Energy Scenario

Syllabus
Energy Scenario: Commercial and Noncommercial energy, Primary energy resources, Commercial energy production, Final energy consumption, Energy needs of growing economy, Long term energy scenario, Energy pricing, Energy sector reforms, Energy and environment, Air pollution, Climate change, Energy security, Energy Conservation and its importance, Energy strategy for the future, Energy Conservation Act2001 and its features.

Primary and Secondary Energy

Major primary and secondary sources
Source
Coal

Extraction
Open or deep mines

Processing
Grading

Primary energy
Coal
Coke

Secondary Energy Steam

purification

Hydro
Nuclear
Power station

Mining

Enrichment

Electricity

Natural gas

Gas well

Treatment

Natural gas

Petroleum

Oil well

Cracking and refining

LPG Petrol Diesel/fuel oils

Petrochemical

Steam

Global Energy Reserves (End 2002)

Global coal reserves 9,84,453 million tonnes 1047.7 thousand million barrels of oil World oil and gas 155.78 trillion cubic reserves are metres of gas estimated to last 45

years and 65 years respectively. Coal is likely to last a little over 200 years

Global Primary Energy Consumption

Some developing and developed countries

Primary Energy: Consumption by fuel Share of Total

Primary energy consumption-

2002 Oil Million tonnes oil equivalent

2002 Natural Gas

2002 Coal

2002 2002 Hydro Total Nuclear electric Energy

2002

USA Canada France Germany Italy Russian Federation Spain United Kingdom Australia China India Indonesia Japan Malaysia Pakistan Singapore South Korea TOTAL WORLD

894.3 600.7 553.8 89.7 72.6 30.7 92.8 38.5 12.7 127.2 74.3 84.6 92.9 57.2 13.8 122.9 349.6 98.5 73.5 18.8 21.9 77.2 85.1 36.5 38.0 21.6 49.5 245.7 27.0 663.4 97.7 25.4 180.8 51.2 31.3 17.8 242.6 69.7 105.3 22.5 24.3 3.3 17.9 18.8 2.1 35.5 1.6 105.0 23.6 49.1 3522.5 2282.0 2397.9

185.8 17.0 98.9 37.3 32.0 14.3 19.9 5.9 4.4 71.3 0.4 27.0 610.6

58.2 2293.0 24.4% 78.6 288.7 3.1% 15.0 258.0 2.7% 5.9 329.4 3.5% 10.9 174.8 1.9% 37.2 640.2 6.8% 6.1 134.5 1.4% 1.7 220.3 2.3% 3.8 112.9 1.2% 55.8 997.8 10.6% 16.9 325.1 3.5% 2.1 102.4 1.1% 20.5 509.4 5.4% 1.7 51.8 0.6% 4.6 43.8 0.5% 37.1 0.4% 1.2 205.8 2.2% 592.1 9405.0

Commercial and Noncommercial 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

developing and developed countries

Energy distribution

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 2002) 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

Electric, Nuclear and Hydro

Installed capacity of 1,07,972.08 MW as on 31st March, 2003
26910.23 MW hydro, 76606.09 MW Thermal, 2720 MW Nuclear and 1735.66 MW Wind

Nuclear provides 2.5% of electricity generated Hydro contribution 25% as on 31st March 2003
Exploitable potential 60% at 84000 MW

Final Energy Consumption (User End)

Requirement of commercial energy for final consumption (BAU Scenario) Source Units 1994-95 2001-02 2006-07 2011-12 Electricity Trillion Watt Hours 289.36 480.08 712.67 1067.88 Coal Million Tonnes 76.67 109.01 134.99 173.47 Lignite Million Tonnes 4.85 11.69 16.02 19.70 Natural Gas Million Cubic Meters 9880.00 15730.00 18291.00 20853.00 Oil Products Million Tonnes 63.55 99.89 139.95 1996.47 Source: Planning Commission

Sectorwise Energy Consumption

Figure 1.5 Sector wise energy consumption (1999-2000)

Renewable & Non-renewable Energy

Indias Energy Needs

6% increase in GDP would contribute to 9% increase in energy demand Energy intensity is energy consumption per unit of GDP High energy intensity points to energy wastages in economy which can be minimised through efficient use of energy Indias 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 Ratio for developed countries < 1

Expenditure towards Energy sector

g
800000 700000

gy
35 30

Plan Outlay Rs Crores

500000 20 400000 15 300000 200000 100000 0 1951-56 1956-61 1961-66 1969-74 1974-79 1980-85 1985-90 1992-97 1997-02 10 5 0

Period

Plan Outlay Rs. Crores

% Share of Energy Sector

% Share of Energy

600000

25

Percapita Energy consumption

Long Term Energy Scenario

Total primary energy supply

Indias Oil Balance

Long Term Electricity Scenario

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
Indias perspective plan for power for zero deficit power by 2011/12 (Source Tenth and Eleventh Five-Year Plan projections) Thermal Gas / LNG / Nuclear Hydro Total(MW) (Coal) (MW) Diesel (MW) (MW) (MW) Installed capacity as Gas: 10,153 61,157 2720 25,116 100,010 on March 2001 Diesel: 864 Additional capacity 53,333 20,408 9380 32,673 115,794 (2001-2012) Total capacity as on 114,490 31,425 12,100 57,789 215,804 March 2012 (53.0%) (14.6%) (5.6%) (26.8%)

Energy Pricing in India

Energy price and energy efficiency are undervalued Pricing influenced by economic, social and political compulsions Cross-subsidies: Diesel, LPG and Kerosene subsidized by Petrol Agricultural and domestic users subsidized by Industrial and commercial users

Oil Pricing
Attempt to bring petroleum products (Naptha, furnace oil, LSHS, LDO and Bitumen) in line with international prices
Reduction in subsides for diesel and price in line with international price

LPG and Kerosene continue under heavy subsidies

Coal Pricing
Grade wise price of coal at pit head are decided by Coal India Ltd periodically Pit head coal price compare favorably with international price Industries still prefer import because of high calorific value and lower ash content in imported coal

Electricity pricing
HT consumers charged based on kWh and kVA basis LT consumers charged based on kWh basis kWh price vary according to consumer segments and from State to State Tariff also varies with time of usage and voltage supply

Energy Sector Reforms

Coal now being allowed to import to meet domestic requirements Private sector now allowed to extract and market coal Goal is to provide coal on larger scale and at lower prices Encourage competitiveness and technical innovation

Oil and Natural gas

Private sector allowed to import and market LPG and Kerosene freely Private investment allowed in lubricants and not subject to price controls Introduction of 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 LPG import terminals

Power
Central Electric Regulatory commission set up for regulating central power generation utilities State level regulatory bodies setup for setting tariffs and promoting competition Private investment for power allowed Advice to states to separate generation, transmission and distribution with separate corporations Plans to link SEBs; PowerGrid to oversee 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, transparent polices regarding subsidies, promotion of benign policies, constitution of CEA, Regulatory commission and appellate tribunal

Energy and Environment

Inputs
Emission from process

Process
Emission from combustion

Outputs

Energy Water Chemical Raw Material Solid/ Liquid waste

Industrial Process

Products

Direct/Indirect Energy waste

Major Pollutants in air

Table 1.4 Major pollutants in air Sources S.No. Source 1 2 3 4 5 6 Fuel combustion in transport Fuel combustion in stationery equipment Industry Forest fire Solild waste disposal Miscellaneous % 42 21 14 8 5 10

Composition of Pollutants in air

Table 1.5 Composition of major pollutants in air S. No. 1 2 3 4 5 Pollutant Carbon Monoxide Hydro Carbons Sulphur Oxides Nitrogen Oxides Particulates % 47 15 15 10 13

Ozone Depletion Process

1. The ozone depletion process begins when CFCs and other ozone-depleting substances (ODS) are emitted into the atmosphere 2. Winds efficiently mix the troposphere and evenly distribute the gases. CFCs are extremely stable, and they do not dissolve in rain. After a period of several years, ODS molecules reach the stratosphere, about 10 kilometers above the Earth's surface 3. Strong UV light breaks apart the ODS molecule. CFCs, HCFCs, carbon tetrachloride, methyl chloroform, and otehr gases release chlorine atoms, and halons and methyl bromide release bromine atoms 4. It is these atoms that actually destroy ozone, not the intact ODS molecule. It is estimated that one chlorine atom can destroy over 100,000 ozone molecules before it is finally being removed from the stratosphere

ACID RAIN

Key Greenhouse gases

Climate has changed and continues to change..

Global mean temperature has Projected temperature increase of 3.6 o F increased 0 .5-1 o F by 2100 (1.8-6.3 o F) Global sea level has risen 4-10 inches Projected sea level rise of 20 inches by Global precipitation over land has 2100 (6-38 inches) increased 1% Likely increase in precipitation intensity

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

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

Energy Security
Building stock piles Increased capacity of fuel switching Demand restraint Development of natural gas field and renewable energy sources However, best measure is persistent energy conservation

Energy Conservation and its importance

60% of resources consumed so far 85% of raw energy comes from nonrenewable sources and hence not available for future generation

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 and passenger movement Recycling Changes in design to change material intensity Shift to inexhaustible sources of energy such as solar, wind and biomass energy Better urban planning

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

THE ENERGY CONSERVATION ACT, 2001 No 52 OF 2001 [29th September 2001]

An Act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto.
It extends to the whole of India except the state of Jammu and Kashmir

Bureau of Energy Efficiency

Established under the act for implementing the energy conservation act The head office of the Bureau shall be at Delhi. The Bureau may establish offices at other places in India.

What will BEE do ?

Co-ordinate with designated consumers, designated agencies and other agencies, Recognise and utilise the existing resources and infrastructure, in performing
the functions assigned to it by or under this Act

BEE: Powers and Functions

a) recommend to the Central Government the norms for processes and energy consumption standards required to be notified under clause (a) of section 14 ; recommend to the Central Government the particulars required to be displayed on label on equipment or on appliances and manner of their display under clause (d) of section 14; recommend to the Central Government for notifying any user or class of users of energy as a designated consumer under clause (e) of section 14; take suitable steps to prescribe guidelines for energy conservation building codes under clause (p) of section 14; take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; arrange and organize training of personnel and specialists in the techniques for efficient use of energy and its conservation;

b)

c)

d) e)

f)

BEE: Powers and Functions

g) h) i) strengthen consultancy services in the field of energy conservation; promote research and development in the field of energy conservation; develop testing and certification procedure and promote testing facilities for certification and testing for energy consumption of equipment and appliances; formulate and facilitate implementation of pilot projects and demonstration projects for promotion of efficient use of energy and its conservation; promote use of energy efficient processes, equipment, devices and systems; promote innovative financing of energy efficiency projects; give financial assistance to institutions for promoting efficient use of energy and its conservation;

j)

k) l) m)

BEE: Powers and Functions

n) o) p) q) r) s) levy fee, as may be determined by regulations, for services provided for promoting efficient use of energy and its conservation; maintain a list of accredited energy auditors as may be specified by regulations; specify, by regulations, qualifications for the accredited energy auditors; specify, by regulations, the manner and intervals of time in which the energy audit shall be conducted ; specify, by regulations, certification procedures for energy managers to be designated or appointed by designated consumers; prepare educational curriculum on efficient use of energy and its conservation for educational institutions, boards, universities or autonomous bodies and coordinate with them for inclusion of such curriculum in their syllabus; implement international co-operation programmes relating to efficient use of energy and its conservation as may be assigned to it by the Central Government; perform such other functions as may be prescribed.

t)

u)

Power of Central Government to Facilitate and Enforce Efficient use of Energy and its Conservation
The Central Government may, by notification, in consultation with the Bureau, a) specify the norms for processes and energy consumption standards for any equipment, appliances which consumes, generates, transmits or supplies energy; b) specify equipment or appliance or class of equipments or appliances, as the case may be, for the purposes of this Act; c) prohibit manufacture or sale or purchase or import of equipment or appliance specified under clause (b) unless such equipment or appliances conforms to energy consumption standards;

Power of Central Government (contd.)

d) direct display of such particulars on label on equipment or on appliance specified under clause (b) and in such manner as may be specified by regulations; specify, having regarding to the intensity or quantity of energy consumed and the amount of investment required for switching over to energy efficient equipments and capacity or industry to invest in it and availability of the energy efficient machinery and equipment required by the industry, any user or class of users of energy as a designated consumer for the purposes of this Act; alter the list of Energy Intensive Industries specified in the Schedule; establish and prescribe such energy consumption norms and standards for designated consumers as it may consider necessary:

e)

f) g)

Power of Central Government (contd.)

h) direct, having regard to quantity of energy consumed or the norms and standards of energy consumption specified under clause (a) the energy intensive industries specified in the Schedule to get energy audit conducted by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; direct, if considered necessary for efficient use of energy and its conservation, any designated consumer to get energy audit conducted by an accredited energy auditor; specify the matters to be included for the purposes of inspection under sub-section (2) of section 17; direct any designated consumer to furnish to the designated agency, in such form and manner and within such period, as may be prescribed, the information with regard to the energy consumed and action taken on the recommendation of the accredited energy auditor;

i)

j) k)

Power of Central Government (contd.)

direct any designated consumer to designate or appoint energy manger in charge of activities for efficient use of energy and its conservation and submit a report, in the form and manner as may be prescribed, on the status of energy consumption at the end of the every financial year to designated agency; m) prescribe minimum qualification for energy managers to be designated or appointed under clause (l); n) direct every designated consumer to comply with energy consumption norms and standards; o) direct any designated consumer, who does not fulfil the energy consumption norms and standards prescribed under clause (g), to prepare a scheme for efficient use of energy and its conservation and implement such scheme keeping in view of the economic viability of the investment in such form and manner as may be prescribed; p) prescribe energy conservation building codes for efficient use of energy and its conservation in the building or building complex; l)

Power of Central Government (contd.)

q) r) amend the energy conservation building codes to suit the regional and local climatic conditions; direct every owner or occupier of the building or building complex, being a designated consumer to comply with the provisions of energy conservation building codes for efficient use of energy and its conservation; direct, any designated consumer referred to in clause (r), if considered necessary, for efficient use of energy and its conservation in his building to get energy audit conducted in respect of such building by an accredited energy auditor in such manner and intervals of time as may be specified by regulations; take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; take steps to encourage preferential treatment for use of energy efficient equipment or appliances:

s)

t) u) v)

Power of State Government to Facilitate and Enforce Efficient use of Energy and its Conservation
The State Government may, by notification, in consultation with the Bureau a) amend the energy conservation building codes to suit the regional and local climatic conditions and may, by rules made by it, specify and notify energy conservation building codes with respect to use of energy in the buildings; direct every owner or occupier of a building or building complex being a designated consumer to comply with the provisions of the energy conservation building codes; direct, if considered necessary for efficient use of energy and its conservation, any designated consumer referred to in clause (b) to get energy audit conducted by an accredited energy auditor in such manner and at such intervals of time as may be specified by regulations; designate any agency as designated agency to coordinate, regulate and enforce provisions of this Act within the State;

b)

c)

d)

Power of State Government (contd.)

e)

f) g) h)

i)

take all measures necessary to create awareness and disseminate information for efficient use of energy and its conservation; arrange and organise training of personnel and specialists in the techniques for efficient use of energy and its conservation; take steps to encourage preferential treatment for use of energy efficient equipment or appliances; direct, any designated consumer to furnish to the designated agency, in such form and manner and within such period as may be specified by rules made by it, information with regard to the energy consumed by such consumer; specify the matters to be included for the purposes of inspection under sub-section (2) of section 17;

State Energy Conservation Fund

1.

The State Government shall constitute a Fund to be called the State Energy Conservation Fund for the purposes of promotion of efficient use of energy and its conservation within the State. To the Fund shall be credited all grants and loans that may be made by the State Government or, Central Government or any other organization or individual for the purposes of this Act. The Fund shall be applied for meeting the expenses incurred for implementing the provisions of this Act. The Fund created under sub-section (l) shall be administered by such persons or any authority and in such manner as may be specified in the rules made by the State Government.

2.

3. 4.

Inspecting Officers
The designated agency may appoint, after the expiry of five years from the date of commencement of this Act, as many inspecting officers as may be necessary for the purpose of ensuring compliance with energy consumption standard specified under clause (a) of section 14 or ensure display of particulars on label on equipment or appliances specified under clause (b) of section 14 or for the purpose of performing such other functions as may be assigned to them. inspect any operation carried on or in connection with the equipment or appliance specified under clause (b) of section 14 or in respect of which energy standards under clause (a) of section 14 have been specified;

What will he do ?
enter any place of designated consumer at which the energy is used for any activity and may require any proprietor, employee, director, manager or secretary or any other person who may be attending in any manner to or helping in, carrying on any activity with the help of energy (i) to afford him necessary facility to inspect (A) any equipment or appliance as he may require and which may be available at such place; (B) any production process to ascertain the energy consumption norms and standards; (ii) (iii) to make an inventory of stock of any equipment or appliance checked or verified by him; to record the statement of any person which may be useful for, or relevant to, for efficient use of energy and its conservation under this Act.

What will he do ?
An inspecting officer may enter any place of designated consumer where any activity with the help of energy is carried on; and where any equipment or appliance notified under clause (b) of section 14 has been kept, during the hours at which such places is open for production or conduct of business connected therewith.

An inspecting officer acting under this section shall, on no account, remove or cause to be removed from the place wherein he has entered, any equipment or appliance or books of accounts or other documents.

Penalties and Adjudication

If any person fails to comply with the provision of clause (c) or the clause (d) or clause (h) or clause (i) or clause (k) or clause (l) or clause (n) or clause (r) or clause (s) of section 14 or clause (b) or clause (c) or clause (h) of section 15, he shall be liable to a penalty which shall not exceed ten thousand rupees for each such failures and, in the case of continuing failures, with an additional penalty which may extend to one thousand rupees for every day during which such failures continues: No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an adjudicating officer appointed under this Act or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

Appellate Tribunal for Energy Conservation

The Central Government shall, by notification, establish an Appellate Tribunal to be known as the Appellate Tribunal for Energy Conservation to hear appeals against the orders of the adjudicating officer or the Central Government or the State Government or any other authority under this Act

List of Energy Intensive Industries and other establishments specified as designated consumers
1. Aluminium; 2. Fertilizers; 3. Iron and Steel; 4. Cement; 5. Pulp and paper; 6. Chlor Akali; 7. Sugar; 8. Textile; 9. Chemicals; 10. Railways; 11. Port Trust; 12. Transport Sector (industries and services); 13. Petrochemicals, Gas Crackers, Naphtha Crackers and Petroleum Refineries; 14. Thermal Power Stations, hydel power stations, electricity transmission companies and distribution companies; 15. Commercial buildings or establishments;

Energy Manager: Responsibilities

1. Prepare an annual activity plan and present to management concerning financially attractive investments to reduce energy costs 2. Establish an energy conservation cell within the firm with managements consent about the mandate and task of the cell 3. Initiate activities to improve monitoring and process control to reduce energy costs 4. Analyze equipment performance with respect to energy efficiency 5. Ensure proper functioning and calibration of instrumentation required to assess level of energy consumption directly or indirectly 6. Prepare information material and conduct internal workshops about the topic for other staff 7. Improve disaggregating of energy consumption data down to shop level or profit center of a firm 8. Establish a methodology how to accurately calculate the specific energy consumption of various products/services or activity of the firm 9. Develop and manage training programme for energy efficiency at operating levels 10. Co-ordinate nomination of management personnel to external programs 11. Create knowledge bank on sectoral, national and international development on energy efficiency technology and management system and information denomination 12. Develop integrated system of energy efficiency and environmental upgradation 13. Wide internal & external networking 14. Co-ordinate implementation of energy audit/efficiency improvement projects through external agencies 15. Establish and/or participate in information exchange with other energy managers of the same sector through association

Energy Manager: Duties

Report to BEE and State level Designated Agency once a year. The information with regard to the energy consumed and action taken in the recommendation of the accredited energy auditor, as per BEE Format. Establish an improved data recording, collection and analysis system to keep track of energy consumption. Provide support to Accredited Energy Audit Firm retained by the company for the conduct of energy audit. Provide information to BEE as demanded in the Act, and with respect to the tasks given by a mandate, and the job description. Prepare a scheme for efficient use of energy and its conservation and implement such scheme keeping in view of the economic stability of the investment in such firm and manner as may be provided in the regulations of the Energy Conservation Act.

Responsibilities of Energy Auditor Conduct internal audit of individual equipment/system once a year

Duties of Energy Auditor

Submit copy of reports to Energy Manager with recommendation on action Keep record of calibration status of all energy measurement instruments/devices Maintain portable tools/instruments required for audit Keep abreast of all Codes of practices for energy efficiency testing Training of measurement staff on use of instruments and Codes Be a team member of the external audit team For ESCO performance contract projects be verifier for M&V system and baseline and savings.