EN 606

Energy Resources, Economics and

Environment

Rangan Banerjee

L-1 29 July, 2019

Preamble

#1Why bother about energy ?

#2 Issues related to energy ?

#3 Expectations from course?

Clicker Questions

Class Participation

Student Engagement

https://www1.iclicker.com/

http://www.et.iitb.ac.in/TeachingStrategies.html#PI
Responses without Clickers

http://www.et.iitb.ac.in/TeachingStrategies.html#PI
Which of these countries has the maximum
share of renewable power generation in
2018- China, USA, Germany, Brazil, India?
i) USA
ii) China
iii) Brazil
iv) Germany
v) India
Hydrogen Energy is
i) Renewable and sustainable
ii) Not renewable but sustainable
iii) Neither renewable or sustainable
iv) Renewable but not sustainable
v) None of the above
 News Items -1

GST Council reduces rate on electric vehicles

Saturday
from 12% to 5% 27 July 2019 th

Times Of India, Business

http://timesofindia.indiatimes.com/articleshow/70407506.cms?utm_source=contentofinterest&utm_medium
=text&utm_campaign=cppst

GST cut to power electric

vehicles, drive down prices
Sunday
28th July 2019
Hindustan Times
7
News Items -2

EV startups crank up efforts as

nation turns electric
Economic Times July 28

//economictimes.indiatimes.co
m/articleshow/70416984.cms?
utm_source=contentofinterest&
utm_medium=text&utm_campa
ign=cppstp

8
 News Item 3
Jagan government appoints high level
negotiation panel to review PPAs of TDP
1 July 2019 st
regime New Indian Express

Centre advises Jagan not to revisit renewable PPAs in

Andhra
8th June 2019 Economic Times

//economictimes.indiatimes.com/articleshow/69706164.cms?utm_source=contentofint
9
erest&utm_medium=text&utm_campaign=cppst
News Items -2

Govt Might Split Coal India Ltd

Into 5 Listed Units to Boost
Competition: Report

https://www.news18.com/news/business/g
17th July 2019 ovt-might-split-coal-india-ltd-into-5-listed-
News 18 units-to-boost-competition-report-
10
2234903.html
News Items -3 Opinion

July 25,2019

11
News Items -4


Friday
26th July 2019
New York Times

12
Green New Deal protest planned for Democratic debates in Detroit

https://detroit.curbed.com/2
019/7/26/8931926/green-
new-deal-protests-detroit-
13 democratic-debates
 Mali’s efforts to improve access to
renewable energy gets a boost

https://www.esi-africa.com/industry-
sectors/renewable-energy/malis-efforts-to-
improve-access-to-renewable-energy-gets-
14
a-boost/
In India’s last electrified village: https://indianexpress.com/article/north-east-
‘Around 5-6 pm, bulb came on… That india/manipur/leisang-indias-last-electrified-village-
narendra-modi-5165019/
night, not one of us slept…’

India's 'last electrified village'

Leisang still fighting darkness
15 BBC News 29 March 2019
News Items -5


Thursday
25th July 2019
The Guardian

16
News Items -5

India closer to taking a lead, and leap

with Hyperloop

Friday
26th July 2019 https://www.businesstoday.in/sectors/infra/india-closer-to-
Business Today taking-a-lead-and-leap-with-hyperloop/story/368037.html
17
News Items -7
China built a tower that acts
like 'the world's biggest air
purifier,' and it actually works

South China
Morning Post

20 Dec 2018

18
News Items -8
 Commonwealth Fusion Plugs in $115M To Develop Nuclear Reactor

https://xconomy.com/boston/2019/06/27/commonwealth-
19 fusion-plugs-in-115m-to-develop-nuclear-reactor/
News Items -9
New Solar Panel Innovation Simultaneously Generates Electricity and
Purifies Water

Forbes
July 25, 2019

 https://www.forbes.com/sites/scottsnowden/2019/07/25/new-solar-panel-innovation-
simultaneously-generates-electricity-and-purifies-water/#55daeec6595c

20
India readies plan for $4 billion Tesla-
scale battery storage plants

https://www.livemint.com/news/india/india-readies-plan-for-4-billion-tesla-
21
scale-battery-storage-plants-1564077561033.html
NTPC, BHEL to set-up world’s ‘most efficient’ coal-fired power plant

800-MW plant will cut CO2 emissions by about 20 per cent as compared to the
conventional sub-critical technology

https://energy.economictimes.indiatimes.com/news/
power/ntpc-bhel-to-set-up-worlds-most-efficient-
coal-fired-power-plant/70363093

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Course Objective
 To equip students with the tools necessary for economic
analysis and quantification of impacts of energy systems.
 To review the availability of energy resources and study
methods for quantification of resource depletion and scarcity
 To introduce basic concepts of welfare economics and
environmental economics – for energy systems analysis

23
Questions/ Issues
 What does the energy use of a region depend on?
 What are the dimensions of the energy problem?
 How do we compare the energy situation of different
countries?
 What are the environmental impacts of energy systems?
 How do we analyse the economics of energy systems?

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Country Energy Balance
 What does the energy use of a region depend on?
(suggest quantitative, qualitative parameters)

 How do we compare the energy situation of different

countries?
(suggest quantitative parameters- metrics)

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Energy Themes
 Energy and Development
 Energy and Equity
 Energy and Quality of Life
 Energy and Environment
 Energy Security
 Energy and Health
 Energy and the Economy

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Evaluation Scheme
 End Semester 40 marks
 In Semester 60 marks

 Mid Sem Exam 10 marks

Test 1 Mid-sem week September 16-20
 Insem Quizzes (Best 9/11) 10 marks
 Assignment 10 marks
 Course Project 30 marks
End Sem Exam November 11-22

Rangan Banerjee (rangan@iitb.ac.in,

rangan.banerjee@gmail.com) Ph: 7883
 Self- Learning Component

Assignment: Country Energy Balance(Groups

of 3) – allotment 30th July, Submission due 11th
August
 Mock UN session August 14

 Course project (Groups of 3) – form groups,

choose topics, individual components
Attendance
 Please attend! (compulsory?)
 Incentive: +5 marks for 90%+ attendance
 Penalty:
- 3 marks 70-80% attendance
- 5 marks < 70% attendance
Teaching Assistants

Santnam Bakshi Sarvesh Chaudhari Aditya Chalishazhar

(santnam@gmail.com) (sarvesh.chaudhari@iitb.ac.in) (aditya.chalishazar@gmail.com)

Balkrishna Surve
(bsurve@gmail.com)
Countries – Energy Balance
1. United Kingdom, 2. Russia, 3. France, 4. Germany, 5.Canada, 6. Australia, 7.
Sweden, 8. Norway, 9. Finland, 10. Denmark, 11. The Netherlands, 12. Japan13.
South Korea, 14. Belgium, 15. Singapore, 16. New Zealand, 17. United States of
America, 18. Brazil, 19. Turkey, 20. China, 21.Argentina, 22. Pakistan, 23. Sri Lanka
24. Israel, 25.Thailand, 26. Indonesia, 27. Mexico, 28.Venezuela, 29. Egypt, 30.
South Africa, 31. Kenya, 32. Iran, 33. Saudi Arabia, 34. Chile, 35. Spain, 36. Hungary,
37. Greece, 38. Italy, 39. Kazakhstan, 40. Ukraine 41.Iraq 42.Turkey 43.
Switzerland 44. Zimbabwe 45. Bangladesh 47.Portugal 48.Nepal

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Economics- Levels

Source: Jochem, ETH, 2007

Module 1 - Approx 6 lectures
 Course Overview,
 Issues related to Energy systems- energy and growth, energy and equity,
quality of life, energy and environment. Country Energy Balance Construction
– India and World Dis-aggregation by supply, Disaggregation by end-use,
 Energy intensity,
 Kaya Identity

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Module 2 - Approx 4 lectures
 Energy Economics - Simple Payback Period,
 Time Value of Money- discount rate,
 Criteria for Assessing Energy Projects -IRR, NPV, Life
Cycle Costing, Cost of Saved Energy , Cost of Energy
generated,

Module 3 - Approx 3 lectures

 Resources & Reserves Growth Rates in Consumption,

 Estimates of Duration of Fossil Fuels, McKelvey Diagram,
 Peak oil, Hubbert’s model

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Module 4 - Approx 5 lectures
• Economics of natural resources – scarcity, non-renewable resources,
• Hotelling’s rule, renewable resource economics, Markets and
Monopoly
Module 5 - Approx 5 lectures
• Utility function , Indifference curve, Public goods,
• private goods, Pareto Optimality,
• Intergenerational Equity, Risk and Uncertainty

Module 6 - Approx 4 lectures

• Electricity Markets – Example, Simulation game

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 Module 7 - Approx 2 lectures
• Energy Chain, Primary energy analysis,
• Net Energy Analysis Examples, Energy Cost of Energy,
• Life Cycle Analysis of Bioenergy

Module 8,9 - Approx 6 lectures

• Quantifying Environmental impacts,
• DALY, Emission factors, Emission inventories
• Externalities,
• Economics of Climate Change,
• Valuing the Environment

Module 10 - Approx 3 lectures

• Energy Models, Input-Output Models
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Module 11,12 - Approx 5 lectures

• Financing Energy – Debt/ Equity- Sources of

funds,
• Innovative financing models,
• Energy Policies- market or mandate,
• Regulation, Interventions,
Module 13 - Approx 1 lecture
• Future Energy Systems and Sustainability

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References
• GEA, 2012: Global Energy Assessment - Toward a Sustainable Future, Cambridge University Press,
Cambridge, UK and New York, NY, USA and the International Institute for Applied Systems Analysis,
Laxenburg, Austria. ( mainly Chapter 1 - Energy Primer pp. 99-150, Chapter 3- Energy and
Environment-pp. 191-254.Chapter 4 – Energy and Health pp. 255-324)
• Conrad, J. M., Resource Economics, 2nd Edition, Cambridge University Press, New Delhi, 2010.
• Hanley, N., Shogren J. F. and White, B., Environmental Economics in Theory and Practice, Macmillan
India Ltd., New Delhi, 1997.
• Tester J.W., Drake E.M., Driscoll M. J., Golay, M.W, Peters, W.A.,Sustainable Energy Choosing Among
Options, PHI Learning Private Limited,New Delhi, 2009.
• J.M. Conrad and C.W. Clark, Natural Resource Economics, Cambridge University Press, 1987.
• Kolstad ,Charles D., Environmental Economics, Oxford University Press, New Delhi, 1999.

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