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Climate Change and Energy Efficiency Policies
in IndiaGirish Sethi
TERI, New Delhi (India)
International Symposium , Kobe , Japan:
Research Partnership for Application of Low Carbon Technologies for Sustainable Development
7th March, 2011
Outline
• India – a country in transition• Energy scenario in India• National Action Plan on Climate Change- Strategy &
Principles • National Mission on Enhanced Energy Efficiency• Other Initiatives
• India Japan joint project on promoting low carbon technologies in SME sector
India – an emerging economic power• Unprecedented economic growth
• GDP growth rate likely to be 9% in 2011-12, 8.6% in 2010- 11
• Advance estimates for growth in 2010-11 as per Economic Survey 2011:
• Agriculture - 5.4%• Industry - 8.1%• Services – 9.6%
• Rising income levels and demographic factors to sustain fast growth
• Fifth largest economy• Among 12 countries having trillion dollar GDP in nominal
terms
India – an emerging economic power …contd• By 2025
• GDP predicted to grow to $ 3-5 trillion • Population 1.4 billion• 67% (940 million) working age• 42% (590 million) below 25 years
• Need for higher focus on infrastructure development• Envisaged investment of 1 trillion $ in 12th Plan (2012-17)
with nearly half from private sector• Already nearly 500 million people living in urban areas• Sectors – Power/energy, roads & ports, railways, telecom
India-a developing country• 3/4 of population has income of less than $ 2 per day
• 1/3 of population live in sub-human poverty
• 70% (approx) of rural household do not have electricity• More than 100,000 villages not yet electrified
• Per capita income – PPP US $ (WB, 2008 data)• India 2,753 (1)• China 5,345 (2)• Japan 33,525 (12)• USA 45,790 (16)
• Low Human Development Index (HDI)• 128th in the world• HDI & per capita energy consumption are closely linked
Energy is Critical For Development and Improving HDI
0
1,500
3,000
4,500
6,000
7,500
9,000
Bangla
desh
India
Brazil
China
Malays
ia Den
mark
UKJa
pan
Norway
USA
Canad
a Per
cap
ita e
nerg
y co
nsum
ptio
n (k
goe)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
HD
I
kgoe HDI Linear (HDI )
Access to energy servicesMore than 75% of rural and 22% of urban householdsstill depend on wood as the primary source of energy
for cooking Figure 1 Distribution (%) of rural households by primary source of
energy used for cooking
76.5
10.6
5.4
7.4
1.1
0 20 40 60 80 100
Fire wood
Dung Cake
LPG
Others
No cooking arrangement
Fuel
sou
rce
% households
Energy scenario in India
Energy Scenario - India
• India – fifth in the world in terms of primary energy consumption• Energy demand grew at an average 6% per year in the last
25 years
• Commercial energy supply: 340 mtoe (2005/06)• Coal (51%), Oil (38%), NG (8%), Hydro(2%), Nuclear(1%)
• Annual per capita energy consumption• 510 kgoe (world average: - 1800 kgoe)
Share of commercial energy use by different sectors
• 7 large industrial sectors account for 60% energy consumption• Large number of energy-intensive SMEs where energy is used
inefficiently
Industry57%
Others9%
Agriculture7%
Domestic11%
Transport16%
Projected demand for electricity
• 5-6 times increase in installed capacity over 25 years
• Investments in electricity generation to the tune of US $ 600-800 billion
0
200000
400000
600000
800000
1000000
1200000
2006 2011 2016 2021 2026 2031
Inst
alle
d C
apac
ity (M
W)
7% GDP growth8% GDP growth
National Action Plan on Climate Change (NAPCC)
Launched by PM of India in June 2008
India’s GHG emissions vis-à-vis other countries
Country Per capita carbon-dioxide emissions(metric tons)
USA 20.01EU 8.40Japan 9.87China 3.69Russia 11.71India 1.02World Average 4.25
National Strategy• Adapt to climate change• Enhance ecological sustainability of India’s development
path• Recognize climate change as global challenge• Participate in globally cooperative actions based on
CBDR• Ensure equity in entitlement to global atmospheric
resources
Principles of NAPCC• Inclusive and sustainable development strategy • Efficient and cost-effective strategies for Demand Side
management• Accelerated deployment of appropriate technologies for
mitigation and adaptation• Innovative market, regulatory, and voluntary mechanisms• Effective linkages with civil society and public-private
partnerships• International cooperation for R&D, technology transfer
and global IPR regime
Missions under NAPCC
• Eight National Missions established• Solar• Enhanced Energy Efficiency• Sustainable Habitat• Water• Sustaining the Himalayan Ecosystem• Green India• Sustainable Agriculture• Strategic Knowledge for Climate Change
National Mission for Enhanced Energy Efficiency
• Enhancing cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded (PAT Scheme)
• Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make them affordable (Star labeling)
• Creation of mechanisms that would help finance demand side management programmes in all sectors by capturing future energy savings (ESCOs)
• Developing fiscal instruments to promote energy efficiencyNMEEE approved by Government in June, 2010
Mission Goals• Market-based approaches to unlock energy efficiency
opportunities:• estimated to be about USD 18 billion
• By 2014-15:• Annual fuel savings in excess of 23 million toe• Cumulative avoided electricity capacity addition of 19,000 MW• CO2 emission mitigation of 98 million tons per year
Source: BEE
Scope for energy conservation• Potential in the range of 15-20%
• Industrial Sector• Large energy intensive sectors • Micro, Small and Medium Enterprises• Municipalities in urban areas
• Buildings and commercial sector• Government buildings and commercial establishments• New buildings
• Agriculture Sector• Pump sets
• Transport sector• Residential sector
• Use of advanced power generation technologies• Super critical and ultra super critical technologies• Increased focus on renewable energy technologies for power
generation
Large Industries Large Industries –– Perform Achieve Perform Achieve and Trade (PAT) Schemeand Trade (PAT) Scheme
• A wide band width of energy efficiency in all sectors• Cement: 600 – 950 Kcal/kg clinker• Pulp and paper: 4 – 10 Gcal/ton of paper
• Market based mechanism to certify energy savings – ‘energy credits’ that would be traded
• Specification of energy consumption norms for all designated consumers (SEC)
• Initially for 9 sectors (Nearly 560 large designated consumers)
• Issuance of Certificates to consumers who exceed targets
• Inter-sectoral domestic scheme• Three year time band to achieve savings• Appropriate regulatory framework already put in place
through amendments in the EC Act
PAT scheme …..• Scheme presently covers DCs in thermal power plants,
iron & steel, cement, fertlizers, textile, aluminium, pulp & paper and chlor-alkali sub-sectors
• Total consumption in these DCs is around 230 million MTOE
• Methodology for reduction is simple and and based on SEC reduction on gate to gate basis
• Targetted saving in a 4 year time frame (2011-14) is 10 mMTOE
• Process for baseline estimation in all DCs already underway
• Targets are likely to be almost unit specific
Trends in Energy Consumption of Ammonia & Urea Plants
Average Energy Consumption
12.48
8.978.87
6.296
7
8
9
10
11
12
13
1987
-8819
90-91
1991
-9219
92-93
1993
-9419
94-95
1995
-9619
96-97
1997
-9819
98-99
1999
-0020
00-01
2001
-0220
02-03
2003
-0420
04-05
2005
-0620
06-07
2007
-08
mkc
al/m
t
AMMONIA UREA
28% REDUCTION
29% REDUCTION
A. World’s Best: 7.0 Gcal/ton of Ammonia
B. India’s Best: 7.2 Gcal/ton of Ammonia
C. Already average of top 25% ammonia plants more efficient than world’s top 25% plants
Source: Fertiliser Association of India (FAI)
Shift to energy efficient appliances: Standards and Labeling
• Launched in 2006 by BEE • Started for household refrigerators (frost-free), florescent
tube lights (4’), air conditioners, transformers (now mandatory for these equipment)
• Other equipment in future • General purpose electric motors• Ceiling fans• Geysers• Washing machines• Office equipment• Many others …..
National energy labeling program (NELP) for Air Conditioners
Star Rating Energy efficiency ratio (Watts/Watts)Min Max
1 Star * 2.7 2.92 Star ** 2.9 3.13 Star *** 3.1 3.34 Star **** 3.3 3.55 Star ***** 3.5 -
- Being implemented by BEE, Government of India - Started as a voluntary labeling program, mandatory for A/C and
refrigerators since 2010 - Up to 11 kW (3 TR) rated cooling capacity of room A/Cs considered - 23 brands which includes 152 models of window A/Cs and 163 models of
split A/Cs approved by BEE
No. of star rated AC (window & split AC) units as of 2010
5 0
1 4 4
7 0
2 6 2 5
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
S ta r 1 S ta r 2 S ta r 3 S ta r 4 S ta r 5No. o
f AC
mod
els
(Win
dow
& Sp
lit A
C)
(Source: Bureau of Energy Efficiency, Govt. of India, 2009)
26
National Mission on Sustainable Habitat
• Extension of application of Energy Conservation Building Code, incentives for re-tooling existing building stock
• Recycling of materials and urban waste management; technology development for power from waste
• Better urban planning and modal shift to public transport
India - Japan joint project for promoting low carbon technology
transfer
Key features• Overall Goal:
a) Promotion of low carbon technologies in India• Cooperation Framework:
a) “Science and Technology Research Partnership for Sustainable Development” promoted by JICA and JST
• Target sectors: a) Small and Medium Enterprises
• Focus: a) Energy efficiency and renewable energy technologies
• Time period:a) 4 years (2010 -14)
• Implementation partners:a) India: TERI and selected SMEs b) Japan: IGES, Kyoto Univ and selected Japanese companies
Why SME sector ?
• An extremely important segment of the Indian economy
• 26 million SME units• Responsible for 40 % of India’s
total exports• Accounts for 45% of
manufacturing output • Provides employment for > 60
million people
Present status of SME sector
• More than 400 manufacturing clusters
• About 12 energy-intensive product categories made in about 180 clusters
• Large number of hetrogenous clusters and dispersed units in industrial parks
• Inefficient in energy use • Moderate to high pollution
Energy intensive MSME sectors• Foundry• Forging• Ceramics (tiles & pottery)• Bricks & tiles• Glass• Textile
• Brass• Dairy• Pulp & paper• Food processing• Plywood
Barriers to adoption of EETs in SMEs
• Poor awareness about available energy efficient technologies (EETs)
• Hardly any development and/or demonstration of EETs at the cluster level
• Lack of skilled manpower to operate the technology- no training on best operating practices BOP) on EE for the supervisors/operators & local service providers (LSPs)
• Financing an issue especially among small & micro units
Main components of IGES-TERI project
• Identification of appropriate and promising cross-cutting technologies which will help mitigate GHG emissions in a cost effective manner in SME sector
• Demonstration of some highly efficient energy saving technologies through implementation of pilot projects, development of technology databases etc
• Capacity building of relevant stakeholders
Methodology
• Study and analyze technologies and relevant conditions of supply side
• Study and analyze needs of the technology and relevant conditions of demand side.
• Select the appropriate technologies to be applied in India• Develop and implement pilot projects in selected SMEs• Capacity building related to pilot projects• Review existing practices regarding low carbon technology
transfer/application• Formulate application scheme of low carbon technologies
in India
Essential knowledge flows
Accumulation of technological
capacity
Capital goods, services & designs
Skills & know-how for operation &
maintenance
Knowledge & expertise behind
technology
New production capacity
Flow B
Flow C
Supplier firms’
engineering, managerial and other
technological capabilities
Flow A
Technological capacity building
Pilot projects: some examples• Energy efficient ventilation equipments• Energy Management System• Low temperature waste heat recovery• Amorphous Transformer• Micro cogeneration system• Two-way lighting system• Heat pumps• Efficient induction furnaces• Compressed air systems
Micro cogeneration system• Applications:
• Commercial buildings & Hotels• Range:
• 5 kW – 32 kW• Fuel:
• Natural gas, LPG, etc.• Energy saving:
• Overall efficiency upto 85% compared to below 40% in thermal power plants
• Supplier:• Osaka Gas Co.
Examples of TERI interventions at local level
Lighting a Billion Lives (LaBL)TERI’s LaBL campaign focuses on rural communities todisplace kerosene lanterns with solar lighting systems
Program already in operation in around 300 villages in India
Cleaner technology adoptions – Small scale industry sector
TERI’s intervention in energy-intensive SMEs - Reduction in energy consumption by up to 30%
Pot furnace
Coal fired
Gas fired
Gas fired
Coal fired
Muffle furnace
GRIHA (Green Rating for Integrated Habitat Assessment)
• GRIHA is a rating system that helps to assess the performance of the building against nationally acceptable benchmarksDevised by TERI; accepted now as the national rating system by Ministry of New & Renewable Energy, (MNRE) Govt. of India.• Around 50 buildings already registered for GRIHA certification
• Follows the Energy Conservation Building Code (ECBC)The rating system aims to achieve efficient resource utilization, enhanced resource efficiency, and better quality of life in the buildings.
Trees preserved and protected
Outdoor solar lights
N-S Orientation with shading (roof/window)
Lesser paving
Solar PV and Solar Thermal systems
First 5 star rated GRIHA building at IIT Kanpur
Thank you !
Email: [email protected]