A country must be able to
reliably meet the energy demands of all sectors for different needs with safe,
convenient and competitive energy in a sustainable manner to have an energy
secure future. Nearly 85% of the primary energy comes from non-renewable and
fossil fuels which are continuously diminishing.
Adversity on the Energy
front:
The Indian economy has been
facing great adversity on the energy front. India’s dependence on imported
fossil fuels reached to 38% in 2012, despite of the fact that we have sizeable domestic
fossil fuel resources. We were ranked as the fourth largest energy consumer in
the world in 2011, following China, the United States and Russia. Our country
imports more than 75% of the oil demand. The import bill for crude has been
rising steadily and was 160 billion $ in the year 2012-13. Even with a significant
coal deposits, we are importing nearly 25% of our total coal usage. The import
is mainly from Australia, Indonesia and South Africa. The increasing coal
shortage is because of a lack of competition among producers, insufficient
investments, and other problems in its mining industry.
Country’s major share of
electricity generation is from coal based power plants. Currently coal fired thermal
power plants (TPP) contribute over 60% of India’s installed capacity and 66% of
the electricity generation. In the last decade, coal based power plant
generation capacity was doubled and substantial capacity addition is in the
pipeline. Coal shortages are a major contributor to shortfalls in electricity
generation and the consequent blackouts in the country.
Future of Coal based Power
Plants:
Although, the Coal fired power
plants are discouraged due to increasing pressure to reduce carbon emission,
import dependence and increasing fuel price, reducing price of Renewable Energy
etc., it is expected that the installed capacity of these plants will be about
270 GW by 2032. India’s existing coal fired thermal power plants are currently
based on sub-critical technology which is inefficient. Super-critical boiler technology is being adopted at a significant scale in the 12th FYP
program. A properly integrated and automated coal management system is also required to ensure uninterrupted power generation and unnecessary piling up of inventory.
However, the development and deployment of these efficient technologies is sluggish due to Indian coal having ash content and low calorific value (CV). Government of India (GoI) plans to stop sub-critical power plants addition after 2017. It is expected that ultra-super-critical technology will be commercialized after 2017 and IGCC based power plants after 2017. Some speculations say that ultra-supercritical technology will be commercialized only by 2022, anyway time will tell what is the future of coal based power plants.
However, the development and deployment of these efficient technologies is sluggish due to Indian coal having ash content and low calorific value (CV). Government of India (GoI) plans to stop sub-critical power plants addition after 2017. It is expected that ultra-super-critical technology will be commercialized after 2017 and IGCC based power plants after 2017. Some speculations say that ultra-supercritical technology will be commercialized only by 2022, anyway time will tell what is the future of coal based power plants.
Outcome of large
dependence on Imported Fuels:
The large dependence on fuel imports
and the inability to reverse this trend has impacted the development of Indian
economy. The unpleasant effects include depleting foreign exchange reserves,
price jolts because of volatility of global energy markets etc. With a large
share of imported energy sources, domestic prices of not only energy, but the
entire value chain get affected by the volatile international prices. We are
also acknowledged for subsidizing energy sources. Therefore, the term “energy
security” has a large sense for the country including economic stability and
ensuring the well being of the people.
Ways to achieve
Sustainable Energy development:
The country should consider all
forms of available and emerging energy sources and technologies to achieve
Sustainable Energy Development. A greater investment in R & D in alternate
and renewable energy sources can make their price competitive with that of
conventional energy. We should focus on Energy Efficiency and lower energy
intensive routes for the development.
The cost of protecting the environment and un-doing the environmental damage caused by the energy supply and use should also be included in the energy cost. Elimination of subsidies and other special treatments, to certain segments of the society and consumer, are necessary. Manufacturers should be encouraged to accelerate R & D efforts for bringing out more energy efficient equipments. Minimum efficiency standards for all equipments must be fixed. The government should provide incentives and enhance other market development strategies, for promoting energy efficiency. However these approaches require large upfront funding and a robust policy framework to ensure adequate success over long periods of time.
The cost of protecting the environment and un-doing the environmental damage caused by the energy supply and use should also be included in the energy cost. Elimination of subsidies and other special treatments, to certain segments of the society and consumer, are necessary. Manufacturers should be encouraged to accelerate R & D efforts for bringing out more energy efficient equipments. Minimum efficiency standards for all equipments must be fixed. The government should provide incentives and enhance other market development strategies, for promoting energy efficiency. However these approaches require large upfront funding and a robust policy framework to ensure adequate success over long periods of time.
Demand Side Management (DSM) is also a
very successful tool to reduce the overall energy demand. Although we are
lagging far behind in a DSM and I personally feel that we must have a strong
framework in implementing DSM. Efficient public transport system, electric
vehicles and fuel substitution will also play a crucial role. Therefore, India’s
energy strategy would necessarily comprise of action on both demand and supply
sides with due consideration to policy, finance and technology.
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