ENERGY SECTOR IN INDIA

ENERGY SECTOR IN INDIA

PRESENTED BY:
JASMIT KAUR (65)
KAVITA SEN GUPTA (72)
NAINI MISHRA (85)
NIDHI SINGH (90)
PAPIYA SINGH (98)
 INTRODUCTION
•Energy has been universally recognized as one of the
most important inputs for economic growth and human
development.
•Energy plays a crucial role in economic development.
However the consumption of energy is low in India .
Its demand steadily increases with the growth of
economy. Growth is an index of increasing
productive activity which require larger quantity of
energy.
•In an effort to meet the demands of a developing
nation,the Indian energy sector has witnessed a rapid
growth.
 VARIOUS SECTORS

•Crude Oil and Petroleum

•Electricity

•Natural gas

•Lignite

•Coal
 OBJECTIVES
 To Study the role of energy sector in economic development of
the country.

 Study the trend and reasons for continuous fluctuation in the

price of crude oil one of the major energy source. Covering the
oil crisis in 1973.

 Study the trend of energy usage by the population and the

impact of price fluctuation on its usage.

 Study the role of government in tackling the oil crisis.

 Study the various strategies and policies formulated by

government to control the effect of price fluctuation on the
Indian economy and people.

 Also to study in brief the initiative of government to introduce new

alternatives to attain sustainable growth..
 RESEARCH
METHADOLOGY
Our research is totally based on secondary data .we have
collected all the statistical data from the government site
i.e ministry of coal and petroleum.We have estimated
various data and figures through graphs and charts.
 ELECTRICITY SECTOR
The electricity sector in India supplies the world's 6th
largest energy consumer, accounting for 3.4% of
global energy consumption by more than 17% of
global population.
Due to the fast-paced of growth of India's economy
the country's energy demand has grown an average of
3.6% per annum over the past 30 year.
GENERATION:

THERMAL POWER-70%

HYDRO ELECRICITY-21%

NUCLEAR POWER-4%
.
The annual growth rate of power generation under
11th plan.

• FUNDING

• DEMAND
 NATURAL GAS SECTOR
India is fast emerging as the focal point for the future
development of the Asian natural gas market

Gas Infrastructure:
On the supply side, there are two LNG terminals at Dahej
and Hazira in Gujarat which are already operational with
a total existing capacity of 7.5 MMTPA.

AVAILABILITY & UTILISATION OF NATURAL GAS

Liquefied Natural Gas (LNG):

 LIGNITE

• Referred as Brown Coal

• Energy Density – 24 MJ per Kg

• Price Index – Govt. slashes Lignite prices by

Rs.150 metric tonne
 COAL-As Energy Source

• Most important and abundant fossil fuel.

• It accounts for 55% of the country's energy need.
• The country's industrial heritage was built upon
indigenous coal.
• The current per capita commercial primary
energy consumption in India is about 350 kg/year
which is well below that of developed countries.
 Conti…..
• Hard coal reserves-around 246 billion
tonnes, of which 92 billion tonnes are
proven.
• Spread over 27 major coalfields, are
mainly confined to eastern and south
central parts of the the country.
• Exploration of coal reserves is carried out
in two stages:
1.Geological Survey of India(GSI)
2.Mineral Exploration Corporation (MECL)
 PETROLEUM AND CRUDE OIL

• Petroleum and crude oil is one of the major

sources of energy in India.

• Crude oil occurs naturally in many types of

rock formations underground, and is the
result of thousands or millions of years of
effort in the earth normally.
• The production of petroleum products during
2009-10 was 151.898 million metric tones
(including 2.244 million metric tones of LPG
production from natural gas) registering a
decrease of 0.51% over last year’s
production at 152.678 million metric tones
(including 2.162 million metric tones of LPG
production from natural gas)

• Crude oil production during 2009-10 at 33.69

million metric tonnes is 0.55% higher than
33.51 million metric tones produced during
2008-09.
PRICE FLUCTUATION IN CRUDE OIL
 ENERGY CRISES IN 1973

• started in OAPEC plus Egypt, Syria

• Effects of Crises :
-Leads to Recession ( recession in Israel)
-Create a sense of Insecurity among European
countries
-Effect on the price of other Commodities
Reason for the changing price of
the crude oil
• Supply and Demand
• Natural Disaster
• Seasonal Demand
• OPEC
• Political Unrest
 Initiatives taken to reduce Oil crises

• Organization Of International Conference in

Washington in 1974 :
- Set up by OECD’s Council
- With some Objectives

• Attempts by the European Energy Charter :

- Objectives
• Signing of Energy Community Treaty :
- Treaty signed between EU and eight partners in
South East Europe
- Objectives

• Formation of European Energy Strategy :

- Defines European Energy policy with
some Objectives
• Role of European Energy Strategy in the field
of Electricity and Gas market

• Prediction Regarding Energy Crises :

- Due to the Dependence of Imports
(dependence on import grew from 355 in
1973 to 55% in 2001 and little reduction in
2002 i.e. to 53%)
Steps taken by Government of India
to save Energy
• Government of India enacted the Energy
Conservation Act, 2001 which provides an
institutional arrangement and a regulatory
mechanism at the Central and State level to begin
a drive to promote energy efficiency in the country.
• The Government of India is working to develop
advanced technologies of renewable energy such
as: geothermal energy, ocean energy, fuel cells,
bio fuels and tidal energy to satisfy future energy
requirements.
 Conti……
• Every year National Energy Conservation Award is
conferred to companies who contribute for
conservation of energy.
• Under National Programme on Improved Chulha
(NPIC) (Smokeless cook-stoves), Government of
India provides smokeless and improved wood
cook-stoves (both portable & fixed) and provides
Central Subsidy.
• The Ministry of New and Renewable Energy
(MNRE) has initiated certain comprehensive
programmes for the development and utilization of
renewable energy.
 Conti….
• Energy Savings During the Tenth Plan (2002-07):
-Save at least 20% during the Tenth Plan would amount
to about 19,000 MkWh at the consumption end.
-This will be equivalent to adding new capacity of about
4,000 MW assuming projected transmission and
distribution losses of 20.5 per cent (as given in the 16th
EPS), and average of all-India Plant Load Factor of
about 68 per cent.
-Achieving energy conservation targets of 95,000 MkWh
(as per the X Plan) would avoid generation of about 25
million tones per annum (MTPA) of greenhouse gasses,
40 MTPA of SO2 and 55 MTPA of coal ash.
 LIMITATIONS OF RESEARCH

As our research is based on secondary data so

we are unable to take the review of users
about the pricing policies and distribution of it
by the government.
• Each and every energy sector is very vast
which is very difficult to cover.
• As the market conditions keep on changing so
the pricing and other factors analysis is very
difficult.
 RECOMENDATION
Government should concentrate more on the implementation of
usage of renewable sources of energy such as solar energy,
wind energy .

Government should concentrate on R & D facilities for the

development of energy sector in India.

Government should concentrate more on development of

nuclear energy.

Government should promote the productive usage of the energy

sources.

For the foster economic development government should

promote the efficient energy usage.