PRESENTED BY SHIVRAJ SINGH NEGI RAVI SHANKAR KOMMU

ORGANIZATION OF ENERGY SECTOR  Energy sector in India is dominated by government and its agencies.  It is guided in policy making by Power & Energy Policy and Rural Energy Division of Planning Commission.  Many of the large companies in energy sector are government owned.  The sector has only recently seen the rise of private sector companies.  A few areas like Nuclear Power, still under state monopoly.

ORGANIZATION OF ENERGY SECTOR

INDIAN ENERGY SECTOR  There is a strong two-way relationship between economic development and energy consumption.  Primary commercial energy demand 5% between and  India accounted for 3.9 % of world’s commercial energy demand.  Low levels of per capita energy consumption.  Since 1999, India’s energy intensity has been decreasing and is expected to continue to decrease.  High economic growth rates lead to higher rates of growth in energy consumption.  Cost-effective and environmentally benign energy sources needed to maintain competitiveness.  Energy is also the key to improve socio- economic conditions.  Future growth projections indicate total demand to rise up to 1887 MTOE by 2031, compared to 220 MTOE now. GDP v/s energy efficiency for top 40 economies

INDIAN ENERGY SECTOR

COAL AND LIGNITE  Third largest producer in world. Coal is the mainstay.  Low quality. Coking coal imported. 22MT in  Current 450 MT, to increase up to 2350 MT by  Coal critical for future energy needs as reserves to production ratio is close to 217.  Reforms have been stalled by unionized labor force and coal lobby, allowing monopoly of CIL, leading to serious energy security, local, regional, and environment concerns.  Shallow mining preferred due to quick returns, producing poor quality and contaminated coal.  Price fluctuations cause of concern.  Large investments in infrastructure needed, high prices might actually bring more forex.

OIL AND GAS  Domestic production stagnant for past 15 years.  Higher imports putting fiscal strains on economy.  Imports have tripled in 10 years.  Reserves augmented only to a minor extent by some recent discoveries.  Strategic oil reserve to be established ( 5MT by 2012).  NELP expected to result in more discoveries.  OALP mooted. Round the year licensing.  OVL and other companies investing in foreign fields ( Equity Oil).  India is emerging as a big refining hub, with technical advantages and capacity crunch worldwide allowing higher margins.  4218 Km of pipelines transporting crude and natural gas between refineries, production sites and consumption areas.  Reforms needed and alternative fuels to be considered.

BLOCKS OFFERED UNDER NELP

POWER  Power generation has grown to BU at a CAGR of 4.36% in  Captive power production at MW.  Total length of transmission lines is circuit km, with voltages ranging from 800 kV to 11 kV and less.  Close to 70% generation by thermal power, with coal contributing the most, followed by hydro, wind, nuclear and other sources.  High T&D and AT&C losses.  Total electrification and metering still not done.  Low per capita consumption compared to world, and regional variations in consumption patterns.  Reforms, investments and R&D for development of alternate resources needed.

RENEWABLE SOURCES  Total capacity at 9372 MW, 6315 wind energy, 1905 small hydropower, 1152 Bio- power.  7% of total, Renewable energy is available in wide forms and sources.  Bio-power and Bagasse based co-generation, Biomass gassification, Solar photovoltaics, Wind, Small-hydropower, Urban and industrial waste, biogas, Solar, fuel cells, Bio-fuels, Hydrogen energy, ocean and geothermal energy are some of the potential sources.  High potential in each of these, with capability, if properly exploited and with sufficient technological advances, to replace much of the thermal power generation  Current constraining factors are high costs and lack of proper technologies to tap these sources.  IEP features : Renewable energy to be given special policies for well defined period to ensure outcomes, incentives to integrate alternative sources into systems should be linked with energy generated.  More policies and frameworks.

REFERENCES  TERI Energy Data Directory and Yearbook  Reports on India’s Power sector by Economicaindia Info-services.       