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IEM –Integrated energy management
1.
2. INTRODUCTION
• 4th Largest consumer of Energy
• Therefore to meet its demands
• Grow domestic production
capability
• Supplemented with imports
• Imports Expensive. And getting
costlier.
• Also related to Energy Security
• Meeting GDP growth and also
energy efficiency – Major
challenge
Domestic
Production
Demands Imports
3. ENERGY INTENSITY
• Is the energy input associated with
a unit of gross domestic product
• Has been declining and will
continue
• Implies growth in energy used <
growth of GDP -> Energy elasticity
• Ratio of the growth of energy to
growth of GDP is less that unity.
Elasticity has been declining over
the years.
• Elasticity of commercial energy is
> total primary energy because of
the going shift from non –
commercial to commercial energy
Period Energy Intensity
(kgoe/US$)
1981 1.09
1991 0.99
2001 0.85
2011 0.62
GDP
(+) How much energy ?
Therefore Household access to clean energy
4. ENERGY INTENSITY
• National Mission on energy
Efficiency launched to improve
efficiency.
• Lighting Efficiency – Using LED’s
• Improvement in Energy Efficiency
• Reduced Energy Intensity of GDP
• Lower Elasticity of energy against
GDP
• Elasticity may improve by 10% by
2017
s. No. Country Energy
Intensity
(kgoe)
1 UK 0.102
2 Germany 0.121
3 Japan 0.125
4 Brazil 0.134
5 USA 0.173
6 China 0.283
7 South Korea 0.189
8 India 0.191
5. EXPANDING ACCESS
TO ENERGY
Access to cleaner energy for houselholds
(in 2004 – in 2010)
Rural 55 – 67.3
Urban 92 - 94
• Need to expand access to clean
energy at affordable prices
• Village Electrification &
Connection of rural households to
electric supply- Rajiv Gandhi
Vidyutikaran Yojana
• Supply of LPG - Critical
Although availability of electric supply still remains a problem
6. ENERGY DEMAND &
SUPPLY
• The demand for energy during the
Plan will increase as the economy
grows and as access in rural areas
expands
• 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 and 5.4 per cent per
year in the Thirteenth Plan.
• Demand for Non-commercial is
expected to decline – increasing
expansion and access to
commercial energy
6.91% Commercial energy ( 5 years upto 2011)
2.6% Non - Commercial energy
1.5%
Non - Commercial energy
(next 10 years)
7. ENERGY DEMAND
AND SUPPLY
Share of each energy source in
total domestic production and also
its share (including imports) in the
total commercial energy
consumption
Coal still remains the dominant
energy source
Domestic Production is not
expected to increase in the next 10
years
Although consumption increase
from 50% - 57%
Share of oil – decline
LPG increase from 8.5 – 13%
The supply from renewables is
expected to increase rapidly from
24,503 MW by the end of the
Eleventh Plan to 54,503 MW by
the end of the Twelfth and 99,617
MW by the end of the Thirteenth
although share still small
8. ENERGY DEMAND
AND SUPPLY
Renewable capacity increase
Share still small
Import dependence still increase
Crude oil – main import
Import dependence for coal, LNG
and crude oil taken together in the
terminal year of the Twelfth Plan is
likely to remain at the Eleventh
Plan level of 36 per cent.
However, this assumes that we are
able to realise projected domestic
production levels of coal,
petroleum and natural gas. If this
is not achieved, the level of import
dependence would increase
further if the GDP growth rates
projected are to be maintained.
9. ENERGY PRICING
Microeconomic Macroeconomic
• under-pricing energy
to the consumer
reduces the incentive
to be energy-efficient
• Promotes leakage of
subsidised products
for
• sale in open market
and also (in case of
kerosene)
adulteration.
• Underpricing to the
producer reduces
both the incentive
and also the ability to
invest in the sector,
depressing
production and
increasing reliance on
imports.
• obviously undermines
energySecurity
• Misalignment leads to
excessive import
dependence with
implications for the
balance of payments,
or if producers are
sought to be
insulated, it
necessitates a
subsidy, which places
a burden on the
budget.
• Economically important, also
politically sensitive
• Rational energy prices – balance
consumer energy demand with
producer supply
• Energy prices should be aligned
with the global energy prices,
especially when large imports are
involved
• Both microeconomic &
macroeconomic problems
10. ENERGY SECURITY
• Ensures uninterrupted energy
supply to support economic and
commercial activities of the
economy
• Imported Energy – lesser security
Domestic
Production of
Coal
Stable &
Attractive
Policy regime
Investment
in
Renewable
s
Energy
assets
investment
abroad
Meet any
disruption
in Oil
Supply
Steps for
better
security
Import dependent – more than
80%,
Need for more storage capacity
11. POWER SECTOR
• Addition to the Generation
Capacity of 76000 MW
corresponding to – 9% GDP growth
• Share of private sector in the
additional capacity – 53%
• 19% in 11th Year plan
• Share of Power from non fossils –
will be increased
The projected capacity addition
in non-fossil fuel plants covers addition of hydro
capacity of 1,0897 MW and nuclear capacity of
5,300 MW. Besides this, 1,200 MW import of hydro
power from Bhutan has also been considered. In
addition, it is planned to add a grid interactive
renewable capacity addition of about 30,000 MW
comprising of 15,000 MW wind, 10,000 MW solar,
2,100 small hydro, and the balance primarily from
bio mass planned
12. POWER GENERATION
Power
Generation
Renovation &
Modernisation and
Life extension of
Thermal Power
Plants
R&M of
Hydroplants
Peaking Power
& Reserve
Plants
Pollution & Ash
Utilization
Expansion in
transmission
System &
Capacity
Creation of
National Grid
• Projected growth rate in power
generation – 9.8%
• Requirement of 1403 BU
13. POWER GENERATION
EVACUATION OF POWER
FROM THE NORTH-EAST
• North East has a very high
potential of Hydro
• Close to 50,000 MW
• Pace of Implementation poor • Entire capacity to be evacuated
through a narrow strip of
about 25km in West Bengal
• Land Acquisition problems
• Number of hydro power plants
coming up in the region is
expected to be spread, thus
increasing cost of transmission
• Does not have adequate
132/220/400 KV systems in AP,
Tripura, Manipur
• Distribution System is
inadequate
14. POWER GENERATION
SEPERATION OF RURAL
FEEDERS
An important initiative to improve the
availability of power in the rural areas
and have more effective management
of power for the agriculture sectors
where the requirements may be for
limited
hours, has been to separate rural
feeders for lighting and agriculture
loads. This was initiated by
Gujarat utilities and has subsequently
been taken up by Rajasthan, Andhra
Pradesh, Haryana, Uttar Pradesh,
Chhattisgarh, Madhya Pradesh,
Karnataka, Maharashtra and a number
of other States.
15. POWER GENERATION
MANAGEMENT OF ENERGY
DEMAND & EFFECIENCY
• Efficiency of about 11,000 MW –
through 11th FYP schemes
Equipment &
Appliances
Management of
Energy Demand
& Efficiency
In Industries
National
Mission for
Enhanced
Energy
Efficiency
Efficiency in
Transport
16. POLICY REFORMS
Resolution of fuel supply
Introduction of Open access
Ancillary Power Market
Effective Grid Management
Spinning Reserves for Grid Stability
Suitable incentives for low cost
transmission
Increasing share of renewables
Reforms in Distribution Sector
Independent Oversight over
programmes like RGGYY.