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Energy as an Economic Resource

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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In India

“Apart from the heavy strain this will cast on the country’s balance of payments, even the
physical availability of oil in the international markets will pose a problem in the years to
come. This means that if India’s plans of economic growth are not to be hampered by in
adequacies of energy, reduced dependence on the imported oil has to be the key element
in our development strategy.”

Planning Commission, India (1977)

‘Working Group on Energy Policy for Sixth Five Year Plan 1980-85’ in December, 1977

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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A brief (hi)story of energy economics

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Classification

1. Energy
as a
resource
Measurement

Accounting
11
Energy

Energy is defined as the ability to do work or to produce heat.


Heat could be generated by burning a fuel or through other
means (e.g. capturing sun light).

Energy can be captured and harnessed from vary diverse sources


that can be found in various physical states.

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Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Use based
Non-
commercial

Energy Conventional
Technology
based
Non-
conventional
Local
Emission pollutant
based
Global
pollutant

Storable
Storage
based
Non-storable
13
Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Primary energy: Extracted/captured
Use based
from a stock/flow of natural resources that have not
undergone any transformation or conversion other
Non- than separation and cleaning. (e.g.
coal, oil, solar) commercial

Energy
Technology

Conventional based
Secondary energy: Generated from a primary Non-source of energy through transformation/
conversion (e.g petroleum product, electricity generated from coal).
conventional
Local
Note: Emission pollutant
based
Electricity and heat can be obtained both as primary
Global and secondary energy.
pollutant depending on the usage pattern.
Fuelwood can be both renewable and non-renewable
Non-storable
Storable
Storage
14
based
Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Primary energy: Extracted/captured
Use based
from a stock/flow of natural resources that have not
undergone any transformation or conversion other
Non- than separation and cleaning. (e.g.
coal, oil, solar) commercial

Energy
Renewable: primary energy coming from an infinite flow (e.g. solar)
Technology
Non-renewable: primary energy coming from a finite stock (e.g. coal).
Conventional based
Secondary energy: Generated from a primary Non-source of energy through transformation/
conversion (e.g petroleum product, electricity generated from coal).
conventional
Local
Note: Emission pollutant
based
Electricity and heat can be obtained both as primary
Global and secondary energy.
pollutant depending on the usage pattern.
Fuelwood can be both renewable and non-renewable
Non-storable
Storable
Storage
15
based
Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Use based
Non-
commercial

Energy Conventional
Technology
based
Non-
Commercial energy: Bought and sold in the market at a market
price (e.g Oil) conventional
Non commercial energy: Not bought
Local and sold in the market and
Emission pollutant
hence doesn’t have a market price (fuelwood collected from
based
forest)
Global
pollutant
Whether a particular fuel is commercial or non-commercial will
depend on the location, community
Storableand time.
Storage
based
Non-storable 7
Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Use based
Non-
commercial

Energy Conventional
Technology
based
Non-
conventional
Local
Conventional energy: Technology used to capture orEmission
harness energy sources are existing and conventional (e.g. Large
pollutant
Hydro) based
Global
pollutant
Non-conventional energy: Technology used to capture or harness energy sources are new and novel (e.g. Ocean
Thermal) Storable
Storage
based
The definition is quite ambiguous as any particular energy has a possibility ofNon-storable
transition from non-conventional to non-
conventional.
8
Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Local pollutant: spread remains mostly in the vicinity Commercial


of the source of emission
Use based
(e.g. sulphur dioxide, Particulate matter) – local/national issue.
Non-
commercial
While burning of biomass causes high local pollution, burning of natural gas
Global pollutant:causes
Energy spreads relatively
much less local evenly
pollution.inCoal
thebased
atmosphere and hence
power generation impact
causes global is
almost source neutral (e.g.
pollution Carbon
through Dioxide
greenhouse
Technology
and other
emission greenhouse
but hydro-based
Conventional based gases)
power – global
generation does
issue. not cause direct emission of global pollutant.
Non-
Local
Emission conventional pollutant
based
Global
pollutant

Storable
Storage
based
Non-storable

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Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Use based
Non-
commercial

Energy Storable: If the particular


Technology
form of energy can be stored in a physical
Conventional
form i.e. in the form of some energy commodity, then that’s
storable energy (e.g.based
coal). Non-

conventional
Non-storable: If the particular for of energy cannot be stored in a
Local
physical form i.e. in the form
Emission of an energy commodity,
emission then that’s
non-storable energybased
(e.g. electricity)
Global
emission
Storable
Storage
based
Non-storable

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Classification of energy resources
Renewable
Primary
Source based Non-
renewable
Secondary

Commercial
Use based
Non-
commercial

Energy Conventional
Technology
based
Non-
conventional
Local
Emission emission
based
Global
emission

Storable
Storage
based
Non-storable

20
Comparability is important

• What is the quantity of energy that you use during an usual day?

• X kWh of electricity
• Y litre of petrol
• Z kg of LPG
• Aggregate?

• An average American consumes 1 gallon of petrol for automobile


per day while an average Indian consumes 0.05 litre.

• Who consumes more and how much?

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Difference in units of measurements

Not only different fuels have different units of measurement, the units vary across geographical
locations even for one particular fuel. To understand aggregate energy supply and demand, a
common unit is needed.

Tonnes of coal Barrel/litre of oil Cubic kWh of


meter/kg of electricity
natural gas

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Scientific units and commercial units

• Scientific units: These units


have specific scientific
1 calorie (thermochemical) = 4.184 J
definitions.
1 calorie (15°C) = 4.1858 J
• Calorie: Amount of heat 1 calorie (IT) = 4.1868 J
required to raise the temperature 1 calorie (mean) = 4.1900 J
of 1 gram of water by 1°C. 1 Btu = 251.9958 calories
• Btu: British system analog of 1 Btu (thermochemical) =
calorie: Btu/lb-°F. 1054.35 J
1 Btu (59 °F) = 1054.80 J
• Joule: Basic energy unit of 1 Btu (IT) = 1055.06 J
the 1 Btu (mean) = 1055.87 J
metric system.
• kWh: The kilowatt-hour is a 1 kilowatt-hour (kWh) =
standard unit of electricity 3.6 x 106 J
production and consumption. 1 kilowatt-hour (kWh) =
Visit https://www.aps.org/policy/reports/popa-reports/energy/units.cfm
3412 Btu (IT)
1 kilowatt-hour (kWh) = 23
Scientific units and commercial units
• Commercial units: These units
provide a sense of physical quantities
of the fuel.
• Eg. 1 barrel of oil, 1 tonne of coal.

1 short ton (ton) = 2000 lb


1 metric ton (tonne) = 1000 kg
1 ton = 0.907185 tonne
1 barrel = 42 U.S. gallons = 159.0 liters
1 barrel of crude oil ~ 0.136 tonne
1 square mile = 640 acres = 2.590 km2
1 hectare = 10-2 km2 = 2.471 acres

Visit https://www.aps.org/policy/reports/popa-reports/energy/units.cfm

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Conversion factors for oil Conversion factors for natural gas

Initial unit Converted unit Initial unit Converted unit

1 US gallon 3.785 litre 1 cubic metre 35.3 cubic feet

1 U K gallon 4.546 litre 1 billion cubic 0.9 Mtoe


metre
1 Barrel 158.9 litre
1 billion cubic feet 0.025 Mtoe
1 cubic foot 0.0283 cubic metres
1 million tonne 1.36 billion cubic metres,
1 Cubic metre 1000 litre 1.22 Mtoe

1 kilogram (kg) 2.2036 lb *Note: 1 lit =1 kg (simplistic assumption)

1 tonne 7.33 barrels

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Scientific units and commercial units
• Commercial units: These units Fuel Heat content
provide a sense of physical quantities (approximated single value)
of the fuel. Semi anthracite coal 7000 kcal/kg
• Eg. 1 barrel of oil, 1 tonne of coal. Coking coals 6000 kcal/kg
Sub-bituminous 5800 kcal/kg
coals
1 short ton (ton) = 2000 lb Crude oil 1.x 10^7 kcal/t
1 metric ton (tonne) = 1000 kg
Petrol* 1.1 x 10^7 kcal/t
1 ton = 0.907185 tonne
1 barrel = 42 U.S. gallons = 159.0 liters LPG* 1.2 x 10^7 kcal/t
1 barrel of crude oil ~ 0.136 tonne Electricity 860 kcal/kWh
1 square mile = 640 acres = 2.590 km2
1 hectare = 10-2 km2 = 2.471 acres Natural gas 39 MJ/m^3

Visit https://www.aps.org/policy/reports/popa-reports/energy/units.cfm
*Fuels which consist of a mixture of several different compounds may vary in quality.
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Conversion to tonnes of oil equivalent (toe)

• The objective is to convert all fuel in the same commercial unit


• Suppose, X tonne of coal releases energy equivalent to energy released by 1 tonne of oil.
Then that X tonne of coal will be treated as 1 tonne of oil equivalent.

• OECD/IEA: 1 toe = 1.00 x 1010 cal (IT) = 41.868 GJ = 39.68 MBtu (IT)

• In other cases: 1 toe = 1.07 x 1010 cal (thermochemical) = 44.769 GJ = 42.46 MBtu
(thermochemical).

Visit https://www.aps.org/policy/reports/popa-reports/energy/units.cfm

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Pounds of CO2 emitted per million Btu of energy
for various fuels

Fuel Emission The amount of CO 2 produced when a


Coal (anthracite) 228.6 fuel is burned is a function of the
carbon content of the fuel.
Coal (bituminous) 205.7
Coal (lignite) 215.4

Coal (subbituminous) 214.3


Diesel fuel and heating oil 161.3

Gasoline (without ethanol) 157.2

Propane 139.0 For more information, visit:


https://www.eia.gov/tools/faqs/faq.ph
Natural Gas 117.0
p?id=73&t=11

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Energy
Accounting
• ‘Energy accounting’ is a framework to summarize the energy flow from supply sources to end-
use. It also takes into consideration transformation/conversion. Energy Balance, Energy Flow
Diagram/Shankey Diagram, Reference Energy Systems are various ways to represent energy
accounting.

• International Recommendations on Energy Statistics (IRES) specifies the format of Energy Balance
and all applicable concepts in order to have consistency in the compilation process.

• The columns in an Energy Balance represent different types of energy while the rows represent
different types of production, transformation and consumption activities.

• Commercial energy forms are mostly accounted for as data availability is a serious issue for non-
commercial energy resources.

• Note: The term ‘energy accounting’ is also used to represent a system of record keeping with
respect to energy consumption and related cost for an individual, organization, area etc.

2
9
Energy Balance of India for 2016- Figures are
17
(provisional) in
Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity KTOE
Total
Production 3,94,724.94 36,801.12 - 29,343.46 9,881.11 10,535.55 2,778.55 - 4,84,064.72
Imports 1,23,552.77 2,18,618.60 36,327.16 17,136.96 - - - 483.06 3,96,118.54
Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72
Stock changes 7,388.67 - - - - - - - 7,388.67
Total primary energy supply 5,24,471.04 2,55,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 8,17,370.21
Statistical differences 52,170.70 15,851.18 -6,177.78 2,602.28 - - -9,990.02 54,456.36
Main activity producer electricity plants -3,63,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 1,06,240.79 -2,92,438.70
Autoproducer electricity plants - - - - - -11.08 - 16,942.00 16,930.92
Oil refineries - -2,50,759.40 2,48,741.88 -4,943.66 - - - - -6,961.19
Energy industry own use -167.62 - - -6,347.02 - - - - -6,514.63
Losses - -20,511.49 - - - - - -21,399.72 -41,911.22
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - - - 36,693.19 3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - - - - 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - - - 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Non-energy use industry/transformation/energy - - 8,804.77 19,540.67 - - - - 28,345.44
Elect. output in GWh - - - - 37,915.87 1,22,506.36 32,308.77 - 1,92,731.00
Elec output-main activity producer ele plants - - - - 37,915.87 1,22,377.56 32,308.77 - 1,92,602.20
Elec output-autoproducer electricity plants - - - - - 128.80 - - 128.80
Energy Commodity Balance and Energy
Balance

3
1
Energy Commodity Balance and Energy
Balance

3
2
Presentation of energy data using Energy
Balance

7
Energy Balance of India for 2016- Figures are
17
(provisional) in
Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity KTOE
Total
Production 3,94,724.94 36,801.12 - 29,343.46 9,881.11 10,535.55 2,778.55 - 4,84,064.72
Imports 1,23,552.77 2,18,618.60 36,327.16 17,136.96 - - - 483.06 3,96,118.54
Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72
Stock changes 7,388.67 - - - - - - - 7,388.67
Total primary energy supply 5,24,471.04 2,55,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 8,17,370.21
Statistical differences 52,170.70 15,851.18 -6,177.78 2,602.28 - - -9,990.02 54,456.36
Main activity producer electricity plants -3,63,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 1,06,240.79 -2,92,438.70
Autoproducer electricity plants - - - - - -11.08 Sup ply - 16,942.00 16,930.92
Oil refineries - -2,50,759.40 2,48,741.88 -4,943.66 - - - - -6,961.19
Energy industry own use -167.62 - - -6,347.02 - - - - -6,514.63
Losses - -20,511.49 - - - - - -21,399.72 -41,911.22
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - - - 36,693.19 3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - - - - 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - - - 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Non-energy use industry/transformation/energy - - 8,804.77 19,540.67 - - - - 28,345.44
Elect. output in GWh - - - - 37,915.87 1,22,506.36 32,308.77 - 1,92,731.00
Elec output-main activity producer ele plants - - - - 37,915.87 1,22,377.56 32,308.77 - 1,92,602.20
Elec output-autoproducer electricity plants - - - - - 128.80 - - 128.80
Energy Balance of India for 2016- Figures are
17
(provisional) in
Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity KTOE
Total
Production 3,94,724.94 36,801.12 - 29,343.46 9,881.11 10,535.55 2,778.55 - 4,84,064.72
Imports 1,23,552.77 2,18,618.60 36,327.16 17,136.96 - - - 483.06 3,96,118.54
Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72
Stock changes 7,388.67 - - - - - - - 7,388.67
Total primary energy supply 5,24,471.04 2,55,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 8,17,370.21
Statistical differences 52,170.70 15,851.18 -6,177.78 2,602.28 - - -9,990.02 54,456.36
Main activity producer electricity plants -3,63,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 1,06,240.79 -2,92,438.70
Autoproducer electricity plants - - - - - -11.08 - 16,942.00 16,930.92
Oil refineries - -2,50,759.40 2,48,741.88 -4,943.66 - - - - -6,961.19
Energy industry own use -167.62 - - -6,347.02 - - - - -6,514.63
Losses - -20,511.49 - - - - - -21,399.72 -41,911.22
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - -
-Transform
36,693.19 ion/3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - -
- a-t 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - C onversion-
- 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Non-energy use industry/transformation/energy - - 8,804.77 19,540.67 - - - - 28,345.44
Elect. output in GWh - - - - 37,915.87 1,22,506.36 32,308.77 - 1,92,731.00
Elec output-main activity producer ele plants - - - - 37,915.87 1,22,377.56 32,308.77 - 1,92,602.20
Elec output-autoproducer electricity plants - - - - - 128.80 - - 128.80
Energy Balance of India for 2016- Figures are
17
(provisional) in
Production
Coal
3,94,724.94
Crude Oil
36,801.12
Oil Products
-
Natural Gas
29,343.46
Nuclear
9,881.11
Hydro
10,535.55
Wind
2,778.55
Electricity
-
KTOE
Total
4,84,064.72
Imports 1,23,552.77 2,18,618.60 36,327.16 17,136.96 - - - 483.06 3,96,118.54
Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72
Stock changes 7,388.67 - - - - - - - 7,388.67
Total primary energy supply 5,24,471.04 2,55,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 8,17,370.21
Statistical differences 52,170.70 15,851.18 -6,177.78 2,602.28 - - -9,990.02 54,456.36
Main activity producer electricity plants -3,63,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 1,06,240.79 -2,92,438.70
Autoproducer electricity plants - - - - - -11.08 - 16,942.00 16,930.92
Oil refineries - -2,50,759.40 2,48,741.88 -4,943.66 - - - -6,961.19
Energy industry own use -167.62 - - -6,347.02 - - Dem - nd - -6,514.63
Losses - -20,511.49 - - - - a- -21,399.72 -41,911.22
-
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - - - 36,693.19 3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - - - - 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - - - 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Non-energy use industry/transformation/energy - - 8,804.77 19,540.67 - - - - 28,345.44
Elect. output in GWh - - - - 37,915.87 1,22,506.36 32,308.77 - 1,92,731.00
Elec output-main activity producer ele plants - - - - 37,915.87 1,22,377.56 32,308.77 - 1,92,602.20
Elec output-autoproducer electricity plants - - - - - 128.80 - - 128.80
Energy Balance of India for 2016- Figures are
17 (provisional) in
Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity KTOE
Total
Production 3,94,724.94 36,801.12 - 29,343.46 9,881.11 10,535.55 2,778.55 - 4,84,064.72
Imports Statistical difference 1,23,552.77 2,18,618.60 36,327.16 17,136.96 - - - 483.06 3,96,118.54
Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72
Stock changes 7,388.67 - - - - - - - 7,388.67
Total primary energy supply 5,24,471.04 2,55,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 8,17,370.21
Statistical differences 52,170.70 15,851.18 -6,177.78 2,602.28 - - -9,990.02 54,456.36
Main activity producer electricity plants -3,63,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 1,06,240.79 -2,92,438.70
Autoproducer electricity plants - - - - - -11.08 - 16,942.00 16,930.92
Oil refineries - -2,50,759.40 2,48,741.88 -4,943.66 - - - - -6,961.19
Energy industry own use -167.62 - - -6,347.02 - - - - -6,514.63
Losses - -20,511.49 - - - - - -21,399.72 -41,911.22
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - - - 36,693.19 3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - - - - 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - - - 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Non-energy use industry/transformation/energy - - 8,804.77 19,540.67 - - - - 28,345.44
Elect. output in GWh - - - - 37,915.87 1,22,506.36 32,308.77 - 1,92,731.00
Elec output-main activity producer ele plants - - - - 37,915.87 1,22,377.56 32,308.77 - 1,92,602.20
Elec output-autoproducer electricity plants - - - - - 128.80 - - 128.80
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
Domestically produced primary
•Export (-), Import (+)
marketable quantities of energy –
•Bunker (-) excludes energy that is not available for
•Stock change (+/-) use (waste gas)

38
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+) Export – energy sold to other countri es.
Imports – energy purchased from ot h er
•Bunker (-)
countries.
•Stock change (+/-)

39
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+)
Bunker: Fuel supplied to
•Bunker (-) international voyages.
•Stock change (+/-)

40
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+) ‘Stock’ represents the amoun t
•Export (-), Import (+) of fuel kept aside by a countr y
•Bunker (-) as a cushion to cover supply
•Stock change (+/-) fluctuations.

41
Be careful about the relation between stock
“change”
and supply of energy!

42
stock
stock stock
x

No change in stock Stock increases

-x Decline in supply

supply supply supply

Stock change entry under supply =0 Stock change entry under supply <0

Year 1 Year 2 Year 3

43
-y
stock stock stock

No change in stock Stock declines

supply supply supply

Stock change entry under supply =0 Stock change entry under supply >0 ; Supply increases

Year 1 Year 2 Year 3

44
Suppl
y
Energy Balance of India for 2016-17 Figures are
(provisional) in KTOE

Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity Total

Production 394,724.94 36,801.12 - 29,343.46 9,881.11 10,535.55 2,778.55 - 484,064.72

Imports 123,552.77 218,618.60 36,327.16 17,136.96 - - - 483.06 396,118.54

Exports -1,195.34 - -68,429.32 - - - - -577.06 -70,201.72

Stock changes 7,388.67 - - - - - - - 7,388.67

Total primary energy supply 524,471.04 255,419.71 -32,102.17 46,480.41 9,881.11 10,535.55 2,778.55 -94.00 817,370.21

45
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+)
•Bunker (-)
•Stock change (+/-)

•Conversion /Transformation Conversion of primary energy


•Transformation input (-), output (+) resources to secondary energy:
•Energy sector's own use (-) From coal to electricity, from
•Transmission and distribution losses (-) crude oil to oil product.

Inputs (coal, crude oil) enter


with a – sign while outputs
(electricity, oil product) enter
with a + sign.
46
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+)
•Bunker (-)
•Stock change (+/-)

•Conversion /Transformation Energy used by power plant,


•Transformation input (-), output (+) refineries is accounted here and
•Energy sector's own use (-) not added in the rest of the
•Transmission and distribution losses (-) sectoral demand.

47
Presentation of energy data using Energy
Balance
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+)
•Bunker (-)
•Stock change (+/-)

•Conversion /Transformation Losses occurring during electricity


•Transformation input (-), output (+) transmission and distribution, gas
•Energy sector's own use (-) transportation and distribution – all
•Transmission and distribution losses (-) are considered as transformation. Also
includes pilferage of electricity (known
as non-technical loss)

48
Conversion/Transformati
on
Energy Balance of India for Figures are in
2016-17(provisional) KTOE

Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity Total

Main activity
producer
electricity plants -363,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 106,240.79 -292,438.70

Autoproducer
electricity plants - - - - - -11.08 - 16,942.00 16,930.92

Oil refineries - -250,759.40 248,741.88 -4,943.66 - - - - -6,961.19

Energy industry
own use -167.62 - - -6,347.02 - - - - -6,514.63

Losses - -20,511.49 - - - - - -21,399.72 -41,911.22

Energy mentioned in the corresponding column head is being transformed


through the process mentioned in the row head 23
Conversion/Transformati
on
Energy Balance of India for Figures are in
2016-17(provisional) KTOE

Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity Total

Main activity
producer
electricity plants -363,982.83 - -823.79 -10,688.74 -9,881.11 -10,524.47 -2,778.55 106,240.79 -292,438.70

Autoproducer
electricity plants - - - - - -11.08 - 16,942.00 16,930.92

Oil refineries - -250,759.40 248,741.88 -4,943.66 - - - - -6,961.19

Energy industry
own use -167.62 - - -6,347.02 - - - - -6,514.63

Losses - -20,511.49 - - - - - -21,399.72 -41,911.22

Electricity produced from nuclear, hydro and wind is (9,881.11+10,524.47+2,778.55) KTOE.


Rest is produced by coal, oil and natural gas 24
Presentation of energy data using Energy Balance
Table
There are three components of an Energy Balance

•Supply (anything adding to the supply pool will enter with a + sign, any subtraction with a - sign)
•Domestic Production (+)
•Export (-), Import (+)
•Bunker (-)
•Stock change (+/-)

•Conversion /Transformation
•Transformation input (-), output (+)
•Energy sector's own use (-)
•Transmission and distribution losses (-)

•Demand (anything that increases demand for energy will enter with a + sign)

•Final energy consumption by end use sectors, for e.g. Agriculture, Industry, Transport, Building etc (+)
•Non-energy demand (+)
25
Deman
dEnergy Balance of India for
2016-17(provisional) Figures are in KTOE
Coal Crude Oil Oil Products Natural Gas Nuclear Hydro Wind Electricity Total
Final consumption 2,12,491.29 - 2,09,638.14 27,103.27 - - - 91,699.05 5,40,931.75
Industry 2,12,491.29 - 62,368.47 633.01 - - - 36,693.19 3,12,185.96
Iron and steel 40,310.83 - 1,398.24 - - - - - 41,709.07
Chemical and petrochemical 2,286.49 - 12,304.18 - - - - - 14,590.67
Non-ferrous metals - - 28.96 - - - - - 28.96
Machinery - - 208.47 - - - - - 208.47
Mining and quarrying - - 1,493.14 - - - - - 1,493.14
Paper, pulp and print 917.41 - - - - - - - 917.41
Construction 4,552.37 - 747.02 - - - - - 5,299.39
Textile and leather 497.24 - 111.58 - - - - - 608.82
Non-specified (industry) 1,63,926.96 - 46,076.87 633.01 - - - 36,693.19 2,47,330.04
Transport - - 37,396.77 6,760.95 - - - 1,480.66 45,638.39
Road - - 26,194.13 - - - - - 26,194.13
Domestic aviation 7,351.25 7,351.25
Rail - - 2,742.80 - - - - 1,480.66 4,223.46
Pipeline transport - - - 6,760.95 - - - - 6,760.95
Domestic navigation - - 704.15 - - - - - 704.15
Non-specified (transport) - - 404.45 - - - - - 404.45
Other - - 1,01,068.12 168.64 - - - 53,525.20 1,54,761.96
Residential - - 26,763.48 - - - - 22,300.75 49,064.23
Commercial and public services - - - - - - - 8,456.64 8,456.64
Agriculture/forestry - - 687.84 168.64 - - - 16,810.68 17,667.15
Non-specified (other) - - 73,616.81 - - - - 5,957.13 79,573.94
26
Non-energy use - - 8,804.77 19,540.67 - - - - 28,345.44
Can you identify the Supply/ Demand/
Transformation?

Use of Use of Use of


electricity by Extraction of electricity in Feedstock use electricity in
households coal power plants of energy agriculture

Production of Production of Production of


Net import of Loss due to
petroleum from electricity from electricity from
energy transmission
crude oil solar/wind coal

Production of Change in
Use of petrol by
electricity from strategic stock
vehicles
natural gas of energy

53
Can you identify the Supply/ Demand/
Transformation?

Use of Use of Use of


Extraction of Feedstock use electricity in
electricity by electricity in
coal of energy agriculture
households power plants

Production of Production of Production of


Net import of Loss due to
petroleum from electricity from electricity from
energy transmission
crude oil solar/wind coal

Production of Change in
electricity from Use of petrol by strategic stock
natural gas vehicles of energy

54
Can you identify the Supply/ Demand/
Transformation?

Use of Use of Use of


electricity by Extraction of electricity in Feedstock use electricity in
households coal power plants of energy agriculture

Production of Production of Production of


Net import of petroleum from Loss due to electricity from electricity from
energy crude oil transmission solar/wind coal

Production of Change in
Use of petrol by
electricity from strategic stock
vehicles
natural gas of energy

55
Non-energy use. Eg.
Use of natural gas
Can you identify the Supply/ Demand/ as feedstock in
Transformation? fertilizer industry

Use of Use of Use of


Extraction of Feedstock use electricity in
electricity by electricity in
coal of energy agriculture
households power plants

Production of Production of Production of


Net import of Loss due to
petroleum from electricity from electricity from
energy transmission
crude oil solar/wind coal

Production of Change in
electricity from Use of petrol by strategic stock
natural gas vehicles of energy

56
Accounting of Traditional
Energy
100%
• Non-commercial nature leads
80% to non-accounting of
traditional energy.
60%

40%
84% • Underestimation of energy
78%
20% demand and supply.
0%
Rural 2004-05 Rural 2011-12 Urban 2004-05 Urban 2011-12
• This is especially important in
Other Sources
the context of developing
No Cooking arrangement
countries.
Kerosene
LPG
Firewood
& Chips&
Coal/Cok
Primary cooking fuel in India (2004-05 and 2011-12): NSSO Data
e &Dung
Cake 57
Usefulness of Energy
Balance

• A comprehensive overview of the energy profile of a country: Total


Primary Energy Supply and Total Final Consumption of
energy/energy commodity.

• Useful indicators can be derived related to energy security, energy


markets, energy shares, emission etc. that are important for policy
making.

• Compare data of different reference periods and different countries.

• Disaggregated data help in identifying major sources of energy and major


consumers for further policy intervention.

Energy Statistics, Government of 58


India (2018)
Usefulness of Energy
Balance

• A comprehensive overview of the energy profile of a country: Total


Primary Energy Supply and Total Final Consumption of
energy/energy commodity.

• Useful indicators can be derived related to energy security, energy


markets, energy shares, emission etc. that are important for policy
making.

• Compare data of different reference periods and different countries.

• Disaggregated data help in identifying major sources of energy and major


consumers for further policy intervention.

Energy Statistics, Government of 59


India (2018)
Indicators based on Energy
Balance
• Energy security and self reliance of a country with respect to energy supply.

• Share of renewable in total electricity supply in the country.

• Efficiency of electricity production and transmission.

• Direct plus indirect coal consumption by the industry sector (you may make
suitable assumptions).
• Statistical difference and accuracy of measurement.
• Sectoral composition of energy demand.
• Any drawback that you observe?

Definition of indicators: https://www.iea.org/statistics/resources/balancedefinitions /

60
Highlights from India’s Energy Balance (2016-
17)

• Total Primary Energy Supply (TPES) added up to ~8,17,370 ktoe. The share of Coal
accounted for 64.17% and share of Crude Oil was 31.25% in TPES.

• Net import accounted for 23% of TPES.

• Total energy consumption was ~5,40,932 ktoe. The industrial sector accounted for
57.71%
of the total final energy consumption.

• Within the industry sector, the most energy intensive industries were iron and steel
(13.36%), followed by chemicals and petrochemicals (4.67%) and construction
(1.70%).

61

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