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ENERGY PROSPECTIVE OF THE TRANSPORT SECTOR IN INDIA

ENERGY PROSPECTIVE OF THE TRANSPORT SECTOR IN INDIA. International Seminar on ENERGY EFFICIENT ELECTRICAL SYSTEM IN RAIL SECTOR A VEHICLE FOR TURNAROUND New Delhi – January 22, 2007. Harry Dhaul Director General, IPPAI. India – Energy Scenario.

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ENERGY PROSPECTIVE OF THE TRANSPORT SECTOR IN INDIA

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  1. ENERGY PROSPECTIVE OF THE TRANSPORT SECTOR IN INDIA International Seminar on ENERGY EFFICIENT ELECTRICAL SYSTEM IN RAIL SECTOR A VEHICLE FOR TURNAROUND New Delhi – January 22, 2007 Harry Dhaul Director General, IPPAI

  2. India – Energy Scenario • India sixth largest energy consumer in the world • Annually consumes around 3% of the world’s energy – net energy importer • Demand for imported fuel mounting, given the projected economic growth of 7% to 8% over next two decades IPPAI

  3. India – Energy Scenario • India’s energy intensity – 2.88 times that of rich countries (IEA, 2002) • Annual domestic consumption of oil products at 120MT while domestic crude production is only 34MT. Oil Imports currently at 72%, and growing. • The share of oil in India’s fuel mix currently 34% and rising • Around 26.5% of oil consumption pertains to the transport sector IPPAI

  4. Regulation of Energy • Autonomous development of regulatory framework in different segments of the energy sector – very little coordination or alignment • Different energy sectors in different stages of deregulation • Need of the hour - Switch from command and control mode of governance to independent regulation and public private partnerships IPPAI

  5. The Prognosis • Increasing dependence on foreign sources for energy and conventional fossil fuels • Price not the only critical factor, but ‘access to energy’ itself • Imminent peaking of global oil production – High vulnerability to oil shocks • Previous energy transitions (wood to coal and coal to oil) were gradual and evolutionary; Oil peaking will be abrupt and revolutionary • Urgent need for limiting dependence on transport fuels IPPAI

  6. The Prognosis • With India’s nuclear energy cooperation initiative with the US, access to nuclear fuel & progressive technology is within arms reach • Substantive surge in power generation capacities expected, optimising both availability and cost of electricity • Electrification of transportation the most beneficial alternative to conventional petroleum • The electrification drive mandated by strategic importance of petroleum conservation, to limit the consumption of diesel oil IPPAI

  7. Coal & Railways • Coal traffic constitutes around 46% of the total goods traffic earnings for the railways, while 53% of coal transport is done by rail • Despite substantial growth in coal production the share of coal movement by Railways has declined from 70% in 1983-84 to 53% in 2002-03 • Alarming trend, since railways are 5 to 6 times more energy efficient, 4 times more efficient in land use and superior from the standpoints of environment impact and safety than road transport • Coal being India’s dominant fuel for power generation, the provision of high value coal transportation service by railways is imperative for the development of the Indian electricity sector IPPAI

  8. Global experiences • During World War II, Switzerland survived a total oil embargo for six years with electrified transportation • France has adopted a ‘grand strategy’ of using domestic nuclear and hydroelectric power to operate electrified inter-city transportation and urban rail • In countries like the US, a Strategic Railcar Reserve has been proposed to supplement and extend the Strategic Petroleum Reserve IPPAI

  9. Electrified Rail Transport - Advantages • 100 route kilometres (RKM) of electrified rail lines would result in an annual saving of more than 10 million litres of diesel oil • As on date, nearly 17500 RKM out of over 63000 RKM of rail lines India are electrified, with energising targets being surpassed in the 9th Plan as well as the 10th plan • Even at the current load of 440 Billion Tonne-Kilometre (BTKM) of freight traffic, the potential for savings with enhanced rail electrification is tremendous IPPAI

  10. Electrified Rail Transport - Advantages • Though only around one fourth of the rail network in India is electrified, more than 62% of freight and 49% of passenger traffic is hauled by electric traction - a clear indicator of the energy efficiency of railway electrification • Electrified rail transportation system provides many more freight tonne-Km per BTU and passenger-Km per BTU than the oil fuelled road transportation alternatives IPPAI

  11. Electrified Rail Transport - Advantages • High-speed electric trains can compete favourably with airplanes on relatively short routes. Key urban centres connected by the Shatabdi expresses are an excellent case in point • Undoubtedly, an extensive network of inter-city trains would decrease both airport and highway congestion. For eg. the average queuing time at Delhi and Mumbai airports are approx 30 minutes • Besides the social and environmental benefits, electrified rail transport translates to considerable savings in our energy bill, which, considering just the savings on diesel oil, could exceed Rs.200 Billion annually IPPAI

  12. Railway Electrification - Issues • Electricity tariffs for railway traction among the highest in the country • There is an immediate need for re-balancing the tariffs for railways to reduce the rate of cross subsidisation • Given the role of Indian railways in providing bulk transport for man & material as well as energy and environmental efficiencies, rationalisation of tariff for railway traction is imperative for overall development IPPAI

  13. Integrated Energy Policy • The Integrated Energy Policy (Report of the Expert Committee) published by The Planning Commission, Government of India in August 2006 has emphasised on the need for Railway Electrification among the policy options for energy security “If all of the goods traffic was carried by Railways using electric traction, the diesel saved would have been around 8 Mt in 2003-04. Thus a significant saving of diesel is possible if Railway operations can be upgraded to win back the haulage lost to road traffic.” [Clause 4.3.1.(c)] “Dedicated corridors for goods traffic should be developed, preferably on electric traction, between metro cities.” [Clause 4.3.1.(c)(iv)] IPPAI

  14. Conclusion • Indian railways has already planned various measures, including increased container movement and time-tabling of freight trains, to regain transport shares, targeting 40% by 2010 • Railway electrification will continue to be a key driver for India’s energy security and preparedness for the imminent ‘peak oil’ crisis IPPAI

  15. Thank you IPPAI

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