The Steps Towards Indian Energy Security Environmental Sciences Essay

Energy is the premier mover of a state ‘s economic growing. Availability of energy with needed quality of supply is non merely cardinal to sustainable development, but the commercial energy besides have a parallel impact and influence on the quality of service in the Fieldss of instruction, wellness and, in fact, even nutrient security. In the last decennary India has been one of the most underdeveloped states of the universe with an mean GDP growing of around 6 % and about 8 % in last twosome of old ages. With the turning GDP of 8 % , India is traveling parallel to China in footings of development, but the energy ingestion is catching up every bit good. But the state is happening it progressively hard to beginning all the oil, natural gas, and electricity it needs to run its dining mills, fuel its autos, and light up its places. Harmonizing to a study by IEA ( International Energy Agency ) , India needs to put a sum of 800 billion dollars in assorted phases by 2030 to run into its energy demand. India accounts to around 2.4 % of the one-year universe energy production, but on the other manus consumes 3.3 % of the one-year universe energy supply. And this instability is estimated to excel Japan and Russia by 2030 puting India into the 3rd place in footings of one-year energy ingestion. Therefore, after summing up all the energy issues, energy security has been identified as the lone tool to get the better of the energy concerns.

Energy Security

Harmonizing to the Integrated Energy Policy 2006, energy security of India is quoted as below:

“ We are energy secure when we can provide lifeline energy to all our citizens irrespective of their ability to pay for it every bit good as run into their effectual demand for safe and convenient energy to fulfill their assorted demands at competitory monetary values, at all times and with a prescribed assurance degree sing dazes and breaks that can be moderately expected ” .

Issues of Energy Security

Import of Fossil Fuels

The energy demands of Indian economic system are estimated to increase well in the.next two decennaries. Harmonizing to Integrated Energy Policy, for a 9 % growing over a sustained period, imports of rough oil in 2031-32 may be between 362-520 million metric tons with import dependance of 91 % -94 % . For natural gas, it may be 25-135 ( Mtoe ) , which means an import dependance of 20 % -57 % of supply. Coal imports may be between 300- 736 ( Mtoe ) , which may be an import dependance of 34 % -57 % . Entire import dependance may be 58 % -67 % , as against the current degree of 25 % , with imports estimated at the higher terminal at 1,382 ( Mtoe ) and entire energy ingestion at 2,077 ( Mtoe ) . Clearly, the two major fuels – oil and coal – may necessitate big imports in the following two decennaries.

Lack of Exploration and Production

In India, there was barely any investings in the activities of geographic expedition and production in past two decennaries. There are little oil Fieldss that are been explored which can hardly carry through our oil demand. The Cairn-Vedanta instance is a unrecorded illustration taking to the barrier in the oil field geographic expedition and production. The pending instance has straight affected the production of the company and its geographic expedition activities. In the coal sector, there has been 208 coal blocks been awarded to assorted companies, but activities are yet to get down in about 100 blocks. Natural Gas is today the step issue as around a twelve gas-based workss are coming up in India. The KG- Basin instance is the lone important accomplishment demoing the success of the E & A ; P activities.

Deficit in the Storage Facilities

To guarantee energy security assorted hazards are to be handled. The menace of energy security non merely arises from the deficiency of supply, but besides due to the uncertainness of handiness of imported energy. Domestic production may besides harm energy security. Supply hazards from domestic production like a work stoppage in CIL or other coal bring forthing company or in that instance even railroads may make a dent in the energy security of India. As the major beginnings of energy are imported, there is a menace due to miss of storage installations in India. The major portion of petroleum oil is been imported and there are barely any stairss taken for its storage. During the economic crisis, India may endure from deficit of rough oil for refinement and will finally buy it at higher monetary values taking to worsen in state ‘s economic system.

Rural Electrification

India has a major portion of the population in the rural countries. Out of these, there are around 125000 small towns that have no grade of electricity. Transmission lines are already been laid but non been used as there is deficiency of involvement in supplying electricity to the rural population. India is enduring from a shortage of around 12 % on an norm in footings of electricity and major portion of this shortage is due to the deficiency of electricity in rural countries. The per capita energy ingestion in India is about 750 KW which is far more less than China which is our rival. Due to miss of capableness to pay high duties, private participants in the power sector have ignored puting up a power works near the rural countries. REC Ltd. ( Rural Electrification Corporation Ltd. ) , the lone PSU in India, was set up for rural electrification. Village electrification degree India as on 2008 was 85.2 %

vitamin E ) Transmission and Distribution Losingss

Our state is already enduring from electricity shortage and fuelling this concern is the hurdle of T & A ; D losingss. India has an installed capacity of 167200 MW ( Data from Ministry of Power, as on 31 Oct 2010 ) , but during transmittal it suffers about 30 % of the losingss. This has besides laid to higher duties that are to be faced by the local consumers. There is a loss of power in the agricultural sector as no defined agenda is been planned. Decrease in the T & A ; D losingss will assist India in back uping the energy efficiency and energy security of the state.

( Beginning: Ernest & A ; Young Energy Report, 2009 )

Unutilised renewable resources

India is been gifted with diversified renewable potency, but it has non been successful in using its resources at the optimal degrees. The state has a potency of around 45000 MW from Wind Power, near to 15000 MW from Small Hydro, 16000 MW from Biomass and can bring forth 20 MW/sq kilometer of Solar Power. But out of the above Numberss, merely 30 % of the renewable potency have been utilised. The electricity coevals mix in India comprise of around 10 % of the renewable. There is deficiency of consciousness among the people about the benefits of renewable beginnings.

Energy Efficiency and Energy Conservation

Importance of energy efficiency and energy preservation has clearly come out from the assorted supply scenarios and is once more supported by lifting energy duties. The construct of efficiency can be applied in energy extraction, transit, transition, every bit good as in ingestion. Further, the same degree of service can be provided by surrogate agencies that require less energy. The major countries where it can do a significant impact are mining, electricity coevals, electricity transmittal, electricity distribution, pumping H2O, industrial production and procedures, conveyance equipment, mass conveyance, constructing design, building, heating airing and air conditioning, illuming and family contraptions. It should besides be noted that a unit of energy saved by a user is greater than a unit produced as it saves on production, conveyance, transmittal and distribution losingss. A “ Negawatt ” ( a negative Megawatt ) produced by cut downing the usage of energy demand, saves more than a Megawatt generated. Harmonizing to the recent statistics by TERI, there is a wastage of 30 % of the power that is been supplied. There are deficiency of energy hearers and energy directors. Merely 500 energy directors are certified by BEE ( Bureau of Energy Efficiency ) yearly.

These were the major challenges that are blockading India to cover with energy security. So, in order to better India ‘s opportunities to accomplish the end of energy security the major policy options are been classified into two classs:

Reducing hazards.

Covering with hazards.

Policies for run intoing India ‘s Energy Security

Geting Assetss

Oil and Gas Sector

The of import policy for ‘ assured handiness of energy, is puting in energy assets abroad and developing domestic substructure for having LNG. Further, a well-structured agreement exists in the oil sector in India. OVL has been taking this enterprise. As a consequence of this, it has invested $ 11 billion abroad. In add-on, a figure of other investors, both public sector projects and private participants, have besides invested in 50 other undertakings in 19 states. The entire production from these is 9.36 million metric tons of oil and gas, of which OVL ‘s portion is 8.78 million metric tons. To acquire natural gas, LNG terminuss have been set up at Dahej and Ratnagiri and a new one is under execution at Kochi. Imports of 7.5 million metric tons of LNG on a long-run supply footing for 25 old ages have been planned by Petro net LNG at Dahej under an understanding with Qatar. Another 1.5 million metric tons has been tied up with Exxon Mobil for 20 old ages from Gorgan LNG undertaking in Australia. In add-on, they are besides importing topographic point lading of LNG. Shell LNG terminus has imported several of these. As portion of the investing policy, a joint venture has been set up in Oman for bring forthing fertilisers for 1.9 million metric tons per twelvemonth. It will be utile to put up similar undertakings in Qatar, Australia, Egypt, Kazakhstan, Turkmenistan and Mozambique or other states, if gas is available. These enterprises need farther enlargement. The OVL oil equity so far histories for merely 9 % of India ‘s current oil import demands. If these assets were to run into merely 10 % of the demands in 2031-32, the investings will hold to be multiplied six times, if the success rate continues to be every bit at nowadays.

Coal Sector

The import demands of coal at this occasion are limited but are slated to spread out quickly. Both US and China have big domestic coal militias. India, nevertheless, will hold to import in the coming old ages big measures of coal as mentioned earlier. Though Coal Videsh under the Ministry of Coal has been formed, it has done really small concern so far. A figure of private participants have invested in mines in Indonesia and Australia. There is a demand to give a really strong push to the excavation investings abroad. India ‘s power demands by 2031-32 are expected at more than 950,000 MW. Around 70 % of this will be from coal. It will be, hence, most important to step up investings and develop coal excavation resources abroad in the following two decennaries. The enterprises in coal are, so far, limited and hold given rise to serious concerns in position of big import demands in following two decennaries.

Nuclear Energy

Similar agreements for investings can be worked out for U excavation. France and Japan have 60 % -70 % of their power from U. They have developed excavation beginnings from different states like Kazakhstan, South Africa, Australia and Niger. The investing in these provides security for uninterrupted operations.

There is another dimension to these investings. The monetary value of energy is lifting as the two economic systems of India and China are developing quickly at 9 % -10 % per annum. The cost of acquisition, hence, has to take into history the monetary value of energy over the following two decennaries. For illustration, cost of oil extraction may be $ 20 per barrel but assets where such acquisitions can be done at $ 40 per barrel besides need to be looked at. These determinations have to be taken in the context of expected energy monetary values. While this takes us in the kingdom of guess, the appraisal is that of acquisitions which are profitable at this occasion at about $ 50 are likely to stay so. The mean cost of oil for a state can be reduced by holding profitable energy assets. The cost of energy security, hence, can pay for itself in direct monetary value footings, apart from its overall benefits to the economic system in assisting economic activities. Acquisition of energy has to be seen in a wider position of monetary value scenarios in the following two decennaries instead than the conservative $ 18-20 per barrel monetary value premises.

Diversifying Beginnings

To beef up energy security of imports, the 2nd policy enterprise required is variegation of energy import beginnings. In regard of oil, for illustration, we can tap markets in Venezuela, Columbia, Brazil, Africa, states of the Middle East and South America. Since the types of oil available from these may non accommodate our refineries, we will hold to develop equal capablenesss to treat assorted types of oil. This will enable flexibleness in acquisition. Similarly, sourcing of natural gas and LNG needs to be from a host of beginnings. This may include Qatar, Australia, Middle East, Iran, Kazakhstan and Turkmenistan. Some of the grapevines from Iran and Turkmenistan may go through via Afghanistan and Pakistan. We will hold to happen advanced ways to run into our security concerns. These could be in the signifier of energy grapevines being owned by big international pudding stones backed by major universe economic systems or funded by international fiscal organisations. In some of the other oil-rich states, like Iran, US has imposed countenances. We will hold to negociate with them to work out appropriate agreements. A spread of supply resource to different parts will assist better the energy security further.

The activities in the geographic expedition of shale gas in India besides needs to set about as it is turning out to be a critical beginning of energy. Shale gas blocks acquisition have already been started by the big PSU ‘s like IOC, BPCL and OVL. Reliance is the lone private in India that has acquired the shale gas blocks in US and in Australia.

Bettering Storage Facilities

Crude Oil

The 3rd policy enterprise is the development of petroleum oil/gas storage capacities for run intoing exigencies. OECD states have developed oil storages of 90 yearss of import demands. In India, we are developing 5 million metric tons of oil storage, which is tantamount to 15 yearss of current import demands. This is being developed in the signifier of storage armored combat vehicles Visakhapatnam ( 1 MT ) , Mangalore ( 1.5 MT ) and Padur ( 2.5MT ) . Work on this is expected to be completed by March, 2012. In add-on, oil companies have, as stock list, rough oil merchandises of around 85 yearss of import demands. This by and large includes merely 15 yearss of rough militias. Similarly, GAIL and other gas companies have gas in their grapevines. These stock lists kept by the oil and gas companies can non be treated as strategic militias but as operating stocks. The transporting cost of proposed modesty is high and may travel up if oil monetary values addition. The cost of stock list itself may be around $ 3 billion with transporting costs being around 1,500-2,000 crore per annum. In instance of 90 yearss of the stock list, the transporting cost may be still higher ( 10,000-12,000 crore ) . Further, the cost of building will hold to be individually accounted for. There is clearly a demand to believe of advanced methods to develop these storages. It is possible to discourse with oil companies for creative activity of an stock list within the state in coaction with international participants. This could be available to us when we require it in the event of a supply break. Some of this storage could be outside the state excessively.

An of import issue in this context is the support of these stock lists. Since this is a portion of overall authorities policy, the cost of it will hold to be borne by the authorities. To raise financess for the carrying costs and the direction of these stock lists, it may be necessary to enforce a Ce of 1.5 % -2 % on petroleum oil imported by us. An option could be somewhat lower Ce but imposed on the downstream merchandises. It appears more appropriate to revenue enhancement the petroleum oil itself, as it will be easier to roll up. Besides given the different nature of merchandises and nature of authorities control on pricing of assorted oil merchandises, the possibility of Ce and its realisation in the overall costs may raise jobs. Cess of this magnitude should be equal to run into the stock list costs of the oil for 90 yearss.

Nuclear Fuel

There is clearly a demand for such militias of atomic fuel at Atomic Power workss, excessively. It may be possible to develop excess stocks of U in the power workss to run into the contingency of break in supplies. This will add really marginally to the costs but will guarantee continuity and uninterrupted power in coevals. While puting up new atomic power workss, this must be strategic portion of our operation.

Maximizing Domestic Militias

Oil & A ; Gas Sector

In the oil sector, India has adopted an aggressive policy to spread out domestic production by developing a transparent government for award of oil blocks. So far, 234 blocks have been awarded after 8 unit of ammunitions of NELP. Exploration of oil and gas are long term investings. So far there have been major discoveries by Reliance, ONGC, Gujarat State Petroleum Corporation and Cairn Energy. The handiness of oil, of about 6 million metric tons per annum, which is 20 % of state ‘s domestic production by Cairn Energy is a really interesting narrative and should give encouragement to oil geographic expedition. In the sixtiess, geographic expedition was done by ONGC and it was found that there was no possibility of oil in these blocks in Rajasthan. Subsequently ; the block was with the international company Shell. They could non happen any oil in the country. For about 30 old ages, this block continued to be undiscovered, the general feeling was that Rajasthan does non hold oil. The block was taken up by a little group from Scotland. A geologist, after sing the information, felt that it may be possible to happen oil in the country. Subsequently, in a period of 4 – 5 old ages, the relatively new participant developed a figure of oil Fieldss.

Coal Sector

To augment coal production, 203 coal blocks were awarded to private participants, with more than 50 billion metric tons of coal militias. There is, nevertheless, lassitude on the portion of some of the private participants. Most of them have been traveling easy in acquiring these blocks explored efficiently. There have besides been jobs with environmental clearances. These issues will necessitate to be addressed. Most states of the universe exploit their coal militias and the coal Fieldss are thenceforth developed and re- forested. We have taken a really restrictive policy in the recent clip. No state can afford to allow its mineral resources go fresh and hope to turn economically. A policy allowing geographic expedition and re- forestation of the countries already mined would be necessary. This is an country of really serious concern.

Nuclear Energy

The domestic geographic expedition of uranium mines has been confined, so far, chiefly to Jharkhand and Andhra Pradesh. The quality of U has been hapless and the domestic production has non picked up significantly. Exploration on this so far has non led to discovery of any major sedimentations. While sedimentations were discovered in Meghalaya, there have been other issues which have clouded the development of mines. A more aggressive policy for detecting more uranium and mining it will be necessary to augment our resources. India has the 2nd largest militias of Th in the universe. Part of the demands of energy may be met by developing these. The present attack for development of atomic energy is a 3-stage development. In the first phase, we are developing the present atomic power workss. As portion of the 2nd phase, we will hold to develop the fast breeder reactors. After a big figure of fast breeder reactors have been set up and about 40,000 MW capacities are created, the Th, along with exhausted fuel will be used to further develop and prolong the atomic workss.

Domestic Demand and its Management

Energy Intensity

The primary concern of direction of domestic demand is to develop an energy efficient economic system so that the energy strength of the GDP goes down. In the context of clime alteration, so far this has assumed major importance. Most states of the universe are set abouting steps to accomplish this aim. Harmonizing to Integrated Energy Policy, India ‘s energy strength was 0.16 kilogram of oil equivalent ( kgoe ) per dollar of GDP expressed in buying power para footings. This is significantly lower than 0.23 kgoe of China, 0.22 kgoe of US and the universe norm of 0.21 kgoe. However, Japan had 0.15 kgoe and European states, like Germany and the UK are better off. Several steps have been taken late to advance energy efficiency. A National Mission on Enhanced Energy Efficiency has been approved by the Prime Minister and is being implemented from April, 2010. It envisages puting up of specific energy ingestion ends for specific workss and public presentation, accomplishment and trade ( PAT ) mechanism so that those who fail to accomplish the mark can counterbalance their failure by purchasing the licenses from those who do so.

( Beginning: Bureau of Energy Efficiency in 2008 )

Empowering Energy Efficiency

The following class of enterprises as proposed includes programme for energy efficiency in domestic lighting, municipal, agricultural and commercial edifice sectors. It is besides proposed to do energy efficiency criterions mandatary for equipment and contraptions used in domestic sector, hotel equipment, office equipment, conveyance equipment, industrial merchandises etc. It besides mandates engineering betterment programme, energy preservation edifice codification and disseminating steps for by and large making a clime of energy efficiency. This is clearly a measure in the right way. One of the major constituents of the programme is debut of ace critical boilers in power workss and advancing energy efficiency in bing workss. The mean energy efficiency of coal in the Indian power workss is about 30 % -33 % . With the debut of ace critical engineering, it is possible to increase this to 40 % or more. Around 80 % of the coal is consumed in the power sector. If energy efficiency in this sector can be improved well, the demand of coal imports can be reduced drastically, thereby cut downing domestic demand. Similarly, IGCC ( Integrated Gasification Combined Cycle ) engineering and advancing energy efficiency in bing workss, many of which are rather old, is of import. Introduction of advanced ace critical boilers, which have energy efficiency higher than above, is another of import measure.

Reducing Transmission and Distribution Losingss

A major enterprise for bettering energy efficiency can come from decrease in Transmission and Distribution ( T & A ; D ) losingss. Harmonizing to estimations of the Finance Commission, by the terminal of 2011-12, the Aggregate Technical and Commercial ( AT & A ; C ) losingss will be more than Rs. 60,000 crore and may traverse Rs. 1,00,000 crore in the following 5 old ages. Technical losingss are tantamount to loss of coevals. Attempts are being made to cut down losingss through APDRP-II and activities by National Electricity Fund. Several provinces are besides set abouting denationalization of distribution public-service corporations or giving these public-service corporations to a franchisee. Denationalization has helped in cut downing losingss to some extent but it needs more encouragement and inducements. Measures in this respect, nevertheless, are still rather unequal and have made a little impact. This is an country, which is chiefly in the sphere of the State Governments. It needs tremendous attending and committedness. Management of energy demand from this country is weak.

R & A ; D in Hybrid Vehicles

The major consumers of conveyance fuel are the autos, trucks and railroad engines. Development of energy efficiency in this sector has so far been left to the market forces. There have been some R & A ; D initiatives like the usage of H and electric autos. There is, nevertheless, no specific route map for advancing investings in the motorized conveyance sector to make targeted fuel efficiency criterions. There is a demand to develop this. Unless energy efficiency in this sector, which consumes about 30 % of the entire demand, is improved, it will be hard to pull off the domestic demand. This must be supplemented by a strong Public Transport System and fewer private autos per 1000 of population. This is another country where a strong policy intercession is required.

Social Equity

Energy security has another dimension which is more in the nature of equity of the administration system. Today, we have about 40 % of the population below the poorness line based on estimations of the World Bank. Large Numberss of them do non hold entree to minimum energy. One of the guidelines in this respect has been the authorities policy to supply lower limit of 30 KWH of energy to every citizen. In add-on, a certain minimal installation for cookery of 6 kilogram LPG has besides been suggested. Harmonizing to the NSSO ( National Sample Survey Organization ) ( 2004-05 ) , merely 45 % of the population uses electricity and had entree to electricity for illuming intents. Since so with the launch of RGGVY ( Rajiv Gandhi Gramin Vidyut Yojna ) programme, around 80,000 small towns have been farther electrified. It is estimated that around 40,000 small towns still remain. Further, there are a big figure of habitations which have non been covered. Even in the small towns electrified the figure of people holding electric connexions is limited. Further, the web for supplying RGGVY connexions needs to be farther strengthened so that it can take the burden of the assorted activities in the small town. In a figure of instances, where connexions have been given electricity has non been provided and merely the web has been developed. It is necessary that while the small towns get connected, electricity besides reaches all subdivisions of population.

It is estimated that about one crore BPL households have been provided connexions under RGGVY. There are many more in the waiting. There is besides need to supply, in the interim, non-grid power in forest countries and other distant countries where grid connectivity is non available. To develop non-conventional beginnings of energy, one can supply solar lanterns or develop decentralized distribution coevals. Biogas and other community assets could besides be developed. The wide attack should be to cover all the small towns with fuel for cookery and lighting. In add-on, one has to be after for periods when there are deficits. Precautions for these vulnerable subdivisions have to be provided.

Energy is critical to economic growing for all states. It is more critical to India. The per capita handiness and ingestion of energy in the state is manner below the universe norm. As we grow and become the universe ‘s 3rd largest economic system after US and China, our energy demands will multiply several creases. Our domestic resources are, nevertheless, limited. Our success in maximising these resources and accomplishing a really high degree of energy efficiency will assist us run into our energy demands and enable continued economic growing. . :

Decision

Energy Security in India is the dream of the twenty-first century for the state. And after implementing, the above policies will decidedly travel India an inch closer to accomplish the dream. Huge fiscal investing particularly in the energy sector is the demand of the hr. CDM activities are every bit of import to prolong the construct of energy security. The new epoch of renewable beginnings will play a critical function in the state ‘s mark to be energy secured.