub
Structure – Foundation and Installation
ü
Electrical Equipment
ü
Development and Permits
ü
Operation and Maintenance
Initiatives by Govt. for development of policy –
ü
MNRE
constituted Offshore Wind Energy Steering Committee (OWESC) to propose policy
framework and requirements of inter-agency coordination.
ü
Constituted
Sub-committee to suggest draft policy guidelines for development of offshore
wind energy activities.
Draft National Offshore Wind Energy Policy
Objectives:
To Promote Deployment of Offshore
Wind Farms up to 12 nautical miles from coast.
ü To Promote Investment in the
Energy Infrastructure.
ü To Promote Spatial Planning and
Management of Maritime
Renewable Energy Resources in the Exclusive Economic
Zone.
ü To Achieve Energy Security and to
reduce Carbon Emissions.
ü To Encourage Indigenization of the
Offshore Wind Energy Technology.
ü To Promote R&D in the
Offshore Wind Energy Sector.
ü To Develop Skilled Manpower and
Employment in the industry.
Salient Features of Policy
ü Preliminary Resource Assessment
and demarcation of blocks.
ü EIA study of proposed wind farms
regarding aquatic life, fishing etc., studies relating to navigation, undersea
mining and related exploration/exploitation activities and other users of the
sea.
ü Oceanographic studies - to
determine construction costs for special foundations, special ships for both
operation and maintenance requirements.
ü Sea Bed Lease Arrangement.
ü Single Window Procedure for
Statutory Approvals (NOWA).
ü Grid Connectivity and Evacuation
of Power
ü Technology
ü Fiscal and Monetary Incentives
ü Security & Confidentiality of
data collected during studies and surveys.
National Offshore Wind Energy Authority
(NOWA)
NOWA to be established under the aegis of MNRE
- to be responsible for the following:
ü
Carry
out Resource Assessment and Surveys in the EEZ of the country
ü
Enter
into contract with the project developers for development of offshore wind
energy project in the territorial water (12 nm).
ü
Single
Window Agency to facilitate clearances
Role of Other Agencies/Bodies
ü Offshore Wind Energy Steering
Committee, under the Chairmanship of Secretary, MNRE to oversee overall
development of Offshore Wind Energy.
ü Ministry of Shipping (for major
ports), State Maritime Board/state designated agency to provide port related
logistical support.
ü State Electricity Board/state
designated agency to undertake onshore power evacuation.
ü CERC & SERCs to finalize
guidelines for transmission, distribution and purchase of power from Offshore
Wind Energy Projects.
SOLAR ENERGY –
The government will set up the world's largest solar power project, having a total generation capacity of 4,000 MW, in Rajasthan, close to Sambhar Lake and about 75 km from the state capital Jaipur.
The government will set up the world's largest solar power project, having a total generation capacity of 4,000 MW, in Rajasthan, close to Sambhar Lake and about 75 km from the state capital Jaipur.
Jawaharlal Nehru National Solar Mission (JNNSM) –
ü It was launched on the 11th January
2010.
ü Targets deploying 20,000 MW of
grid connected solar power by 2022.
ü Aims at reducing the cost of
solar power generation in the country through –
Long-term
policy
Large-scale
deployment goals
Aggressive
R&D
Domestic
production of critical raw materials, components and products
ü The Mission has adopted a 3-phase
approach: the 11th Plan and first year of the 12th Plan (up to 2012-13) has
been considered as Phase 1, the remaining 4 years of the 12th Plan (2013-17)
are included as Phase 2, and the 13th Plan period (2017-22) is envisaged as
Phase 3.
ü The first phase of NSM focused on
capturing the low hanging options in solar: on promoting off-grid systems to
serve rural populations and a modest capacity addition in grid-based systems.
Nuclear Energy
Production
ü
Nuclear
energy is produced naturally and in man-made operations under human control.
ü
Naturally: Some nuclear energy is produced
naturally. For example, the Sun and other stars make heat and light by nuclear
reactions.
ü
Man-Made: Nuclear energy can be man-made
too. Machines called nuclear reactors, parts of nuclear power plants,
provide electricity for many cities. Man-made nuclear reactions also occur in
the explosion of atomic and hydrogen bombs.
ü
Nuclear
energy is produced in two different ways –
ü Nuclear Fission: The nuclei of atoms are split,
causing energy to be released. The atomic bomb and nuclear reactors work by
fission.
ü Nuclear Fusion: The nuclei of atoms are joined
together, or fused. The hydrogen bomb works by fusion.
Milestones in the History of Nuclear Energy
ü December 2, 1942: The Nuclear
Age began at the University of Chicago when Enrico Fermi made a chain
reaction in a pile of uranium.
ü August 6, 1945: The United States
dropped an atomic bomb on Hiroshima,
Japan, killing over 100,000.
ü August 9, 1945: The United States
dropped an atomic bomb on Nagasaki,
Japan, killing over 40,000.
ü November 1, 1952: The first large
version of the hydrogen bomb (thousands
of times more powerful than the atomic bomb)
was exploded by the United States for testing purposes.
ü
February
21, 1956: The first major nuclear power plant opened in England.
Advantages of
Nuclear Energy
ü
Nuclear
power plants could still produce electricity after coal and oil become scarce.
ü
Nuclear
power plants need less fuel than ones that burn fossil fuels.
ü
Coal
and oil burning plants pollute the air. Well-operated nuclear power plants do
not release contaminants into the environment.
Disadvantages of
Nuclear Energy
ü
Nuclear
explosions produce radiation. The nuclear
radiation harms the cells of the body, which can make people sick or even kill them. Illness can strike
people years after their exposure to nuclear radiation.
ü
One
possible type of reactor disaster is known as a meltdown. In such an
accident, the fission reaction goes out of control, leading to a nuclear
explosion and the emission of great amounts of radiation.
ü
In
1979, the cooling system failed at the Three
Mile Island nuclear reactor near Harrisburg, Pennsylvania.
ü
In
1986, a much worse disaster struck Russia's Chernobyl
nuclear power plant. In this incident, a large amount of radiation escaped
from the reactor. Hundreds of thousands of people were exposed to the
radiation.
ü
Reactors
produce nuclear waste products that emit
dangerous radiation.
ü
In
1957, at a dump site in Russia's Ural Mountains, several hundred miles from
Moscow, buried nuclear wastes mysteriously exploded, killing dozens of people.
ü
Nuclear
reactors only last for about forty -fifty years.
Some facts –
The
only major disaster involving nuclear power plants has been the Chernobyl
disaster.
The
Soviet scientists have since then admitted that the reactors at Chernobyl were
mismanaged and lacked many important safety features.
The
power plants in existence today are extremely safe--much safer than other types
of energy-producing plants.
But
even though this disaster killed a considerable number of people, it serves as
no competition to other industries. For example, the chemical industry has a
vast inventory of toxic wastes. The automobile industry, with their ubiquitous
and unhealthy smog, causes 50,000 deaths a year. In fact, the coal power
industry, a competing source of power with nuclear power plants, produces
evident damage from acid rain and kills about 30,000 people per year with air
pollution. In fact, all the deaths that will eventually be caused by the
Chernobyl disaster, the largest ever-nuclear disaster, comprise less than the
number of deaths caused by coal-burning pollution each year. With
regards to all major energy sources, nuclear energy is by far the safest,
cleanest, and most efficient. One ton of uranium produces more energy than is
produced by several million tons of coal or several million barrels of oil.
National Policy on Biofuels
ü
Biofuels
are liquid or gaseous fuels produced from biomass resources (biodegradable
fraction of products, wastes and residues from agriculture, forestry and
industries).
ü
These
are used in place of, or in addition to, diesel, petrol or other fossil fuels for
transport, stationary, portable and other applications.
ü
In
biofuels, the country has a ray of hope in providing energy security.
ü
Biofuels
are environment friendly fuels and their utilization would address global
concerns about containment of carbon emissions.
ü
Biofuels
are derived from renewable biomass resources.
ü
Biofuels
provide a strategic advantage to promote sustainable development and to
supplement conventional energy sources.
ü
Biofuels
satisfy energy needs in an environmentally benign and cost- effective manner
and reduce dependence on import of fossil fuels.
ü
Policy
encompasses bio-ethanol, bio-diesel and other biofuels, as listed below: -
‘Bio-ethanol’- ethanol produced from biomass
such as sugar containing materials, starch containing materials and cellulosic
materials.
‘Biodiesel’- a methyl or ethyl ester of fatty acids produced from
vegetable oils or animal fat of diesel quality.
‘Other
Biofuels’- bio
methanol, biosynthetic fuels etc.
STRATEGY AND APPROACH
ü
The
focus for development of biofuels will be to utilize waste and degraded forest
and non-forest lands only for cultivation of shrubs and trees bearing
non-edible oil seeds for production of bio-diesel.
ü
In
India, bio-ethanol is produced mainly from molasses, a by-product of the sugar
industry. Since technology is based on non- food feed stocks. Therefore, the
issue of fuel vs. food security is not relevant in the Indian context.
ü
Cultivators,
farmers, landless laborers etc. will be encouraged to undertake plantations
that provide the feedstock for bio-diesel and bio-ethanol.
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