1.

Energy
Scenario

1.2 Primary and Secondary Energy

Major primary and secondary sources
Source
Coal

Extraction
Open
or deep
mines

Processing
Grading

Primary energy

Secondary
Energy
Steam

Coal
purification

Coke

Hydro
Nuclear

Natural gas

Petroleum

Mining

Enrichment

Gas well

Treatment

Oil
well

Cracking
and refining

Power
station

Electricity

Natural gas

LPG
Petrol
Diesel/fuel oils
Petrochemical

Steam

1.3 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

1.4 Renewable & Non-renewable

Energy

1.5 Global Energy Reserves (End 2003)

The USA had the largest share of the global
reserve (25.4%) followed by Russia (15.9%),
China (11.6%). India was 4th in the list with
8.6%.
Saudi Arabia had the largest share of the
reserve with almost 23%.
The Russian Federation had the largest share of
the reserve with almost 27%.
Oil 45 years
Gas 65 years
Coal 200 years

What is Reserves/Production ratio ?

What is million tonnes of oil equivalent ?

BP Statistical Review of World Energy 20

Energy distribution

developing and developed countries

1.6 Indian Energy Scenario

Coal dominates the energy mix with 55% of total primary
energy consumption
Indian proven recoverable coal reserves estimated at
84,396 million tonnes (End 2003)

Oil accounts for 33% of energy consumption

Oil reserves estimated at 5.4 billion barrels
India average production in 2002 was 793,000 barrels per
day
70% of petroleum product demand met by imports
Natural gas accounts for 8% of energy consumption
Indian gas reserves estimated at 660 billion cubic meters
Demand of 97 million cubic metres against availability of 67

Electrical power supply in India

Installed capacity of 1,12,581 MW
as on 31st May 2004

28,860 MW - hydro,
77,931 MW - thermal
2,720 MW - nuclear and
1,869 MW - wind (Ministry of Power).

Nuclear provides 2.4% of electricity generated

Hydro contribution 25% as on 31st March 2004

Final Energy Consumption (User End)

This is the difference between primary energy consumption and
the losses that takes place in transport, transmission & distribution
and refinement.

Sector wise Energy Consumption

Indias Energy Needs

Percapita Energy consumption
is just 4% of USA and 20% of the world average. The
per capita consumption is likely to grow in India with
growth in economy thus increasing the energy demand.

Energy intensity
is energy consumption per unit of GDP
6% increase in GDP would contribute to 9% increase in
energy demand
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
The developed countries, by focusing on energy efficiency and
lower energy-intensive routes, maintain their energy to GDP
ratios at values of less than 1.

1.8 Long Term Energy Scenario-Coal

Predominant energy source
70% of total electricity
Current production - 290 Million tonnes per
year,
To double by 2010
Poor quality
Imports

1.8 Long Term Energy Scenario-Oil

Indias Electricity Demand

Peak demand shortage of 14% and energy deficit of 8.4%
To maintain GDP growth rate at 8% to 10%, target of
215,804 MW of power generation set by GOI

1.9 Energy Pricing in India

Pricing influenced by economic, social and political
compulsions
Oil Pricing Cross-subsidies: Diesel, LPG and
Kerosene subsidized by Petrol . Attempt to bring
petroleum products in line with international.
Coal Pricing Grade wise price of coal at pit head
are decided by Coal India Ltd periodically. Industries
still prefer import because of high calorific value and
lower ash content in imported coal
Electricity pricing Tariff varies with time of

usage, voltage supply,consumer segments and

also from State to State .Agricultural and domestic
users subsidized by Industrial and commercial users

1.10 Energy Sector Reforms

Coal now being allowed to import to meet domestic needs

Private sector now allowed to extract and market coal

Oil and Natural gas :Private sector allowed to import and

market LPG freely
New Exploration and Licensing Policy (NLEP) to promote
exploration and production of domestic oil and gas
Refining sector opened to private and foreign investors
Attractive terms to investors towards construction of LNG
import terminals
Power Sector Reforms : Plans to link SEBs
Private investment for power allowed
Advice to states to separate generation, transmission and
distribution with separate corporations
Electricity Act, 2003 enacted which distances government
from regulations

Electricity Act, 2003

Consolidate laws related to generation,
transmission, distribution, trading and use
of electricity
General measures
for developing electricity industry, promoting
competition, protecting consumer interest,
supply of electricity to all areas, rationalization
of tariff, ETC

1.11 Energy and Environment

Inputs

Process
Emission
from
process

Outputs
Emission
from
combustion

Energy

Industrial
Process

Water
Chemical
Raw
Material
Solid/
Liquid
waste

Products

Direct/Indirect
Energy waste

Principle pollutants
The principle pollutants produced by industrial,
domestic and traffic sources are
sulphur dioxide, nitrogen oxides,
particulate matter,
carbon monoxide, ozone,
hydrocarbons,
benzene, 1,3-butadiene,
toxic organic micro pollutants,
lead and heavy metals.

Greenhouse gases
Greenhouse gases is only 1 percent of
the atmosphere. They act as a blanket
carbon dioxide from the combustion of
coal, oil and natural gas
methane and nitrous oxide from farming
activities and changes in land use
several man made gases that have a long
life in the atmosphere.

Acid Rain
Caused by release of SOX
and NOX , which then
mixes with water vapour to
form acids
Effects
Acidification of lakes, streams
and soils
Release of metals, washing
away of nutrients
Killing wild life
Decay of buldings
Health problems

Evidence & Effects of Climatic

Change

Increase in Global Temperature

Severe Storms and Flooding
Food shortages
Dwindling Freshwater supply
Loss of biodiversity
Increased diseases

1.12 Energy Security

Energy demand growth rate projected at 4.6% through 2010
India has to import 75% of oil and 22% of coal to meet
requirement by 2006
We are vulnerable to external price shocks and supply
fluctuations
Need to reduce dependence on middle east and diversify
supplies
Building stock piles
Diversification of energy supply sources
Increased capacity of fuel switching
Demand restraint,
Development of renewable energy sources.
Energy efficiency
Sustainable development

1.13 Energy Conservation and its importance

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

Energy Conservation Vs Energy Efficiency

Energy Efficient Equipment uses less energy
for same output and reduces CO2 emissions

Compact fluorescent Lamp

15 W

Incandescent Lamp
60 W
CO2 Emission 65 g/hr

CO2 Emission 16 g/hr

Figure 1.14

1.14 Energy Strategy for the Future

Energy Strategies-Immediate
Rationalizing tariff structure of various energy products
Efficiency in production, reduction in distribution losses
Promoting R&D and use of energy efficient technologies and practices
Promoting energy efficiency standards
Energy Strategies-Medium

Demand management
Optimum fuel mix
Increased dependence on rail than road for goods/passenger
Recycling
Shift to energy such as solar, wind and biomass energy

Energy Strategies-Long

Increased utilization of domestic fuel sources

Improved energy infrastructure
Enhancing energy efficiency
Deregulation and privatization of energy sector
Legislation to attract foreign investment

Important features of the Energy

Conservation Act
Standards and Labeling
Designated Consumers
Certification of Energy Managers and
Accreditation of Energy Auditing Firms
Energy Conservation Building Codes:
Role of Central and State Governments:
Enforcement through Self-Regulation:
Penalties and Adjudication:

Designated Consumer
Schedule of Act provides list of designated consumers (DC).
DCs to
Appoint/designate energy managers
Get energy audits conducted by accredited energy
auditors
Implement techno-economic viable
recommendations
Comply with norms of energy consumption fixed
Submit report on steps taken

List of Energy Intensive Industries and other

establishments specified as designated consumers