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Energy management and
auditing
Program Elective III
Syllabus
•
•
UNIT-I
Energy Scenario: Commercial and Non-Commercial Energy,
Primary and Secondary Energy Resources, Conventional and
non-conventional energy, 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
UNIT-II
Energy Management Functions: Need for energy management,
Energy management program, Organizational Structure, Energy
Policy, Planning, Audit Planning, Educational Planning,
Strategic Planning, Reporting
•
•
UNIT-III
Electrical Energy Management: Electricity tariff,
Electrical Load Management and Maximum Demand
Control, Maximum demand controllers, Power Factor &
Its importance, Automatic power factor controllers,
Energy ef f
i
cient motors, Soft starters with energy saver,
Energy ef f
i
cient transformers, Electronic ballast, Energy
efficient lighting controls
UNIT-IV
Energy Audit: Def i
nition, Energy audit- need, Types of
energy audit, Energy Auditing Services, Basic
Components of an Energy Audit, Specialized Audit Tools,
Industrial Audits, Commercial Audits, Residential Audits,
Indoor Air Quality and basics of economic analysis.
UNIT-I 
• Energy Scenario: Commercial and Non-
Commercial Energy, Primary and Secondary
Energy Resources, Conventional and non-
conventional energy, 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
Commercial Energy

•
•
The energy sources that are available in the
market for a definite price are known as
commercial energy. By far the most important
forms of commercial energy are electricity, coal
and refined petroleum products.
Commercial energy forms the basis of industrial,
agricultural, transport and commercial
development in the modern world. In the
industrialized countries, commercialized fuels
are predominant source not only for economic
production, but also for many household tasks of
general population. Examples: Electricity, lignite,
coal, oil, natural gas etc
Non-Commercial Energy
• The energy sources that are not available in the
commercial market for a price are classified as non-
commercial energy. Non-commercial energy
sources include fuels such as firewood, cattle dung
and agricultural wastes, which are traditionally
gathered, and not bought at a price used especially
in rural households. These are also called traditional
fuels. Non-commercial energy is often ignored in
energy accounting. Example: Firewood, agro waste
in rural areas; solar energy for water heating,
electricity generation, for drying grain, fish and fruits;
animal power for transport, threshing, lifting water
for irrigation, crushing sugarcane; wind energy for
lifting water and electricity generation.
Commercial Energy

•
•
•
•
•
•
•
The commercial energy has great
economic value.
This energy pollutes the environment
badly.
This types of energy are limited in nature.
High capital investment is required in the
purification.
It is used in urban as well as rural areas.
Coal, petroleum, natural gas and nuclear
energy.
This is a non-renewable form of energy.
A brief description of commercial
energy sources is given below:

•
•
•
•
•
(i) Coal and Lignite:
It has been considered as the major source of energy in India. It can be easily
converted into other forms of energy such as electricity, gas and oil. The total
estimate resources of coal are now placed at 1, 48, 79 million tonnes, but the
mineable reserves are estimated to be 60,000 million tonnes i.e. on 40% of the
total coal reserves. Lignite is brown coal with lesser amount of energy than
black coal. In 1950-51, production of coal and lignite in India was 32.3 million
tonnes which increased to 413 million tonnes in 2004-05.
(ii) Oil and Gas:
Demand for fossil fuels grew rapidly with the growth of the industrial sector and
transport services. Crude oil production has constantly, been increasing since
the beginning of economic plans in India. After Independence, the Government
of India felt the need for oil exploration on an extensive scale, and therefore, the
Oil and Natural Gas Commission (ONGC) was set up in 1956, an( in 1959, Oil
India Limited (OIL) was established.
Total recoverable reserves of oil are estimated at 550 million tonnes and those
of gas are estimated at 500 billion cubic tonnes, Production of crude oil is
estimated in 200 05 at about 34 million tonnes. Coal and other fossil fuels play
the most important role in the generation of the thermal power.
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•
•
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(iii) Hydroelectric power:
It plays an important role in the filed of power development in country, our country has made
considerable progress in the field of hydroelectricity power generation.
Hydroelectric power has several advantages over thermal power like:
(a) It is the most economical source of power,
(b) There no environmental pollution problem
(c) There is no waste disposal problem
(d) Generation o hydel-power depends on renewable water resources, whereas the generation of
thermal power depends on the use of non-renewal resources like coal and petroleum oil.
The annual hydroelectric potential is estimated to be around 90,000 MW (Mega-watt). Out of this,
so far about 18,000 mw has been developed. This mean that only 20% of the total potential has
been utilized. So, there is a vast scope for harnessing hydro-potential in India.
(iv) Atomic or Nuclear Power:
India has also developed nuclear power. Uranium and thorium are both sources of nuclear power
generation. India’s uranium reserves have been estimated to be of the order of about 70,000
tonnes, which is equal to 120 billion tonnes of coal. Similarly, our thorium reserves of 3, 60,000
tonnes would be equivalent to 600 billion tonnes of coal.
Considering the availability of uranium and thorium, the government of India took steps in setting
up nuclear power plants at Tarapur (Maharashtra) named Tarapur Atomic Power Station (TAPS,
1969) Kalpakkam (Tamil Nadu) during 1984- 86, Narora (Uttar Pradesh) during 1989-91.
Non-Commercial Energy

•
•
•
•
•
•
•
The non-commercial energy is cheaper.
This is pure and keeps the environment
clean.
Abundant in nature.
It can be used in raw form.
It is dominantly used in rural areas.
Cowdung, charcoal, firewood and
agricultural waste.
It is a renewable form of energy.
A brief description of Non
commercial energy sources is
given below:
•
•
•
•
•
•
(i) Fuelwood:
It is required for cooking purpose. The total fuel wood
consumption has been estimated at about 223 million tonnes
in 2001- 02.
(ii) Agricultural wastes:
It is also used how for cooing purpose. Agriculture waste are
also used as feed and fodder for animals, roofing materials in
Katcha houses. It has been estimated that for fuel alone, the
consumption of agricultural wastes was around 65 million
tonnes in 2001.
(iii) Animal dung:
Dried dung of animals is commonly used as fuel in our rural
India, out of the total estimated production of 324 million
tonnes of animal dung, nearly 73 million tonnes (22.5%) is
burnt as fuel every year.
Primary and Secondary Energy
Resources
•
•
•
•
Primary energy resources are those found in nature.
Secondary energy resources are those forms that
must be produced by conversion of primary
resources.
There are only a few different original sources for
primary fuels: Earth, the Moon, and the Sun.
Earth provides radioactive materials used to harness
nuclear energy and geothermal resources that can
be used for heating and cooling.
The moon’s gravitational pull provides tidal forces
that can be harnessed for mechanical or electrical
power. Other than nuclear, geothermal, and tidal
energy, all other energy forms originate from the sun.
•
•
Primary Resource or Secondary Energy?
It’s not always obvious if a fuel is a
primary resource or secondary energy.
Sometimes, the same thing may be
primary or secondary, depending on its
source. For instance, the heat from a
geothermal vent could be considered a
primary resource, but the heat made from
burning fossil fuels is secondary energy.
• Primary energy resources are those found
in nature. They include the fossil fuels
(petroleum, natural gas, and coal), uranium,
blowing wind and f l
owing water, biomass,
and the radiant energy of the sun.
• Secondary energy comes from
transforming primary energy, and includes
things like gasoline and liquid fuels,
refined bio fuels, electricity, hydrogen, and
heat.
Conventional and non-conventional
energy
• Energy can be def i
ned as the capacity or
ability to do work. It plays an important
role in our day to day life as it is required in
every f ield like industry, transport,
commu n ication , s por ts , defen ce,
household, agriculture and more. There
are plenty of energy sources to get energy.
These energy resources can be classif i
ed
as Conventional and Non-conventional
sources of energy. Let us see how they
differ from each other!
Conventional sources of energy:
•
•
Conventional sources of energy are the natural
energy resources which are present in a limited
quantity and are being used for a long time. They
are called non-renewable sources as once they
are depleted, they cannot be generated at the
speed which can sustain its consumption rate.
They are formed from decaying matter over
hundreds of millions of years.
These resources have been depleted to a great
extent due to their continuous. coal will deplete
in 50 yrs. Some common examples of
conventional sources of energy include coal,
petroleum, natural gas.
Non-conventional sources of
energy:
• Non-conventional sources of energy are the energy
sources which are continuously replenished by
natural processes. These cannot be exhausted easily,
can be generated constantly so can be used again
and again, e.g. solar energy, wind energy, tidal energy,
biomass energy and geothermal energy etc. The
energy obtained from non-conventional sources is
known as non-conventional energy. These sources
do not pollute the environment and do not require
heavy expenditure. They are called renewable
resources as they can be replaced through natural
processes at a rate equal to or greater than the rate
at which they are consumed.
Differentiation
Conventional sources of energy Non-Conventional sources of energy
Conventional sources of energy are
those sources which have been in use
from time immortal.
Non-conventional sources of energy
have generally been identified in the
recent past.
They are exhaustible except hydro-
energy.
They are inexhaustible.
They cause pollution when used as
they emit smoke and ash.
Generally, these are pollution-free.
Their generation and use involve huge
expenditure.
Low expenditure required.
Very expensive to maintain, store,
transmit as they are carried over long
distances through transmission grids.
Less expensive due to local use and
easy maintenance.
Examples are – coal, natural gas,
water, firewood.
Examples are – geothermal energy,
solar energy, wind energy, tidal energy,
biogas energy, nuclear energy
Final energy consumption
•
•
Final energy consumption is the total energy
consumed by end users, such as households,
industry and agriculture. It is the energy which
reaches the f i
nal consumer's door and excludes
that which is used by the energy sector itself.
Final energy consumption excludes energy used
by the energy sector, including for deliveries, and
transformation. It also excludes fuel transformed
in the electrical power stations of industrial auto-
producers and coke transformed into blast-
furnace gas where this is not part of overall
industrial consumption but of the transformation
sector.
Energy end user categories:
private households,
agriculture,
industry,
road transport,
air transport (aviation),
other transport (rail, inland navigation),
services,
other.
• Commercial Production is the process
of bringing hydrocarbons to the surface
and making them ready for processing.
The first thing that has to be done
before the Commercial Production
commences is to drill a well in the
earth’s surface with the help of rigs.
•
•
•
Coal
Oil
Gas
coal
• Most abundant and
geographically
dispersed fossil
Total coal reserve by country
Sr. No. Country Coal reserve World share
1 United States 254,197,000,000 22.3%
2 Russia 176,770,840,800 15.5%
3 Australia 159,634,329,600 14.0%
4 China 149,818,259,000 13.1%
5 India 107,726,551,700 9.5%
OIL
• Will last for 49 years if production and
consumption continue at this rate
United States 11,307,560 35,922
Russia 9,865,495 73,292
Saudi Arabia (OPEC) 9,264,921 324,866
Canada 4,201,101 100,931
Iraq (OPEC) 4,102,311 119,664
China 3,888,989 2,836
gas
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•
•
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Energy plays a key role in the process of economic growth of a nation. The industrial development
of any country is dependent on the organised development of its power resources’.
Energy is also indispensable for agriculture, transport, business and domestic requirements. In
fact, electricity has such a wide range of applications in modern economic development that its per
capita consumption is, to a great extent, an index of the material advancement of the country.
Energy is the capacity for doing useful work. It is an essential input for economic growth. This
energy is used in the form of electrical energy, thermal energy, light, mechanical energy and
chemical energy etc.
ADVERTISEMENTS:
Energy is measured in joules in Si units. The annual per capita energy consumption in developed
countries ranges from 5 to 11 kW whereas in the developing countries it is between 1 to 1.5 KW
Only
Uses of Energy
1. Energy is a primary input in any industrial operation.
2. It is also a major input in sectors such as commerce, transport, tele-communications etc.
ADVERTISEMENTS:
3. The wide range of services required in the household and industrial sectors.
4. Owing to the far-reaching changes in the forms of energy and their respective roles in
supporting human activities, research and training on various aspects of energy and environment
have assumed great significance.
Sources of Energy
An energy resource is a natural resource from which useful work can be obtained. Energy
resources are broadly classified as primary and secondary.
Energy sector reforms
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•
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•
Need for Reforms
The status of the energy sector in India is highly uneven and the scope
for reform in many areas still exists.
Regulatory reforms for effective adoption of green power through grid
management and long-term visibility to private sector investors
To explore ways to raise domestic output and cut imports.
To seek investment in exploration and production, processing,
transportation and distribution network in oil and gas.
To achieve government's vision of energy access, efficiency,
sustainability and security.
For securing overseas supplies through equity and long-term contracts
As per estimates by the Central Electricity Authority, electrical energy
requirement is expected to grow by 37 per cent by the financial year
2021-22.
To secure universal, affordable, accessible, 24x7 quality power for all.
Challenges
•
•
•
•
•
The power sector is in early stages of
transformation from coal-centric generation to
variable renewable power generation.
This transformation will pose several daunting
commercial and technical challenges for both policy
makers and market players
Power tariff structures in India are rigid.
Private investments have stagnated for the last few
years while fuel demand has been rising by 5-6
percent annually.
Factor Reforms in Land, labour and capital are long
overdue which is holding the domestic
manufacturing capacities of solar equipments.
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Introduction to Energy manaegement and audting.pdf

  • 2. Syllabus • • UNIT-I Energy Scenario: Commercial and Non-Commercial Energy, Primary and Secondary Energy Resources, Conventional and non-conventional energy, 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 UNIT-II Energy Management Functions: Need for energy management, Energy management program, Organizational Structure, Energy Policy, Planning, Audit Planning, Educational Planning, Strategic Planning, Reporting
  • 3. • • UNIT-III Electrical Energy Management: Electricity tariff, Electrical Load Management and Maximum Demand Control, Maximum demand controllers, Power Factor & Its importance, Automatic power factor controllers, Energy ef f i cient motors, Soft starters with energy saver, Energy ef f i cient transformers, Electronic ballast, Energy efficient lighting controls UNIT-IV Energy Audit: Def i nition, Energy audit- need, Types of energy audit, Energy Auditing Services, Basic Components of an Energy Audit, Specialized Audit Tools, Industrial Audits, Commercial Audits, Residential Audits, Indoor Air Quality and basics of economic analysis.
  • 4. UNIT-I • Energy Scenario: Commercial and Non- Commercial Energy, Primary and Secondary Energy Resources, Conventional and non- conventional energy, 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
  • 5.
  • 6. Commercial Energy • • The energy sources that are available in the market for a definite price are known as commercial energy. By far the most important forms of commercial energy are electricity, coal and refined petroleum products. Commercial energy forms the basis of industrial, agricultural, transport and commercial development in the modern world. In the industrialized countries, commercialized fuels are predominant source not only for economic production, but also for many household tasks of general population. Examples: Electricity, lignite, coal, oil, natural gas etc
  • 7. Non-Commercial Energy • The energy sources that are not available in the commercial market for a price are classified as non- commercial energy. Non-commercial energy sources include fuels such as firewood, cattle dung and agricultural wastes, which are traditionally gathered, and not bought at a price used especially in rural households. These are also called traditional fuels. Non-commercial energy is often ignored in energy accounting. Example: Firewood, agro waste in rural areas; solar energy for water heating, electricity generation, for drying grain, fish and fruits; animal power for transport, threshing, lifting water for irrigation, crushing sugarcane; wind energy for lifting water and electricity generation.
  • 8. Commercial Energy • • • • • • • The commercial energy has great economic value. This energy pollutes the environment badly. This types of energy are limited in nature. High capital investment is required in the purification. It is used in urban as well as rural areas. Coal, petroleum, natural gas and nuclear energy. This is a non-renewable form of energy.
  • 9. A brief description of commercial energy sources is given below: • • • • • (i) Coal and Lignite: It has been considered as the major source of energy in India. It can be easily converted into other forms of energy such as electricity, gas and oil. The total estimate resources of coal are now placed at 1, 48, 79 million tonnes, but the mineable reserves are estimated to be 60,000 million tonnes i.e. on 40% of the total coal reserves. Lignite is brown coal with lesser amount of energy than black coal. In 1950-51, production of coal and lignite in India was 32.3 million tonnes which increased to 413 million tonnes in 2004-05. (ii) Oil and Gas: Demand for fossil fuels grew rapidly with the growth of the industrial sector and transport services. Crude oil production has constantly, been increasing since the beginning of economic plans in India. After Independence, the Government of India felt the need for oil exploration on an extensive scale, and therefore, the Oil and Natural Gas Commission (ONGC) was set up in 1956, an( in 1959, Oil India Limited (OIL) was established. Total recoverable reserves of oil are estimated at 550 million tonnes and those of gas are estimated at 500 billion cubic tonnes, Production of crude oil is estimated in 200 05 at about 34 million tonnes. Coal and other fossil fuels play the most important role in the generation of the thermal power.
  • 10. • • • • • • • • • • • (iii) Hydroelectric power: It plays an important role in the filed of power development in country, our country has made considerable progress in the field of hydroelectricity power generation. Hydroelectric power has several advantages over thermal power like: (a) It is the most economical source of power, (b) There no environmental pollution problem (c) There is no waste disposal problem (d) Generation o hydel-power depends on renewable water resources, whereas the generation of thermal power depends on the use of non-renewal resources like coal and petroleum oil. The annual hydroelectric potential is estimated to be around 90,000 MW (Mega-watt). Out of this, so far about 18,000 mw has been developed. This mean that only 20% of the total potential has been utilized. So, there is a vast scope for harnessing hydro-potential in India. (iv) Atomic or Nuclear Power: India has also developed nuclear power. Uranium and thorium are both sources of nuclear power generation. India’s uranium reserves have been estimated to be of the order of about 70,000 tonnes, which is equal to 120 billion tonnes of coal. Similarly, our thorium reserves of 3, 60,000 tonnes would be equivalent to 600 billion tonnes of coal. Considering the availability of uranium and thorium, the government of India took steps in setting up nuclear power plants at Tarapur (Maharashtra) named Tarapur Atomic Power Station (TAPS, 1969) Kalpakkam (Tamil Nadu) during 1984- 86, Narora (Uttar Pradesh) during 1989-91.
  • 11. Non-Commercial Energy • • • • • • • The non-commercial energy is cheaper. This is pure and keeps the environment clean. Abundant in nature. It can be used in raw form. It is dominantly used in rural areas. Cowdung, charcoal, firewood and agricultural waste. It is a renewable form of energy.
  • 12. A brief description of Non commercial energy sources is given below: • • • • • • (i) Fuelwood: It is required for cooking purpose. The total fuel wood consumption has been estimated at about 223 million tonnes in 2001- 02. (ii) Agricultural wastes: It is also used how for cooing purpose. Agriculture waste are also used as feed and fodder for animals, roofing materials in Katcha houses. It has been estimated that for fuel alone, the consumption of agricultural wastes was around 65 million tonnes in 2001. (iii) Animal dung: Dried dung of animals is commonly used as fuel in our rural India, out of the total estimated production of 324 million tonnes of animal dung, nearly 73 million tonnes (22.5%) is burnt as fuel every year.
  • 13. Primary and Secondary Energy Resources • • • • Primary energy resources are those found in nature. Secondary energy resources are those forms that must be produced by conversion of primary resources. There are only a few different original sources for primary fuels: Earth, the Moon, and the Sun. Earth provides radioactive materials used to harness nuclear energy and geothermal resources that can be used for heating and cooling. The moon’s gravitational pull provides tidal forces that can be harnessed for mechanical or electrical power. Other than nuclear, geothermal, and tidal energy, all other energy forms originate from the sun.
  • 14.
  • 15. • • Primary Resource or Secondary Energy? It’s not always obvious if a fuel is a primary resource or secondary energy. Sometimes, the same thing may be primary or secondary, depending on its source. For instance, the heat from a geothermal vent could be considered a primary resource, but the heat made from burning fossil fuels is secondary energy.
  • 16. • Primary energy resources are those found in nature. They include the fossil fuels (petroleum, natural gas, and coal), uranium, blowing wind and f l owing water, biomass, and the radiant energy of the sun.
  • 17. • Secondary energy comes from transforming primary energy, and includes things like gasoline and liquid fuels, refined bio fuels, electricity, hydrogen, and heat.
  • 18. Conventional and non-conventional energy • Energy can be def i ned as the capacity or ability to do work. It plays an important role in our day to day life as it is required in every f ield like industry, transport, commu n ication , s por ts , defen ce, household, agriculture and more. There are plenty of energy sources to get energy. These energy resources can be classif i ed as Conventional and Non-conventional sources of energy. Let us see how they differ from each other!
  • 19. Conventional sources of energy: • • Conventional sources of energy are the natural energy resources which are present in a limited quantity and are being used for a long time. They are called non-renewable sources as once they are depleted, they cannot be generated at the speed which can sustain its consumption rate. They are formed from decaying matter over hundreds of millions of years. These resources have been depleted to a great extent due to their continuous. coal will deplete in 50 yrs. Some common examples of conventional sources of energy include coal, petroleum, natural gas.
  • 20. Non-conventional sources of energy: • Non-conventional sources of energy are the energy sources which are continuously replenished by natural processes. These cannot be exhausted easily, can be generated constantly so can be used again and again, e.g. solar energy, wind energy, tidal energy, biomass energy and geothermal energy etc. The energy obtained from non-conventional sources is known as non-conventional energy. These sources do not pollute the environment and do not require heavy expenditure. They are called renewable resources as they can be replaced through natural processes at a rate equal to or greater than the rate at which they are consumed.
  • 21. Differentiation Conventional sources of energy Non-Conventional sources of energy Conventional sources of energy are those sources which have been in use from time immortal. Non-conventional sources of energy have generally been identified in the recent past. They are exhaustible except hydro- energy. They are inexhaustible. They cause pollution when used as they emit smoke and ash. Generally, these are pollution-free. Their generation and use involve huge expenditure. Low expenditure required. Very expensive to maintain, store, transmit as they are carried over long distances through transmission grids. Less expensive due to local use and easy maintenance. Examples are – coal, natural gas, water, firewood. Examples are – geothermal energy, solar energy, wind energy, tidal energy, biogas energy, nuclear energy
  • 22.
  • 23.
  • 24. Final energy consumption • • Final energy consumption is the total energy consumed by end users, such as households, industry and agriculture. It is the energy which reaches the f i nal consumer's door and excludes that which is used by the energy sector itself. Final energy consumption excludes energy used by the energy sector, including for deliveries, and transformation. It also excludes fuel transformed in the electrical power stations of industrial auto- producers and coke transformed into blast- furnace gas where this is not part of overall industrial consumption but of the transformation sector.
  • 25. Energy end user categories: private households, agriculture, industry, road transport, air transport (aviation), other transport (rail, inland navigation), services, other.
  • 26. • Commercial Production is the process of bringing hydrocarbons to the surface and making them ready for processing. The first thing that has to be done before the Commercial Production commences is to drill a well in the earth’s surface with the help of rigs.
  • 28. coal • Most abundant and geographically dispersed fossil
  • 29. Total coal reserve by country Sr. No. Country Coal reserve World share 1 United States 254,197,000,000 22.3% 2 Russia 176,770,840,800 15.5% 3 Australia 159,634,329,600 14.0% 4 China 149,818,259,000 13.1% 5 India 107,726,551,700 9.5%
  • 30. OIL • Will last for 49 years if production and consumption continue at this rate
  • 31. United States 11,307,560 35,922 Russia 9,865,495 73,292 Saudi Arabia (OPEC) 9,264,921 324,866 Canada 4,201,101 100,931 Iraq (OPEC) 4,102,311 119,664 China 3,888,989 2,836
  • 32. gas
  • 33. • • • • • • • • • • • • • Energy plays a key role in the process of economic growth of a nation. The industrial development of any country is dependent on the organised development of its power resources’. Energy is also indispensable for agriculture, transport, business and domestic requirements. In fact, electricity has such a wide range of applications in modern economic development that its per capita consumption is, to a great extent, an index of the material advancement of the country. Energy is the capacity for doing useful work. It is an essential input for economic growth. This energy is used in the form of electrical energy, thermal energy, light, mechanical energy and chemical energy etc. ADVERTISEMENTS: Energy is measured in joules in Si units. The annual per capita energy consumption in developed countries ranges from 5 to 11 kW whereas in the developing countries it is between 1 to 1.5 KW Only Uses of Energy 1. Energy is a primary input in any industrial operation. 2. It is also a major input in sectors such as commerce, transport, tele-communications etc. ADVERTISEMENTS: 3. The wide range of services required in the household and industrial sectors. 4. Owing to the far-reaching changes in the forms of energy and their respective roles in supporting human activities, research and training on various aspects of energy and environment have assumed great significance. Sources of Energy An energy resource is a natural resource from which useful work can be obtained. Energy resources are broadly classified as primary and secondary.
  • 34. Energy sector reforms • • • • • • • • Need for Reforms The status of the energy sector in India is highly uneven and the scope for reform in many areas still exists. Regulatory reforms for effective adoption of green power through grid management and long-term visibility to private sector investors To explore ways to raise domestic output and cut imports. To seek investment in exploration and production, processing, transportation and distribution network in oil and gas. To achieve government's vision of energy access, efficiency, sustainability and security. For securing overseas supplies through equity and long-term contracts As per estimates by the Central Electricity Authority, electrical energy requirement is expected to grow by 37 per cent by the financial year 2021-22. To secure universal, affordable, accessible, 24x7 quality power for all.
  • 35. Challenges • • • • • The power sector is in early stages of transformation from coal-centric generation to variable renewable power generation. This transformation will pose several daunting commercial and technical challenges for both policy makers and market players Power tariff structures in India are rigid. Private investments have stagnated for the last few years while fuel demand has been rising by 5-6 percent annually. Factor Reforms in Land, labour and capital are long overdue which is holding the domestic manufacturing capacities of solar equipments.