Index

Introduction

Present scenario

NEP

Need

Challenges

Executive summary

Need for NEP

Present concerns

Suggestions for policy

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

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

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!

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!

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!

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!

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

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.

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.

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

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

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?

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?

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?

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

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

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.

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

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

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.

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.

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.