Energy management includes planning and operation of energy production and energy consumption units. Objectives are resource conservation, climate protection and cost savings, while the users have permanent access to the energy they need.The main objectives of energy management are resource conservation, climate protection and cost savings. The central task of energy management is to reduce costs for the provision of energy in buildings and facilities without compromising work processes. The simplest way to introduce energy management is the effective use of energy to maximize profit by minimizing costs. Energy management could save up to 70% of the energy consumption in a typical building or plant.

The Government of India has set up Bureau of Energy Efficiency (BEE) on 1st March 2002 under the provision of the Energy Conservation Act, 2001. The mission of  Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 along with the primary objective of reducing energy intensity of the Indian economy.

The National Mission for Enhanced Energy Efficiency (NMEEE) is one of the eight national missions under the National Action Plan on Climate Change (NAPCC). NMEEE consist of four initiatives to enhance energy efficiency in energy intensive industries which are as follows:

The primary energy consumption in India is the third biggest after China and USA with 5.5% global share in 2016.The electricity generation target of conventional sources for the year 2017-18 has been fixed as 1229.400 Billion Unit (BU). i.e. growth of around 5.97% over actual conventional generation of 1160.141 BU for the previous year (2016-17). The conventional generation during 2016-17 was 1160.141 BU as compared to 1107.822 BU generated during 2015-16, representing a growth of about 4.72 %.

India has become power surplus from chronic power shortage. Record capacity additionof around one-fifth of current conventional power capacity and solar power capacity addition of 157% in the last two years led to a boost in power generation. The highest-ever increase in transmission lines and sub-stations improved the transmission scenario resulting in energy deficit falling to lowest ever of 2.1% in 2015-16.

Energy Crisis can be described as a situation in which a country suffers from frequent disruptions in energy supplies because of large and increasing gaps between availability and demand of electricity accompanied by rapidly increasing energy prices that threaten economic and social development of the nation.

• Our over-dependence on limited and exhaustible sources of energy such as our coal and oil deposits.
• Increasing gap in the demand and supply of the energy.
• Ever increasing prices of the energy and fuel from other countries.
• Reluctance in using alternative and renewable sources of energy, such as solar,wind, bio-energy, etc..
• Overuse and misuse of the available sources of energy.

Conventional and Non Conventional Sources of Energy

Main Sources of Energy:

The sources of energy are of following types:

1. Conventional Sources of Energy:

These sources of energy are also called non renewable sources. These sources of energy are in limited quantity except hydro-electric power.

 (a) Coal and Lignite:

Coal is the major source of energy. Coal deposits in India are 148790 million tonnes. Total lignite reserves found at Neyveli are 3300 million tonnes. In 1950-51, annual production of coal was 32 million tonnes. In 2005-06, annual production of coal was 343 million tonnes.

Lignite production was 20.44 million tonnes in 2005-06. According to an estimate, coal reserves in India would last about 130 years. India is now the fourth largest coal producing country in the world. Coal deposits are mainly found in Orissa, Bihar, Bengal and Madhya Pradesh. It provides employment to 7 lakh workers.

(b) Oil and Natural Gas:

In India it is found in upper Assam, Mumbai High and in Gujarat. The resources of oil are small in India.

In 1950-51, the total production of oil in India was 0.3 million tonnes. It increased to 32.4 million tonnes in 2000-01. Despite tremendous increase in oil production. India still imports 70% of has oil requirements from abroad. In 1951, there was only one oil refinery in Assam.

After independence 13 such refineries were set up in public sector and their refining capacity was 604 lakh tonnes. After implementation of economic reforms, private refineries are also engaged in oil refining. As per current rate of consumption, oil reserves in India may last about 20 to 25 years.

Electricity

There are three main sources of power generation:

1. Thermal Power
2. Hydro-electric power
3. Nuclear Power
4. Thermal Power:

It is generated in India at various power stations with the help of coal and oil. It has been a major source of electric power. In 2004-05, its share in total installed capacity was 70 percent.

1. Hydro electric Power:

It is produced by constructing dams over overflowing rivers. For example Bhakra Nangal Project, Damodor Valley Project and Hirakund Project etc. In 1950-51, installed capacity of hydro-electricity was 587.4 MW and in 2004-05, it was 19600 MW.

1. Nuclear Power:

India has also developed nuclear power. Nuclear Power plants use uranium as fuel. This fuel is cheaper than coal. India has nuclear power plants at Tarapur, Kota (Rajasthan) Kalapakam (Chennai) Naroura (UP). Its supply accounts for only 3 percent of the total installed capacity.

POWER FROM NON CONVENTIONAL ENERGY

India is one of the fastest growing countries in terms of energy consumption. Currently, it is the fifth largest consumer of energy in the world, and will be the third largest by 2030. At the same time; the country is heavily dependent on fossil sources of energy for most of its demand. This has necessitated the country to start aggressively pursuing alternative energy sources – solar, wind, biofuels, small hydro and more.

1. Wind Energy

India‘s wind power potential has been assessed at 48500 MW. The current technical potential is estimated at about 13 000 MW, assuming 20% grid penetration, which would increase with the augmentation of grid capacity in potential states. The state-wise gross and technical potentials are given below India is implementing the world’s largest wind resource assessment program comprising wind monitoring, wind mapping and complex terrain projects.

1. Hydro Energy

Hydro power is the largest renewable energy resource being used for the generation of electricity. The 50,000 MW hydro initiatives have been already launched and are being vigorously pursued with DPRs for projects of 33,000 MW capacity already under preparation. Harnessing hydro potential speedily will also facilitate economic development of States, particularly North-Eastern States, Sikkim, Uttaranchal, Himachal Pradesh and J&K, since a large proportion of our hydro power potential islocated in these States. In India, hydro power projects with a station capacity of up to 25 megawatt (MW) each fall under the category of small hydro power (SHP).

1. Solar Energy

India is a solar rich country. India is a country near the equator – which means that given its geographical location, it is subject to a large amount of solar radiation throughout the year. India is also, according to area, the 7th largest country in the world.

The average solar radiation received by most parts of India range from about 4 to 7 kilowatt hours per meter square per day, with about 250-300 sunny days in a year. As can be seen from the solar radiation map above, the highest annual solar radiation is received by Rajasthan (desert area) and the lowest by the North eastern states of India.

1. Biomass energy

Globally, India is in the fourth position in generating power through biomass and with a huge potential, is poised to become a world leader in the utilization of biomass. Biomass power projects with an aggregate capacity of 773.3 MW through over 100 projects have been installed in the country. For the last 15 years, biomass power has become an industry attracting annual investment of over Rs. 1,000 billion, generating more than 09 billion unit of electricity per year. More than 540 million tons of crop and plantation residues are produced every year in India and a large portion is either wasted, or used inefficiently.

1. E) Energy from Wastes: The rising piles of garbage in urban areas caused by rapid urbanization and industrialization throughout India represent another source of nonconventional energy. An estimated 50 million tones of solid waste and approximately 6,000 million cubic meters of liquid waste are generated annually in the urban areas of India. Good potential exists for generating approximately 2,600 MW of power from urban and municipal wastes and approximately 1,300 MW from industrial wastes in India. A total of 48 projects with aggregate capacity of about 69.62 MWeq have been installed in the country thereby utilising only 1.8% of the potential that exists.
2. F) Biofuels: The GOI recently mandated the blending of 10 percent fuel ethanol in 90 percent gasoline. This mandate as created an approximately 3.6 billionliter demand for fuel ethanol in blend mandate to the entire country. This significant demand growth creates a tremendous manufacturing opportunity for the fuel ethanol industry seeking to expand its investments internationally

 

 

National Energy Policy

There are four key objectives of National energy policy: Access at affordable prices,Improved security and Independence, Greater Sustainability and Economic Growth.
Considering poverty and deprivation in India, access to energy for all at affordable prices is of utmost importance. We are yet to provide electricity to nearly 304 million people, and clean cooking fuel to nearly 500 million people, which still depend on Biomass. The policy aims to ensure that electricity reaches every household by 2022 as promised in the Budget 2015-16 and proposes to provide clean cooking fuel to all within a reasonable time. While it is envisaged that financial support will be extended to ensure merit consumption to the vulnerable sections, competitive prices will drive affordability to meet the above aims.
Improved energy security, normally associated with reduced import dependence, is also an important goal of the policy. Today, India is heavily dependent on oil and gas imports while also importing coal. In so far as imports may be disrupted, they undermine energy security of the country. Energy security may be enhanced through both diversification of the sources of imports and increased domestic production and reduced requirement of energy. Given the availability of domestic reserves of oil, coal and gas and the prospects of their exploitation at competitive prices, there is a strong case for reduced dependence on imports. In due course, we may also consider building strategic reserves as insurance against imported supplies.
The goal of sustainability acquires added importance and urgency in view of the threat of catastrophic effects of climate change as well as the detrimental effects of fossil fuel usage on local air quality. In India, sustainability is also closely linked with energy security. Our fossil fuel requirements, which comprise nearly 90% of our commercial primary energy supply, are increasingly being met by imports. This means that cutting fossil fuel consumption would promote the twin goals of sustainability and security. Hence the policy lays heavy emphasis on de-carbonisation through the twin interventions of energy efficiency and renewable energy.
The energy policy must also support the goal of rapid economic growth. Efficient energy supplies promote growth in two ways. First, energy is the lifeblood of the economy. It is an important enabling factor of growth and its availability at competitive prices is critical to the competitiveness of energy-intensive sectors.
Second, being a vast sector in itself, its growth can directly influence the overall growth in the economy. energy security and sustainability are mutually reinforcing in our case since our energy imports are predominantly fossil fuel based. Reduction in imports and in emissions can both be achieved through an expansion of renewable energy consumption. On the other hand, as long as fossil fuels remain the cheapest source of energy, the goal of energy accessibility at affordable prices would come in conflict with the goal of sustainability and possibly energy security as well. Until such time as the costs of generating, transmitting and distributing renewable energy drop sufficiently to allow its delivery to the customer at lower cost than energy from fossil fuel sources, a conflict is likely to exist among the above three objectives. Energy efficiency is, however, one goal that reinforces all the four objectives.

Energy security

Energy security can be defined as “the uninterrupted availability of energy sources at an affordable price”.

Energy security has many dimensions: long-term energy security mainly deals with timely investments to supply energy in line with economic developments and sustainable environmental needs. Short-term energy security focuses on the ability of the energy system to react promptly to sudden changes within the supply-demand balance. Lack of energy security is thus linked to the negative economic and social impacts of either physical unavailability of energy, or prices that are not competitive or are overly volatile.

Energy security for india

Threats

In the 60s and 70s, developed nations like the US, UK, Germany, France and Japan were racing ahead by developing newer technologies and consumer products that were change lifestyles leading to a shift from conservative to indulgent energy consumption.

Everything seemed fine until leading oil producing nations, grouped under OPEC and led by the largest oil producer of the time, Saudi Arabia, abruptly decided in 1973-74, to increase the price of crude oil. This sudden increase in oil price triggered a global crisis, whose impact was felt across all nations but the brunt of it was taken by those nations that were highly dependent on oil to power their respective economies.

As a result of this sharp increase in the price of oil, India experienced a runaway inflation that touched 28% in subsequent years, triggering an economic and political crisis. The same was true for several other oil-dependent nations.  Another energy crisis was seen in subsequent years caused by political and economic isolation of Iran, another major oil producing nation. This too, led to a major crisis globally. India had been a major importer of oil from Iran and has had a tough time trying to maintain a balance between the international sanctions and preserving good relations with Iran.

Naturally, India was impacted on both critical phases. The problem for contemporary India is that our economy is on the verge of take-off and we desperately need energy to power the growth and unless India addresses this vital issue well ahead of time, we will be increasingly vulnerable to global events beyond our control, and that is certainly not reassuring for an emerging India, not by a long shot.

India’s Strategic and Economic Dilemma 

India’s current mix of energy sources includes Coal (40%), Biomass (26%), Oil (22%), Natural Gas (8%), Hydro-power (2%), Nuclear (1%) and Renewable energy (1%).  It is obvious that India will continue to depend on fossil fuels like coal, oil and gas for the next several decades, which means that a large quantum of our requirement would have to come from overseas sources. And that is where India’s strategic position becomes vulnerable.

Coal: A Polluting Fossil 

The problem with India has been the fact that India’s need to import coal has been rising significantly. During 2013-14, India imported 171 million tonnes of coal, an increase of 17.9% over the previous year. It is estimated that by 2030, India will need to import close to 900 million tonnes of coal to meet its energy needs.

This alone, poses a significant challenge to India. On one hand, the nation needs coal to power its growing energy requirement, on the other hand, there is growing international pressure to reduce carbon emissions. Both contrary but imperative.

China faces a similar dilemma. Through the late 80s, it took a conscious decision to significantly increase thermal power generation. As a result, it invested heavily in setting up thermal power plants that used coal as its raw material. The need for coal outgrew domestic production and soon China emerged as the world’s largest importer of coal.

Oil: An Expensive Option 

Another fossil fuel that is giving sleepless nights to rapidly developing nations like China and India is crude oil. The need for oil too has been rising. While the current low levels of oil price is providing relief to oil-dependent economies, the same is not likely to sustain for long, as any international crisis can once again trigger an unpredictable price rise, causing economic chaos.

The crisis in countries like Libya, Iraq and now Russia, all major oil producers, is a good example of the associated risks of depending on international oil supply and India’s share of oil in its energy mix stands at 22%. That exposes India to risks on account of global events which are beyond its control.

Natural Gas

A Cheaper and Cleaner Option  To mitigate its dependency on crude oil, India has been increasing investment in exploration and production of natural gas from sources within the country. To further meet the demand-supply gap in energy, India has been sourcing natural gas from overseas and continues to look for more sources to tie-up regular supply. Natural gas is seen as less polluting when compared to coal and oil, and is also cheaper.

India is looking to import natural gas through pipelines from Iran and other Central Asian countries. The lines are expected to pass through countries like Pakistan and Afghanistan. While the proposed pipelines are likely to prove economically favourable in the long term, the political and military risks associated with this is still to be sorted out by the government.

Shale Gas

An Emerging Alternate  In the meantime, another possible source that can be a game changer for countries like India and China is the emergence of shale gas as a cheaper and easily available alternate to oil. The United States is currently the largest producer of shale gas, while India too is known to have significant shale gas reserves.  The problem is that the long-term environmental impact is still being debated, as is the risk involved with fracking, a method of retrieving gas from the earth crust.

 

Renewal Energy

The Way Forward  Renewable energy, which includes solar and wind, contribute 1% to our energy mix. Both are clean, sustainable and abundant sources of energy. The problem for both not becoming very popular has been the high cost of power. With technological improvements it has now reached levels where it is commercially viable to generate power. In times to come, the per capita cost of power is likely to come down further, making it even more viable and an environmentally favourable alternate to traditional fossil fuels.

Energy Security in India is the dream of the 21st century for the nation. And after implementing many policies will definitely move India an inch closer to achieve the dream. Huge financial investment especially in the energy sector is the need of the hour. CDM activities are equally important to sustain the concept of energy security. The new era of renewable sources will play a vital role in the nation’s target to be energy secured.

 

 

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