BS NEGI

Energy Security

Global energy scenario

Indian energy scenario

Integrated energy policy

Mitigating Indias concern for energy security

Augmenting Indigenous energy resources

The continuous availability of energy, in varied forms, in sufficient quantity, at reasonable prices The world energy assessment UNDP 1999 report.Continuous AvailabilityAccessibility for sufficient quantityAffordable price

GLOBAL SCENARIO80% resources with 20% CountriesINDIAN SCENARIO

Oil Reserves - 168,600 MTOE

SNoName of the Country% of Total1Saudi Arabia 21.3 2Iran11.23Iraq9.34Kuwait8.25UAE7.9TOTAL57.9

GAS RESERVES -160,000 MTOE

SNoName of the country% of Total1Russian federation25.2 2Iran15.73Qatar14.44Saudi Arabia4.05UAE3.4TOTAL62.7

Oil Consumption 3952.8 MTOE (2007)

SNoName of the country% of Total1USA23.9 2China9.33Japan5.84India3.35Russian Federation3.2TOTAL45.5

Gas Consumption 2637.7 MTOE (2007)

SNoName of the country% of Total1USA22.6 2Russian Federation15.03Iran3.84Canada3.25UK3.1TOTAL47.7

Coal Consumption 3177.5 MTOE (2007)

SNoName of the country% of Total1China41.3 2USA18.13India6.54Japan3.95South Africa3.1TOTAL72.9

Nuclear Energy Consumption 622 MTOE (2007)

SNoName of the country% of Total1USA30.9 2France16.03Japan10.14Russian Federation5.85South Korea5.2TOTAL68.0

Hydro Energy 709.2 MTOE (2007)

SNoName of the country% of Total1China15.42Brazil11.93Canada11.74USA85Russian Federation 5.7TOTAL52.7

Primary Energy Consumption 11099.2 MTOE (2007)

SNoName of the country% of Total1USA21.3 2China16.83Russian Federation6.24Japan4.75India3.6TOTAL52.6

* 2.7% IN 2006

ENERGYWORLDUSAEUCHINAINDIAPRIMARY2.4*1.6-2.27.76.8OIL1.1-0.1-2.04.16.7GAS3.16.5-1.619.97.6

Oil 128.5MTOE, 31.78%Gas 36.2 MTOE, 8.95%Coal 208.0 MTOE, 51.43% Nuclear 4.0 MTOE, 0.99%Hydro. 27.7 MTOE, 6.85%Wind 0.0288 MTOE, -Total 404.4 MTOE* *This being the tradable primary energy, the non tradable primary energy(cow dung,peat,forest waste) constitute 25%+ in Indian context.

COUNTRY SPECIFICINDIAN CONTEXT Integrated Energy PolicyRole of Regulator

Achieving an efficient configuration of various forms of energyConsistency in policies governing each sectorConsistency of pricing of different types of energyClarity in respect to Energy Security, R&D, Environmental Concern & Energy Conservation

Indias commercial energy supply growth 5.2% to 6.2 % per annum from 03-04 base

Primary energy supply growth - 4.3% to 5.1%

By 2031-32 power generation capacity needed 1.16 million mega watt from current 0.8 million mega watt

Coal requirement 2 billion ton per annum

How much energy do we need over long term ?What Strategy should be adopted to meet the growing demand ?How to promote efficient allocation of various fuels and energy to different users ?Reforms needed for competitive efficiencyRole of renewable and non-conventional energy sources.

R&D Strategy:-Increase Indias known energy resources.New technologies.

Increase energy efficiencyEnergy Security:-Equity energy abroadReduce dependency on imported energyClean energy

Ensure adequate supply with consistent quantityIncrease domestic coal production. Allocate coal blocks to central/state psu and captive mines to notified end users.Thermal coal import for coastal power generationCoal price based on GCV (replace current pricing based on broad band of useful heat)Treatment of coal to improve heat value, reduce ash contentCoal linkage to replace by long term coal supply agreementIndependent Regulator for coalAmend Coal Mines Act, 1973 to allow private participation. Offer coal blocks to potential entrepreneurs.

Allow a share in profits located in the states Revisit Royalty conceptEnsuring availability of gas for power generationPower Sector Reforms:-Control AT&C losses Provide incentive to SEBs & employees for reduction in AT&C losses.Encourage captive power generation & competitive bidding charges from power sector to consumerSeparate transmission from energy sale both for transmission and distributionAllow open access

Reduction in cost of PowerEncourage competitionFor existing plant return on capital employed/equity should correspond to government securities, reward efficiencyRationalization of fuel pricesPrimary energy source be priced at trade parity at point of sale (FOB for exporter, CI for import)Cushion domestic pricing against short term volatility in international marketCoal sector- competitive pricingEncourage natural gas trading

Energy efficiency and demand side managementThe energy intensity of India- growth on decline ( India consumer 0.16 kgoe per dollar of GDP, China 0.23 kgoe, US 0.12 kgoe & world average is 0.21 kgoeAugmentation of sources for increase of energy resourcesExploration of coal, oil & gasExploit non conventional energy & renewable energy like solar, wind etc.Equity oil & gas abroad

Boosting energy related R&DAn enabling environment for competitive efficiencyEstablishment of RegulatorClimate Change- environmental concerned

Adequate supply of energy at least possible cost

Clean energy environmental concern

Convenient

Sustainable development

TERC/SERADGHPNGRBCOAL REGULATOR ?ENERGY REGULATOR ?

Imputed PriceReplacement Price Import Parity PriceTrade parity PriceDistorted Price in IndiaAPM Gas PricePMT Gas PriceRavva/ Ravva satellite priceLNG long term priceLNG spot price

AUGMENT DOMESTIC RESOURCESENERGY IMPORT OPTIONSEQUITY IN OIL AND GAS ABROADINNOVATIVE R&D APPROACHENERGY CONSERVATIONENERGY EFFECIENCYEXPLOIT NON CONVENTIONAL RESOURCES

Bio fuelsBio mass gas Hydro electricityWind EnergySolar EnergyNuclear powerEnergy Import options including equity oil& gas abroad

ENERGY EFFECIENCYINNOVATIVE APPROACHCONSERVATION

Thank You

Top Ten Countries(oil production wise)Oil Production(x000bpd)Oil ConsumptionGas Production(bcm)Gas Consumption% WorldSaudi Arabia10413215475.975.9Russian Fed.99782699 (V)607.4 (I)438.8 (II)USA687920698 (I)545.9(II)652.9 (I)Iran44011621111.9 (IV)111.8 (III)China37437855 (II)69.367.3Mexico3477202446.254.1Canada33092303183.7 (III)94 (IV)UAE291545049.243.2Kuwait262627612.612.6Venezuela261359628.528.5Norway255622189.7 (V)37.2Japan-5051 (III)-90.2 (VI)India8012748 (IV)30.240.2Algeria200027083 (VI)24.4UK1636169672.491.4 (V)

CountriesOil Reserves% WorldGas ReservesPosition% WorldSaudi Arabia264.2253.03IVIran138.4181.75IIIraq115.0111.95XKuwait101.563.0-UAE97.8215.07VVenezuela87.0181.87VIIIRussian Federation79.41576.75ILibya41.552.8-Nigeria36.2186.0VIIUSA29.4211.08VIQatar904.06IIIAlgeria159.45IX