Alternative energy strategies: Constraints and opportunities

Book reviews In the rural areas, firewood, cow dung and vegetable wastes form the basis for household consumption, ie non-commercial fuels. Thus, a large sector is shielded from the effects of rising oil prices although kerosene is used as a lighting medium, Turning to energy consumption patterns, that of coal rose by 3.5% annually between 1953 and 1970. In the same period the consumption ofoil rose by 8.6% per annum, following the pattern of Western countries and for the same reason, ie, the availability of a cheap 'underpriced' energy source from abroad. However, the middle distillates account for 50% of Indian demand for petroleum products contrary to the experience of developed countries owing to use of kerosene for domestic purposes and diesel oil for transportation, Henderson presents a lucid survey of the structure and problems of the energy industries. Coal is now nationalised but beset with problems like pegged prices, rising labour costs, uneconomic and antiquated mines and wasteful cross-hauls between regions, The oil industry has also largely been taken over by the government and the Oil and Natural Gas Commission is responsible for exploratory activities, both onshore and offshore. It has entered into several collaboration agreements, one with the Iranian government for gulf exploration where two fields have been discovered. The Electricity Boards are mainly in the red but in 1975-76 more rational pricing rules have been evolved with upward price hikes in all regions. However, as Henderson stresses, transmission networks are still in the doldrums, On the crude oil front, although Henderson's statement of a severe strain on the balance of payments as a result of the price rise was true up to 1975, the position at the moment of writing is somewhat different. The Bombay High is expected to produce 2 million tons by end 1976: by 1980 10 million tons per annum should be feasible, one of the quickest rates ever of exploitation of a strike - 1974 to 1976, a gap of only 2 years. In fact, with burgeoning exports, India may have a surplus balance of payments in '76-'77! The ratio of crude imports to refinery throughput is likely to be nearer 65 than the figure of 70% quoted. Oil may be struck in the Sunderbans area of Bengal. E N E R G Y POLICY March 1 9 7 7 A considerable amount of gas is now flared instead of used; a committee is being set up to suggest remedial measures. Bombay High gas will largely be used for the petrochemical complexes in Western India. There are also possibilities of obtaining natural gas from Pakistan with the normalisation of relations, The government has announced that coal will be the principal energy source, But it is exactly this industry which has the greatest problems. Unless there is better marketing, more R and D, and more coordination with the railways for wagon supplies, coal is going to cause continuous anxiety which will affect the power situation at the thermal plants, Rural energy will be based largely on the now proliferating ~bio-gas' plants where optimum plant sizes are small, Already, over a 1000 units are in operation and a concerted plan to reduce capital costs and utilise cow dung to the maximum is in force. What has not received adequate attention is the fact that firewood supplies may become scarce with deforestation for industry which will mean pressure on alternative sources, While Henderson's tapestry is perhaps slightly pessimistic, the reviewer's canvas carries an optimistic hue. This, however, does not detract from the extremely readable quality of the book and the wealth of information compressed into a compact framework, S. Venu ALTERNATIVE ENERGY STRATEGIES: Constraints and Opportunities by John Hagel, III, Praeger Publications, New York, 1 85 pp ENERGY POLICIES WORLD, Volume 1 OF THE Edited by Gerard J. Mangone, Elsevier New York, 3 8 8 + xx pp, $1 9 . 5 0 Whilst there is little doubt that present world energy prospects are dominated by the price and availability of crude oil there is considerable doubt as to whether this is the major determinant of long-term energy policy. The arguments concerning the long lead times, large capital investments and reorientation of industrial processes required to introduce a major new energy source are well known, and partially documented in this book. Yet the overriding conclusion from John Hagel's study is that all energy policy questions hang on the price and availability of crude oil. This myopia is all the more suprising since the author has clearly understood many of the complex issues involved in the non-oil energy fields and has reviewed the present R & D in these areas in a lucid and penetrating way. It is tempting to suggest that the emphasis on oil arises as a result of the author's close involvement with Mobil Oil, or perhaps because the original study was prepared for the Petroleum Information Foundation. These explanations are unsatisfactory since the author displays a high level of critical ability which would be inconsistent with such obvious pressures. Alternative Energy Strategies is really two books rolled into one. The first, and by far the best, is a comprehensive and critical survey of energy production technologies with particular emphasis on current research and development. If the author has actually read all the books and papers that he cites then he must have a very high reading speed as well as a fluent writing style. As far as can be seen this review is as objective as is possible from published material and contains some very useful observations on E R D A ' s policy statements. Those who campaigned against the dual r61e of the old AEC must be heartened to see the new interest in solar and the increased scepticism associated with FBR technology. This first part of the book ends with a very brief chapter on the potential for saving energy. Here the author has not picked up many of the US publications outlining conservation strategies and has probably been overly influenced by the critique of the Ford Foundation Study. The second part of the book aims to document the "constraints and opportunities' in energy policy formation, and goes downhill all the way. The time-scale of the discussion flips from the long term considerations associated with energy R & D, to the short-term problem of how to cope with 81