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Mechanisms to Alleviate the Security challenges of Energy Resources

Mechanisms to Alleviate the Security challenges of Energy Resources. S L Rao TERI-KAS CONFERENCE, GOA, 2 OCTOBER 2009. 2. Indian Constraints. Subsidized and untargeted Power Regulatory capture by governments (tariffs, open access)

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Mechanisms to Alleviate the Security challenges of Energy Resources

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  1. Mechanisms to Alleviate the Security challenges of Energy Resources S L Rao TERI-KAS CONFERENCE, GOA, 2 OCTOBER 2009

  2. 2. Indian Constraints • Subsidized and untargeted Power • Regulatory capture by governments (tariffs, open access) • Dominant and inefficient government sector in distribution and even central generation (Low execution efficiencies in NHPC and NTPC) • Backward in clean coal technologies because of state monopoly producer, BHEL • Inefficient and government owned coal mines • Vast gas finds but poor regulation • Universal Service

  3. 3. Water • Excessive energy use for ground water • Low water tariffs prevent O & M of storage projects • Ownership, use and pricing for ground water • Low urban water pricing

  4. 4. Hesitant Policies • Government inefficient in acquiring overseas energy resources • Need for private sector to enter & government support • Clean Coal technologies-supercritical boilers; carbon sequestration, etc • Hesitant use of fiscal means to curb demand for energy inefficient products/equipment

  5. 5. Nuclear Energy • Present costs unknown-hidden • New plants-high and rising costs, hihg energy costs, slow in execution • Need for change in laws on private ownership, nuclear accidents liability • Possibility of cartels and Western blackmail

  6. 6. Hydro • Poor record on time and cost • Poor local involvement and consultation • Neighboring countries-need for traties with Nepal, Pakistan, even China • Deal politically with local insurgencies • Use single consultant and open assessment of seismic, geology, etc • Similarly with local populations

  7. 7. Nuclear Energy • Present costs unknown-hidden • New plants-high and rising costs, high energy costs, slow in execution • Need for change in laws on private ownership, nuclear accidents liability • Possibility of cartels and western blackmail • Domestic uranium-people policies

  8. 8.Climate Change • Be open, not defensive • Show what we are doing • What we need • Succumbing to sweet talk-e.g. Nuclear 123 • Incentives for private and foreign investments in R E

  9. 8. Lifestyles • Green buildings, public transport, energy efficient equipment, water use, • Using differential taxes • Social cost benefit to make RE more comparable

  10. 11. Governance • Coordination-Energy-5 Ministries • Many regulators • Overseas-need for MEA to work closely with Power, Water, Defense, etc • Perhaps task forces

  11. 12. Regulation • Campo- and R & R-central authority and penal speed as well as penal provisions • CAMPO-make it work • NPV in installments • Clean up regulatory confusion- multiple sector regulators, CCI, FMC

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