National energy policy nep presentation r1

1.  Index
 Introduction
 Present scenario
 NEP
 Need
 Challenges
 Executive summary
 Need for NEP
 Present concerns
 Suggestions for policy

2.  Energy is required in all sectors
 Industrial, commercial, agricultural, domestic
sectors
 We request all gathered professionals and
students to spread the message of saving
energy

4.  India is 4th largest consumer of energy in the world!
 India wants growth of 7% which implies of at least 7% CAGR
 Actual growth needs to be more since number of users and per capita use
will increase
Country Per Capita Use in 2011
(kg of oil equivalent)
USA 7032
Japan 3610
China 2029
India 614

5.  We are importing 80% of the needed oil
 Several gas based power plants are closed down
due to shortage of fuel at affordable price
 Several power plants are closed down due to non-
availability of coal and/or water
 Where available, coal stocks at power plants are for
few days only
 T&D losses are close to 40% in many states
 This is a huge problem!

6.  In 2005, central government came up with
National Electricity Policy.
 In 2006, attempt was made to have an Integrated
Energy Policy through an expert committee of
erstwhile Planning Commission
 8 years have passed since then, but policy is not
issued
 New look at National Energy Policy is required!

7. 1. Heavy dependence on imported oil and gas
 Energy security is in danger
2. Heavy financial losses incurred by almost all the
State Electricity Boards (SEBs)
3. Gestation period of conventional power plants is
long
 Gestation period of transmission lines is even longer!

8. 4. Due to “Cost+” tariff model, SEBs have no
incentive to operate efficiently
5. More than 300 million people do not have access
to electricity
 Number of users and per capita use is going to
increase!
6. Carbon emissions have to be kept to a minimum
 And to be reduced eventually compared to today’s levels!

9.  National energy security while giving 24/7 power for all
 Optimize use of all resources
 Saving non-renewable energy sources
 Reducing carbon emission
 Reducing energy intensity and promoting energy efficiency
 Do all this:
 Without politicizing the energy sector
 With an integral view of national development
 Policies pursued in one sector should not become counter-
productive in other sectors

10.  Need to be energy sufficient
 Able to serve the energy needs of every one on a
sustained basis
 Energy should be supplied at affordable cost
 Ensure reduction of waste
 Promote energy conservation
 Seriously working on technologies like “coal-to-oil”, “efficient
power storages”, complete manufacture of LED bulbs in the
country etc. which are languishing for years
 Reducing carbon emission.
 Reducing Fuel imports.

11.  Improve recovery
 Aggressive use of new technologies.
 Promoting efficiency
 More “Janaprabodhan about Urja” to save energy
 Reduce wastage of national resources and damage to
environment by populist measures like “free power”, not acting
seriously against theft of power
 Associating voluntary organization in energy policy
formulations, monitoring and tiding over long term chronic
problems in the power sector.
 Strengthening regulation to serve consumer interest.

12.  Primary Energy need is met by the following sources:
1. Crude oil 29%
2. Natural gas 7.7%
3. Coal 54%
4. Nuclear 1.3%
5. Hydro 5%
6. Renewable: Wind , Bio-mass, Solar (595 Mtoe)
7. Net imports 144 Mtoe crude oil; 16Mtoe LNG; 95 Mtoe coal

13. 1. What should be India's’ National Energy Policy for the
following?
 Addition to Nuclear capacity
 Addition to solar of 100000 Mw,
 Addition to wind, small hydro and biomass of 75000 MW
 Coal generation capacities in construction and sanctioned
 Hydro generation addition
 Gas based generation

14. Power situation in India as on June 2015
Thermal –coal 167207 ( 60.8 % )
Gas based 23062 ( 8.39% )
Hydro 41997 ( 15.28% )
Nuclear 5780 ( 2.1 % )
Renewable energy 35776 ( 13.01 % ) **
India Total 274817 ( 100 % )
**Solar based 3743 Wind based 23444 Bio mass etc 4533 small hydro 4055
2. What is the desirable energy mix? 5 years from now? 10 years from now?

15. 3. Should we add new coal based generation as the PLf of
existing coal based plants is between 60 to 65 %?
4. Environmental norms for thermal power coal based will
be made stringent to be in line with international
standards. How will this be balanced with high ash
content Indian coal? Will it mean more imported coal? In
which case, what would be its impact on cost ?
5. Should gas generation be added looking at (i) the
current situation, (ii) price of gas (currently many gas
based plants are running with very low plf) and (iii)
need of gas for other priority needs of domestic and
fertiliser industry?

16. 6. Solar generation: How will it impact cost and
PLF of thermal plants?
7. How much of pumped hydro generation should
be planned to help peak requirements and
improve PLF of thermal plants?

17. 1. There should be a National Energy Policy
 Policy should be comprehensive and decide the energy mix
and targets in 5yr blocks with review mechanism
 NEP plans should be the basis for setting other associated
policies: e.g. renewable energy policy, environmental policy,
energy conservation policy , coal , oil and gas policies
 In line with this policy there should be Integrated Energy Act

18.  National Energy Commission (NEC) to be formed
to focus attention on Energy Sector matters
 Eminent energy expert should head the commission
 NEC will formulate long term national energy
action plan and implement it
 Focus on improved technologies for thermal
efficiency improvements , pollution reduction,
coal liquefaction and coal washing

19.  1 Full cooperation required between states having mines and
central govt . In the issues such as division of profit arising out
of digging of coal , Land acquisition, Statutory approvals and
preservation of Nature’s wealth , health and security of workers
Make states more responsible
 2 Coal regulatory authority bill is necessary .
 3 Pay attention to avoid Damage to natural resources due to
increased mining activity. Rules shall be same for govt. and
private sectors. Rehabilitation of displaced persons needs
attention on priority. Learn from the experience of other
countries which are managing coal mining in a better way.

20.  Nuclear Power: In the present situation of energy security, the
nuclear power option has to be kept open
 Continue indigenous nuclear technology efforts diligently to
graduate to stage 2 and stage 3 ( Thorium use to generate
nuclear fuel ) so that we can be self sufficient
 Give preference to local nuclear equipment and avoid imported
costly nuclear reactors under one pretext or the other
 Avoid large installed capacity at one location from safety
considerations

21.  Solar Target of 100,000 MW is very ambitious. To
achieve such a target single window fast clearance of
projects is essential: FDI is also necessary
 Realistic energy mix of solar with other thermal, hydro,
nuclear and gas sources, need to be established based
on studies of day time loads and evening peaks
 To start with govt. needs to direct electricity consumers
that certain percentage say 20 % of their day time
energy consumption to be generated from solar

22.  Considering 300 million population without access to electricity,
decentralized mini solar projects for rural areas are required to
be provided as per policy .
 Local manufacturers of Solar PV panels need to be provided
essential support to guard against imported cheap equipment.
Finance at low interest rates is required. The quality of local
manufacture of PV Panels and other equipment should not go
down due to reverse bidding process.

23.  National Biomass mission should be established by NEC to give
boost to use of Biomass.
 Substitute current energy inefficient activities with efficient ones
e.g. Rail Transport instead of road Transport.
 Pricing of Energy to reflect actual cost ,including environmental
cost.
 “cost-plus” pricing need to changeover to efficiency-based
pricing of power.

24.  Monitoring of energy conservation needs to be increased.
 More importance to be given to “quality of power” .
 Ideally there should be no subsidies. But if must should be given
by govt direct to identified section of consumers .
 Preventing monopolies and promoting competition. To separate
wire business in electricity distribution.