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ENERGY ISSUES
Energy security and independence
Energy as key to economic development
Electricity generation
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Energy
Security
is 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.

Indias Current Energy Status Facts

India, home to 18% of the worlds population
It uses only 6% of the worlds primary energy
Indias energy consumption has almost doubled since 2000
Indias economy - the worlds third-largest
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Present Energy
Scenario of India
Indias energy consumption per capita is still only around one-third
of the global average and some 240 million people have no access to
electricity.
Three-quarters of Indian energy demand is met by fossil fuels. Coal
remains the backbone of the Indian power sector, accounting for over
70% of generation.
India has 45 GW of hydropower and 23 GW of wind power capacity and
set a target to reach 175 GW of installed renewables capacity by 2022
(excluding large hydropower).
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Primary Energy
Demand in India by Fuel
1%

2%

44% 24%

34% 33%

2%
5% 1%
25%
* MTOE - Million Tonnes
6%
of Oil Equivalent 23%
2000
441 MTOE
2013
775 MTOE

Indias Expected
Energy Demand
Energy consumption more than doubles to 2040

An extra 315 million people are anticipated to move to Indias towns and cities by 2040

Industry remains the largest among the end-use sectors, as Indias strong demand for infrastructure
and consumer goods boosts the outlook for manufacturing.

Energy efficiency policies have broadened in recent years to include fuel-efficiency standards for
passenger vehicles and an innovative certificate trading scheme in industry, although their coverage
across other sectors remains incomplete.
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Outlook for
Indias
Energy Supply
India plans for low-carbon energy led by solar and wind power
Coal production is expected to increases 1750 Mt in 2040 and it will
make India as second largest producer.
Further, India will be the largest coal importer by 2020
Indias refinery output grows, but is increasingly dedicated to the
domestic market.
Gas production rises to 90 bcm in 2040, but this would require an
price adjustment to international standards

Comparison
with other parts
of the World
Per-capita energy consumption in India and selected regions
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Need for Reforms in

the Energy Sector
Private players needed: Liberalisation allowed private investment in generation, transmission and
distribution but in order to achieve energy efficiency it needs to attract more private investment.

Equity in coal: Private participation in coal mining on a level playing field with state entities
should be allowed.

ONG deregulation: Full deregulation of pricing

coupled with targeted provision of subsidies
for the poor is needed to ensure sufficient
investment into the sector.

Renewable sector: Private investments are

essential to materialize the potential of
renewables for supplying a clean and modern
energy, particularly in rural areas

RENEWABLE SECTOR
COAL SECTOR
OIL AND GAS SECTOR
NUCLEAR SECTOR
POWER SECTOR
To transform Indias energy sector into
an open and functioning energy market
the country needs
Strong political leadership to convey clear policy messages.
Creating the right public perception of energy as a commodity,
not an entitlement.
India needs to align its energy policies and institutions with
global practices.
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Investment
Private Investment needed to improve Energy
sector in India but it faces various hurdles
in attracting the investors because in India
getting construction permit and enforcing
contract are very difficult.
Despite the fact that India has
low ease of doing business it needs
investment in energy sector:
To build a reliable and adequate energy supply chain
To develop good infrastructure
To improve the energy efficiency

Implementation
In order to implement
to achieve the future energy
security India need clear
strategy and action plans in
government machinery like
Bureaucracy
Inter-ministerial coordination
Inter-governmental coordination
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Barriers of
Energy Security
RENEWABLE
SOURCES COAL
NATURAL
OIL GAS

Lack of Good quality

coal in domestic
Price of oil is volatile
reserves Lack of infrastructure
Mismatch between for transportation
Lack of technology Depending on
demand and supply (gas pipelines) and
Per unit cost of Imports
Limited reserves storage
production is very International
Policy constrains high pressure to reduce Lack of private
carbon emissions investment in
Lack of innovation domestic oil
Mismatch between exploration
government target Problem of Natural
and execution gas pricing
Natural gas industries
face challenges in
profit making (Both
PSUs and Private)

Energy Security Strategy -

Need of the Hour
Long-term strategic vision for next 3 to 5 decades
Attracting more private players
Increasing investment in clean technology
Diversifying the energy resources (both conventional and non-conventional)
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Introduction
Energy
Affordable energy services are among
the essential ingredients of economic
development, including eradication

as a Key to
of extreme poverty as called for in
the United Nations Millennium
Development Goals (MDGs).
Modern energy servicesmainly
provided by liquid and gaseous
fuels, as well as electricityare
Economic
essential for building enterprises
and creating jobs. Convenient, Development
affordable energy is also important
for improving health and education,
and for reducing the human labor
required to cook and meet other basic
needs

Economic Diversification
Inadequate or unreliable electricity infrastructure can
constrain balanced economic development.
Rolling blackouts, poor phone and fax communications,
and inadequate road networks all limit the ability for
businesses to develop and grow.
For the rural poor who rely on the agriculture sector for
employment, modern energy access means increased
productivity and employment.
Electricity, mechanical energy, and heat are essential
inputs to many agricultural production and post-harvest
processes, often the largest employer in rural areas.

Employment and
Income Generation
The effects of access to modern energy are conveyed
beyond the agriculture sector, into commercial and
industrial enterprises, resulting in increased employment
and income.
The spread of rural electrification can not only
diversify the industry, but also facilitate the
growth of medium scale and large industries
contributing to employment generation in
the rural areas, while the non-electrified
industries are more concentrated within small
and cottage industries and confined within a
narrow industrial base.
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Health
Critical indicators of health like Life expectancy,
Child mortality improve when access to
modern energy is provided. The correlation is
strongest for the lowest-income countries.
Access to electricity leads to significant
reductions in maternal mortality, infant
mortality as women with access to electricity
have a higher probability of having a doctor-
assisted birth with all the modern equipments
which need electricity.
Nearly two billion people in developing
countries are exposed to air pollution inside
their homes from burning fuel wood, crop
residue, or dung with inefficient and poorly
ventilated cook stoves.
The World Health Organization recently
concluded that indoor air pollution is the
fourth largest health risk in the worlds poorest

Environment
countries.
Every year, an estimated 2 million people die
from illnesses linked to the air pollution caused
by household cooking and heating practices.
The vast majority of these deaths have been Given the increasing demands for energy in
among women and children under the age of our global society and the need to provide
five. clean energy for future growth, solar energy
Where tradition impedes the replacement is an attractive alternative to conventional
of traditional fuels with electricity, culturally energy sources, such as coal or oil.
appropriate interventions can still deliver
Solar energy holds the promise of providing
considerable health benefits.
even impoverished persons with easy access
Electric stoves/cookers, geysers, heaters etc
to clean and affordable energy.
reduce the use of wood which in turn reduce
the pollution inside their homes. This increases
their Life expectancy too.
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National Security
A Nations security relies on a matrix of factors
where the role of energy is not primary. Rather,
the absence of secure energy supplies most
often moves energy into the security-analysis
equation.
At the macro level, a lack of financial and energy
reserves makes developing economies less able
to tolerate energy supply interruptions and more
vulnerable to the whims of supplying states.
The twin goals of diversity and security of supply
are important not only for the developing
countries, but also for developed states.
When Russia cut off gas supplies to Ukraine
this past winter, the world confronted the
stark implications of supply vulnerability, and
the United States witnessed the vulnerability
of a strategic developing economy to energy
blackmail.
Reliance on imported oil is associated with

Education
economic vulnerability and increased national
indebtedness.
At the opposite end of the spectrum, some
The linkage between education and access to states have rich endowments of oil and gas.
modern energy services is multifaceted. Elec- However, those resources do not guarantee
tricity usage is associated with higher levels of economic development and, in many cases,
have created increased insecurity and conflict
adult literacy and overall enrollment rates.
(e.g., Nigeria, Sudan).
Easing the burden of physical labor and the Diminishing stocks of traditional wood and biomass
time required for rural agriculture can lead to fuels can prompt internal rural-to-urban migration
specific educational and health benefits, par- or migration across international frontiers that
ticularly for women and children. exacerbate competition and conflict over scarce
Increasing per capita electricity consumption resources.
reduces the percent of the population with in- Energy poverty leads ultimately to deteriorating
comes of less than $2 per day in low income economic and social conditions and fragile or
failed states that can offer safe havens for groups
countries.
with the potential to threaten national security.
For people living on less than $1 per day in the
worlds poorest countries, the positive impacts
of electricity access are even more likely.
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Conclusion
Commercial energy access and use contribute to the growth
of developing economies and improved quality of life for their
citizens, and likely reinforce movements toward more peaceful
democratic societies.

An investment in appropriate energy development bears fruit in

both national economic development and individual economic
security. Secure energy supplies and basic infrastructure
provide the framework for economic transformation.

Access to modern energy services propels industrial

development and supports commercial development. Thus,
energy can help in the process of building and sustaining
democratic, well-governed states that are also capable of
responding to the needs of their people.
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Consumption
of Electricity by
sectors in India

43.83%

5.23%
1.72%

Industry 43.83% Agriculture 18.03% 8.72%

Domestic 22.46% Commercial 8.72%
Railways 1.72% Others 5.23%
18.03%

Uses of Electricity
22.46%

Electricity is used in various fields of human activity. The importance of

electricity in various fields in which electricity works are discussed below:
Urban Utility Rural Utility Other Uses
Domestic Consumption: for lighting rooms, Agriculture: Dairy, and poultry Engineering,
working fans and domestic appliances like using farming, Horticulture, pumping Communication and
electric stoves, A/C and more. and irrigation and so on transport
Commercial use: commercial complexes and Industrial: Factories, large Entertainment
modern equipment like computers and robots machines, Essential items like (TV, radio, etc) and
including medical filed machines like x-ray, scan] food, cloth, paper and many other House-building
things

Electricity POLLUTING

Generation NON-
Thermal

Electricity generation is the process of POLLUTING

generating electric power from other Hydel Nuclear Solar
sources of primary energy. There are
different types of electricity generation
and can be classified in many ways. OTHERS
Biomass
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Installed Power
Capacity in India
All India Power Installed Capacity (MW) Renewable Power Installed Capacity (MW)

Solar Power
2,647

Bio Power
Nuclear 4,013
4,780
Thermal
1,68,255
Renewable Small Hydro Power
31,702 3,804
Wind Power
Hydro 21,132
40,531

Thermal Power Plants

Source: Coal, Natural gas or petroleum
Technique: Heat energy of combustion into mechanical energy
Mechanism: Turbine driven by steam or combustion gas
By Products: Waste heat energy, flue gas and other Pollutants
(CO2, SOx, NOx fly ash and traces of metals)

Hydel Power Plants

Source: Run of the River Dam (Kinetic energy), Gravity Dam and Barrages
(Potential energy)
Technique: Potential and kinetic energy to mechanical energy
Mechanism: Through the use of the gravitational force of falling or flowing
water.
Important reservoirs of India: Indira Sagar(MP), Nagarjuna Sagar(Andhra),
Sardar Sarovar (Gujarat), Gobind Sagar(HP) and Hirakud reservoir (Odisha)
Issues due to Hydel energy: Earthquakes due to large dams, ecological
imbalance
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Nuclear Power Plant

Source: Uranium, Thorium, Plutonium
Technique: Heat to mechanical energy
Mechanism: Turbine driven by steam
Issues due to nuclear energy: Radioactive waste
and corresponding health hazards

Solar Energy
Source: Solar insolation
Technique: Photovoltaics and Concentrated solar power
Mechanism: Uncompetitive energy to Conventional
energy sources.

Biomass Power and Bagasse

Source: Agriculture Residue like husks, shell, strew,
deoiled cakes etc
Technique: Cogeneration
Mechanism: Its stream is used to turn turbines

Energy From Municipal Waste

Source: municipal waste
Technique: Incineration
Mechanism: Combustion of waste to generate stream
Issues: Release of poisonous gases, decreases air quality
in areas around the plant
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