1.

Energy
Scenario
1.2 Primary and Secondary Energy
Major primary and secondary sources
Source Extraction Processing Primary energy Secondary
Energy
Open Steam
Coal or deep Grading Coal
mines
purification Coke

Hydro

Nuclear Power
Mining Enrichment station Electricity

Natural gas
Gas well Treatment Natural gas

LPG
Petroleum Cracking Petrol
Oil
and refining Steam
well Diesel/fuel oils
Petrochemical
1.3 Commercial and Non-
commercial Energy
• Commercial energy is energy available
at price
– Examples are electricity, coal, lignite, oil,
and natural gas
• Non-commercial energy is energy not
available in market for a price
– Examples are firewood, cattle dung and
agricultural wastes, solar energy, animal
power, wind energy
1.4 Renewable & Non-renewable
Energy
1.5 Global Energy Reserves (End 2003)
• The USA had the largest share of the global
reserve (25.4%) followed by Russia (15.9%),
China (11.6%). India was 4th in the list with
8.6%.
• Saudi Arabia had the largest share of the reserve
with almost 23%.
• The Russian Federation had the largest share of
the reserve with almost 27%.
• Oil – 45 years
• Gas – 65 years
• Coal – 200 years

What is Reserves/Production ratio ?

What is million tonnes of oil equivalent ?
BP Statistical Review of World Energy 20
 Energy distribution –
developing and developed countries
 1.6 Indian Energy Scenario
• Coal dominates the energy mix with 55% of total primary
energy consumption
– Indian proven recoverable coal reserves estimated at
84,396 million tonnes (End 2003)
–
• Oil accounts for 33% of energy consumption
– Oil reserves estimated at 5.4 billion barrels
– India average production in 2002 was 793,000 barrels per
day
– 70% of petroleum product demand met by imports

• Natural gas accounts for 8% of energy consumption

– Indian gas reserves estimated at 660 billion cubic meters
– Demand of 97 million cubic metres against availability of 67
 Electrical power supply in India

• Installed capacity of 1,12,581 MW

as on 31st May 2004
– 28,860 MW - hydro,
– 77,931 MW - thermal
– 2,720 MW - nuclear and
– 1,869 MW - wind (Ministry of Power).

Nuclear provides 2.4% of electricity generated

Hydro contribution 25% as on 31st March 2004
 Final Energy Consumption (User End)

This is the difference between primary energy consumption and

the losses that takes place in transport, transmission & distribution
and refinement.
Sector wise Energy Consumption
 India’s Energy Needs
• Percapita Energy consumption
– is just 4% of USA and 20% of the world average. The
per capita consumption is likely to grow in India with
growth in economy thus increasing the energy demand.
• Energy intensity
– is energy consumption per unit of GDP
– 6% increase in GDP would contribute to 9% increase in
energy demand
– India’s energy intensity is 3.7 times of Japan, 1.55 times of
USA, 1.47 times of Asia and 1.5 times the world average
– The developed countries, by focusing on energy efficiency and
lower energy-intensive routes, maintain their energy to GDP
ratios at values of less than 1.
1.8 Long Term Energy Scenario-Coal

• Predominant energy source

• 70% of total electricity
• Current production - 290 Million tonnes per
year,
• To double by 2010
• Poor quality
• Imports
1.8 Long Term Energy Scenario-Oil
 India’s Electricity Demand
• Peak demand shortage of 14% and energy deficit of 8.4%
• To maintain GDP growth rate at 8% to 10%, target of
215,804 MW of power generation set by GOI
 1.9 Energy Pricing in India
• Pricing influenced by economic, social and political
compulsions
• Oil Pricing Cross-subsidies: Diesel, LPG and
Kerosene subsidized by Petrol . Attempt to bring
petroleum products in line with international.
• Coal Pricing Grade wise price of coal at pit head
are decided by Coal India Ltd periodically. Industries
still prefer import because of high calorific value and
lower ash content in imported coal
•Electricity pricing Tariff varies with time of
usage, voltage supply,consumer segments and
also from State to State .Agricultural and domestic
users subsidized by Industrial and commercial users
 1.10 Energy Sector Reforms
• Coal now being allowed to import to meet domestic needs
• Private sector now allowed to extract and market coal
• Oil and Natural gas :Private sector allowed to import and
market LPG freely
• New Exploration and Licensing Policy (NLEP) to promote
exploration and production of domestic oil and gas
• Refining sector opened to private and foreign investors
• Attractive terms to investors towards construction of LNG
import terminals
• Power Sector Reforms : Plans to link SEB’s
• Private investment for power allowed
• Advice to states to separate generation, transmission and
distribution with separate corporations
• Electricity Act, 2003 enacted which distances government
from regulations
 Electricity Act, 2003
• Consolidate laws related to generation,
transmission, distribution, trading and use
of electricity
• General measures
– for developing electricity industry, promoting
competition, protecting consumer interest,
supply of electricity to all areas, rationalization
of tariff, ETC
1.11 Energy and Environment

Inputs Process Outputs

Emission Emission
from from
process combustion

Energy
Water Industrial Products
Chemical Process
Raw
Material

Solid/ Direct/Indirect
Liquid Energy waste
waste
 Principle pollutants
The principle pollutants produced by industrial,
domestic and traffic sources are
– sulphur dioxide, nitrogen oxides,
– particulate matter,
– carbon monoxide, ozone,
– hydrocarbons,
– benzene, 1,3-butadiene,
– toxic organic micro pollutants,
– lead and heavy metals.
 Greenhouse gases
• Greenhouse gases is only 1 percent of the
atmosphere. They act as a blanket
– carbon dioxide from the combustion of coal,
oil and natural gas
– methane and nitrous oxide from farming
activities and changes in land use
– several man made gases that have a long life
in the atmosphere.
 Acid Rain

• Caused by release of SOX

and NOX , which then
mixes with water vapour to
form acids
• Effects
– Acidification of lakes, streams
and soils
– Release of metals, washing
away of nutrients
– Killing wild life
– Decay of buldings
– Health problems
Evidence & Effects of Climatic
Change

• Increase in Global Temperature

• Severe Storms and Flooding
• Food shortages
• Dwindling Freshwater supply
• Loss of biodiversity
• Increased diseases
 1.12 Energy Security
• Energy demand growth rate projected at 4.6% through 2010
• India has to import 75% of oil and 22% of coal to meet
requirement by 2006
• We are vulnerable to external price shocks and supply
fluctuations
• Need to reduce dependence on middle east and diversify
supplies
• Building stock piles
• Diversification of energy supply sources
• Increased capacity of fuel switching
• Demand restraint,
• Development of renewable energy sources.
• Energy efficiency
• Sustainable development
1.13 Energy Conservation and its importance

60% of resources
of world consumed
so far

85% of raw energy

comes from non-
renewable sources
and hence not
available for future
generation
Energy Conservation Vs Energy Efficiency

Energy Efficient Equipment uses less energy

for same output and reduces CO2 emissions

Incandescent Lamp Compact fluorescent Lamp

60 W 15 W

CO2 Emission – 65 g/hr CO2 Emission – 16 g/hr

Figure 1.14
 1.14 Energy Strategy for the Future
Energy Strategies-Immediate
• Rationalizing tariff structure of various energy products
• Efficiency in production, reduction in distribution losses
• Promoting R&D and use of energy efficient technologies and practices
• Promoting energy efficiency standards
Energy Strategies-Medium
• Demand management
• Optimum fuel mix
• Increased dependence on rail than road for goods/passenger
• Recycling
• Shift to energy such as solar, wind and biomass energy
• Energy Strategies-Long
• Increased utilization of domestic fuel sources
• Improved energy infrastructure
• Enhancing energy efficiency
• Deregulation and privatization of energy sector
• Legislation to attract foreign investment
Important features of the Energy
Conservation Act
• Standards and Labeling
• Designated Consumers
• Certification of Energy Managers and
Accreditation of Energy Auditing Firms
• Energy Conservation Building Codes:
• Role of Central and State Governments:
• Enforcement through Self-Regulation:
• Penalties and Adjudication:
 Designated Consumer
Schedule of Act provides list of designated consumers (DC).
DCs to
– Appoint/designate energy managers
– Get energy audits conducted by accredited energy
auditors
– Implement techno-economic viable
recommendations
– Comply with norms of energy consumption fixed
– Submit report on steps taken
 List of Energy Intensive Industries and other
establishments specified as designated consumers