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ENERGY SECTOR ININDIA

Prof. A.M.Kachwala

at

G.I.T.S. , Moyad

Branch : MechanicalSemester : 7th

Subject : EC & MDate: 21/7/2014

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Lecture Over-view

Energy Scenario in India

Government Control

Indias Energy Production

Energy Consumption

Grim Situation

Steps of Reforms

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ENERGY SCENARIOIN INDIA

The energy sector holds the key in accelerating the economic growth of

India.

But the development of Indian energy sector has been constrained by

capital, technology, environment and security issues.

Future economic growth crucially depends on the long term availability

of sources that are affordable, accesible and environment friendly.

Ind ia ranks sixth in the wo r ld in total energy con sum pt ion

Accoun ts for 3.4% of global energy con sum pt ion.

Ind ia is r ich in coal and renewable energy s ou rces (solar, win d,

hyd ro and bio-energy sou rces) but i t has very less h ydro c arbon

reserve ( 0.4% of worlds reserve)

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GOVERNMENT CONTROL

The Indian energy sector has been handled by b4 different ministries-

Ministry of coal

Ministry of power

Ministry of petroleum and natural gas

Ministry of new and renewable energy

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Indiasenergy production

RESOURCES

Coal -54%Oil -34%

Natural gas, hydro and nuclear energy-12%

POWER PLANTS

Thermal power plants -75%

Hydroelectric power plants-21%

Nuclear power plants -4%

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ENERGY CONSUMPTION

Industrial sector is the major energy user accounting for 52% of total energy

consumed.

Per Capita energy consumption of India is one of the lowest in the world

India -290 (in kWH)

China-597

Japan-4026

USA -8080

Energy con sumption per unit of GDP ( Energy Intens ity) is on e of

the high est.

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ENERGY CONSUMPTION Contd.

Energy consumption per unit of GDP ( Energy Intensity)is one of the

highest.

3.7 times that of Japan

1.5 times that of USA

1.47 times that of Asia

1.5 times that of world average

This indicates that there is a huge scope forenergy conservation in

India.

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GRIM SITUATION

oWe fall short of meeting actual energy demand by 5-10% every year.

oRecently the need to import even coal arisen.

oLoss of energy during transmission and distribution of energy.

oForeign countries/investors who are interested in Indian energy sector find it

very difficult to deal with four different ministries related to energy sector.

oInability to derive significant quantity of energy from renewable and clean

sources.

oHeavy dependance on non renewable sources may lead country to a serious

energy crisis in near future.

oUnpredictable fluctuations in foreign currency rates and unstable crude oil

prices.

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STEPS OF REFORMS

Entry to private players during liberalisation era

Energy Conservation Act passed in Indian parliament in Sept,2001.

This act requires -

Large large energy consumers to adhere to energy consumption norms

New buildings to follow energy conservation building code

Appliances to meet energy performance standards and to display

energy consumption labels

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Steps are being taken by g overnment to attract foreign in vestors in

the energy sector.

Strong Indo -US col laborat ion in c oal, gas, electr ic i ty, nu clear

energy, energy eff ic iency , geophysical explo rat ion, renewables and

oth er clean energy techn olo gies.

Energy Conservat ion and Commercialisat ion ( ECO) project .

Rapid ly developin g so lar and nu clear power sector.

STEPS OF REFORMS Contd.

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TH NK YOU