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Energy Security- Concern for India. BS NEGI. INDEX. Energy Security Global energy scenario Indian energy scenario Integrated energy policy Mitigating India’s concern for energy security Augmenting Indigenous energy resources. ENERGY SECURITY.
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INDEX • Energy Security • Global energy scenario • Indian energy scenario • Integrated energy policy • Mitigating India’s concern for energy security • Augmenting Indigenous energy resources
ENERGY SECURITY “The continuous availability of energy, in varied forms, in sufficient quantity, at reasonable prices” – The world energy assessment UNDP 1999 report. • Continuous Availability • Accessibility for sufficient quantity • Affordable price
CONTINUOUS AVAILABILITY • GLOBAL SCENARIO • 80% resources with 20% Countries • INDIAN SCENARIO
GLOBAL SCENARIO • Oil Reserves - 168,600 MTOE
GLOBAL SCENARIO – GAS • GAS RESERVES -160,000 MTOE
GLOBAL SCENARIO –OIL CONSUMPTION • Oil Consumption – 3952.8 MTOE (2007)
GLOBAL SCENARIO –GAS CONSUMPTION • Gas Consumption – 2637.7 MTOE (2007)
GLOBAL SCENARIO –COAL CONSUMPTION • Coal Consumption – 3177.5 MTOE (2007)
GLOBAL SCENARIO –NUCLEAR ENERGY CONSUMPTION • Nuclear Energy Consumption – 622 MTOE (2007)
GLOBAL SCENARIO –HYDROELECTRIC ENERGY CONSUMPTION • Hydro Energy – 709.2 MTOE (2007)
GLOBAL SCENARIO –TOP 5 PRIMARY ENERGY CONSUMERS • Primary Energy Consumption – 11099.2 MTOE (2007)
GLOBAL SCENARIO –ENERGY CONSUMPTION GROWTH - 2007 * 2.7% IN 2006
Indian scenario • Oil 128.5MTOE, 31.78% • Gas 36.2 MTOE, 8.95% • Coal 208.0 MTOE, 51.43% • Nuclear 4.0 MTOE, 0.99% • Hydro. 27.7 MTOE, 6.85% • Wind 0.0288 MTOE, - • Total 404.4 MTOE* *This being the tradable primary energy, the non tradable primary energy(cow dung,peat,forest waste) constitute 25%+ in Indian context.
ACCESSIBILITY FOR SUFFICIENT QUANTITY • COUNTRY SPECIFIC • INDIAN CONTEXT • Integrated Energy Policy • Role of Regulator
INTEGRATED ENERGY POLICY -2006 • Achieving an efficient configuration of various forms of energy • Consistency in policies governing each sector • Consistency of pricing of different types of energy • Clarity in respect to Energy Security, R&D, Environmental Concern & Energy Conservation
RELATED STATISTICS • India’s commercial energy supply growth – 5.2% to 6.2 % per annum from 03-04 base • Primary energy supply growth - 4.3% to 5.1% • By 2031-32 power generation capacity needed 1.16 million mega watt from current 0.8 million mega watt • Coal requirement – 2 billion ton per annum
LONG TERM PERSPECTIVE • How much energy do we need over long term ? • What Strategy should be adopted to meet the growing demand ? • How to promote efficient allocation of various fuels and energy to different users ? • Reforms needed for competitive efficiency • Role of renewable and non-conventional energy sources.
LONG TERM PERSPECTIVE Contd… • R&D Strategy:- • Increase India’s known energy resources. • New technologies. • Increase energy efficiency • Energy Security:- • Equity energy abroad • Reduce dependency on imported energy • Clean energy
COAL • Ensure adequate supply with consistent quantity • Increase domestic coal production. Allocate coal blocks to central/state psu and captive mines to notified end users. • Thermal coal import – for coastal power generation • Coal price based on GCV (replace current pricing based on broad band of useful heat) • Treatment of coal to improve heat value, reduce ash content • Coal linkage to replace by long term coal supply agreement • Independent Regulator for coal • Amend Coal Mines Act, 1973 to allow private participation. Offer coal blocks to potential entrepreneurs.
CONCERN FOR RESOURCE RICH STATE • Allow a share in profits located in the states • Revisit Royalty concept • Ensuring availability of gas for power generation • Power Sector Reforms:- • Control AT&C losses – Provide incentive to SEB’s & employees for reduction in AT&C losses. • Encourage captive power generation & competitive bidding charges from power sector to consumer • Separate transmission from energy sale both for transmission and distribution • Allow open access
Other Initiatives • Reduction in cost of Power • Encourage competition • For existing plant return on capital employed/equity should correspond to government securities, reward efficiency • Rationalization of fuel prices • Primary energy source be priced at trade parity at point of sale (FOB for exporter, CI for import) • Cushion domestic pricing against short term volatility in international market • Coal sector- competitive pricing • Encourage natural gas trading
Other Initiatives contd… • Energy efficiency and demand side management • The energy intensity of India- growth on decline ( India consumer 0.16 kgoe per dollar of GDP, China 0.23 kgoe, US 0.12 kgoe & world average is 0.21 kgoe • Augmentation of sources for increase of energy resources • Exploration of coal, oil & gas • Exploit non conventional energy & renewable energy like solar, wind etc. • Equity oil & gas abroad
Other Initiatives Contd… • Boosting energy related R&D • An enabling environment for competitive efficiency • Establishment of Regulator • Climate Change- environmental concerned
THE CHALLENGES • Adequate supply of energy at least possible cost • Clean energy – environmental concern • Convenient • Sustainable development
ROLE OF REGULATOR • TERC/SERA • DGH • PNGRB • COAL REGULATOR ? • ENERGY REGULATOR ?
AFFORDABLE PRICE- Natural Gas • Imputed Price • Replacement Price • Import Parity Price • Trade parity Price • Distorted Price in India • APM Gas Price • PMT Gas Price • Ravva/ Ravva satellite price • LNG long term price • LNG spot price
WHAT INDIA NEEDS TO DO • AUGMENT DOMESTIC RESOURCES • ENERGY IMPORT OPTIONS • EQUITY IN OIL AND GAS ABROAD • INNOVATIVE R&D APPROACH • ENERGY CONSERVATION • ENERGY EFFECIENCY • EXPLOIT NON CONVENTIONAL RESOURCES
NON CONVENTIONAL SOURCES • Bio fuels • Bio mass gas Hydro electricity • Wind Energy • Solar Energy • Nuclear power • Energy Import options including equity oil& gas abroad
THE WAY FORWARD • ENERGY EFFECIENCY • INNOVATIVE APPROACH • CONSERVATION