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Imagine this scenario: One morning you wake up, yawn, scratch yourself, and sit up. Wearily, you
stumble out of bed. You go to your refrigerator for a glass of milk only to discover that the light inside
does not turn on and everything inside it has been sitting at room temperature overnight and is quickly
beginning to spoil. "That's funny, "you think to yourself. When you try to brew a cup of coffee the coffee
maker does not seem to want to start. Your gas stove won't turn on, so it looks like there'll be no bacon
and eggs this morning. As you sit down with your bowl of dry cereal, you glance out the window and
wonder why there is no newspaper. You pick up your cordless phone to call the newspaper and complain,
but it doesn't turn on either. You begin to panic and you run out to the car. It won't start. "What's going
on?" you think to yourself. "Why doesn't anything work?"
Does this sound like the beginning to some strange science fiction novel? Well, the scenario we just
illustrated could be very real indeed. Together, fossil fuels (coal, petroleum, natural gas, and their
derivatives) provide more than 85% of the energy used by mankind today.
Unfortunately, the reserves of those fuels are not infinite. Scientists predict that within the next two
centuries we will run out of those valuable energy sources. This is you experience
energy. Man mostly relied on the energy from brute animal strength to
do work. Man first learn to control fire around 1 million BC. Man has used fire to cook food and to warm
his shelters ever since. Fire also served as protection against animals. Thousands of years ago, human
beings also learned how to use wind as an energy source. Wind is produced by an
uneven heating by the sun on the surface of the earth because of the different specific heats of land and
water. Hot air has lower pressure than cold air and since high pressure tries to equalize with low
pressure the current called wind is produced. Around 1200 BC, in Polynesia, people learned to use this
wind energy as a propulsive force for their boats by using a sail. About 5 thousand
years ago, magnetic energy was discovered in China. Magnetic force pulled iron objects
and it also provided useful information to navigators since it always pointed North because of the Earth's
magnetic field. Electric energy was discovered by a Greek philosopher named Thales,
about 2500 years ago. Thales found that, when rubbing fur against a piece of amber, a static force that
would attract dust and other particles to the amber was produced which now we know as the
"electrostatic force". Around 1000 BC, the Chinese found coal and started using it as a fuel.
An energy crisis is any great shortfall (or price rise) in the supply of
energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or
other natural resources.
The crisis often has effects on the rest of the economy, with many recessions being caused by an
energy crisis in some form. In particular, the production costs of electricity rise, which
raises manufacturing costs.
For the consumer, the price of gasoline (petrol) and diesel for cars and other vehicles rises, leading to
reduced consumer confidence and spending, higher transportation costs and general price rising.
Webster defines crisis as a “decisive moment “or “turning point”. We are now at an extremely critical
stage of using energy beyond a practical limit. We have increased our usage
enormously, especially oil, in the past decade. The consequence is we are quickly exhausting our finite
supplies of oil and natural gas. As a result, we are becoming more dependent on foreign sources of oil to
keep our country functioning. In 1977 the United States with only 6 percent of the world’s population
statistics are startling reminders of our insatiable energy appetite. Some people may
ask “do we have an energy crisis”. The answer is a definite yes. Our next step is to
realize we are at a crucial time if we are to reverse our terrible trip towards energy
starvation. We will have to recognize our mounting trouble and act decisively to stem the tide.
About 60% of all the energy used in the world today comes from burning
oil and natural gas. Despite massive exploration program, very few large outfields have
been found in recent years. This could well mean that most of the world's oil has been already
discovered, and that, in the future oil can be run out faster than anticipated. Today, the world is
producing enough oil to meet its present needs. If only we could use oil at its present rate then world's
reverse could last for over 100 years. Unfortunately world's energy demand has been
growing steadily over the past 50 years, and most experts believe that this trend will continue. No one
can exactly tell that how much the energy will cost in the future and no one can exactly
tell that how much the energy will needed in the future. The problem about the world's
Even in the heady days of the 1950s, problems with nuclear power were beginning to arise. For one,
early nuclear technologies were developed in a sort of hothouse that was insulated from commercial
realities. When these technologies were transferred to civilian power sectors, they could not compete
economically with conventional power sources. However, the equipment manufacturers and utilities
believed that additional experience would bring decreases in cost.
One of the main sources of opposition to nuclear power was based on the assumption that it was
inherently unsafe. Many engineers argued that the plants were safe, and that built-in safety features
could prevent and had prevented accidents. The possibility of accidents caused mainly by operator errors
had been repeatedly. The immediate result was long lines at gas pumps, high heating bills, and a
worldwide economic downturn.
Many power utilities had acted in the postwar period as Promoters of increased electric usage among
consumers, through publicity campaigns and the direct sale of electric appliances.
2. HYDROELECTRIC POWER
Man has utilized the power of water for years. Much of the growth of early colonial American industry
can be attributed to hydropower. Because fuel such as coal and wood were not readily available to inland
cities, American settlers were forced to turn to other alternatives. Falling water was ideal for powering
sawmills and grist mills.
As coal became a better-developed source of fuel, however, the importance of hydropower decreased.
When canals began to be built off of the Mississippi River, inland cities became linked to mainstream
commerce. This opened the flow of coal to most areas of America, dealing the final blow to hydropower
in early America.
Water power really didn't stage a major comeback until the 20th century. The development of an electric
generator helped increase hydropower's importance. In the mid-20th century, as Americans began to
move out of the cities and into "suburbia," the demand for electricity increased, as did the role of
hydroelectricity. Hydroelectric power plants were built near large cities to supplement power production.
The problems included frequent floods, erosion, and deforestation. The TVA provided for the building of
several hydroelectric dams. Not only were the dams successful in controlling the flooding, they also
provide electricity to the region. The TVA is an example of successful implementation of hydroelectric
power.
3. FUEL CELLS
The fuel cell is one example of a government-sponsored technology which has, after several decades of
research and development effort, produced a viable technology. The fuel cell is a chemical method of
producing electricity, somewhat analogous to an ordinary battery. The difference is that the fuel cell
must be continuously supplied with chemical reagents in order to function. It does not hold a charge like
a battery. The fuel cell derives current from a chemical reaction using oxygen from air and hydrogen
from a fuel source (usually petroleum, synthetic fuels derived from coal, or natural gas, but renewable
fuels such as methanol have been tried).
In operation, fuel cells are silent and produce only water and carbon dioxide as waste products. The
electrochemical process used in a fuel cell was discovered in the early 19th century, although it was not
proposed for commercial purposes until the 1930s. In the 1950s, Westinghouse Electric developed
commercial versions of these devices, but found only niche markets for them. In the 1960s, fuel cells
designed for NASA provided power for the Apollo spacecraft. Early NASA fuel cells supplied by General
Electric Company used an unusual electrolyte composed of a polymer material in the form of a
membrane. The resulting fuel cells were quite expensive. By the 1990s, fuel cells using less expensive
materials and solid fuels were available and put into operation experimentally as part of utility company
power networks. Unfortunately, the U.S. Department of Energy has had difficulty transferring the
financial responsibility for commercializing this technology to the private sector. Additionally, many
utilities remain unconvinced that fuel cells represent an economical alternative to other medium-scale
power sources, especially gas turbines leading to energy crisis.
4. SOLAR POWER
The history of solar energy conversion is another example of a technology that is inextricably linked to
government policy and financial support. While solar cells were developed by the 1950s which could
generate enough electricity directly from sunlight to operate electronic circuits, the amount of current
was small and the price was high.
Nonetheless, solar cells found niche applications by the 1960s. The most famous application was in
space: from the 1960s on, many satellites were powered by solar cells.
A second important application was developed by telephone companies to operate remote repeaters and
other equipment. Solar cells remained inefficient and expensive compared to other methods, and were
suitable only where no other energy source could be used or where cost was not a major consideration.
Solar power for utility applications was given a temporary boost through the government funding of
applied research on solar cells and the construction of experimental solar stations. Not all of these solar
stations used solar cells; several large systems used computer-controlled, movable mirrors to focus light
on a boiler, which produced steam to drive a turbine. However, these large-scale plants remained
experimental, and funding eventually dried up.
5. WIND POWER
By far the most successful alternative energy technology has been the exploitation of wind. This form of
small- to medium-scale generation was repeatedly passed over by American utility companies before the
1970s because it was considered unreliable and unsuitable for large scale exploitation. But in time, due
to changes both in the technology and in the business environment, wind power became a part of
established electrical networks.
The use of wind energy to serve various industrial purposes is quite old, dating at least to the 12th
century. Unlike other power sources such as water or steam, wind power was for the most part left
behind in the late 19th century by electric companies looking for ways to drive generators. It was seen
as unreliable and unavailable in sufficient quantities to power larger machines. The energy crisis of the
early 1970s revived interest in wind-powered electric generation, and a number of European firms
quickly moved to the forefront in providing updated versions of this ancient technology. Early emphasis
in America was on the development of multi-megawatt wind turbines, although such designs did not see
much commercial success.
The turning point for alternative energy utilization in the United States, including wind power technology,
was national legislation which in 1978 forced utilities to purchase the power generated by independent
producers. This act, called the Public Utilities Regulatory Policies Act (PURPA), was intended to advance
deregulation in the industry, but also to encourage experimentation with new energy technologies.
Others:
• Biomass
• Geothermal
• Fusion
6. OIL CRISIS
The world at large and India in particular have moved towards a serious energy crisis in the 1980s .Of
occurs this crisis first cropped up the 70s when the open countries suddenly raised the priories of oil
.The oil price like was coupled with the inefficient supply of conventional flues and the rapid rise in the
demand of energy. While the demand of energy has significantly increased due to rapid industrialization
urbanization transportation and communication development modernization of agriculture and due to
heavy population pressure; the supply position has deteriorated owing to heavy depletion of fissile fuel
reserves and to technological inefficiencies associated with exportation of those reserves. Hence now we
find and unabridged gap between demand and of conventional fuel, which is in, turn worsening the
energy crisis. Though there is turn stability in the oil market at the moment it is deceptive.
World Crude Oil Prices
$ Per barrel
39.00 September ’90
10.00◊November ’98
◊March ’00 34.13
27.86 December ’02
48.00 July ’04
October ’04 55.57
42.55◊January ’05
52.48 June
60.70◊July
◊August 67.00
61.68◊March 1st ‘06
60.73 10th
66.57 31
April 3rd 67.19
70.00◊17th
74.99 May 3rd
In the aftermath of the 1973 and 1979 energy crises, which were arguably precipitated by international
political actions that upset time-honored economic relationships, oil prices trended downward in real
terms, and the public was lulled into complacency. Sure, they had to pay more for a gallon of gasoline,
but at least they could obtain it readily without waiting in the lines seen during the crises.
Producers of natural gas began to explore for gas in newer areas, often at higher cost than production in
more traditional areas. Simultaneously, new technologies for the use of gas improved the efficiency of
gas use. Environmental concerns increased interest in the use of gas, based on that fuel's "clean" image
and its largely invisible delivery system.
As gas became more popular and gas utilization became more efficient economically, electric utilities
turned increasingly to gas as a fuel for power generation. New, highly efficient gas turbines were
developed by major turbine manufacturers, and gas increased its penetration of the power generation
market steadily.
In the winter of 2000-2001, a number of factors have come together to magnify the problems facing the
energy industries. Among these are a rapid increase in demand for energy commodities, a not-so-rapid
increase in production of energy from new sources (given the lead times needed to develop new
production), a rapid rise in the price of natural gas and petroleum (and a coming rapid escalation of
residential consumer bills), a rapid and continuing increase in the popularity of new gas-fired electric
power generating facilities, and a rapid proliferation of environmental rules affecting the use of some
energy commodities and the relative importance of others.
This combination of ingredients sets the stage for the next energy crisis. This winter has already seen
critical shortages of electric power, followed by the first-ever Federal intervention to essentially force
utilities to continue supplying energy even if they lose money by doing so. The Golden State's three
major electric utilities have moved close to the edge of bankruptcy, caught between extraordinarily high
costs and slow reaction by state regulators to the incipient crisis.
Meanwhile, the costs of natural gas on the spot market have risen to record levels, just as more electric
generators, both traditional utilities and newer independent power producers, turn increasingly to gas as
a generating fuel.
CAUSES OF HISTORICAL CRISES
1973 oil crisis
Cause: an OPEC oil export embargo by many of the major Arab oil-producing states, in response to
western support of Israel during the Yom Kippur War.
Power shortages
Cutbacks in conservations.
Cutbacks in renewables.
Power plant outages.
These types of energy are constantly being renewed or restored. But many of the other forms of energy
we use in our homes and cars are not being replenished. Fossil fuels took millions of years to create.
They cannot be made over night. And there are finite or limited amounts of these non-renewable energy
sources. That means they cannot be renewed or replenished. Once they are gone they cannot be used
again. So, we must all do our part in saving as much energy as we can.
IN HOME:
In the home, energy can be saved by turning off appliances, TVs and radios that are not being used,
watched or listened to. The lights should be turned off when no one is in the room. By putting insulation
in walls and attics, the amount of energy it takes to heat or cool our homes can be reduced. Insulating a
home is like putting on a sweater or jacket when we're cold...instead of turning up the heat. The outer
layers trap the heat inside, keeping it nice and warm.
RECYCLING:
To make all of our newspapers, aluminum cans, plastic bottles and other goods takes lots of energy.
Recycling these items -- grinding them up and reusing the material again -- uses less energy than it
takes to make them from brand new, raw material. So, we must all recycle as much as we can.
NEW TECHNOLOGIES
Development of new generation technologies to improve the utilization of energy has improved, but
incrementally, with dramatic new efficiencies unlikely in the immediate future. The prospects for getting
"more bang for the buck" are good in the long term, but not in the near term.
By 2020 we could be dependent on imported energy for three-quarters of our total primary energy
needs ... we may become potentially more vulnerable to price fluctuations and interruptions to supply
caused by regulatory failures, political instability or conflict in other parts of the world.
In a cold climate we welcome the sun's heat and light most of the time. And once we capture the heat,
we don't want to give it up. In a warm climate, we don't want the heat, but we do want the light.
Advances in window technology let us have it both ways.
Less than half of the sun's energy is visible. Longer wavelengths--beyond the red part of the visible
spectrum--are infrared, which is felt as heat. Shorter wavelengths, beyond purple, are ultraviolet (UV).
When the sun's energy strikes a window, visible light, heat and UV are either reflected, absorbed or
transmitted into the building.
In addition, the new car manufacturers will have to increase the fuel efficiency of all cars. Another
solution will concern the industrial sector of our economy, to continue their cutbacks and their fuel
efficiency programs without seriously affecting their production.
LONG TERM / FUTURE SOLUTIONS
India needs approximately 100000MW of additional power by 2010 if it is to embark on a high growth
trajectory and emerge as an economic giant by 2020.However, most projections state that at the current
rate of capacity addition we will fall well short of achieving this target.
To address this problem, it helps in understanding the issues involved, there are primarily three of them
they are:
1. Finance
2. Technology
3. Structure of the power grid
FINANCE
As there is a glut of capital in the international markets to the tune of around USD 2 trillion, the power
market in India is one of the few areas in which a part of this can be invested with the prospect of
assured returns for investors (hopefully the government can facilitate this by giving counter-guarantees)
.In addition, we need to move towards a public-private model where the government provides the grid
and charges the private sector to use it and privatize the distribution and generation of energy and give
them tax breaks or exemptions to pay for politically desirable (read unprofitable) ventures like
subsidized power for farmers.
TECHNOLOGY
There are 3 technologies which are uniquely suited to the Indian market
1. INDIA FACES MAJOR ENERGY CRISIS DUE TO CRUDE OIL REFINING CAPACITY AND COMPLIANCE TO
ENVIRONMENTAL CLEAN UP STANDARDS
India faces more problems that just need for reliable energy supply. Even if the Government is able to
acquire rights to Natural gas and Crude oil supplies all around the world, the problem does not end
there.
India faces a major shortage of refining capacity. As a result prices of diesel, Petrol and Kerosene can go
through the roof even if the Crude oil price moves up slowly.
The refineries all around India are old and mainly acquired from the Soviet Union many tears back. They
need to be replaced soon. They operate at a much lower capacity die to maintenance needs and cause
bad pollution all around. The refinery owned and operated by Reliance is the only one in the country that
is of world class standard and is sophisticated. It was operational approximately 22 months back and is
based on most advanced technologies in the world.
The rest of the 18 refineries are in hopeless condition. Some of those India’s refineries cannot get rid of
the high sulphur content to produce what is internationally known as sweet crude. Many of the refineries
cannot effectively extract Kerosene through the secondary process, Kerosene is high demand since it
lights up many homes sin India.
Seven of these prehistoric 18 refineries can be modernized. But red tape and lack of operational control
is taking the country to the brink of a major energy crisis.
Raghunath Mashelkar, scientific adviser to the government recently submitted a report on the status of
the refineries to the Government. India’s 115m-tonne refining capacity needs some major capital
investment, the report clearly mentions about the need of “substantial capital funding” to upgrade or
overhaul processes to meet global standards on quality petrol and diesel fuels.
India needs US $6.5 Billion to upgrade these refineries to meet the Euro IV standard of emission by
2010. Stepping up to Euro III emission standards will also require hardship as required by next April.
According to the New Delhi-based Energy and Resources Institute (Teri), fiscal incentives are required
from the Government to move forward towards this capital investment.
2. ENERGY CRISIS FORCES INDIA TO FOCUS ON ‘SHIFTING THE EMPHASIS FROM PERSONAL
TRANSPORT TO PUBLIC TRANSPORT’
India has given its go-ahead to Metro Rail projects for Mumbai, Hyderabad and Bangalore and would
provide viability gap funding for the projects in various states, Union Minister for Urban Development
Jaipal Reddy said on Friday.
The choice of deciding about the nature of gauge to be adopted in the metro rail projects has been given
to state governments, Reddy said.
In his inaugural address at ''Cityscapes 2006'', a meet on Urban infrastructure reforms with public-
private linkages, being organized by the FICCI, Reddy said metro rail projects in Hyderabad, Mumbai
and Bangalore can take off immediately.
The project proposals were pending; following the stand of Indian Railways that broad gauge should be
adopted for Metro Rail projects, while many state governments preferred standard gauge.