[Geography] Energy Resources


ENERGY

Indian energy sector has witnessed a rapid growth to meet the demands of the nation.
Areas like the resource exploration and exploitation, capacity additions, and energy sector reforms have been revolutionized.
However, resource augmentation and growth in energy supply have failed to meet the ever-increasing demands exerted by the multiplying population, rapid urbanization and progressing economy.
Hence, serious energy shortages continue to plague India, forcing it to rely heavily on imports.

Energy Sectors -

Renewable Energy

ü  Solar
ü  Wind
ü  Small Hydro
ü  Biomass
ü  Geothermal
ü  Waste to Energy
ü  Other New Technologies


Petroleum & Natural Gas

Coal

Power

ü  Thermal
ü  Hydro
ü  Nuclear
ü  Transmission & Distribution

Distributed Generation

Energy Efficiency and Conservation

ü  Residential
ü  Agriculture
ü  Rural / Community
ü  Transportation


ü  India is the fourth largest consumer of energy in the world after USA, China and Russia.
ü  The per capita primary energy consumption in India is about 1/3rd of the world average per capita primary commercial energy consumption.
ü  Energy intensity (energy required to produce a unit of GDP) is a measure of the energy efficiency of a nation’s economy.

ü  India’s energy intensity has been declining over the years.
2001 – 0.85 Kgoe (Kilograms of oil equivalent)/US$
2011 – 0.62 Kgoe/US$
ü  Falling energy intensity implies that the growth in energy used is less than the growth of GDP, which in turn implies that energy elasticity is less than unity.
Energy elasticity = Ratio of the growth of energy to the growth of GDP
ü  A National Mission on Energy Efficiency (NMEE) has been launched to improve energy efficiency in all areas of the economy including power, transport, urban housing, consumer goods and industries.
 
ENERGY DEMAND AND SUPPLY
ü  The annual average growth rate of the total energy requirement is expected to accelerate from 5.1 per cent per year in the Eleventh Plan to 5.7 per cent per year in the Twelfth Plan.
ü  Demand for non-commercial energy is declining over commercial energy.
ü  Coal remains the dominant source of primary energy.
ENERGY PRICING
ü  Rational energy prices help to balance consumer energy demand with producer supply.
ü  Misalignment of energy prices poses both microeconomic and macroeconomic problems.
Microeconomic problems –
ü  Underpricing energy to the consumer reduces the incentive to be energy-efficient
ü  Promotes leakage of subsidized products for sale in open market and adulteration.
ü  Underpricing to the producer reduces the incentive and the ability to invest in the sector. It slows down the production and increases reliance on imports.
Macroeconomic problems -
ü  Misalignment leads to excessive import dependence with implications for the balance of payments
ü  Necessitates a subsidy, which places a burden on the budget.
 
ENERGY SECURITY
ü    Domestic production of coal, oil and gas and other energy sources has to be stepped up.
ü A stable and attractive policy regime has to be provided to ensure substantial private investment in oil and natural gas blocks and new capacities for renewable energy.
ü Investments in renewable energies need to be strongly emphasized.
ü Investments in energy assets in foreign countries should be stepped up.
ü Storage capacities need to be created for any possible disruption in oil supplies.
 
POWER SECTOR

ü  The electric power sector consists of a mix of plants depending on different primary fuels, including conventional and non-conventional sources.

ü  Coal remains the dominant primary energy source used in power generation accounting for 67 per cent of total generation.

ü  The pace of capacity creation picked up in the Eleventh Plan,


Electricity Act, 2003

ü  Electricity Act of 2003 was fully operationalized in the 11th plan.
Main objectives –
ü  To consolidate the laws related to generation, transmission, distribution, trading and use of electricity
ü  To take measures conducive for the development of electrical industry
ü  To protect interests of consumers and supply of electricity to all areas
ü  Rationalization of electricity tariff
ü  To ensure transparent policies regarding –
ü  Subsidies
ü  Promotion of efficient and environmentally benign policies
ü  Constitution of regulatory commission and
ü  Establishment of Appellate Tribunals


National Electricity Policy (12.02.2005)
ü  Urgent need of promotion of renewable sources of energy
ü  Efforts need to be made to reduce the capital cost
ü  Cost of energy can be reduced by promoting competition
ü  Adequate promotional measures would have to be taken for development of technologies and its sustained growth
ü  SERCs to provide suitable measures for connectivity with grid and fix percentage of purchase from Renewable sources
ü  Progressively the such share of electricity need to be increased

Areas where reforms are required –

ü  Open access to consumers remains ineffective.
ü  Energy audit of power utilities has not been undertaken.
ü  Electricity retail tariffs have remained static for many years because of political pressure, widening the gap between the average tariff and average cost of supply.
ü  The distribution companies suffer from serious financial stress. Losses of the distribution utilities remain high.


Ultra-Mega Power Projects
ü  The Ultra Mega Power Projects (UMPPs) Programme, which brings in private investment into power generation, was a major initiative of the Eleventh Plan.

ü  Power purchase agreements have been signed for four UMPPs of 4,000 MW each on the basis of competitive tariff-based bidding.

ü  An important element of this Programme is the induction of supercritical technology, which is an important shift towards energy efficiency.

ü  For the Thirteenth Plan, it has been decided that all coal-fired capacity addition shall be through super- critical units.

Distribution
ü  Distribution is the weakest link in the power system with large losses leading to financial unviability.

ü  Distribution companies have not been able to recover the cost of supply through tariff

ü  The gap between Average Cost of Supply (ACS) and Average Revenue Realized (ARR) has widened and the same has been increasing over the years.

ü   
Restructured Accelerated Power Development and Reform Programme (R-APDRP)
ü  To address the problems of distribution losses, the APDRP in 2002–03 as an Additional Central Assistance (ACA) scheme was launched to finance the modernization of sub-transmission and distribution networks.
ü  Original programme was not effective in reducing losses. A Re-structured APDRP was approved as a Central scheme in 2008.
ü  Private distribution utilities are not covered under the programme, which has been a point of criticism.
Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
ü  For providing access of electricity to all rural house- holds.
ü  The scheme involved electrification of all un-electrified villages plus a free connection for BPL households.
ü  The scheme provided a subsidy of 90 per cent of the total project cost and balance 10 per cent of the project cost was to be provided by the Rural Electrification Corporation (REC) as loan.
ü  The RGGVY programme has several deficiencies in implementation –

ü  Nearly 6,000 villages (electrified till December 2011) were not energized due to lack of supporting network or other resources.
ü  Access to electricity in rural areas is still limited, especially in smaller hamlets.
ü  Poor financial health of utilities and high cost of power act as a disincentive for States to give new connections.
ü  Some States do not have supporting network and are unable to provide enerzisation.
ü  A viable revenue model is yet to emerge. This has hindered larger access to new consumers.

TWELFTH PLAN PROGRAMME
Addition to Generation Capacity
ü  A capacity addition requirement of 88537 MW is required during the Twelfth Plan period.
ü  The share of the private sector in the additional capacity will be 53 per cent, compared to a target of 19 per cent in the Eleventh Plan.
ü  The share of power based on non-fossil fuel plants is very low at present and should be increased.
ü  The share of coal and lignite in the additional capacity is 79 per cent.
ü  The projected capacity addition in non-fossil fuel plants covers addition of hydro, solar, wind and nuclear capacity.
Power Generation
The projected growth rate in power generation will be 9.8 per cent.
Renovation and Modernization and Life Extension of Thermal Power Plants (R&M and LE)
ü  Most of the old and smaller size non-reheat type units are on the verge of retirement.
ü  R&M and LE is an economical option to supplement the capacity addition programme.
R&M of Hydro Plants
ü  The normal life expectancy of hydro plants is about 30–35 years after which they need life extension.
ü  Many of the existing hydro power stations could be modernized to generate reliable and higher yield by restoration and modernization schemes.
Exploitation of Hydro Electric Potential
ü  A major part of the unexploited potential is in North-East and Himalayan regions.
ü  With the deployment of latest technologies we can harness the remaining potential without damaging the ecology.
Peaking Power and Reserve Plants
ü  Since our system has wide variation in demand during peak and off-peak periods there is a need for peaking support with very high ramping rate.
ü  Peaking power can be provided by reservoir-based hydro plants or gas-based generation.
Pollution and Ash Utilization
ü  An important positive development in the power sector is that the utilization of ash has increased impressively from 9.63 per cent in 1996–97 to 56 per cent in 2010–11.
ü  There are 13 thermal power stations in the country, which have achieved 100 per cent or more ash utilization during the year 2010–11.
ü  The quantity of fly ash that has to be disposed off in ash ponds shall be reduced significantly which will help in addressing problems of pollution.
Fuel Supply Problems
ü  Although the pace of creation of generation capacity has picked up considerably, the fuel supply capability has not kept pace.
ü  Clearly domestic supply of both coal and gas needs to be augmented by imports.
Expansion in Transmission System and Capacity
The large expansion in production and consumption of electricity has to be supported by a significant expansion and strengthening of the transmission network.
Creation of a National Grid
ü  The power system in the country is demarcated into five regions.
ü  Four regional grids have been operating in synchronous mode as a single system.
ü  Only the southern grid is yet to be connected to the rest of the system and is likely to be completed by January 2014.
Evacuation of Power from the North-East
ü  The North-East has very large potential for producing hydro power—close to 50,000 MW— but the pace of implementation has been poor.
ü  The evacuation of power from the North-East poses a major challenge for several reasons.
ü  The entire capacity has to be evacuated through a narrow strip of about 25 km in West Bengal. Although no forest clearance is needed, land acquisition issues could pose problems.
ü  A number of States including Arunachal Pradesh, Tripura and Manipur do not have adequate 132/220/400 KV systems and this may cause problems in evacuation of power.
ü  The distribution system is inadequate and consequently leads to large power losses.
 
The Distribution System
ü  The viability of the power sector as a whole is critically dependent on the health of the distribution sector.
ü  The key focus of the Twelfth Plan must be to strengthen the performance of the distribution system to achieve improved financial viability of Discoms and to expand access to power in rural areas.
ü  A National Electricity Fund (NEF) had been set up. It will pro- vide interest relief to the distribution utilities to cover loans taken from financial institutions for development of the distribution sector.
Management of Energy Demand and Energy Efficiency
ü  The Bureau of Energy Efficiency (BEE) and the Ministry of Power (MoP) had introduced a number of schemes during Eleventh Plan for promotion of energy efficiency in India.
ü  The schemes of BEE include –

ü  Standards and Labelling (S&L)
ü  Energy Conservation Building Code (ECBC)
ü  Energy Efficiency in Existing Buildings
ü  Bachat Lamp Yojana (BLY)
ü  SDA strengthening
ü  Energy Efficiency in Small and Medium Enterprises (SMEs)
ü  Agriculture and Municipal Demand Side Management (DSM)
ü  Contribution to State Energy Conservation Fund (SECF)
ü  Schemes implemented by the Ministry of Power include –
 ü  Energy Conservation Awards and
ü 
National Mission for Enhanced Energy Efficiency (NMEEE).

National Mission for Enhanced Energy Efficiency (NMEEE)
ü  NMEEE is one of the eight Missions created by India’s National Action Plan for Climate Change.
ü  It is based on the Energy Conservation Act, 2001.
ü  The Mission will enable transactions in energy efficiency.
ü  Specific initiatives envisaged by the NMEEE include:
ü Perform, Achieve and Trade (PAT) scheme—a market- based mechanism to enhance energy efficiency.
ü Market Transformation for Energy Efficiency (MTEE)
ü Financing Energy Efficiency—tax exemptions, revolving fund, Partial Risk Guarantee Fund
ü Promotion of performance contracting business model—enabling upgradation of existing buildings, streetlights, municipal pumping and so on through Energy Service Companies

Policy Reforms in the Power Sector
ü  Resolution of fuel supplies problems.
ü  The introduction of open access must have top priority. State Governments, SERCs and Discoms need to conform to the Electricity Act, which prohibits tariff regulation for consumers of 1 MW and above.
ü  Need to develop ancillary power markets.
ü  Some initiatives may be taken through the National Clean Energy Fund –

ü  Suitable incentives for low-cost transmission,
ü  Linking the renewable energy generation sources,
ü  Development of smart grid for evacuation and transmission of renewable power
ü  Creation of spinning reserves

ü  There is a need to strengthen measures for increasing share of renewable energy over time.
ü  Power procurement and allocation of power must be done in line with the Tariff Policy and the guidelines/standard bid documents (SBD) issued in the Electricity Act, 2003. The National Electricity Policy (2005) may need to be suitably amended to ensure State Governments abide by these provisions.
ü  Consumer Grievance Redressal Forum (CGRF) should be made a multi-member set-up comprising representation from all stakeholders.
ü  Reforms in the distribution sector.
ü  The State Government should clear all the outstanding dues to the utilities, and ensure timely payment of subsidy.
ü  There is a need for an independent oversight over programmes like RGGVY and R-APDRP on a concurrent basis.

COAL AND LIGNITE SECTOR
ü  Coal accounted for over 50 per cent of primary commercial energy supply in 2010–11.
ü  An important feature of the Eleventh Plan was the attempt to augment domestic coal production from captive mines.
ü  CIL will continue to play a major role in meeting the coal requirements of the country.
ü  The target for coal production in 2011-12 was 630 million tonnes. The actual achievement was only 540 million tonnes.
ü  A large demand–supply gap of 100 million tonnes that was only partially met by imports.
ü  In 2011-12, targeted lignite production was 54.96 million tonnes. However, achieved production was 43.10 million tonnes.

Review of the Central Sector Schemes
Regional/Promotional Exploration
Aims at widespread drilling to establish broad framework of the deposits to facilitate planning for detailed exploration and subsequent projectisation and mine development.
Detailed Drilling in Non-CIL Blocks
ü  Detailed exploration surveys focus on establishing adequate geological resources data for projectisation and mine development.
ü  The blocks outside the purview of CIL have been proposed to be explored in detail for reducing the time lag between offering the blocks to potential entrepreneurs and starting of the operation by them through budgetary support.
Productivity and Benchmarking
One of the important areas to improve productivity is benchmarking of operations and equipment productivity.
Clean Coal Technologies
ü  Coal beneficiation aims at supplying washed coal to the pulverized coal combustion boilers of power plants.
ü  Restricting the use of coal of not more than 34 per cent ash content at thermal power stations has also contributed to improvement in economics of operations of such power stations.
Conservation and Safety in Coal Mines
ü  Safety of miners and safe mining operations are of paramount importance in coal mining.
ü  These two schemes are under the statutory provisions of Coal Conservation and Development Act (CCDA).
Development of Transport Infrastructure in Coal Field Areas
ü  It is essential to ensure the timely evacuation of coal produced in mines to the railheads or railway yards.
ü  Four critical rail links that have been pending for years are –

ü  Tori–Shivpur– Katholia rail link in North Karanpura coalfield
ü  Bupdevpur Baroud rail link connecting coal blocks in Mand Raigarh coalfield,
ü  Jharsuguda–Barpalli railway line in IB valley coalfield and
ü  Sattapalli–Bhadrachalam rail link

ü  Commissioning of these lines would facilitate movement of around 125–130 million tonnes of coal to end-users.
Environmental Measures And Subsidence Control
The purpose of this scheme is to improve environmental conditions in old mined-out areas, particularly Jharia and Raniganj coalfields through implementation of a number of schemes for mitigating the damage caused by unscientific mining.
Application of Information Technology
ü  IT has been used by the coal industry in India for improving productivity and decision-making.
ü  Some of the applications already in use are:
ü  Enterprise resource planning (ERP).
ü  Real-time trip counting system at opencast mines with latest technologies like GPS, GIS, GSM, 
RFID, Wi-Fi and so on.
ü  Proximity warning system for HEMM at opencast 
mines.
ü  Truck movement monitoring system at weigh- 
bridges and coal handling plants mines with latest technologies like GPS, GIS, GSM, RFID, Wi-Fi, and so on.
ü  Online underground air and gas monitoring systems (CH4, CO, Temperature).
ü  UG communication system and miners’ tracking with warning system for the miners entering the unsafe areas.
Coal Pricing
ü  Globally, pricing of coal is based on gross calorific value (GCV) of coal and so now in India.
ü  The revision to GCV is likely to increase the prices of domestic coal to some extent.
ü  This is desirable adjustment because domestic thermal coal continues to be underpriced compared to internationally traded coal prices.
ü  This price differential creates distortions in the power sector.
ü  Increased reliance on coal imports is necessary since Coal India is not in a position to provide domestic coal to meet the demand of all power generating units.
ü  However, power generators supplying power at a regulated tariff will not be able to pass on the higher cost of imported coal.
ü  There is a need to consider a mechanism of price pooling under which Coal India combines domestic and imported supplies’ price to define a uniform price.
Coal Movement Constraints
ü  Currently the share of rail in movement of coal in the country is around 52 per cent.
ü  The share of other modes of transportation is 15 per cent by merry-go-round (MGR), 7 per cent by belt/rope and 27 per cent by road.
Coal Quality and Beneficiation
Coal washing - to encourage implementation of clean coal technologies.
Amendment to the Coal Mines Act
ü  The Coal Mines (Nationalization) Act, 1973 does not allow private companies to mine coal for sale to third parties though captive mining is allowed for specified end use sectors.

ü  This is a limited opening that is helpful but unlikely to attract big investment.

ü  Development of large coal blocks holds the key to rapidly increase production.

ü  The energy security of the country needs full involvement of all concerned in producing coal. Hence, amendment to the Coal Mines (Nationalisation) Act is needed.

ü  A Bill to amend the Act for this purpose was introduced in Parliament in 2001 but has not been pursued. Allowing private sector mining does not involve privatisation of Coal India but only entry of new mining companies.

New Initiatives to Expand Coal Availability
ü  Coal exploration must be stepped up. An independent organisation should be created to develop and maintain the repository of all geological information in the country.

ü  To expedite clearances, a coordination committee at the Centre and State level may be set up.

ü  Enactment of a central legislation to ensure uniform R&R policy and speedy land acquisition on appropriate terms is absolutely necessary.

ü  Coal companies should develop a comprehensive plan for increasing the share of production from underground mines and suitable policy initiatives need to be introduced.

ü  A coal sector regulator should be set up on a priority basis.

 PETROLEUM AND NATURAL GAS SECTOR
ü  The oil and gas import bill is likely to be around 6–7 per cent of GDP during the year 2011–12.
ü  Demand for petroleum products grew at an annual rate of 4.15 per cent during the 11th plan and is likely to increase at an annual rate of 4.7 per cent during the 12th Plan.
ü  LPG consumption in has increased at a rate of 7.21 per cent per annum CAGR and is likely to grow by about 19.2 per cent during 12th plan.
ü  The crude oil production was 14 per cent below the target.
ü  Natural gas production was a shortfall of about 17 per cent.
  
New Exploration Licensing Policy (NELP) Programme
ü  The NELP programme is a major initiative aimed at attracting private investment into oil and natural gas.
ü  Various operators in E&P (Exploration & Production) sector till 2010–11, have made a total investment of US$ 15.88 billion.
Equity Oil, Gas from Overseas Assets
ü  Oil PSUs have invested US$ 13 billion up to 31 March 2011 on acquisition of assets abroad, mainly in oil producing assets.
ü  There are nine major production assets in Russia, Sudan, Brazil, Syria, Vietnam, Venezuela and Colombia.
ü  Production from overseas oil and gas blocks is presently about 10.22 per cent of India’s domestic production.

Policy Initiatives during the Eleventh Plan
 
Regulatory Measures
The Government has set up Petroleum and Natural Gas Regulatory Board to regulate downstream activities of oil and gas sector under the PNGRB Act, 2006.
Allocation of Natural Gas
The Government has prioritized allocation of gas produced from NELP blocks in the following order:
ü  Fertilizer plants producing subsidized fertilizers
ü  LPG plants
ü  Power plants
ü  City Gas Distribution (CGD) for CNG and 
domestic PNG
ü  Steel, petrochemicals, refinery, captive power 
plants and CGD for industrial and commercial customers.
Strategic Storage of Crude Oil
The Government is in the process of creating strategic crude oil storage capacity for 15 days at Vishakhapatnam, Mangalore and Padur through Indian Strategic Petroleum Reserve Ltd. (ISPRL).
Promoting Bio-Fuels
A programme of 5 per cent blending of ethanol with petrol is already underway and the percentage of blend can be enhanced to 10 per cent.
Pricing of Petroleum Products
ü  In 2002, the Government dismantled the Administered Pricing Mechanism, and announced deregulation of prices of all petroleum products. This decision could not be implemented.
ü  In 2010, Government announced deregulation of the price of petrol.
ü  Diesel price deregulation is yet to be implemented.
ü  Prices of LPG and kerosene remain under price regulation by the Government.
Pricing of Natural Gas
ü  The NELP provides freedom to price the gas by the operator at a market-determined price for gas produced from the NELP blocks, subject to the Government approving the pricing formula.
ü  There is a need to review the provision of pricing under PSC to clarify the extent to which producers will have the freedom to market the gas.
ü  Legally, gas as a resource belongs to the Government and the Government has the right to fix an appropriate price.
ü  However, if the intention is to attract private investment into this sector, the Government should state clearly what degree of pricing freedom would be given.


Focus on Research and Development
Focus areas in oil and gas sector are:
ü  Producing waxy crude

ü  Smart horizontal well completions
ü  
Long heated insulated pipeline for crude evacuation

ü  Improving energy efficiency in refineries

ü  Product yield maximization

ü  Exploration of unconventional energy resources,
ü  Oil shale and study of gas hydrates in eastern and western offshore areas of India

Infrastructure and Capacity Building
ü  The unlicensed offshore areas and Deccan basins are technologically challenging due to higher water depths and sub-basalt sediments, respectively. It is important to access latest technology from global centers of excellence to address the specific needs of these balance areas.
ü  Strengthen and empower technical and scientific manpower.
ü  Need for an independent upstream regulator.
ü  Marketing and distribution infrastructure facilities for the petroleum products
ü  Strategy for refining capacity additions consider- ing current market situation
ü  Additional development of new LNG import and regasification capacity both on the East and the West coasts of India
ü  Gas Pipeline transportation infrastructure both on the East and the West coasts and also in southern and northern parts of the country for supply of gas throughout the country.
ü  Facilitating development of city gas distribution in about 300 identified cities in the country.
ü  Improving efficiency of operations of various oil and gas sector installations.

Reforms Required in the Oil and Gas Sector
ü  Eliminate the uncertainty regarding gas pricing from NELP production sharing contracts by implementing a new design of contracts. The recommendations of the Rangarajan Committee may be an important input in finalizing this policy.

ü  Operationalize a road map to move petroleum product prices received by marketing companies to prices aligned with global prices.

ü  Phasing out subsidies on domestic LPG and PDS kerosene.

ü  Kerosene supplies can be progressively reduced considering improved electricity access provided under RGGVY and LPG connections provided in rural areas.

ü  Promote development and production of bio- fuels by the oil sector E&P and marketing companies at commercial level.
ü  Expand exploration and production of domestic oil and gas sources.

ü  Provide ‘Declared Goods Status’ for natural gas/ LNG so that it is available at uniform price in most of the States.

ü  Market forces must also determine natural gas prices charged to producers.

ü  Develop a policy framework to exploit shale gas.

ü  Acquisition of equity oil and gas abroad including conventional and shale gas assets.
ü  Contracting LNG imports both on long- and short-term basis considering market price affordability.


NEW AND RENEWABLE ENERGY
 Some of the key issues –
ü  Regional Concentration of Renewable Energy Potential
ü  Insufficiency and High Cost of Evacuation Infrastructure
ü  Regulatory Issues
ü  Financial Barriers
ü  Low Penetration of Renewables for Urban and Industrial Applications
 Focussed Areas –
ü  Renewable Energy for Rural Application
ü  Renewable Energy for Urban, Industrial and 
Commercial Applications
ü  Research, Design and Development for New and 
Renewable Energy
ü  Strengthening of Institutional Mechanism for 
enhanced deployment and creation of public awareness.
Major New Initiatives
ü  National Institute of Solar Energy: An autonomous institution for undertaking applied research, demonstration and development in solar energy including solar hybrid areas.
ü  National Bioenergy Corporation of India: to implement bioenergy mission including cook stove programme.
ü  Renewable Energy Development Fund: to address the financing constraints for the grid connected as well as the off-grid applications of renewables.

ü  National Bioenergy Mission: to attract investment and to facilitate rapid development of commercial biomass energy market based on utilization of surplus agro-residues and development of energy plantations.

ü  Renewable Power Evacuation Infrastructure: to support the large expansion in consumption and production of renewable power.

ü  National Biomass Cook Stove Programme: to universalize access of improved biomass cook stoves.

Major New Initiatives 
ü  National Institute of Solar Energy: for undertaking applied research, demonstration and development in solar energy including solar hybrid areas.

ü  National Bioenergy Corporation of India: will be set up to implement bioenergy mission including cook-stove programme.

ü  Renewable Energy Development Fund: to address the financing constraints for the grid connected as well as the off-grid applications of renewables

ü  National Bioenergy Mission: for attracting investment and to facilitate rapid development of commercial biomass energy market based on utilization of surplus agro-residues and development of energy plantations.

ü  Renewable Power Evacuation Infrastructure: to support the large expansion in consumption and production of renewable power.

ü  National Biomass Cook Stove Programme: to universalize access of improved biomass cook stoves by providing assistance in exploring a range of technology deployments, biomass processing and delivery models leveraging public-private partnerships.

 Why Wind Energy? 

ü  Renewable Source

ü  Clean Energy - No Carbon Emission & Thermal Pollution
ü  Energy price stability
Why Offshore Wind Energy?

ü  Wind speeds are stable and high

ü  Significant Potential in India

ü  Most of the potential onshore sites already utilized
ü  Coastal Areas are best benefitted less transmission Coast
ü  Low Noise Pollution and Visual Intrusion
ü  Cost competitive electricity to coastal region.
Wind Energy – Global Deployment Status
ü  Developing countries have more than 1/3rd global wind power capacity.

ü  In India - onshore wind energy deployment has crossed 19600 MW - attracted $16.5 billion of investment in 2012, created 179,000 ‘green collar’ jobs in manufacturing, project development, installation, operation, maintenance, consulting etc., saving 131 million tons CO2/year.

ü  India is the second largest wind turbine manufacturer next to China.


Off shore Wind Power Development
  First Offshore Wind Turbine – Sweden (1990)
ü  First Offshore Wind Farm – Denmark (1991)
ü  Global Installed Capacity - 5.5 GW
ü  Europe is the global leader in offshore wind energy installation.
ü  Globally installations have reached over 5,000 MW (Europe: 4995 MW followed by China: 390 MW and Japan: 25 MW).
ü  China
- Largest onshore wind power developer
ü  USA
- 2nd largest onshore developer. But, no Offshore Projects till date
ü  Japan
- First offshore wind farm 16 MW - 2004
ü  India – Onshore and Offshore (Policy being formulated)
ü  India has significant off shore wind power potential - Offshore wind potential of Tamil Nadu estimated as 127 GW.
Offshore Wind Energy- India Status
ü  India is blessed with coastline of about 7600Km.
ü  United Nations Convention on Law of the Sea gives India exclusive rights over its Exclusive Economic Zone (200 nautical miles from baseline) to develop offshore wind energy.
ü  Efforts so far limited to preliminary resource assessment.
ü  Preliminary studies suggest potential along Tamil Nadu, Gujarat and Maharashtra coasts.
ü  Scottish Development International’s study has indicated potential of 1 GW each at Kanniyakumari and North of Rameshwaram.
Offshore Wind Energy Development in India- Relevant Issues
ü  High Cost- The cost of offshore wind farms almost 1.5 – 2 times than that of onshore wind farms.
ü  Development of a policy framework including the regulatory process.
ü  Capability creation for understanding the nuances of turbine and array design consideration and grid integration.
ü  Creation of support services infrastructure - specialized turbine installation vessels; under sea electricity transmission including additional grid infrastructure.
ü  Developing an approval protocol.
ü  Involvement of multiple agencies for clearances.
ü  Operation and Maintenance related issue
ü  Security of Installations.
COMPONENTS EFFECTING INVESTMENT COST
ü  Capital Cost

ü  Super Structure – Turbine and Installation
ü  Sub Structure – Foundation and Installation
ü  Electrical Equipment
ü  Development and Permits

ü  Operation and Maintenance

Initiatives by Govt. for development of policy –

 
ü  MNRE constituted Offshore Wind Energy Steering Committee (OWESC) to propose policy framework and requirements of inter-agency coordination.

ü  Constituted Sub-committee to suggest draft policy guidelines for development of offshore wind energy activities.
Draft National Offshore Wind Energy Policy
Objectives:
  To Promote Deployment of Offshore Wind Farms up to 12 nautical miles from coast.
ü  To Promote Investment in the Energy Infrastructure.
ü  To Promote Spatial Planning and Management of Maritime 
Renewable Energy Resources in the Exclusive Economic Zone.
ü  To Achieve Energy Security and to reduce Carbon Emissions.
ü  To Encourage Indigenization of the Offshore Wind Energy Technology.
ü  To Promote R&D in the Offshore Wind Energy Sector.
ü  To Develop Skilled Manpower and Employment in the industry.

Salient Features of Policy

ü  Preliminary Resource Assessment and demarcation of blocks.
ü  EIA study of proposed wind farms regarding aquatic life, fishing etc., studies relating to navigation, undersea mining and related exploration/exploitation activities and other users of the sea.
ü  Oceanographic studies - to determine construction costs for special foundations, special ships for both operation and maintenance requirements.
ü  Sea Bed Lease Arrangement.
ü  Single Window Procedure for Statutory Approvals (NOWA).
ü  Grid Connectivity and Evacuation of Power
ü  Technology
ü  Fiscal and Monetary Incentives
ü  Security & Confidentiality of data collected during studies and surveys.

National Offshore Wind Energy Authority (NOWA)

 NOWA to be established under the aegis of MNRE - to be responsible for the following:
ü  Carry out Resource Assessment and Surveys in the EEZ of the country

ü  Enter into contract with the project developers for development of offshore wind energy project in the territorial water (12 nm).

ü  Single Window Agency to facilitate clearances


Role of Other Agencies/Bodies
ü  Offshore Wind Energy Steering Committee, under the Chairmanship of Secretary, MNRE to oversee overall development of Offshore Wind Energy.

ü  Ministry of Shipping (for major ports), State Maritime Board/state designated agency to provide port related logistical support.

ü  State Electricity Board/state designated agency to undertake onshore power evacuation.

ü  CERC & SERCs to finalize guidelines for transmission, distribution and purchase of power from Offshore Wind Energy Projects.

 
SOLAR ENERGY –

The government will set up the world's largest solar power project, having a total generation capacity of 4,000 MW, in Rajasthan, close to Sambhar Lake and about 75 km from the state capital Jaipur.
Jawaharlal Nehru National Solar Mission (JNNSM)

ü  It was launched on the 11th January 2010.

ü  Targets deploying 20,000 MW of grid connected solar power by 2022.

ü  Aims at reducing the cost of solar power generation in the country through –

Long-term policy
Large-scale deployment goals
Aggressive R&D
Domestic production of critical raw materials, components and products

ü  The Mission has adopted a 3-phase approach: the 11th Plan and first year of the 12th Plan (up to 2012-13) has been considered as Phase 1, the remaining 4 years of the 12th Plan (2013-17) are included as Phase 2, and the 13th Plan period (2017-22) is envisaged as Phase 3.
ü  The first phase of NSM focused on capturing the low hanging options in solar: on promoting off-grid systems to serve rural populations and a modest capacity addition in grid-based systems.


Nuclear Energy
Production
ü  Nuclear energy is produced naturally and in man-made operations under human control. 
ü  Naturally: Some nuclear energy is produced naturally. For example, the Sun and other stars make heat and light by nuclear reactions.

ü  Man-Made: Nuclear energy can be man-made too. Machines called nuclear reactors, parts of nuclear power plants, provide electricity for many cities. Man-made nuclear reactions also occur in the explosion of atomic and hydrogen bombs.
   
ü  Nuclear energy is produced in two different ways – 
ü  Nuclear Fission: The nuclei of atoms are split, causing energy to be released. The atomic bomb and nuclear reactors work by fission.
ü  Nuclear Fusion: The nuclei of atoms are joined together, or fused. The hydrogen bomb works by fusion.
Milestones in the History of Nuclear Energy
ü  December 2, 1942: The Nuclear Age began at the University of Chicago when Enrico Fermi made a chain reaction in a pile of uranium.

ü  August 6, 1945: The United States dropped an atomic bomb on Hiroshima, Japan, killing over 100,000.

ü  August 9, 1945: The United States dropped an atomic bomb on Nagasaki, Japan, killing over 40,000.

ü  November 1, 1952: The first large version of the hydrogen bomb (thousands of times more powerful than the atomic bomb) was exploded by the United States for testing purposes.

ü  February 21, 1956: The first major nuclear power plant opened in England.

Advantages of Nuclear Energy
ü  Nuclear power plants could still produce electricity after coal and oil become scarce.
 
ü  Nuclear power plants need less fuel than ones that burn fossil fuels.
 
ü  Coal and oil burning plants pollute the air. Well-operated nuclear power plants do not release contaminants into the environment.
 
Disadvantages of Nuclear Energy
 
ü  Nuclear explosions produce radiation. The nuclear radiation harms the cells of the body, which can make people sick or even kill them. Illness can strike people years after their exposure to nuclear radiation.
 
ü  One possible type of reactor disaster is known as a meltdown. In such an accident, the fission reaction goes out of control, leading to a nuclear explosion and the emission of great amounts of radiation.
 
ü  In 1979, the cooling system failed at the Three Mile Island nuclear reactor near Harrisburg, Pennsylvania.
ü  In 1986, a much worse disaster struck Russia's Chernobyl nuclear power plant. In this incident, a large amount of radiation escaped from the reactor. Hundreds of thousands of people were exposed to the radiation.
 
ü  Reactors produce nuclear waste products that emit dangerous radiation.
 
ü  In 1957, at a dump site in Russia's Ural Mountains, several hundred miles from Moscow, buried nuclear wastes mysteriously exploded, killing dozens of people.
ü  Nuclear reactors only last for about forty -fifty years.
Some facts – 
The only major disaster involving nuclear power plants has been the Chernobyl disaster.
The Soviet scientists have since then admitted that the reactors at Chernobyl were mismanaged and lacked many important safety features.
The power plants in existence today are extremely safe--much safer than other types of energy-producing plants.
But even though this disaster killed a considerable number of people, it serves as no competition to other industries. For example, the chemical industry has a vast inventory of toxic wastes. The automobile industry, with their ubiquitous and unhealthy smog, causes 50,000 deaths a year. In fact, the coal power industry, a competing source of power with nuclear power plants, produces evident damage from acid rain and kills about 30,000 people per year with air pollution. In fact, all the deaths that will eventually be caused by the Chernobyl disaster, the largest ever-nuclear disaster, comprise less than the number of deaths caused by coal-burning pollution each year. With regards to all major energy sources, nuclear energy is by far the safest, cleanest, and most efficient. One ton of uranium produces more energy than is produced by several million tons of coal or several million barrels of oil.
 
National Policy on Biofuels
 
ü  Biofuels are liquid or gaseous fuels produced from biomass resources (biodegradable fraction of products, wastes and residues from agriculture, forestry and industries).
ü  These are used in place of, or in addition to, diesel, petrol or other fossil fuels for transport, stationary, portable and other applications.
ü  In biofuels, the country has a ray of hope in providing energy security.
ü  Biofuels are environment friendly fuels and their utilization would address global concerns about containment of carbon emissions.
ü  Biofuels are derived from renewable biomass resources.
ü  Biofuels provide a strategic advantage to promote sustainable development and to supplement conventional energy sources.
ü  Biofuels satisfy energy needs in an environmentally benign and cost- effective manner and reduce dependence on import of fossil fuels.
ü  Policy encompasses bio-ethanol, bio-diesel and other biofuels, as listed below: -
‘Bio-ethanol’- ethanol produced from biomass such as sugar containing materials, starch containing materials and cellulosic materials.
Biodiesel’- a methyl or ethyl ester of fatty acids produced from vegetable oils or animal fat of diesel quality.
‘Other Biofuels’- bio methanol, biosynthetic fuels etc.
STRATEGY AND APPROACH
ü  The focus for development of biofuels will be to utilize waste and degraded forest and non-forest lands only for cultivation of shrubs and trees bearing non-edible oil seeds for production of bio-diesel.
ü  In India, bio-ethanol is produced mainly from molasses, a by-product of the sugar industry. Since technology is based on non- food feed stocks. Therefore, the issue of fuel vs. food security is not relevant in the Indian context.
ü  Cultivators, farmers, landless laborers etc. will be encouraged to undertake plantations that provide the feedstock for bio-diesel and bio-ethanol.

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